ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Wednesday introduced it had revamped the Voluntary Pension System (VPS) Rules, 2005, facilitating better pension penetration in Pakistan.
Private pension funds established underneath the VPS Rules are professionally managed savings-cum-investment automobiles that allow salaried and self-employed Pakistanis (together with non-resident Pakistanis) to contribute throughout their working life, to build up financial savings accessible after retirement.
“The reforms, whereas sustaining the pliability of individualised asset allocation, have launched quite a lot of measures together with simpler transferability between pension fund managers and funds, added flexibility to fund managers to allocate numerous bills throughout the whole permissible expense restrict, permitting pledging of pension account in opposition to employer mortgage and removing of SECP’s prior approval for VPS ads,” the fee stated in its assertion. Furthermore, it added that with a purpose to streamline changes in necessities over time, issues associated to pricing, obligations and efficiency of pension funds had been shifted from Voluntary Pension System Rules to the Non-Bank Finance Companies Regulations, 2008.
