Khyber Pakhtunkhwa became the first province to abolish the monthly pension of government employees

News Today:  Khyber Pakhtunkhwa has become the first province to abolish the monthly pension of government employees.

According to the sources of the finance department, the provincial government has changed the existing pension system by amending the Khyber Pakhtunkhwa Civil Servant Act 1973 for pension reforms and introduced a new system.

The new scheme was applicable to all employees coming after June 2022 but was yet to be applied to the civil bureaucracy, but now it has been applied to new officers joining the provincial bureaucracy as well.

According to sources, employees recruited after June 2022 will not get monthly pension but a lump sum payment, for which there will be a regular separate bank account so that the exchequer is not burdened at the time of payment.

The provincial government has named the new pension system as contributory pension, in which a certain amount will be deducted from the employees every month according to their scale and the provincial government will make its own contribution.

Sources said the provincial government is opening a special pension bank account, from which the pensioners will be paid later.

According to sources, due to the large number of employees, the payment of pension was becoming a burden on the exchequer, while the new employees will be paid pension at the time of termination of service or at the time of leaving the service, which will be deducted from them on a monthly basis. .

The monthly CP fund will be deducted from the employees based on their basic pay scale and the same amount will be deposited by the government in the employee's pension, which will be paid to the employee as a lump sum at the end of the term.

Sources said that the money in the pension account will not be spent elsewhere and will also earn interest from the bank, which will pay the employees and not burden the exchequer.

Under the new system, the employees will also get interest-free loan facility so that they can do other work besides building a house before pension.