ECC okays establishment of pension fund

ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet approved the establishment of a pension fund for retired employees, ARY News reported.

Finance Minister Muhammad Aurangzeb chaired the ECC that also okayed the proposal to introduce a Defined Contributory Scheme for new entrants. The scheme will apply to civilian employees from July 1, 2024, and to military personnel from July 1, 2025.

Additionally, the ECC approved the summary of the Ministry of Information Technology & Telecommunication to return Rs. 11.13 billion to the Universal Service Fund (USF) to meet the budget shortfall.

Meanwhile, the ECC also approved Rs. 4,228.429 million to the Federal Board of Revenue (FBR) for clearing the liabilities of foreign-funded projects of FBR.

The committee approved the request of the Ministry of Railways for additional funds and allowed grant of Rs. 2 billion to clear pending liabilities.

An amount of Rs. 7.987 billion was also approved to the Planning Commission for clearance of liabilities for the 7th Population & Housing Census.

Another summary of Finance Division to launch the “Risk Coverage Scheme for SMEs” was also approved with the direction to monitor and evaluate the scheme on quarterly basis.

The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Planning Development & Special Initiatives Mr. Ahsan Iqbal, Minister of State for Finance & Revenue Mr. Ali Pervez Malik, Governor SBP, Dy Chairman Planning Commission, Federal Secretaries, and other senior officers of the relevant ministries.

Read More: Important news for pensioners

Earlier, in a move to relieve the burden on the national exchequer, the federal government proposed 13 amendments to the pension scheme as part of the Budget 2024, ARY News reported on Thursday.

A copy of the proposed amendments to the Government Employees Pension Scheme has emerged according to which the workers will receive a gross pension equivalent to 70 percent of their salary from two years before retirement.

The amendments introduce provisions for voluntary retirement after 25 years of service, offering employees the opportunity to retire earlier than previously allowed.

This option includes a graduated scale for annual deductions from the pension amount, ranging from 3 percent to 20 percent, until the age of 60.