Islamabad : Senator Samina Mumtaz Zehri presented a bill in the Senate on Monday to amend the Federal Employees Benevolent Fund and Group Insurance Act 1969 ( II of 1969) and it was referred to the committee for threadbare dele aerations before its debated and voted in the house.
The bull if sailed through the procedure and finally endorsed by the upper house and it stands passed and translated into act it will bring great relief to the Federal government employees on their retirement.
The proposed bills said WHEREAS it is expedient further to amend the Federal Employees Benevolent Fund and Group Insurance Act, 1969 (II of 1969), for the purposes hereinafter appearing;
It is hereby enacted as follows: –
1.Short title and commencement. – (1) This Act shall be called the Federal Employees Benevolent Fund and Group Insurance (Amendment) Act, 2026.
(2) It shall come into force at once.
2. Amendment of section 13, Act II of 1969.- In the Federal Employees Benevolent Fund and Group Insurance Act, 1969 (II of 1969), hereinafter referred to as the said Act, in section 13, after sub-section (5), the following new sub-section (6), shall be added, namely: –
“(6) Where, on or after commencement of the Federal Employees Benevolent Fund and Group Insurance (Amendment) Act, 2026, an employee retires, he shall be entitled to receive such lump sum grant from the benevolent fund as may be prescribed.”
3.Amendment of section 18, Act II of 1969.- In the said Act, in section 18, the existing sub-section (1) and (2) shall be renumbered as sub-section (2) and (3) and the following new sub-section (1) shall be inserted, namely: –
“(1) On the retirement of an employee, the sum assured shall be paid to him.”
STATEMENT OF OBJECTS AND REASONS given for proposed amendment in the bill said
employees of federal government are liable to pay to the insurance and benevolent fund such sum of money as may be prescribed as premium for the insurance and benevolent fund. The amount of such premium is as far as possible deducted at the source from the pay of employee and credited or remitted to the insurance and benevolent fund. It has been noticed that despite paying in the aforesaid heads, an employee can only be benefited from such insurance in particular, if he dies during the service. This is unjust, keeping in mind that an employee pays, year after year, under the aforesaid heads, and he is denied at his retirement to the benefits of Benevolent Fund and Insurance. Therefore, there is need to amend the law and make mandatory for the Government to make arrangements for paying due share of Benevolent Fund and Insurance to the employees at the time of their retirement.
