SECP, Financial Experts Emphasize Need For Spreading Awareness About Voluntary Pension System In KP

Speakers at a conference organized by the Security and Exchange Commission of Pakistan (SECP) here Wednesday underlined the need for spreading awareness among masses, government and semi government employees about significance of the Voluntary Pension Scheme (VPS) introduced in Khyber Pakhtunkhwa last year

PESHAWAR, (UrduPoint / Pakistan Point News - 22nd Nov, 2023) Speakers at a conference organized by the Security and Exchange Commission of Pakistan (SECP) here Wednesday underlined the need for spreading awareness among masses, government and semi government employees about significance of the Voluntary Pension Scheme (VPS) introduced in Khyber Pakhtunkhwa last year.

The day long conference on 'KP pension reforms--leading the way forward" was addressed besides others by Chairman SECP Akif Saeed, Secretary Finance KP Govt, Amir Sultan Tareen, Senior Member Board of Revenue Ikramullah Khan, Commissioner SECP Mujtaba Lodhi, Chief Executive Officer Mutual Funds Association of Pakistan (MUFAP) Mashooma Zehra Majeed and representatives of 12 Funds companies including National Bank of Pakistan funds, Muslim Comercial Bank, United Bank Limited, Al Habib Bank, Al-Falah Bank, Habib Bank Limited, JS Islamic Pension Fund, Faisal Bank, Allied Bank, Altas Islamic pension fun and National Investment Trust funds.

Secretary Finance KP, Amir Sultan Tareen said that KP government had successfully transformed its pension landscape from conventional defined benefit pensions to a futuristic voluntary pension scheme (contributory provident fund) based on defined contribution framework for its civil servants having an attractive financial packages.

He said the contribuatory provident fund has been launched from June last year for newly recruited civil servants of Khyber Pakthunkhwa after enforcement of Civil Servants Act 2022 and gradually it would be extended to other public sector organizations keeping in view of its immense utility for employees of KP government for a financially secure and worry free retirement.

Amir Sultan Tareen said that the KP CP Fund Rules 2022 were introduced and now every employee had the right to select any of the above pensions fund management company of his choice and make investment in it either through conventional or shariah scheme.

In case of any conflict, VPS rules 2005 will over-ride KP CP Fund rules 2022, he added.

Under VPS, the KP government would contribute 12pc of pensionable pay while employees to contribute at least 10pc of pensionable pay besides tax saving up to 20pc of annual tax liability. Under the scheme, the employees could get pension after retirement and in case of death, their family members could avail the facility without any problem. The employees can switch to any of the above pension funds. He said accounts of employees would be updated in 45 days while awareness campaign was being launched for assistance of employees, he told.

Akif Saeed, Chairman, SECP said that the VPS was very significant for employees of Khyber Pakthunkhwa government and underlined the need for awareness campaign through electronic, print and social media about its utality and reforms in the pension system.

He suggested formation of a high level committee to oversees implementation of pension reforms on quarterly basis.

Akif Saeed said that SECP was ready to provide all possible support to KP government in pension reforms.

The other speakers said that premature withdrawal of amount from CP funds would be nonproductive for employees, adding withdrawal amounts could be resubmitted at earliest for availing full benefits.

They said that the VPS was available both in conventional and sharia for pensioners under VPS.

Presently, 33000, civil servants were being benefited from VPS in KP that would be gradually extended to public sector universities and colleges besides semi Government organizations, they expressed.

APP/fam