Pakistan’s pension system was in dire need of new laws. The existing pension rules generated a considerable gap in the pension scheme which resulted in hindering the developmental works. However, the Punjab government has introduced new pension, retirement, and recruitment rules which will be narrowing down the pension irregularities.
Pension Reforms Meeting
A meeting was held on Pension reforms. The meeting was presided by Makhdoom Hashim Jawan Bakht, the Finance Minister of Pakistan. Besides the Finance Minister, General Manager Pension Fund Syed Shahnawaz Nadir Shah, Punjab Finance Secretary Iftikhar Amjad, Sub National Governance Program, and other people from Finance Department also attended the meeting.
The meeting’s main purpose was to bring in line the pension scheme and to set the recruitment rules according to the new pension and retirement rules. The rules are said to be devised using the contribution model. The new rules would be applied to all future employees.
Syed Shahnawaz Nadir Shah, General Manager Pension Fund said “For new recruits, employees’ pensions will depend on their accumulated balance. Similarly, a fund will be set up in partnership with the Punjab government and government employees for the payment of monthly pension in the new pension scheme and a large portion of the partnership fund will be paid by the government.”
Makhdoom Hashim, the provincial Finance Minister said “The new rules will also play an important role in bridging the gaps in the existing pension scheme. The prevailing pension scheme is causing a steady increase in the burden on the provincial budget and rising pension costs are affecting the health, education and social sectors.” He further added “It is necessary to review the existing pension system for providing necessities of life to the people and for development works. According to the new rules, the pay scales of government employees will also be reviewed.”
New Pension, Retirement and Recruitment Rules
- As per the new rules, government employees can’t leave their jobs before 55 years of age or 25 years of service.
- No employment limit is fixed in regards to the recruits.
- Employees with less than 10 years of service would not be provided any pension incentives.
- Recruits’ pension scheme will depend on their accumulated balance.
For the new pension scheme, the government employees and the Punjab government will set up a fund for the payment of monthly pension. Moreover, the government is expected to pay a large part of the payment. The new pension scheme will curb the imbalances in pensions which will raise prospects for the development and investments in other sectors.