Changes into pension rules proposed

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified draft amendments to the Voluntary Pension System Rules, 2005 to streamline pension funds market.

The proposed amendments allow appointment of such companies as trustees of pension funds who have employed experienced and competent personnel and have necessary systems in place to operate as trustees.

A trustee company will also be required to get registered with the SECP to qualify for the job.

Under the proposed regime the participants will be able to transfer their pension and income payment account from one pension fund manager to another in seven days.

It may be noted that at present 17 pension funds are operating in the market with asset of more than Rs18 billion.

The private pension fund industry has been growing at a healthy rate while the government is also keen to develop contributory pension schemes.