ISLAMABAD, (Pakistan Point News - APP - 24th August, 2016) : The Securities and Exchange Commission of Pakistan (SECP), as part of its investor education initiative, organized a seminar on voluntary pension system (VPS) at its head office on Wednesday for senior human resource professionals. In order to promote a culture of savings and investments and to facilitate a post-retirement income stream for individuals in a regulated environment, the SECP introduced the VPS rules in 2005, an SECP press statement said.
The VPS is a tax-advantaged, self-contributory pension scheme open to all adult Pakistanis with CNICs. Employed as well as self-employed individuals can voluntarily contribute to a pension fund during their working life for getting regular income after retirement. The VPS operates on a decentralized market-based approach, offering flexibility in terms of the contribution rates as well as investment choices to serve the investors' growing needs.
VPS is an SECP-regulated product and it offers a viable savings vehicle for investors and the public. The SECP safeguards the interests of contributors through a comprehensive regulatory framework. Furthermore, the industry plays an important role in ensuring an effective governance structure, sound risk management practices and well-placed internal controls. Protection of VPS contributors is essential for building the trust and confidence needed for a thriving VPS industry.
The SECP is keen to assist in the growth of this product so that the public can reap its benefits, leading to a positive contribution to the national economy The seminar was held in collaboration with SHRM Forum, the local chapter of the Society for Human Resource Management, USA. The guest speaker for the event was Asif Ali, regional head, North Institutional and Retail Investments. In addition, senior SECP officers were in attendance.
The seminar was especially designed for senior HR professionals and decision-makers to educate them about the product and demonstrate the potential benefits of VPS. About 45 individuals representing leading organizations attended the seminar. Speakers' presentations were highly interactive and led to discussions on product features, inherent benefits to the participating individual, how the product is regulated for investor protection, and how it may be used as a retention tool by employers. Participants found the session to be of high value and expressed the need for such sessions for raising awareness among the HR professionals. The event was followed by a lively question-answer session.