The Sindh Government has rolled out the Defined Contribution Pension Scheme (DCPS), 2024, bringing a fresh approach to pensions for civil servants. Officially approved by the Sindh Cabinet on September 14, 2024, this scheme covers new government employees appointed from July 1, 2024. The Sindh Civil Servants (Amendment) Act, 2024, officially sealed this change, introducing a different structure for pension contributions.
Under the DCPS, both employees and the government will chip in. Employees contribute 10% of their basic pay, while the Sindh Government adds 12% on top, setting a new financial routine for pensions. These contribution percentages are flexible and may see adjustments down the line. This contribution-based model marks a shift from traditional pension setups, where the government fully bore the financial weight.
Details on the scheme’s implementation and specific rules are still in the pipeline. A separate notification under the Sindh Civil Servants (Defined Contribution Pension Scheme) Rules, 2024, will be issued to guide new civil servants and clarify any points of confusion.
By creating a shared contribution model, the Sindh Government aims to ensure a sustainable pension fund that evolves with time. As this scheme takes root, it represents a significant step in financial planning for public servants across Sindh, paving the way for a more balanced future in public sector pensions.
, 2024, bringing a fresh approach to pensions for civil servants. Officially approved by the Sindh Cabinet on September 14, 2024, this scheme covers new government employees appointed from July 1, 2024. The Sindh Civil Servants (Amendment) Act, 2024, officially sealed this change, introducing a different structure for pension contributions.){kind=link}