The document summarizes Pakistan's voluntary pension system. Key points:
- Pakistan previously had weak pension provisions and relied on family support for retirement. A new voluntary pension system was created to address this.
- The system allows individuals to make tax-deferred contributions into privately-managed pension funds. Contributions are invested in mutual funds with preset asset allocations.
- At retirement, individuals can withdraw funds as annuities or income. Contributions and investment returns are tax exempt, with tax paid on withdrawals.
- The SECP regulates pension fund managers and oversees the system. The goals are to encourage long-term saving and provide portable, professionally-managed retirement funds for Pakistanis.
Pensions Act 2014: all you need to knowIus Laboris
Georgina Jones from our UK member Sackers has written this in-depth article on the Pensions Act 2014 in the August edition of PMI Technical News.
Though somewhat overshadowed by this year’s attention-grabbing Budget, the Pensions Act 2014 is a key piece of legislation. Not only does it introduce a new type of state pension and, as a consequence, sweep away contracting-out on a defined benefit basis, but it also contains several important measures for occupational pension schemes.
Pensions Act 2014: all you need to knowIus Laboris
Georgina Jones from our UK member Sackers has written this in-depth article on the Pensions Act 2014 in the August edition of PMI Technical News.
Though somewhat overshadowed by this year’s attention-grabbing Budget, the Pensions Act 2014 is a key piece of legislation. Not only does it introduce a new type of state pension and, as a consequence, sweep away contracting-out on a defined benefit basis, but it also contains several important measures for occupational pension schemes.
The National Pension Scheme is a Defined Contribution Scheme that was set up in 2004 for all Government Employees and was open to the general public in May 2009. It is a social security benefit to create a retirement corpus to meet post retirement income needs, initiated by the Government of India in association with the Pension Regulatory Development Authority.
We are the provider of national pension scheme details and return related to government and retirement pension scheme. We also provide services for monthly and new pension scheme in India.
For more details please visit: http://fintrackindia.com/nps.html
The PFRDA (Pension Fund Regulatory and Development Authority) governs the National Pension System (NPS), which is a retirement pension programme established by the Government of India to provide subscribers with a regular income after retirement. NPS also helps you in getting Tax benefits in 2021.
It may be a smart choice for you because of the low minimum commitment and higher returns for retirement planning.
The financial year is coming to an end and so you must determine where to invest so as to get optimum return and tax benefits. Even though the primary objective is to save taxes you also want that your investments earn good returns. This article is an attempt to analyze the various tax saving investments available and the annual returns that it earns.
How to file form-1 (equalization levy) on new income-tax portal?Ankitasahu60
On or before the 30th of June immediately following the financial year, the statement in Form No.1 in respect of all the specified services chargeable to the equalization levy must be given.
The equalization levy would be 6% of the amount of consideration for specified services received or receivable by a non-resident not having a permanent establishment ('PE') in India, from an Indian resident carrying on business or profession, or from a non-resident having a permanent establishment in India.
Which are best tax saving options under section 80C of income tax act. What are various tax saving options .Which investments are allowed for 80C deduction ELSS, FD, Term Insurance, Medical Insurance, PPF, Tax Saving Schemes, Saving taxes,
Find which are 5 best instruments for saving tax under section 80c of income tax act. Check what are most important things to check before investing for saving taxes
There are many benefits available for Senior Citizens to make their post retirement journey merrier. Moreover, right investment choices can make them financially capable to live it up. Let’s have a look at few special benefits & investment options available for senior citizens.
Pension plans are schemes by which small amount is saved on a monthly basis over a considerable period of time so that one can enjoy monthly income after retirement.
How will retirement reform impact your retirement fund by Olano Makhubela10X Investments
Chief Director, Financial Investments and Savings, National Treasury presented at the 10X Retirement Conference 2014 on the topic How will retirement reform impact your retirement fund.
The National Pension Scheme is a Defined Contribution Scheme that was set up in 2004 for all Government Employees and was open to the general public in May 2009. It is a social security benefit to create a retirement corpus to meet post retirement income needs, initiated by the Government of India in association with the Pension Regulatory Development Authority.
We are the provider of national pension scheme details and return related to government and retirement pension scheme. We also provide services for monthly and new pension scheme in India.
For more details please visit: http://fintrackindia.com/nps.html
The PFRDA (Pension Fund Regulatory and Development Authority) governs the National Pension System (NPS), which is a retirement pension programme established by the Government of India to provide subscribers with a regular income after retirement. NPS also helps you in getting Tax benefits in 2021.
It may be a smart choice for you because of the low minimum commitment and higher returns for retirement planning.
The financial year is coming to an end and so you must determine where to invest so as to get optimum return and tax benefits. Even though the primary objective is to save taxes you also want that your investments earn good returns. This article is an attempt to analyze the various tax saving investments available and the annual returns that it earns.
