ISLAMABAD, Aug 6: The Security and Exchange Commission of Pakistan (SECP) has approved six pension funds under the voluntary pension system to promote and regulate development of private pension schemes and funds in the country.

The SECP proposed to allow the subscriber of a recognised provident fund to transfer funds to a voluntary pension fund so as to create linkages between these voluntary pension funds with the existing occupational savings schemes.

For this purpose amendment in Rules 103, 104, 105 and 106 of the Income Tax Rules, 2002 have been made through the new SRO issued on Wednesday.

A senior official of the SECP explained to Dawn that pension funds should be invested in stock market for which the newly-appointed economic advisory council was preparing recommendations.

However, he said that new voluntary pension system, under the VPS rules 2005, provides a comprehensive framework for the employed and self-employed individuals to contribute into a pension fund during their working life to provide regular income after retirement and enable them to maintain a reasonable standard of living at that stage. So this fund can be regarded as a saving plus investment vehicle