The Punjab government has introduced a new pension policy under which both government employees and the government will contribute to a pension fund.
The Punjab Finance Department has issued a notification after an amendment to the Pension Rules, implementing the Contribution Pension Scheme across the province, which will take immediate effect. As per the new pension scheme, both the employee and the government will contribute to the pension fund on a monthly basis.
According to the notification, this new scheme will be applicable to employees recruited after 2024 under the Punjab Civil Servants Amendment Ordinance 2023. Under the new system, a fixed amount will be deducted from an employee’s salary and deposited into a pension account, while the government will contribute an equal amount.
The accumulated pension funds will be invested through a qualified pension fund manager, ensuring financial sustainability. Employees will have the option to choose between a conventional or Sharia-compliant pension fund. Upon retirement, they will be able to receive a monthly income from the pension fund or withdraw their savings under specific conditions.
The Punjab Pension Fund and the Punjab Accountant General will be responsible for monitoring and regulating the scheme to ensure transparency and efficiency.
