KP switches to new pension system

Securities and Exchange Commission of Pakistan (SECP) Chairman Akif Saeed on Wednesday formally launched the new pension system for the civil servants of Khyber Pakhtunkhwa (KP). Speaking at a ceremony to mark the implementation of the Voluntary Pension System (VPS) in Peshawar, Mr Saeed said that it was a significant step towards efficient management of the fiscal space for any government. The KP government initiated the process to shift its civil servants to this new pension system last November. The SECP chief said that the public sector has been burdened by the growing pension bills and the new scheme has been launched in collaboration with the Mutual Fund Association of Pakistan. The new system has been launched for those employees who have joined the government service in the province on or after June 7, 2022, and it is anticipated that around 33,000 civil servants will join the new pension regime. Mr Saeed said that the transition to the modern pension system is the need of the hour for all provincial and federal government departments to manage their financial resources.