The Securities and Exchange Commission of Pakistan (SECP) has granted permission to a life insurance coverage firm particularly the Postal Life Insurance Company Limited to handle non-public pension funds below the Voluntary Pension System (VPS).
ISLAMABAD, (UrduPoint / Pakistan Point News – seventeenth Nov, 2021 ) :The Securities and Exchange Commission of Pakistan (SECP) has granted permission to a life insurance coverage company particularly the Postal Life Insurance Company Limited to handle non-public pension funds below the Voluntary Pension System (VPS).
Private pension funds below the VPS are regulated by the SECP by way of VPS Rules, 2005, and are self-contributory, tax advantaged long-term saving schemes, whereby people can voluntarily contribute to a pension fund throughout their working life to have an everyday earnings after retirement. The employer may also contribute on behalf of their workers, stated a press launch issued right here.
Considering the necessity and significance of personal pensions in Pakistan‘s context, the SECP has undertaken varied regulatory reforms for the event of this sector.
This contains revamping the funding framework and elevating consciousness of the necessity for personal pensions, particularly in case of personal sector staff.
This has translated right into a year-on-year development of 27% in asset below administration from Rs. 31.4 billion to Rs. 39.7 billion as of June 30, 2021 and the now inclusion of first life insurance coverage company to undertake pension fund administration companies.
The SECP goals to proceed its reform agenda for the event of the non-public pension and annuity market in Pakistan. It is presently engaged on the event of annuity regulatory framework for the asset administration sector and bringing structural reforms in VPS in step with 401(Ok) plan of the United States.
The SECP can be engaged with the Mutual Fund Association of Pakistan (MUFAP), skilled associations and different stakeholders to corroborate efforts for rising consciousness of VPS.