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Supreme Court verdict on deceased employee’s pension



The court observes that simply being a legal heir does not make the deceased employee’s brothers or sisters eligible to receive pension benefits

ISLAMABAD: (Urdu point/UrduPoint / Pakistan Point News-Auguat 1st, 2026) The Supreme Court of Pakistan has ruled that the widow of a deceased retired employee is legally entitled to receive the pension and related benefits, while siblings cannot claim such benefits merely on the basis of being legal heirs.

In its latest ruling concerning pension and post-retirement benefits, the apex court clarified that pensionary benefits of a deceased employee can be claimed by the widow or another person specifically entitled under the applicable law.

The court observed that simply being a legal heir does not make the deceased employee’s brothers or sisters eligible to receive pension benefits.

According to the four-page judgment, pension payments must be made strictly in accordance with the relevant laws, regulations and rules of the concerned institution.

The judgment, authored by Chief Justice of Pakistan Yahya Afridi, dismissed an appeal filed by the siblings of a deceased Peshawar Electric Power Company (PESCO) employee seeking issuance of a succession certificate for the pension benefits.

The Supreme Court upheld the decision of the Peshawar High Court, which had previously rejected their claim.

The ruling distinguishes between inheritance rights and entitlement to pensionary benefits, making it clear that pension does not automatically become payable to every legal heir of a deceased employee.

The court emphasised that entitlement to pension is governed by the specific legal framework applicable to the employee and the institution concerned.

The decision provides an important clarification regarding the distribution of pension benefits after the death of a retired employee, particularly in cases where family members seek to establish their entitlement through inheritance proceedings.

The Supreme Court’s ruling reinforces the principle that pensionary benefits must be transferred only to those individuals recognised as eligible under the relevant pension laws and institutional rules.





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