Offering document: Employers, pension fund managers to disclose retirement age of employees

ISLAMABAD: The employers and pension fund managers would disclose retirement age of employees in the offering document under the employer pension fund schemes.

According to the amended Voluntary Pension System Rules, 2005 issued by the Securities and Exchange Commission of Pakistan (SECP), in case of employer pension funds, the retirement age shall be as per the agreement between employer and pension fund manager and shall be disclosed in the offering document.

The individuals over the age of 18 years, who have a valid National Tax Number or a Computerized National Identity Card (CNIC) or National Identity Card for Overseas Pakistanis (NICOP) or Pakistan Origin Card (POC) shall be eligible to contribute to the pension funds.

The updated Voluntary Pension System Rules, 2005 further revealed that in case of employer pension funds, the employees of a particular employer shall be eligible to contribute to the respective employer pension fund during employment.

In case of employer pension funds, the maximum withdrawable amount may be specified as per the agreement between employer and pension fund manager and the same shall be disclosed in the offering document.

A participant at any time before retirement shall be entitled to redeem the total or part of the units of the sub-funds to his credit in the individual pension account subject to the conditions laid down in the Income Tax Ordinance, 2001, from time to time.

In case of employer pension funds, subject to the conditions laid down in the offering document as per the agreement between employer and pension fund manager. The withdrawals may be through single or multiple payments.

Copyright Business Recorder, 2024