Punjab Introduces Innovative Pension Scheme: Government and Employees to Contribute

LAHORE, Governor Punjab Balighur Rahman has issued the Civil Servants Amendment Ordinance 2023, bringing a pivotal change to the pension system for government employees. The amendment, made under clause (01) of Article 128 of the Constitution, marks a shift towards a contribution pension scheme.

Under this novel scheme, both the government and government employees will actively contribute to a dedicated pension account. The contributed amount will be strategically invested in a pension fund throughout the government employee's service tenure. Upon retirement, the accumulated funds in the pension fund will be reinvested to ensure the disbursement of a monthly pension to the retired government employee.

The defined contribution pension scheme is set to apply to government employees recruited on or after the date of the ordinance's promulgation. This groundbreaking approach aims to foster a sustainable and participatory pension system, ensuring financial security for government employees during their retirement years.