Federal Employees Benefits New Insurance and Benevolent Fund Bill 2024

The National Assembly of Pakistan has introduced a significant amendment to modernize the Federal Employees Benevolent Fund Bill 2024 and Group Insurance Act of 1969, marking a transformative shift in employee benefits.

Amendments and Provisions

Legal Framework
The Federal Employees Benevolent Fund and Group Insurance (Amendment) Bill, 2024 introduces crucial modifications to the original 1969 Act, with immediate implementation upon enactment.

Enhanced Death Benefits
A new subsection (6) has been added to Section 13, ensuring that families of employees who pass away after the Act’s commencement will receive a prescribed lump sum grant from the benevolent fund.

Retirement Benefits Reform
The amendment restructures Section 18 by introducing a groundbreaking provision: employees will now receive their full sum assured upon retirement, addressing a long-standing gap in the benefits structure.

Impact and Significance

Financial Security
The amendment transforms the benefits structure from a death-only benefit to a comprehensive retirement security package. This change acknowledges the regular premium contributions made by employees throughout their service.

Employee Welfare
The reform addresses the previous inequity where employees could only benefit from these schemes in case of death during service, despite years of premium payments. The new provisions ensure that employees receive their rightful benefits during their lifetime.

Implementation Framework

Premium Collection
The government maintains its responsibility for insurance and benevolent fund premium payments, with deductions typically made at source from employee salaries.

Benefit Distribution
The amendment establishes a clear framework for benefit distribution:

• Lump sum grant for deceased employees’ families
• Assured sum payment upon retirement
• Streamlined process for benefit disbursement

Strategic Importance

This legislative update represents a significant step toward ensuring fair treatment of federal employees, acknowledging their financial contributions throughout their service years. The amendment aligns with modern employee welfare practices and provides enhanced financial security for government servants.

The bill demonstrates Pakistan’s commitment to improving public sector employment benefits, ensuring that employees receive tangible returns on their long-term financial investments in these schemes.