Voluntary Pension System Rules, 2005
Voluntary Pension System (VPS) Rules, 2005 were promulgated by the Federal Government in exercise of the powers conferred by section 282B of the Companies Ordinance, 1984 (XLVII of 1984). The SECP notified VPS rules, 2005 allowing the asset management and insurance companies to get license for acting as pension fund manager. Under the VPS, life insurance companies would be authorized to offer annuity plans at the retirement age of the participants. All Pakistani nationals, over 18 years of age, having a valid National Tax Number (NTN) and who are not employed in any position entitling them to benefits under any approved occupational pension scheme shall be eligible to contribute to the pension funds authorized by the SECP. All Pakistani nationals, over 18 years of age, having a valid National Tax Number (NTN) and who are not employed in any position entitling them to benefits under any approved occupational pension scheme shall be eligible to contribute to the pension funds authorized by the SECP. At the age of retirement, i.e. between 60 and 70 years or earlier (in case a participant develops disabilities), the participants would be allowed to withdraw 25 per cent of the amount in their individual pension account and the remaining amount would be used to buy an annuity contract from a life insurance company of his choice.
