ISLAMABAD: Postal Life Insurance Company Limited (PLICL) has been granted permission by the Securities and Exchange Commission of Pakistan (SECP) to manage private pension funds beneath the Voluntary Pension System (VPS).
PLICL is the primary life insurance coverage firm to be granted the permission by the SECP.
Private pension funds beneath the VPS are regulated by the SECP in accordance to the VPS Rules, 2005; they’re self-contributory, tax advantaged lengthy-time period financial savings schemes, whereby people can voluntarily contribute to a pension fund throughout their working life to have an everyday earnings after retirement.
The employer also can contribute on behalf of their workers.
Considering the necessity and significance of private pensions in Pakistan’s context, the SECP has undertaken varied regulatory reforms for the event of this sector.
These embrace revamping the funding framework and elevating consciousness of the necessity for private pensions, particularly in case of private sector employees.
This has translated right into a 12 months-on-12 months development of 27 per cent in asset beneath administration from Rs31.4 billion to Rs39.7bn as of June 30, 2021 and the inclusion of PLICL to undertake pension fund administration companies.
The SECP goals to proceed its reform agenda for the event of the private pension and annuity market in Pakistan.
It is at present engaged on the event of annuity regulatory framework for the asset administration sector and bringing structural reforms in VPS in step with 401(Okay) plan of the United States.
The SECP can be engaged with the Mutual Fund Association of Pakistan, skilled associations and different stakeholders to corroborate efforts for growing consciousness of VPS.
Published in Dawn, November 18th, 2021
https://www.daybreak.com/information/1658726
