The Supreme Court of Pakistan has clarified an important legal point and declared that the pension of a retired employee cannot be considered an inherited asset. According to the court, it will be paid only to those persons who are deemed entitled by the law or service rules.
The decision headed by Chief Justice Yahya Afridi said that the purpose of pension is to provide financial security to the eligible person of the deceased employee, and not to distribute it among all the legal heirs.
The court clarified that the status of inheritance certificate or legal heir is not sufficient to get pension. If there is a widow or a nominee under the rules, then the payment will be made to him.
The decision was pronounced in the case of a retired employee of Peshawar Electric Supply Company (PESCO), where siblings claimed pension on the basis of inheritance. The Supreme Court rejected their appeal and upheld the decision of the Peshawar High Court.
In its decision, the court also directed the concerned institutions to always pay pension and retirement benefits as per the service rules and applicable laws to avoid such disputes in the future.
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