KP introduces reforms in pension system for safety of employees: Jhagra

PESHAWAR: Khyber Pakhtunkhwa Minister for Finance Taimur Saleem Jhagra Monday said that the provincial government was introducing a contributory pension system under reforms agenda to provide more security and safety to government employees.

In his official message, he clarified that the pension system was not being abolished rather it was being reformed, adding that pension was a bigger budget challenge which was less than Rs1 billion in 2005 and now it had crossed Rs 83 billion and if it continued to grow like this the province would have to choose between budget and salary payments soon.

The Minister said that under the reforms for the first time investment was being made from pension funds and an individual would be given a choice either to take pension at the end of the service or decide to get benefit from the investment. He said that there would be no risk for the pensioner as the employee could withdraw pension benefits even if they get retirement after 25 years of service.

He said that after approval of the proposed amendments to the Civil Servants Act by the provincial assembly, the contributory pension program would become part of the terms of Service of the civil servants and would not be implemented on the existing employees.