Punjab govt introduces new pension policy for employees

LAHORE: The provincial government of Punjab has introduced a new pension policy under which both government employees and the government will contribute to the pension fund.

The Punjab Finance Department has issued a notification to implement the Contribution Pension Scheme across the province after amending the Pension Rules, which will be applicable immediately. According to the new pension scheme, both the employee and the government will contribute to the pension fund on a monthly basis.

According to the notification, this new scheme will be applicable to employees recruited after 2024 under the Punjab Civil Servants Amendment Ordinance 2023. Under the new system, a fixed amount will be deducted from the employee’s salary and deposited in the pension account, while the government will pay an equal amount.

The accumulated pension funds will be invested by a qualified pension fund manager, ensuring financial stability. Employees will have the option to choose between a conventional or Sharia-compliant pension fund. After retirement, they will be able to receive monthly income from the pension fund or withdraw their savings under certain conditions.

The Punjab Pension Fund and the Punjab Accountant General will be responsible for monitoring and regulating the scheme to ensure transparency and efficiency.