[1]THE
PUNJAB GENERAL PROVIDENT INVESTMENT FUND ACT 2009
( V of
2009)
[8th
July, 2009]
An
Act
to
provide for the establishment of the Punjab General Provident Investment Fund
to generate revenue for the discharge of the liabilities of the General
Provident Fund.
Preamble. – Whereas it is expedient to establish the Punjab General Provident
Investment Fund to generate revenue for the discharge of the General Provident
Fund liabilities of the Government and to make provisions for ancillary
matters.
It is enacted as follows:-
CHAPTER I
PRELIMINARY
1.
Short title,
extent and commencement. – (1) This Act may be cited as the Punjab General
Provident Investment Fund Act 2009.
(2)
It extends to the whole of the Province.
(3)
It shall come into force at once.
2.
Definitions.
– In this Act–
(a)
“family” means a spouse, a parent, a grand parent,
sibling or adopted sibling, child or an adopted child, or a maternal or
paternal first cousin; or a parent, sibling or adopted sibling, child or an
adopted child, or a maternal or paternal first cousin of the spouse;
(b)
“financial year” means the year starting from first day
of July and ending on 30th
day of June of the succeeding year;
(c)
“Fund” means the Punjab General Provident Investment
Fund established under the Act;
(d)
“General Manager” means the General Manager of the
Fund;
(e)
“General Provident Fund” means the General Provident
Fund established under the
Punjab Civil Servants Act, 1974
(VIII of 1974) and the Punjab General Provident Fund Rules, 1978;
(f)
“Government” means the Government of the Punjab;
(g)
“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;
(h)
“Management Committee” means the General Provident
Investment Fund Management Committee;
(i)
“Member” means a Member of the Management Committee;
(j)
“prescribed” means prescribed by the rules made under
the Act;
(k)
“Province” means the Province of the Punjab;
(l)
“regulations” means the regulations framed under the
Act;
(m)
“Reserve Fund” means the Reserve General Provident Fund
created under section 3 of the Act;
(n)
“rules” means the rules made under the Act; and
(o)
“sub-committee” means a sub-committee of the Management
Committee.
CHAPTER II
RESERVE FUND AND PUNJAB GENERAL
PROVIDENT INVESTMENT FUND
3.
Reserve Fund.
– (1) The Government shall, by
notification, create a Reserve General Provident Fund in the Public Account of
the Province.
(2)
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.
4.
Punjab
General Provident Investment Fund. – (1) The Government shall, by
notification, establish the Punjab General Provident Investment Fund.
(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 or the
rules.
CHAPTER III
MANAGEMENT COMMITTEE
5.
Management
Committee. – (1) The Management Committee of the Punjab Pension Fund
established under the Punjab Pension Fund Act 2007 (I of 2007) shall perform
functions and exercise powers as the Management Committee of the Fund.
(2)
In the performance of functions or exercise of powers
under this Act, the Management Committee shall be known as the General
Provident Investment Fund Management Committee.
(3)
The management and administration of the Fund shall
vest in the Management Committee.
(4)
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.
General
Manager. – The General Manager of the Punjab Pension Fund appointed under
section 8 of the Punjab Pension Fund Act 2007 (I of 2007) shall act as the
General Manager of the Fund.
CHAPTER IV
POWERS AND FUNCTIONS OF THE MANAGEMENT
COMMITTEE
7.
Powers and
functions of the Management Committee. – (1) The Management Committee
shall–
(a)
formulate investment policy, establish standards and
procedures for the investment of the assets of the Fund;
(b)
invest an amount from the Reserve Fund;
(c)
transfer the profit generated through the investment to
the Reserve Fund;
(d)
prepare an annual report for submission to the
Government detailing the performance of the Fund; and
(e)
perform such other functions as may be assigned to it
under the rules or which are ancillary to the above functions.
(2) The
Management Committee may–
(a)
initiate proposals for making or amendment of the
rules;
(b)
employ a person as may be necessary for the purposes of
this Act;
(c)
create a sub-committee from amongst its Members to make
recommendations on an issue;
(d)
borrow on behalf of and in the name of the Fund;
(e)
incur liability on behalf of the Fund;
(f)
enter into a contract; and
(g)
exercise such other powers as may be conferred on it
under the rules or which are incidental to the above powers.
8.
Delegation
of powers and functions. – (1) Subject to sub-section (2), the Management
Committee may delegate to the General Manager, a sub-committee or a Member any
of its powers or functions.
(2) The
Management Committee shall not delegate the power or function to–
(a)
frame, amend or repeal regulations;
(b)
approve the investment policy, standards and procedures
for the operation of the Fund; or
(c)
fill a vacancy in a sub-committee.
9.
Limitations
on the investment. – Notwithstanding anything contained in section 7 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 Fund–
(a)
for a fixed period of more than three years except with
the prior approval of the Government;
(b)
in a foreign market or an entity registered outside
Pakistan, except with the prior approval of the Government;
(c)
for an amount of more than twenty-five percent of the
Reserve Fund in one financial institution cumulatively;
(d)
for an amount more than seventy-five percent of the
Reserve Fund in the Government bonds;
(e)
for an amount of more than five percent of the Reserve
Fund in an issue of corporate or other bonds or short term financial
instruments, cumulatively;
(f)
for an amount of more than five percent of the Reserve
Fund in a unit trust authorised for sale in Pakistan; and
(g)
in an asset or a security prohibited by the rules.
CHAPTER V
BUDGET, EXPENSES AND AUDIT
10.
Budget and
accounts. – (1) The General Manager shall prepare the budget of the Fund
for a financial year.
(2)
The General Manager shall place the budget proposals
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.
11.
Expenses.
– The expenses incurred on the operation of the Fund, including expenses
relating to the functioning of the Management Committee, shall be paid out of
the Fund in the manner as may be prescribed.
12.
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 and the
Reserve Fund shall be laid before the Management Committee for approval.
CHAPTER VI
MISCELLANEOUS
13.
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).
14.
Prohibition
of insider trading.– The provisions of Chapter III-A of the Securities and
Exchange Ordinance, 1969 (XVII of 1969) or any other law for the time being in
force on the subject shall, mutatis mutandis, apply to the Members, employees,
or any other person associated with the Fund.
15.
Liability of
the Government. – Notwithstanding anything contained in this Act, right to
payment of benefits from membership of the General Provident Fund of a 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 such
benefits.
16.
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 interest of family or close personal or
business associates of a Member shall be considered as the pecuniary interest
of the Member.
(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 management of the Fund;
(c)
receives more than twenty-five percent of his
individual income from a business entity that has a substantial interest in
management of 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)
or one or more members of his family, business partners
or close personal associates, may benefit either directly or indirectly,
financially or otherwise, from his position on the Management 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 Management Committee or a subcommittee 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 Management Committee
for advice.
(6)
The decision of the Management Committee on conflict of
interest shall be final.
(7)
A Member shall not take part in the proceedings of the
Management 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 Management Committee shall be recorded in the minutes of the meeting.
17.
Submission
of annual report before the Assembly. – The Government shall, within six
months of the end of a financial year, submit an annual report of the Fund in
the Provincial Assembly of the Punjab.
18.
Rules. –
The Government may, by notification, make rules for carrying out the purposes
of this Act.
19.
Regulations.
– Subject to the provisions of this Act and the rules, the Management Committee
may, by notification in the official Gazette, frame regulations to give effect
to the provisions of this Act.
[1]
This Act was passed by the Punjab Assembly on 1 July 2009; assented to by the
Governor of the Punjab on 7 July 2009; and, was published in the Punjab Gazette
(Extraordinary), dated 8 July 2009, pages 69-73.
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