AGP’s observations to be discussed in DAC meeting: Malfeasance worth Rs307.84bn detected in PCAA’s Pension Fund Trust

ISLAMABAD: Pakistan Civil Aviation Authority (PCAA) Saturday said the Auditor General of Pakistan’s observations regarding Pension Fund Trust would be discussed in the upcoming Departmental Accounts Committee (DAC) meeting scheduled in this month.

The Auditor General of Pakistan (AGP) reported financial irregularities in the investment of Pension Fund Trust of PCAA amounting to Rs307.84 billion in its audit report for the financial year 2022-2023.

According to officials, the CAA established Civil Aviation Authority Employees’ Pension Fund under an irrevocable trust with sole objective of provision of pension annuities to all eligible employees of CAA.

The Irrevocable Trust under the law is effectively considered as separate legal entity and safer form of management to protect the rights of beneficiaries.

“It is for the information of media in general and particularly for media platforms who reported on the subject that left audience wanting for more information,” the CAA said.

Under irrevocable trust, (a) trustees are appointed to manage assets according to the guidelines/trust deed of the trust approved by government authorities.

(b) grantor (employer) cannot modify, amend or terminate the irrevocable trust until the completion of objective without the permission of beneficiaries or by court order.

(c) grantor (employer) move assets from the grantors control and transferred all ownership rights of assets to the trust beneficiaries.

Second, in addition to employer’s contribution globally Pension Funds generate investment income via making profitable investment in compliance to the fund investment policy.

Likewise, the CAA Employees Pension Fund Investment Policy duly approved by Trustees of the CAA Employee Pension Fund Trust authorised investment of funds in a manner to primarily achieve three core objectives including safety of principal, maintenance of liquidity, and generating competitive rate of return through investment in risk averse fixed income instruments, the CAA further said.

Copyright Business Recorder, 2023