Last Updated on September 29, 2025 by Galaxy World

As per two different news reports, I have made a comparison of the Old and New Pension Schemes for Employees in KPK and Sindh. These news items are totally contradictory to each other. It means one province is adopting the CP Fund Scheme and another province has rejected adopting the old pension scheme. The newspapers may have extracted their own meanings, but as per these news clips, the pensioners of one province are happy, while others are not. The details are as follows:

Old and New Pension Schemes for Employees in KPK VS Sindh

 

The details of these two newsclips are as follows:

 

KPK Government CP Fund Continued 

 

The salient features of Pension reforms in KP, as per the news clips, are as follows:

 

• The Old Pension System ended for new employees.
• New Scheme employees will now be part of the Contributory Pension Fund( CP Fund).
• Reason: The pension bill was getting unsustainable, so KPK shifted to a new contributory policy.
• Strict reforms and tougher fiscal controls are being introduced; complete relief will be visible by 2026-27.
• Impact: New workers won’t get continuance pensions, only benefits from the CP Fund.
• The employees will have to open their CP Fund Accounts; otherwise, the Government may stop their salaries.
• The department will take strict action against those who do not open their CP Fund accounts

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Sindh Government CP Fund Abolished (News – Not Reality)

 

• Old Pension System Continued, not abolished.
• Cabinet Decision Sindh Cabinet has re-approved the pension scheme under the Sindh Civil Servants Act 1973.
• New employees.,New hires after January 2024 are still entitled to pensions.
• Announcement Issued: The finance department announced that it would keep the pension system in place.
• Impact workers will continue to get traditional pensions after withdrawal, funded by the parochial government.

 

The Sindh Government has only withdrawn the Notification of the Defined Contribution Scheme Sindh vide Notification dated 17 Sep 2025. In this new Notification, the Notification dated 01-11-2024, in which the CP Fund shares, the Finance Department of Sindh, cancelled. In the Notification dated 01-11-2024, the Finance Department mentioned that the FD will issue separately the amendments, so they issued them later in 2025. However, the Sindh Government made major changes in the pension rules and introduced a new pension contribution Scheme, Rules 2025 Sindh. In these rules, the employee will have to deduct 10% while the Government will pay 12% thus a total of 22% CP Fund.