Govt executes agreements with pension fund managers

Get the latest news and updates from Dawn

• 16 companies to establish separate pension funds, ensure death and disability risk cover for employees

• Centre to establish non-banking finance company to assist in implementation, monitoring of pension scheme

ISLAMABAD: The government has executed agreements with 16 pension fund managers to formally operationalise the Defined Contribution Pension Fund Scheme (DCPFS) launched a year ago for public sector employees as part of major pension reforms aimed at containing the snowballing pension burden on the budget.

In an announcement, the Ministry of Finance said it had executed agreements with 16 eligible pension fund managers, most of them banks and insurance companies. Around 10 of these eligible fund managers are owned or led by major commercial banks in the country.