The Punjab government has introduced a new pension policy that requires both government employees and the government itself to contribute to a dedicated pension fund.
This move comes after improvements to the Pension Rules, with the Punjab Finance Department officially notifying the implementation of the Contribution Pension Scheme across the province. The scheme has been put into effect immediately.
Under this new system, employees hired after 2024, in line with the Punjab Civil Servants Amendment Ordinance 2023, will contribute a fixed percentage of their salary to the pension fund each month.
In turn, the government will match their contribution, creating a shared financial responsibility.
To ensure the fund remains financially stable, it will be managed by a professional fund manager, with investments strategically planned for long-term sustainability.
Employees will have the option to choose between a conventional pension fund or a Sharia-compliant alternative.
Upon retirement, individuals can either choose a monthly pension or withdraw their accumulated savings, depending on the terms of the scheme.
The Punjab Pension Fund and the Punjab Accountant General will be responsible for overseeing the scheme’s operations, ensuring proper management and transparency of contributions.