Draft amendments to pension rules notified ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified draft amendments to the Voluntary Pension System Rules 2005 to obtain public opinion.
The amended rules were issued in 2012 and the fresh amendments are being sought by the SECP aimed at requiring pension fund managers to remind participants about the approaching retirement age and inform them about the options available to them on retirement from the pension system.
Under the rules, a person has the option to retire between the age of 60 and 70 or after making 25 years of contribution to a pension fund, however, under the proposed amendments the participants will be able to transfer their pension and income payment account from one pension fund manager to another in 7 days, instead of a minimum of 21 days.
The amendments also envisage appointment of such companies as trustees of pension funds who have employed experienced and competent personnel and have necessary systems in place to operate as trustees.
A trustee company will also be required to get registered with the SECP to qualify for the job.
Currently there are 17 pension funds are operating the market with asset of more than Rs18bn.
The SECP official said that the private pension fund industry has been growing at a healthy rate during the past many years, and the proposed amendments have been devised but execute the pensions at a faster pace.
The official added that the government plans to develop the contributory pension schemes and has created very conducive conditions, including tax incentives for the participants.
The SECP will consider any comments on the proposed amendments by the public, industry participants and the employers within 15 days of the publication of this notification.