Islamabad: In order to fulfil another important condition set by International Monetary Fund (IMF), government has decided to roll out new voluntary pension scheme (VPS), slated to commence from July 1.

Sources within government revealed that introduction of voluntary pension scheme aims to alleviate burden of huge government pensions and streamline pension system. Any new human resources will be hired under voluntary pension scheme, transitioning from traditional government pension setup.

Comprehensive strategy has been devised for new government recruits by Securities and Exchange Commission of Pakistan, according to sources in Ministry of Finance familiar with matter.

“New government employees will get voluntary pension instead of government scheme. If existing employees also agree, they can be transferred to new scheme,” sources added.

New pension scheme is designed to provide constant, steady income to government employees upon retirement, unlike existing Provident Fund or gratuity facilities offered in private sector.

SECP has proposed implementation of pension scheme in both public and private sectors to ensure financial security for employees during their retirement years.

Sources disclosed that voluntary pension scheme will enable employees to maintain their pension benefits even in event of job change, ensuring continuous financial support post-retirement.

SECP has suggested private sector only offer voluntary pension scheme.  Currently, 43 pension funds are being set up across country, with approximately Rs 61 billion invested.

Published in The Daily National Courier, March, 06 2024

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