The Pakistani government is following global trend in Contributory Pension Schemes and it shows shift from defined benefit to defined contribution plans as regulatory changes aim to enhance security and sustainability.
The federal government unveiled new contributory pension fund scheme for federal employees, as revealed in a recent memo from the Ministry of Finance.
This new pension scheme aimed to provide government workers with secure financial future by allowing them to contribute to their own retirement savings and receive a reliable income at the end of service.
What is eligibility for new Pension scheme?
| Category | Details |
|---|---|
| Federal Employees | Hired from July 1, 2024, onward |
| Civilian Employees | Salaries funded by the defense budget |
| Armed Forces Personnel | Recruited on a permanent basis from July 1, 2025 |
Permanent federal employees hired from July 1, 2024, onward will have long-term positions with federal agencies. Additionally, there are civilian employees whose salaries are funded by the defense budget, meaning they work in roles related to defense and security but are not part of the military.
Armed forces personnel recruited on a permanent basis starting July 1, 2025, will have long-term roles within the military. This distinction highlights the different employment types and funding sources within these sectors.
The initiative is said to benifiial for government employees, enhancing their financial security and stability. Also, the scheme is expected to reduce government’s long-term financial burden.
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