SECP proposes reforms to pension system rules

News Image

MG News | June 13, 2025 at 04:14 PM GMT+05:00

0:00

June 13, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a Consultation Paper proposing amendments to the Voluntary Pension System (VPS) Rules, 2005, aimed at enhancing access and efficiency in Pakistan’s pension framework.

The key proposal is to allow Employer Pension Funds (EPFs) to serve multiple employers under a common fund structure, as per the press release issued today.

This change would enable pension fund managers to pool contributions from various employers, improving cost-efficiency through economies of scale and allowing small and medium-sized enterprises (SMEs) to offer retirement benefits without setting up separate funds.

Beyond previous amendments in VPS Rules, 2005 in February 2024, certain structural limitations continued to restrict the scalability and broader market adoption.

The structure restricted each fund to a specific employer, limiting scalability and creating cost inefficiencies, particularly for smaller employers.

Subsequently, the SECP initiated an impact analysis to assess the efficacy of the VPS Rules in addressing the evolving dynamics of retirement savings.

Various areas of improvement have been resultantly identified to provide operational efficiency, broader pension coverage and to reduce entry barriers for employer participation.

The proposed draft amendments aim to align the regulatory framework more closely with international best practices, eliminate interpretational ambiguities, and foster a stronger culture of retirement savings in Pakistan.

The consultation paper is open for public comments for 15 days from the date of publication.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25


July 11, 2025 at 04:19 PM GMT+05:00

Ideal Spinning Mills to exit spinning business



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg