BALOCHISTAN PROVINCIAL ASSEMBLY SECRETARIAT
NOTIFICATION
Dated
Quetta, the October, 2009.
No. PAB/Legis: V (9)/ 2009. The Balochistan Pension Fund Management
Authority Bill, 2009 having been passed by the Provincial Assembly of Balochistan
on 17th October, 2009 and assented to by the Governor, Balochistan
on 24th October, 2009 is hereby published as an Act of the
Provincial Assembly.
BALOCHISTAN
PENSION FUND MANAGEMENT AUTHORITY ACT, 2009
ACT NO.9
OF 2009
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A
ACT
To provide for establishment of an authority for management of pension
fund and to generate revenue for
discharge of the pension liabilities of the Government.
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Preamble.
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WHEREAS, it is expedient to establish an authority for management of a Pension
Fund for the common benefit of the employees of the Government of Balochistan
to provide for their Pensions and the matters connected therewith or
ancillary thereto;
It is hereby enacted as follows:
—
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CHAPTER-I
PRELIMINARY
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Short title, extent and
commencement
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1.
(1) This
Act may be called the Balochistan Pension Fund Management Authority Act,
2009.
(2) It extends to whole of the Province
of the Balochistan except the Tribal Area.
(3) It shall come into force at
once.
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Definitions.
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2. In this Act,
unless there is anything repugnant in the subject or context, —
(a)
“Act” means the
Balochistan Pension Fund Management Authority Act, 2009.
(b)
“Authority” means the Balochistan Pension Fund Management Authority;
(c) “Board”
means the Balochistan Pension Fund Management Board;
(d)
“Chairman” means the Chairman of the Balochistan Pension Fund Management
Board;
(e)
“Committee” means a committee constituted under section 7, clause (f) of this
Act.
(f)
“Fund” means the Balochistan Pension Fund;
(g)
“Fund Manager” means the Fund Manager appointed under section 10, sub-section
(1) of this Act;
(h) “Government”
means the Government of the Balochistan;
(i)
“Member” means the Member of the Management Board;
(j)
“Prescribed” means prescribed by the rules made under this Act;
(k)
“Province” means the Province of the Balochistan;
(l)
“Regulations” means the regulations framed under this Act;
(m)
“Reserve Fund” means the Reserve Pension Fund created under section 3,
sub-section (1) of this Act;
(n)
“Rules” means the rules made under this Act; and
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CHAPTER-II
RESERVE
AND PENSION FUNDS
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Reserve Fund.
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3.
(1) The Government shall, by
notification in official Gazette, create a Reserve Pension 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, 1973.
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Balochistan Pension
Fund.
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4.
The Government shall, by notification in the official Gazette, establish the
Balochistan Pension Fund for proper management and discharge of its pension liabilities.
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CHAPTER-III
ESTABLISHMENT AND MANAGEMENT OF THE
AUTHORITY
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Establishment of Authority.
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5.
(1) There shall be established
an Authority to by known as the Balochistan Pension Fund Management Authority
for carrying out the purpose of this Act.
(2) The Authority shall be a body
corporate by the name of “the Balochistan Pension Fund Management Authority”
and shall have perpetual succession and a common seal to enter into contract
and may sue or be sued by the said name.
(3) The Management and
Administration of the Authority shall vest in the Management Board
constituted under section 6 of this Act.
(4) Subject to the provisions of
this Act and the rules made there under, in the performance of its functions
and in exercise of its powers the Authority/Board shall act in accordance
with the provisions of this Act and be bound by the directions of the
Government.
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Composition of the
Balochistan Pension Fund Management Board.
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6.
There shall be a
Management Board consisting of the following members: -
(a)
Minister for
Finance,
Chairman.
Government of Balochistan.
(b)
Chief Secretary
Vice Chairman.
Balochistan.
(c)
Additional Chief
Secretary,
Member.
Planning & Development Department.
(d)
Secretary,
Member.
Finance Department.
(e)
Secretary,
Member.
Law Department.
(f)
Secretary,
Member.
Services &
G.A.Department.
(g)
Additional
Secretary,
Member/Secy:
(Regulation/Admn:)
Finance Department
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CHAPTER-IV
POWERS AND FUNCTIONS OF THE BOARD
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Powers and functions
of the Board.
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7.
