Govt executes agreements with pension fund managers
• 16 companies to establish separate pension funds, ensure death and disability risk cover for employees • Centre to establish non-banking finance company to assist in implementation, monitoring of pension scheme ISLAMABAD: The government has executed agreements with 16 pension fund managers to formally operationalise the Defined Contribution Pension Fund Scheme (DCPFS) launched a year ago for…
The government has finalized agreements with 16 pension fund managers to officially launch the Defined Contribution Pension Fund Scheme (DCPFS) for public sector employees, as part of extensive pension reforms. The majority of these fund managers are banks and insurance companies, including prominent names such as ABL Asset Management Company, Al Habib Asset Management, and EFU Life Assurance.
The government will oversee the creation of a Non-Banking Finance Company (NBFC) to help implement and monitor the pension scheme until a dedicated NBFC is established. Employees are prohibited from withdrawing funds before retirement, with only 25% of accumulated funds allowed to be withdrawn at retirement, to be invested according to the Voluntary Pension System Rules.
The government and employees will contribute 22% of pensionable pay, replacing the previous 20% contributed by the government, in an effort to address the growing pension liabilities.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
