In order to meet another significant condition imposed by the International Monetary Fund (IMF), the government has decided to implement a new voluntary pension program beginning July 1.
According to government sources, the voluntary pension scheme is intended to reduce the strain of large government pensions while also streamlining the pension system. Any new employees will be employed under the voluntary pension scheme, which replaces the old government pension system.
The Securities and Exchange Commission of Pakistan (SECP) has established a complete strategy for new government recruitment, according to Ministry of Finance sources acquainted with the topic.
“New government employees will receive a voluntary pension instead of the government program.If existing staff agree, they can be transferred to the new system,” the sources said.
In contrast to the existing Provident Fund or gratuity facilities available in the private sector, the new pension scheme is intended to provide government employees with a consistent, regular income upon retirement. The SECP has recommended implementing a pension program in both the public and commercial sectors to provide financial stability for employees during their retirement years.
According to sources, the optional pension program will allow employees to keep their pension benefits even if they change jobs, assuring continued financial support after retirement. The SECP has advised that the private sector only provide a voluntary pension program.
