Government Launches Contributory Pension Fund Scheme
The federal government has unveiled a new Contributory Pension Fund Scheme, set to take effect for all civil employees of the federal government, including those paid from Defence Estimates, who are appointed on or after July 1, 2024.
According to an office memorandum issued on Tuesday by the Finance Division, this scheme will also extend to the Armed Forces for those appointed on or after July 1, 2025.
Under the scheme, contributions will be structured as follows:
– Employees will contribute 10 percent of their basic pay.
– The federal government will contribute 20 percent of the employees’ basic pay.
The Finance Ministry has noted that this contribution rate is provisional and may be adjusted in the future.
This initiative follows the Economic Coordination Committee (ECC) of the Cabinet’s principle approval in June for the establishment of the Pension Fund.
