Islamabad: (RightNow) The federal government has announced the appointment of 16 qualified pension fund managers for the implementation of the Defined Contribution Pension Fund Scheme-2024. This initiative aims to activate a contributory pension system for newly recruited federal employees.

According to the Ministry of Finance, these pension fund managers have completed formal agreements with the federal government. They are now eligible to manage contributions under the pension fund scheme.

Under this new system, federal employees will contribute a monthly pension amount, and the government will also make contributions. This reform is considered a significant change in the country’s pension structure.

It is important to note that the government introduced the Federal Government Defined Contribution Pension Fund Rules 2024, replacing the traditional pension system with a contributory model.

The government will contribute 12% of the employee’s pensionable salary, while the employee will contribute 10% to the fund. This amount will be invested in projects, and the pension fund will be based on the returns.