2024-07-10 15:08:07
(Web Desk) Khyber Pakhtunkhwa government has implemented a new scheme after amending the Civil Servant Act to reform the pension system, under which the monthly pension system has been abolished, the official notification of this scheme has also been issued. Is.
The new pension system is applicable to all employees hired after June 2022 but is yet to be implemented for the civil bureaucracy.
The program has also been extended to new officers joining the provincial bureaucracy, making Khyber Pakhtunkhwa the first province to abolish traditional pensions for civil servants.
Under this new scheme, the old monthly pension system has been abolished. Employees recruited after June 2022 will no longer get monthly pension but will be paid lump sum after retirement.
A separate bank account will be established for the management of these funds to ensure that the exchequer is not burdened at the time of payment.
This new pension system has been named “Contributory Pension System”, in which monthly deductions are made from the salaries of the employees based on their pay scale, the provincial government will contribute equally.
Sources in the provincial finance department say that a special pension bank account will be opened for payment of pension. Due to the large number of employees, the erstwhile pension system became a significant financial burden on the exchequer, affecting development projects.
Khyber Pakhtunkhwa Finance Department says that new employees will get their pension in lump sum at the end of their service. The monthly contribution to the pension fund will be on the scale of basic pay of the employees, with a matching contribution from the government. The money in the pension account will accumulate interest, which will be paid to the employees, thus there will be no pressure on the exchequer.
According to the provincial finance department, the federal government is also considering adopting a similar pension system, which will establish a uniform pension system across the country.
2024-07-10 15:08:07