Punjab Introduces New Pension Policy for Government Employees

The Punjab government has launched a new pension policy, requiring both government employees and the government to contribute to a pension fund.

This initiative follows an amendment to the Pension Rules, with the Punjab Finance Department issuing a notification to implement the Contribution Pension Scheme across the province. The scheme takes effect immediately.

Under this scheme, employees hired after 2024, as per the Punjab Civil Servants Amendment Ordinance 2023, will contribute a fixed portion of their salary to the pension fund every month. The government will match this contribution, ensuring shared responsibility.

To maintain the fund’s financial health, the pension funds will be managed by a qualified fund manager, with investment strategies aimed at long-term sustainability. Employees will have the choice of opting for a conventional pension fund or a Sharia-compliant option.

Upon retirement employees can either receive a monthly pension or withdraw their accumulated savings, subject to the scheme’s terms.

The Punjab Pension Fund and the Punjab Accountant General will oversee the scheme’s operations, ensuring transparency and efficient management of contributions.