How to file form-1 (equalization levy) on new income-tax portal?Ankitasahu60
On or before the 30th of June immediately following the financial year, the statement in Form No.1 in respect of all the specified services chargeable to the equalization levy must be given.
The equalization levy would be 6% of the amount of consideration for specified services received or receivable by a non-resident not having a permanent establishment ('PE') in India, from an Indian resident carrying on business or profession, or from a non-resident having a permanent establishment in India.
Which are best tax saving options under section 80C of income tax act. What are various tax saving options .Which investments are allowed for 80C deduction ELSS, FD, Term Insurance, Medical Insurance, PPF, Tax Saving Schemes, Saving taxes,
Find which are 5 best instruments for saving tax under section 80c of income tax act. Check what are most important things to check before investing for saving taxes
There are many benefits available for Senior Citizens to make their post retirement journey merrier. Moreover, right investment choices can make them financially capable to live it up. Let’s have a look at few special benefits & investment options available for senior citizens.
Pension plans are schemes by which small amount is saved on a monthly basis over a considerable period of time so that one can enjoy monthly income after retirement.
How will retirement reform impact your retirement fund by Olano Makhubela10X Investments
Chief Director, Financial Investments and Savings, National Treasury presented at the 10X Retirement Conference 2014 on the topic How will retirement reform impact your retirement fund.
The 2015 budget had long list of expectations. On one hand; the Government has addressed major issues surrounding the foreign investors which would certainly boost capital market inflows and revive the private equity industry (by deferring GAAR by 2 years and clarifying Permanent Establishment & Indirect Transfer of Assets). On other hand; it has just rationalized the subsidies. Probably as we see growth coming in and more job creation; subsidy burden can be better dealt with by the Government. Though there are no direct benefits for the middle class. However incentives have been introduced to encourage savings. These savings are expected to fuel the infrastructure and other investment plans laid out by the Government. Certainly Foreign investors have a reason to cheer for this Pro Business; Pro Growth Government budget.
Facing an aging population, longer lifespans, and a shift to the defined contributions model, India is overhauling its pension system. But the New Pension System (NPS) faces stiff competition from Employees' Provident Fund (EPF) and other options.
This year’s guide has a particular focus on the United Kingdom, and featured topics include automatic enrolment, pension flexibility and the rise of defined contribution pensions.
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
3. 3
Dependant on the next
generation to provide for us
Like most countries of the world, Pakistan has weak provisioning
for pensions.
We primarily depend on the next generation to provide for us
during our retirement.
Most governmental jobs are covered by unfunded pensions –
current employees will be paid pensions by taxing the next
generation.
Some private sector employees and the organised sector labour
are covered by funded pensions. Funds are primarily invested in
government bonds, which will be repaid by the next generation.
A very large section of the population has no pension
provisioning – totally dependant on the joint family support
system.
4. 4
Pensions that exist
are mostly inadequate
Most government jobs entitle one to a pension
linked to one’s last drawn salary but the salary does
not necessarily reflect one’s true earnings – mostly
salaries are low and are supplemented by benefits,
which can include plots of land that help make up on
the low salary. Thus the pension is a fraction of the
true wage.
Private sector pensions are better but applicable to
a very few.
Most employers require a minimum years of service
to get pension rights. Only EOBI allows for
portability of pension rights.
5. 5
Employers worldwide want to get
away from defined benefit plans
Defined benefit pensions systems require employers to ensure
availability of funds to meet the obligation.
Many plans set up in Pakistan under a high real interest rate
environment are now creating an additional burden on the
employers.
High market volatility makes the investment of pension funds
even more burdensome.
Employers would rather have defined contributions and let the
employee carry the burden of the final benefit.
In turn, the employee would get portability through the defined
contributions system.
6. 6
Tax Breaks
Most pension regimes give varying degrees
of tax breaks.
Most pension savings and incomes in
Pakistan are tax free.
Some long-term savings which can be used
towards retirement by individuals are entitled
to tax deferral.
Some savings towards annuity plans give tax
rebates.
7. 7
Pension Reforms in Pakistan
Reforms have been considered on several fronts –
funding of government pensions, allowing for
portability, compulsory provisioning by all employers,
proper regulatory authority, etc.
There has been some discussion on a national
pension scheme but many difficult issues have
forced the government to initially concentrate on the
Voluntary Pension System.
9. 9
Initiated by the Finance
Ministry
The current Prime Minister (then Finance Minister)
initiated the process soon after taking charge of the
Finance Ministry.
The SECP was given the assignment to develop a
pension system.
Several models were studied. The first proposal of
2002 recommended a mandatory system. This was
not accepted by the Finance Ministry.
The SECP then commenced work on a second
proposal for a voluntary scheme.
