The Pakistan government has rolled out the Federal Government Defined FGDC Contribution Pension Fund Scheme 2025, replacing the traditional pension system for new entrants. Under the new rules, federal employees appointed on or after July 1, 2024, will contribute 10pc of their pensionable pay, while the government will add 12pc, making the total contribution 22pc.
Introduction of New Contributory Pension Scheme Punjab
This scheme is part of wider fiscal reforms recommended by international lenders, including the World Bank, to reduce the country’s rising pension burden. Pension liabilities are projected to reach Rs1.055 trillion in FY2024-25, with the armed forces taking the largest share.
Applicability of the Contributory Pension Scheme
The contributory system applies immediately to civilian employees, including defence staff, while armed forces personnel will be included from July 2025. Existing employees will continue under the old defined benefit pension system.
Key Features of the Contributory Pension Scheme
- Employees contribute 10pc; government contributes 12pc.
- Funds to be managed by authorised Pension Fund Managers.
- No withdrawals before retirement.
- Retirees can withdraw up to 25pc of their balance; the rest must stay invested for at least 20 years or until age 80.
- Contributions and balances will be shown on salary slips.
- Mandatory death and disability insurance is included.
New Contributory Pension Scheme:
| Feature | Old Pension System (Defined Benefit) | New Contributory Pension Scheme (Defined Contribution) |
|---|---|---|
| Who Contributes | Only Government | Employee (10%) + Government (12%) |
| Total Contribution | None by employee | 22% of pensionable pay monthly |
| Applicability | All employees (before July 1, 2024) | Civilian employees from July 1, 2024; Armed Forces from July 1, 2025 |
| Pension Amount | Fixed benefit decided by govt | Based on accumulated fund + returns |
| Withdrawals Before Retirement | Not allowed | Not allowed |
| At Retirement | Lifetime pension from govt | 25% lump sum + 75% invested for pension annuity |
| Management | Govt pays directly from budget | Authorised Pension Fund Managers under MoF |
| Insurance | Not included | Mandatory death & disability insurance |
| Fiscal Impact | High & growing pension liabilities | Aims to reduce govt burden, ensure sustainability |
Financial Allocations
The government has earmarked Rs10bn for 2024-25 and Rs4.3bn for 2025-26 to support the fund. Contributions will be processed and transferred through the Accountant General’s office, ensuring proper record-keeping.
Pension Liabilities Outlook
Pension costs continue to climb sharply. Armed forces pensions are projected at Rs742bn in 2025-26, up from Rs563bn in 2023-24—a 32pc rise. Meanwhile, civilian pensions are budgeted at Rs243bn in 2024-25, reflecting only a moderate increase of 6.6pc.
Oversight and Management
To manage and monitor the scheme, the Ministry of Finance (MoF) will enter agreements with Pension Fund Managers and temporarily set up a Non-Banking Finance Company (NBFC) until a permanent structure is in place.
Contributory Pension Scheme
The new pension scheme marks a major shift from a defined benefit system to a defined contribution model, aiming to provide long-term sustainability for the government while offering structured retirement security for future employees.
Contributory Pension Scheme Calculator (Concept)
Inputs required from employee:
- Basic Pay (monthly)
- Years of Service (till retirement)
- Expected Annual Return (%) on Pension Fund Investments
Rules (from scheme):
- Employee contributes 10% of basic pay.
- Government contributes 12% of basic pay.
- Total = 22% of basic pay goes into pension fund every month.
- Withdrawals only at retirement: up to 25% lump sum, remainder invested for annuity.
Contributory Pension Scheme Calculator
Suppose:
- Basic Pay = Rs100,000
- Years of Service = 30 years
- Annual Return = 10%
- Monthly contribution:
- Employee = Rs10,000
- Govt = Rs12,000
- Total = Rs22,000 per month
- Yearly contribution:
= Rs264,000 - Future value after 30 years (with 10% annual return):
≈ Rs43 million (using compound interest formula).
At retirement, employee can withdraw:
- 25% lump sum = Rs10.75 million
- 75% (Rs32.25 million) locked into pension annuity plan.
Formula (For future Value)
[
FV = P \times \frac{(1 + r)^n – 1}{r}
]
Where:
- P = yearly contribution
- r = annual return rate
- n = years of service
What Is Contributory Pension Scheme In Urdu
کانٹری بیوٹری پنشن اسکیم کیا ہے؟
کانٹری بیوٹری پنشن اسکیم ایک نیا نظام ہے جس میں سرکاری ملازمین اور حکومت دونوں مل کر پنشن فنڈ میں حصہ ڈالتے ہیں۔ اس میں پنشن کی رقم صرف حکومت نہیں دیتی بلکہ ملازم بھی اپنی تنخواہ کا ایک حصہ جمع کرواتا ہے۔
بنیادی نکات
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ہر ملازم اپنی پنشن ایبل تنخواہ کا 10 فیصد جمع کرے گا۔
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حکومت اس کے بدلے ملازم کی تنخواہ کا 12 فیصد شامل کرے گی۔
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اس طرح کل 22 فیصد ہر ماہ پنشن فنڈ میں جمع ہوگا۔
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یہ اسکیم یکم جولائی 2024 کے بعد بھرتی ہونے والے سول ملازمین پر لاگو ہوگی۔
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فوجی اہلکاروں پر یہ اسکیم یکم جولائی 2025 سے لاگو ہوگی۔
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موجودہ ملازمین پر یہ لاگو نہیں ہوگی۔
ریٹائرمنٹ پر سہولتیں
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ملازم ریٹائرمنٹ کے وقت اپنے پنشن فنڈ کا 25 فیصد نقد رقم لے سکتا ہے۔
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باقی 75 فیصد رقم لازمی طور پر کم از کم 20 سال کے لیے یا 80 سال کی عمر تک پنشن فنڈ میں ہی رہے گی، تاکہ ماہانہ پنشن ملتی رہے۔
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ملازمین دوران سروس یہ رقم نہیں نکال سکتے۔
مقصد
یہ نظام حکومت کے بڑھتے ہوئے پنشن کے اخراجات کو قابو میں رکھنے کے لیے بنایا گیا ہے۔ اس سے مستقبل کے ملازمین کو پنشن کی بہتر سیکیورٹی ملے گی اور حکومت کے مالی بوجھ میں بھی کمی آئے گی۔
