New pension system introduces in Pakistan through Direct Credit System


ISLAMABAD – New pension system in Pakistan 2021 has announced by the Finance Department, Government of Pakistan and official notification issued to the The Governor, State Bank of Pakistan (SBP), Karachi and The Controller General of Accounts, FBC Building, Sector G-5/2, Islamabad which is publishing on 9th January, 2021 on

I am directed to refer to the Finance Division’s letter No.12(9)Reg,612012(pt)1453 dated 5th January 2016 regarding new pension system in Pakistan through DCS and to state that following clarifications are hereby made:

  1. The pension shall be paid to a pensioner through a bank account either current or PLS maintained in his own name.
  2. For payment of pension through bank account as mentioned at (I) above, a Joint account shall not be valid,
  3. Dedicated pension bank account shall not be mandatory for drawl of pension.
  4. The requirement of indemnity bond from a pensioner, as laid down in para 3(1) and 9(xii) of the Revised SOP 2014 Issued vide Finance Division’s letter No.12(9)Reg,612012-568, dated 14-07-2014 is discontinued.

New Pension System 2021 – Disbursement of Salary

It is highlighted that Finance Division vide letter No.F.9(3)R.6/2015-548 dated 28-09-2020 has already decided that no separate bank account is required for draw / disbursement of pension for all new retirees and that it may be ensured that the pensioner starts receiving pension payment on the date it falls due, in the same bank account, he or she was receiving the salary before retirement, if he or she, desires so.

It is pertinent to mention that after necessary amendments in the relevant rules, the Federal Government is going to launch a new pension system which would cater for all the requirements/documentations digitally to further facilitate the pensioners.

Federal Pension System 2021 – Best Features

Salient features of the system are as under:-

(a) A pensioner drawing pension under clause (Iii) of sub-rule(6) of Federal Treasury Rules shall be facilitated to undergo biometric verification from any branch of a bank maintaining his pension account, every year in the months of March and October, If the pensioner is unable to undergo biometric verification due to incapacitation by bodily illness, Infirmity or if his fingerprints do not exist due to old or a genetic condition, he will provide a life Certificate signed by a person authorized under rule 343 every six months.

(b) The declaration shall be obtained yearly from pensioners who pension is terminable by their marriage or remarriage and shall be attached to the pension bill paid in September instead of December and June.

(c) Further, submission of declaration regarding marriage or remarriage will be dispensed with after the widow or daughter of the pensioner attains the age of sixty years.

(d) If a person drawing pension fails to submit, a life certificate or falls to undergo biometric verification during the months of March and October or a pensioner does not draw pension for consecutive six months, the account shall become dormant.

Accordingly. it is requested that necessary instructions may please be issued to all the banks / concerned Accounts Offices in this regard to facilitate the pensioners.