10. 10
Evolution of the
Voluntary Pension System
The SECP set up a committee in June 2003 consisting of persons from
Industry, the Ministry of Finance and the SECP itself.
The committee had several meetings and developed a broad proposal
recommending a voluntary scheme, with a tax deferral structure.
This was presented by the SECP to the then Finance Minister.
Some additional research was conducted, including study of models in
some emerging economies.
The final draft was circulated and posted on SECP’s website and
several meetings were held by the SECP with representatives of
various financial institutions and members of the actuarial profession.
The Voluntary Pension System Rules, 2005 were finally issued in
January 2005.
The SECP had continuous interaction with the CBR throughout.
The Finance Bill 2005 has introduced several changes in the Income-
tax law incorporating all the necessary features for an EET structure.
12. 12
Main Features
A self contributory pensions savings scheme open to all adult
Pakistanis registered with the tax authorities, if not covered by other
occupational pension schemes. Employers can also contribute.
Certain limits on the maximum annual contributions with some catch-up
provisioning for persons above 41 years age.
Contributions to be invested in specially set up mutual funds, with
flexibility of individualised asset allocation through individual accounts.
Stringent requirements for licensing of pension fund managers under
SECP regulation. Fee structure much lower that normal mutual funds.
The individual can diversify savings (contributions) amongst more than
one fund manager and can transfer the account to other fund
managers.
EET structure, i.e., tax rebated on contributions, investment income and
gains accumulate tax-free, tax is paid at the stage pension is drawn.
13. 13
The Legal Structure
VPS Rules set up under the framework of the NBFC
Rules, which in turn are issued under the
Companies Ordinance, 1984.
The VPS Rules allow for asset management
companies and life insurance companies to be
licensed by the SECP as Pension Fund Managers.
Pension Fund itself is authorised by the SECP as a
unit trust scheme and structured under the Trust Act.
The Income Tax Act provides the tax breaks.
14. 14
Structure of the Pension Fund
Three sub-funds - equity, debt and money-market. Additional
asset classes later.
SECP mandated investment policy governing each asset class.
Mandatory for each Fund Manager to offer a minimum of four
pre-set asset allocation plans. Very Conservative plan with
maximum 20% equity and Aggressive plan with maximum of 80%
equity. Two additional plans (like life-cycle) may be offered by
Fund Manager during first 5 years.
Each sub-fund to announce NAV based prices daily.
Management fee not to exceed 1.5% p.a. and Front Load 3% but
no load on transfers.
Funds will not distribute dividends but are totally exempt from
tax.
15. 15
Investment Limits &
Restrictions
Equity – Limits: 5% per company, 20% per sector.
1% per green-field, 5% total green-field. None in
unlisted or PFM’s associated companies.
Debt – Limits: at least 50% in government securities.
Other debt range between 5% in any AA rated and
2.5% in BBB. Average duration of fund within 10
years.
Money-market – Limits: GoP securities no limit;
Others upto 20% (Minimum rating A-); Bank
deposits no limit but 25% per bank. Average
duration of fund not to exceed one year.
16. 16
Participant’s Rights
Tax rebate on contributions of upto 20% of income or Rs.
500,000 per year.
Eligible persons investing under VPS (Participants) have right to
save with one or more PFM.
Right to transfer the account to some other manager/s once a
year. No restriction if PFM is de-authorised.
Select plan of choice within the offerings of each PFM.
Select retirement age between 60 and 70 years.
Cash out any time before retirement by paying tax.
Draw 25% of fund at retirement tax-free (grey area).
Opt for an annuity plan or income draw down plan at retirement.
At age 75 funds left over must be invested in annuity plan.
Receive account statements and financial statements.
17. 17
Regulation
SECP to license PFMs and authorise
schemes.
SECP shall measure performance against
benchmarks. SECP may take corrective
action. SECP will publish comparative
performance each year.
SECP can order Special audit.
SECP can carry out inquiry/inspection.
SECP can de-authorise manager and fund.
18. 18
Prospects
Wonderful opportunity for self-employed to build their own pension funds.
Opportunity for employees not covered by occupational pensions to build their
portable pension funds.
Opportunity for corporate sector to supplement or replace provident funds with
matching contributions to VPS for their employees.
Opportunity for NRPs to build pension funds in Pakistan.
Opportunity for individuals to build professionally managed portfolios, with
optimal asset allocation.
Example of asset allocation benefits: Rs. 1,000 invested each month and
increased over time in line with salary growth (average 15% p.a.) over 30 years;
Equities give Rs. 34 million; DSCs Rs. 24 million. Please note that DSCs no
longer giving old level of real returns and are now taxable.
Opportunity for corporate sector and local governments to benefit from inflows
into the market.
Regular inflows will help market stability.
Over time should overtake investment in NSS and replace the traditional
retirement savings and long-service plans of the corporate sector.