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Supreme Court clarifies the scope of pension beneficiaries

Muhammad Ali (Web Desk Reporter) by Muhammad Ali (Web Desk Reporter)
August 2, 2026
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Islamabad: The Supreme Court of Pakistan has clarified in an important decision that the pension of a deceased retired government employee cannot be considered as general inherited property, but it will be paid only to those persons who have been declared legally entitled under the relevant laws or service rules.

In a four-page decision issued under the chairmanship of Chief Justice of Pakistan Yahya Afridi, the court said that pension is a legal and procedural right; therefore, its distribution will be in accordance with the relevant laws and institutional rules rather than the general principles of inheritance.

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In the decision, the court clarified that if, after the death of a retired employee, his widow or a person nominated as per the rules is present, then he will be entitled to a pension. The mere fact that a person is the legal heir of the deceased does not automatically entitle him to pension or related benefits.

The court said that siblings or other heirs cannot be declared eligible for a pension on the basis of an inheritance certificate or inheritance deed alone, as the procedure for payment of a pension is determined by the relevant service rules.

The decision was pronounced on an appeal filed after the death of a retired employee of Peshawar Electric Supply Company (PESCO). The petitioners’ siblings had claimed pension and other benefits on the basis of inheritance documents, but the Supreme Court did not agree with their position.

Dismissing the appeal, the court upheld the previous decision of the Peshawar High Court and directed that all matters related to pension and retirement benefits will be decided in accordance with the relevant laws, service rules and institutional regulations in future as well.

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