ISLAMABAD
Federal government has implemented Contributory Pension Scheme (CPS) for government employees.
Making a big change in pension new contribution pension fund scheme rules have been implemented under which pensioners will have to deposit 10 percent of their salary for their pension so that they could become entitled to receive 12 percent from national exchequer.
As per media report this process will take place under newly introduced contributory pension funds scheme rules. Total joint share are 22 percent which will replace old pension system for the employees who are joining as new employees.
Regulation department of ministry of finance has issued federal government defined contribution (FGDC) Pension fund scheme rules -2024 which have been framed under Public Finance Management Act -2019.
These rules will replace that order of August 2024 under which government share was fixed 20 percent.
New scheme will be applicable to those employees who are appointed from July 1, 2024 or after it. Civil defence employees are also included in it. This scheme will be applicable to army personnel from July 01, 2025.
This system will not be applicable to sitting employees but it has been implemented to curtail pension expenses in future.
Government as employer will deposit 12 percent of pensionable salary of employee through Accountant General office. It will monitor the process of keeping record and transferring funds.
The employees will deposit 10 percent share out of their salary on their own. Employees will not be entitled to withdraw their pension amount before their retirement.
Detailed information will be included in salary slip of the employees. The details of share of employee, employer and total deposited amount will be mentioned therein.
