Khyber Pakhtunkhwa’s (KP) Minister for Finance and Health Taimur Khan Jhagra has said that the provincial government’s move to introduce contributory pensions for new employees will help ease budgetary challenges and safeguard the pensions of government employees. Highlighting the reform in a tweet on Monday, he said that “pensions expenditure is the biggest single cost challenge facing the government of Khyber Pakhtunkhwa,” and the implementation of contributory pensions will help address it.Underlining the principle benefits of the move, Jhagra detailed that contributory pensions will accept contributions from employees and the government to constitute an individual’s pension fund, which will then be invested, with the individual assisting in the selection of the investment. He added that when an employee retires, they will have the option of withdrawing the pension or continuing to invest. Jhagra mentioned that the funding for employee pensions is secured “and there is no danger that employees’ pensions will be at risk. Also, it can mean that employees can withdraw pensionary benefits even if they retire before 25 years of service”.
Contributory pensions to ease KP’s budgetary challenges: Jhagra
Published on: February 22, 2022 4:45 AM