In a bid to alleviate the financial burden of government pensions, the federal government, meeting another IMF condition, is gearing up to launch a revamped pension scheme effective July 1.
According to official sources, all new government hires may be eligible for the revamped pension scheme, while pensions for existing government employees will continue to be funded through the budget.
The new pension scheme, formulated by the Securities and Exchange Commission (SEC), will replace the existing government pension with a more flexible and employee-friendly option for new hires. The federal government retains the option to transition existing employees into the new scheme based on their consent.
The Securities and Exchange Commission (SEC) has proposed the implementation of the new scheme across both public and private sectors. Private sector employees currently enjoy facilities such as Provident Fund or Gratuity, and the proposed scheme seeks to extend similar benefits to government employees.
Under the SEC’s recommendation, private sector employees will exclusively receive benefits under the revamped pension scheme. This scheme ensures that even in the event of changes in employment, employees will continue to enjoy pension benefits.
As of now, there are 43 pension funds operational in the country, with a combined capital investment of 61 billion rupees. These funds play a crucial role in sustaining the pension system and ensuring financial security for retired individuals.
The government’s move to introduce a new pension scheme aligns with IMF conditions, aiming to create a more sustainable and employee-friendly pension system while addressing economic reforms. This initiative is expected to have a positive impact on both government finances and the retirement security of employees.
