The Securities and Exchange Commission of Pakistan (SECP) has introduced details of the agreements to be signed between the employers’ pension fund and pension fund managers. The SECP has issued S.R.O. 936 (I)/2022 to amend the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
The minimum contents of the agreements between the employers and pension fund managers included the following :
- Name of the parties
- Introduction of the Pension Fund
- Seed capital to be invested/arranged
- Eligibility of employees to participate in the fund
- Contribution procedures; Redemption procedures
- Benefits on retirements
- Names / Designations of employer personnel/employer committee/employee representatives for liaising with the pension fund manager
- Rights of employer/employer committee/employee representatives to change Pension Fund Manager
- Events that may trigger a change of pension fund manager
- Modes of communication of instructions from the employer
- Frequency and mode of notification of net asset value of the units of each sub-fund to employers/employees/employer committee/employee representatives
- Performance measurement mechanism
- Investment parameters
- Allocation schemes
- Remuneration of the pension fund manager and confidentiality
Subject to the Companies Ordinance, 1984, the Companies Act, 2017, the Voluntary Pension System Rules, 2005 and other law applicable in this regard.
Pension Fund Managers are entitled to the maximum rate of management fee chargeable to the pension fund within the allowed expense ratio limit. They are also entitled to an accrued remuneration that has been verified by the trustee and paid in arrears every month.
The Actuarial Valuation Report in the case of Pension Annuity Fund contains the following information:. The basis on which actuarial data has been computed; actuarial methodology; mortality rates used as prescribed by the Pakistan Society of Actuaries, and morbidity rates used.