The Pakistan Sports Board (PSB) has established a Contributory Pension Fund to address future pension liabilities and ensure a sustainable retirement system for its employees. The fund is expected to generate around Rs73 million annually, easing financial pressure on the board’s pension disbursement system.
The decision was made during the 34th PSB Board meeting, where members unanimously approved amendments to the board’s pension rules. Following the approval, Director General PSB Muhammad Yasir Pirzada formally issued a notification for the creation of the fund.
“The contributory pension fund is a long-overdue reform aimed at strengthening the financial foundation of the PSB and securing the future of our pensioners,” the DG PSB said in an official statement.
Under the new framework, serving employees and retired employees will each contribute 10% of their basic pay/pension, while pensioners aged above 72 will contribute 20%. The PSB will match this with a 20% contribution from its commercial/revenue account. The fund is expected to collect approximately Rs6.161 million per month, including Rs1.569 million from serving employees, Rs1.454 million from pensioners, and Rs3.138 million from the PSB’s own contribution.
The fund will be managed through a dedicated account jointly operated by two officers nominated by the Director General. Surplus funds may be invested in profit-generating schemes, further boosting the financial viability of the pension system.
Leave encashment restricted to one year
The board has also approved an amendment to Rule 88 of the PSB Service Rules, 2000, effectively capping leave encashment at 365 days for employees retiring, resigning, or deceased. Previously, employees could encash 50% of unused leave beyond 365 days, which imposed a significant financial strain on the board.
“This change is necessary to curb long-term liabilities and align PSB’s service structure with modern financial management practices,” DG Pirzada added.
The reforms come as part of broader efforts to modernize the board’s internal financial regulations and bring transparency and discipline to its human resource and pension systems.