PUNJAB PENSION FUND ACT, 2007
(Pb. Act I of 2007)
Short title, extent and commencement.
RESERVE AND PENSION
Composition of the Management Committee.
Qualifications for non-official Members.
Disqualification of Member.
Term of office.
POWERS AND FUNCTIONS OF
Powers and functions of the Management Committee.
14. Delegation of
15. Limitations on the
BUDGET, EXPENSES AND
16. Budget and accounts.
19. Public servant.
20. Prohibition of
21. Liability of the
22. Conflict of
Submission of annual report before the Assembly.
PUNJAB PENSION FUND ACT 2007
(Act I of
[29 March 2007]
An Act to provide for
the establishment of a Fund to generate revenue
for the discharge of
the pension liabilities of the Government.
Whereas it is expedient to establish a Fund to generate revenue for the
discharge of the pension liabilities of the Government and to make
provisions for matters ancillary thereto;
It is hereby enacted
1. Short title, extent
and commencement.– (1) This Act may be cited
as the Punjab Pension Fund Act 2007.
(2) It extends to
whole of the Province of the Punjab.
(3) It shall come
into force at once.
In this Act–
“Chairman” means the Chairman of the Management Committee;
“financial year” means the year starting from first day of July and ending
on 30th day of June of the succeeding year;]
means the Punjab Pension Fund;
“General Manager” means the General Manager of the Fund;
“Government” means the Government of the Punjab;
“Government bonds” include the bonds issued by or under the authority of the
Federal Government, a Provincial Government or by a body or entity owned or
controlled by the Government, a Provincial Government or the Federal
Government or a prescribed body or entity;]
“Management Committee” means the Punjab Pension Fund Management Committee;
“Member” means the Member of the Management Committee;
“prescribed” means prescribed by the rules made under this Act;
“Province” means the Province of the Punjab;
“regulations” means the regulations framed under this Act;
“Reserve Fund” means the Reserve Pension Fund created under section 3 of
means the rules made under this Act; and
“sub-committee” means the sub-committee of the Management Committee.
Reserve and Pension Funds
3. Reserve Fund.–
(1) The Government shall, by notification, create a Reserve Pension
Fund in the Public Account of the Province.
The amounts placed in the Reserve Fund by the Government shall form part of
the Public Account of the Province as defined in Article 118(2) of the
Constitution of Islamic Republic of Pakistan.]
Pension Fund.– (1) The Government shall, by
notification, establish the Punjab Pension Fund for proper management and
discharge of its pension liabilities.
(2) The Fund shall
be a body corporate with perpetual succession, common seal, power to enter
into contract and may sue or be sued by the said name.
(3) The Fund shall
perform such functions and exercise such powers with regard to the Reserve
Fund as vested in it under this Act and the rules made thereunder.
5. Management Committee.–
Government shall, by notification, establish a committee to be called the
Punjab Pension Fund Management Committee.
(2) The management
and administration of the Fund shall vest in the Management Committee.
(3) Subject to the
provisions of this Act and the rules, in the performance of its functions
and in exercise of its powers, the Management Committee shall act and be
bound by the directions of the Government.
6. Composition of the
Management Committee.– The Management
Committee shall consist of–
for Finance, Government of the Punjab;
Secretary, Government of the Punjab;
Chairman, Planning & Development Board, Member
Secretary, Government of the Punjab;
Secretary, Government of the Punjab,
Parliamentary Affairs &
Secretary (Services), Government of the Punjab,
General Administration Department;
Manager; and Member/Secretary
persons to be appointed by the Non-official
from the private sector. Members
Qualifications for non-official Members.– A person shall not be
appointed as non-official Member unless he has at least ten years experience
of banking, finance, accounting, asset management, fund management or unit
trust management and holds a sixteen years, equivalent or higher degree.]
The Government shall, by notification, appoint General Manager of the Fund
on such terms and conditions as it may determine.]
A person shall not be appointed as the General Manager unless he has at
least twelve years experience of management including at least three years
experience of investment banking, treasury operations, finance, asset
management, fund management or unit trust management and holds a sixteen
years, equivalent or higher degree.]
(3) Subject to the
provisions of this Act and the rules, the General Manager shall exercise
such powers and perform such functions as may be assigned to him by the
General Manager shall hold the office for a renewable term of
(5) The Government
may, after providing an opportunity of being heard, remove the General
Manager during the tenure of his office.
(6) The General
Manager may tender his resignation to the Government and shall cease to hold
office upon acceptance of his resignation.
Disqualification of Member.– Notwithstanding anything contained in
sections 6 and 7, a person shall be disqualified from being a Member who is
or has been–
of an offence of fraud or breach of trust or any other offence involving
as an un-discharged insolvent or has suspended payment of his debts or has
compounded with the creditors;
(c) a sponsor,
director, chief executive, or in the management of a defaulted cooperative
finance society or finance company;
(d) a director
or a major shareholder in a company that has overdue loans or investments
outstanding towards any financial or non-financial institution;
(e) removed or
dismissed from the service of
or convicted of any offence under the Securities and Exchange Ordinance,
1969 (XVII of 1969), the Companies Ordinance, 1984 (XLVII of 1984), the
Banking Companies Ordinance, 1962 (LVII of 1962) or any other law relating
to the banking or capital markets.
10. Term of office.–
(1) A Member, not being an ex-officio Member,
shall hold the office for a renewable term of three years.
(2) The Government
may, after providing an opportunity of being heard, remove any such Member
during the tenure of his office in the prescribed manner.
