HomeBusinessKhyber Pakhtunkhwa becomes first province to abolish monthly pensions for government employees

Khyber Pakhtunkhwa becomes first province to abolish monthly pensions for government employees

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Khyber Pakhtunkhwa becomes first province to abolish monthly pensions for government employees

Khyber Pakhtunkhwa becomes first province to abolish monthly pension for government employees

According to sources in the Finance Ministry, the provincial government has changed the existing pension system by amending the Khyber Pakhtunkhwa Civil Service Act, 1973 for pension reform and introducing a new system.

This new scheme applies to all employees born after June 2022 but has not yet been applied to the civil service system. However, it is currently being applied to new officers joining the provincial civil service system as well.

According to the source, the employees selected after June 2022 will not receive a monthly pension, but a lump sum, which will be regularly kept in a separate bank account so that the Treasury officials do not have to bear the burden at the time of payment.

The provincial government has named the new pension system as a pension, in which a certain amount of money is deducted from employees each month based on their size, and the provincial government makes the contributions itself.

The source said the provincial government is opening a special pension bank account, where pensioners will receive the money later.

According to the source, due to the large number of employees, the payment of pensions has become the responsibility of the Ministry of Finance, while new employees will receive a pension upon termination or upon resignation, which will be deducted from them on a monthly basis.

The monthly CP fund is deducted from the employee based on the basic pay level and the government deposits the same amount into the employee’s pension, which is paid to the employee as a lump sum at the end of the term.

The source said the money in the pension account will not be used elsewhere and will earn interest from the bank, which will be paid to employees and will not burden the Treasury.

Under the new system, employees will be given interest-free loans to undertake work other than building houses before they receive their pensions.

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