ISLAMABAD: The Ministry of Finance has decided to procure actuarial services from qualified actuarial firms by June 30, 2020 to review and determine the responsibilities of the Federal Government’s Retirement Benefit Schemes.
The federal government has a fixed benefit (DB) pension scheme for all its government employees. In addition to post-retirement medical benefits, it also has a partner provident fund scheme. The scope of work for hired consulting firms includes information on pensions, general provident funds and federal government medical schemes applicable to both the civil and military service pension systems, whether contractual pensions. Funds or grants given to contract employees. The scope of work also includes policy options for a designated partnership pension scheme for government employees. The federal government employs about 1.36 million people in various positions. They are divided between the civilian government and the military. There are currently 1.8 million federal pensioners and the total pension bill is about Rs. 500 billion annually. Government employment in one form or another is a largely pensionable service.
The pension scheme is a benefit scheme for regular government employees and government employees. The federal government’s formal pension system is regulated by a number of laws, rules and regulations, such as the Civil Servants Act 1973 and the Civil Service Regulations (CSR) and other legal instruments. The government recently set up a Pay and Pension Commission in the Ministry of Finance to review the current compensation and pension system of the federal and provincial governments in order to eliminate any distortions and improve the system in the best possible way. Improvements by harmonizing. The Commission needs actuarial services to review the viability of the existing pension system and the possibility of creating an alternative pension system.