As Securities and Exchange Commission of Pakistan (SECP) is amending Voluntary Pension System (VPS) rules, SECP seeks feedback on amendments to facilitate growth of pension industry and to protect participants’ interests. VPS rules were notified in 2005 to provide a framework for building pensions by salaried as well as self-employed people.
Private pension funds were launched in June 2007, which have now grown to nine funds with more than Rs1.5 billion worth of assets. Through amendments, participants are being given a choice to shift their accumulated balance from one pension fund to another once in a year instead of waiting for the anniversary date. Notice period for change of fund or fund manager is being reduced from 30 days to 21 days.
