New pension scheme for federal govt employees introduced

ISLAMABAD: In a significant move, the government has launched a new contributory pension fund scheme for all federal government employees, as announced by the Ministry of Finance in a recent office memorandum.

The contributory pension fund scheme is designed to provide a secure and stable financial future for government employees, allowing them to contribute to their retirement fund and receive a steady income after retirement.

Eligibility Criteria for Pension Fund Scheme

• All permanent federal government employees hired from July 1, 2024, onwards will be facilitated under this scheme.
• Civilian employees who receive their salaries from the defense budget will also receive their pension under the scheme.
•  Armed forces personnel recruited permanently from July 1, 2025, onwards.

This move is expected to bring significant benefits to government employees, providing them with a sense of financial security and stability.

The scheme’s introduction is also expected to help reduce the financial burden on the government in the long run, as it will shift the pension liability from a defined benefit to a defined contribution system.

This move is seen as a step towards pension reform, aimed at ensuring the sustainability of the pension system and providing better benefits to government employees.