All newly hired government employees will be eligible for a voluntary pension system beginning July 1st, while existing government employees will get a pension from the official budget.
With the employees’ approval, the government might transfer them to a new pension scheme. The new pension programme has been prepared by Pakistan’s Securities Exchange Commission (SECP).
The SECP has also advised that the new method be implemented in both the government and the private sectors.
It stated that the private sector should only offer voluntary pension schemes to employees rather than providing Provident Funds or Gratuities. SECP contended that the Provident Fund or Gratuity does not provide regular income to employees upon retirement.
Employees’ pension benefits will be maintained under this programme even if their employment situation changes.
There are currently 43 pension funds in the country, with investments totaling more than 61 billion rupees.
Khyber Pakhtunkhwa was the first government to invest in pension funds two years ago, and 21 pension funds are already operational.
The Punjab government is considering establishing the Voluntary Pension Scheme to replace the existing traditional pension system, with the goal of reducing the financial load on the provincial budget, and has asked the SECP for assistance in implementation.
According to sources, the IMF has asked that Pakistan implement a voluntary pension programme to lessen the existing pension burden on the government.
According to Ministry of financial sources, the administration would include provisions for a voluntary pension programme in the financial bill.
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