Resignation.– A Member, not being an ex-officio Member, may tender
his resignation to the Government and shall cease to be a Member upon the
acceptance of his resignation.
Casual vacancy.– Any vacancy due to the death, resignation or removal
of a Member, other than an ex-officio Member, shall be filled by the
Government through appointment of another person as Member and such
appointee shall, subject to the provisions of this Act, hold such office for
the unexpired period of the term of his predecessor.
Powers and Functions of the Management Committee
13. Powers and functions
of the Management Committee.– Subject to the
provisions of this Act, the Management Committee shall, in the prescribed
manner, exercise such powers and perform such functions as may be necessary
for carrying out the purposes of this Act, including–
formulation of investment policy, establishment of standards and procedures
for the investment from the Reserve Fund;
of amounts from the Reserve Fund;
of any profit generated through the investment to the Reserve Fund;
proposals for making or amendment of the rules;
such persons as may be necessary for the purposes of this Act;
of sub-committees from amongst its Members to make recommendations on a
specific issue or issues;
preparation of an annual report for submission to the Government detailing
the performance of the Fund;
money from the Government or any other institution; and
performance of such other functions which are ancillary to the above
functions or incidental to the purposes of this Act.
14. Delegation of
powers.– The Management Committee may delegate
to the General Manager, a sub-committee or a Member, any of its powers or
Provided that it
shall not delegate the power to–
amend or repeal regulations;
the investment policy, standards and procedures for the operation of the
(c) fill a
vacancy in a sub-committee.
Limitations on the investment.–
anything contained in section 13 or any other law for the time being in
force, no investment in a financial year shall be made by the Management
Committee from the Reserve Fund of the year–]
(a) for a
period of more than three years or in any foreign market or firm, except
with the prior approval of the Government;
(b) for an
amount of more than twenty-five percent of the Reserve Fund in one financial
(c) for an
amount more than seventy-five percent of the Reserve Fund in the Government
(d) for an
amount of more than five percent of the Reserve Fund in corporate or other
bonds or short term financial instruments, per issue of the bond or the
(e) for an
amount of more than five percent of the Reserve Fund in third party
products, unit trust or through managed portfolios in each case.
Budget, Expenses and Audit
Budget and accounts.–
The General Manager shall prepare the budget of the Fund for a financial
(2) The budget shall
be placed for approval before the Management Committee at least thirty days
prior to the commencement of a financial year.
(3) The accounts of
the Fund shall be maintained in such manner as may be prescribed.
expenses incurred on the operation of the Fund, including expenses relating
to the functioning of the Management Committee, shall be paid out of the
Reserve Fund in such manner as may be prescribed.
Audit.– (1) The Government shall appoint a firm of chartered
accountants for the annual audit of the accounts of the Fund.
(2) Annual audit
report of the accounts of the Fund shall be laid before the Management
Committee for approval.
19. Public servant.–
All persons acting or
purporting to act in pursuance of any provision of this Act, shall be deemed
to be public servants within the meaning of section 21 of the Pakistan Penal
Code, 1860 (XLV of 1860).
Prohibition of insider trading.– The provisions of Chapter III-A of
the Securities and Exchange Ordinance, 1969 (XVII of 1969), shall apply,
mutatis mutandis, to the Members, employees, or any other person
associated with the Fund.
Liability of the Government.– Notwithstanding anything contained in
this Act, right to pension of any person shall not be restricted,
extinguished, annulled or varied and the Government shall not be absolved
from its liabilities with respect to the payment of pension.
22. Conflict of
interest.– (1) No Member shall, directly or
indirectly, receive any profit from his position as a Member, except the
reasonable expenses incurred by him in the performance of his duties.
(2) The pecuniary
interests of immediate family members or close personal or business
associates of a Member shall also be considered the pecuniary interests of
(3) A Member shall
be in conflict of interest if he–
(a) is an employee, or a paid consultant of a business entity that has, or of a trade association of business entities that have, a substantial interest in the management of the Fund;
(b) owns, controls, or has, directly or indirectly, more than ten percent interest in a business entity that has a substantial interest in the Fund;
(c) receives more than twenty-five percent of his individual income from a business entity that has a substantial interest in the Fund;
(d) not being an ex-officio Member, is in employment of any government in Pakistan, or a body managed or controlled by the government, except as a teacher or academician in an institute of higher learning; and
(e) himself, or one or more members of his family, business partners or close personal associates, may personally benefit either directly or indirectly, financially or otherwise, from his position on the Committee.
(4) A Member shall
disclose a potential, real or perceived conflict of interest as soon as he
becomes aware of the potential conflict and before the Committee or any of
its committees takes cognizance of the matter.
(5) If a Member is
not certain about the conflict of interest situation, he shall bring the
matter before the Committee for advice.
(6) The decision of
the Committee on conflict of interest shall be final.
(7) A Member shall
not take part in the proceedings of the Committee in which any question of
his conflict of interest is on the agenda.
(8) The disclosure
of conflict of interest and the decision of the Committee shall be recorded
in the minutes of the meeting.
Submission of annual report before the Assembly.– The Government
shall, within six months of a financial year, submit the annual report of
the Fund pertaining to the previous financial year before the Provincial
Assembly of the Punjab.
Rules.– The Government may make rules for carrying out the purposes
of this Act.
Regulations.– Subject to the provisions of this Act and the rules,
the Management Committee may frame regulations to give effect to the
provisions of this Act.