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) will be eligible to contribute to the pension funds, according to the the updated Voluntary Pension System Rules, 2005 issued by the Securities and Exchange Commission of Pakistan (SECP).
In case of employer pension funds, the retirement age will be as per the agreement between employer and pension fund manager and will be disclosed in the offering document.
The updated rules further revealed that in case of employer pension funds, the employees of a particular employer will 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 will be disclosed in the offering document.
A participant at any time before retirement will 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.
In case of employer pension fund, the participant will be allowed to transfer his individual pension account with a particular pension fund manager to another pension fund manager or from the employer pension fund to another pension fund after ending of employment with the respective employer, SECP added.
