The Securities and Exchange Commission of Pakistan has issued a consultation paper proposing amendments to the Voluntary Pension System Rules, 2005 to expand access and improve efficiency in the employer pension fund market. The central proposal would allow Employer Pension Funds to cover multiple employers through a common fund structure. Under the proposed approach, pension fund managers would be able to pool contributions from various employers, supporting economies of scale and reducing costs, including for small and medium-sized enterprises that may not be able to establish standalone funds. The SECP linked the proposal to persistent structural constraints following amendments made in February 2024, including the requirement that each fund be tied to a single employer, and said its impact analysis identified changes needed to improve operational efficiency, broaden pension coverage, reduce entry barriers, align with international best practices and remove interpretational ambiguities. Public comments are open for 15 days from the date of publication.
Securites & Exchange Commission of Pakistan 2025-06-13
Securities and Exchange Commission of Pakistan consults on Voluntary Pension System rule changes to let employer pension funds serve multiple employers
The Securities and Exchange Commission of Pakistan issued a consultation paper proposing amendments to the Voluntary Pension System Rules, 2005, to expand access and improve efficiency in the employer pension fund market. The proposal would allow Employer Pension Funds to cover multiple employers through a common fund structure, supporting economies of scale and reducing costs. The SECP identified changes needed to improve operational efficiency, broaden pension coverage, and align with international best practices.