Subject to the provisions of this Act, the Board 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. —
(a)
formulation of
investment policy, establishment of standards and procedures for the
investment from the Reserve Fund;
(b)
investment of amounts
from the Reserve Fund;
(c)
transfer of any profit
generated through the investment to the Reserve Fund;
(d)
initiating proposals
for making or amendment of the rules;
(e)
employ such persons as
may be necessary for the purposes of this Act ;
(f)
constitution of
committees from amongst its members to make recommendations on specific issue
or issues;
(g)
preparation of an
annual report for submission to the Government detailing the performance of
the Authority;
(h)
borrow money from the
Government or any other institution; and
(i)
performance of such
other functions which are ancillary to the above functions or incidental to
the purposes of this Act.
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Delegation of powers.
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8.
The Board may delegate to the Fund Manager, the Committee or a Member, any of
its powers or functions.
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Limitations on the
investment.
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9.
Notwithstanding anything contained in section 12 or under any other law for
the time being in force, no investment shall be made by the Board from the
Reserve Fund. —
(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
institution cumulatively except with the prior approval of the Government;
(c) for an amount more
than seventy-five percent of the Reserve Fund in the Government bonds cumulatively;
(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 instrument; and
(e) for an amount of
more than five percent of the Reserve Fund in third party products, unit
trust, mutual fund or through managed portfolios in each case.
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Fund
Manager
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10.
(1)
The Government shall, by notification in the Official Gazette, appoint a Fund
Manager for management of the Fund, which shall be from amongst a panel of at
least three names recommended
by the Board.
(2) The Fund Manager shall be a
person having at least twelve years' experience of banking, accounting,
custody of investment assets and management of pension fund assets and he
shall be a member of the Institute of Chartered Accountants of Pakistan or
the Institute of Cost and Management Accountants of Pakistan.
(3) Subject to the provisions of
this Act and the rules made there under the Fund Manager shall exercise
such powers and perform such functions as may be assigned to him by the
Board.
(4) The Fund Manager shall hold the
office for a specific period, on such terms and conditions as may be determined by the
Government.
(5) The Board may, after providing
an opportunity of being heard, recommend removal of the Fund Manager during
the tenure of his office.
(6) The Fund Manager may tender his
resignation to the Government and shall cease to hold office upon acceptance
of his resignation.
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CHAPTER-V
BUDGET,
EXPENSES AND AUDIT
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Budget and accounts.
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11.
(1) The Fund Manager shall be
responsible for the preparation of the budget of the Fund for each financial
year starting from the 1st day of July of a Gregorian calendar year and
ending on 30th June of the succeeding
year.
(2) The budget shall be placed for
approval before the Board 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.
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Expenses.
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12.
The expenses incurred on the operation of the Authority/Fund, including
expenses relating to the functioning of the Board, shall be paid out of the
Reserve Fund in such manner as may be prescribed.
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Audit.
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13
(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 Board for approval.
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CHAPTER-VI
MISCELLANEOUS
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Public servant.
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14.
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).
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Prohibition of inside
trading.-
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15.
The provisions of Chapter III-A of the Securities and Exchange Act, 1969
(XVII of 1969), shall apply mutatis mutandi to the Members, employees,
or any other person associated with the Authority/Fund.
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Liability of the
Government-
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16.
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.
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Conflict of interest.
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17.
(1) No Member shall, directly or
indirectly, receive any profit from his position as a Member.
(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 the Member.
(3) A Member shall be in conflict
of interest if he. —
(a) is 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; and
(d) 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 Board.
(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 th Board or any of its committees takes
cognizance of the matter.
(5) If a Member is not concern
about the conflict of interest situation, he shall bring the matter before
the Committee for advice.
(6) The decision of the Board on
conflict of interest shall be final.
(7) A Member shall not take part in
the proceedings of the Board 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 Board shall be recorded in the minutes of
the meeting.
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Submission
of annual report before to the Government.
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The Board shall, within three months of a financial year, submit the annual
report of the Fund pertaining to the previous financial year to the
Government.
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Rules.
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19. The Government may make
rules for carrying out the purposes of this
Act.
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Regulations.
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20.
The Board may with the approval of the Government make regulations not
inconsistent with provisions of this Act and rules made there under.
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Removal of difficulties.
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21.
If any difficulty arises in giving effect to any of the provisions of this
Act the Government may make such Order, not inconsistent with the provisions
of this Act, as may appear to him to be necessary for the purpose of removing
the difficulty.
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Repeal.
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22.
The Balochistan Pension Fund Management Authority
Ordinance, 2007 (Ordinance No. XV of 2007), is hereby repealed.
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Secretary
Balochistan Provincial Assembly
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