[1]THE
PUNJAB PENSION FUND ACT 2007
( I of 2007)
[29th
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.
Preamble. – 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 as follows:-
CHAPTER-I
PRELIMINARY
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.
2.
Definitions.
– In this Act–
(a)
“Chairman” means the Chairman of the Management
Committee;
[2](aa)
“financial year” means the year starting from first day of July and ending on
30th day of
June of the succeeding year;]
(b)
“Fund” means the Punjab Pension Fund;
(c)
“General Manager” means the General Manager of the
Fund;
(d)
“Government” means the Government of the Punjab;
3[(dd)“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;]
(e)
“Management Committee” means the Punjab Pension Fund
Management Committee;
(f)
“Member” means the Member of the Management Committee;
(g)
“prescribed” means prescribed by the rules made under
this Act;
(h)
“Province” means the Province of the Punjab;
(i)
“regulations” means the regulations framed under this
Act;
(j)
“Reserve Fund” means the Reserve Pension Fund created
under section 3 of this Act;
(k)
“rules” means the rules made under this Act; and
(l)
“sub-committee” means the sub-committee of the
Management Committee. CHAPTER- II
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.
[3][(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
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.
CHAPTER- III
MANAGEMENT COMMITTEE
5.
Management
Committee. – (1) The 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–
(i)
Minister for Finance, Government of the Punjab; Chairman
(ii)
Chief Secretary, Government of the Punjab; Vice-Chairman
(iii)
Chairman, Planning & Development Board, Member
Government of the Punjab;
(iv)
Secretary, Government of the Punjab; Member
Finance Department;
(v)
Secretary, Government of the Punjab, Member
Law, Parliamentary Affairs &
Human Rights Department;
(vi)
Secretary (Services), Government of the Punjab, Member
Services and General
Administration Department;
(vii)
General Manager; and Member/Secretary
(viii)
four persons to be appointed by the Non-official Government from the
private sector. Members
5[7.
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.]
8.
General
Manager. – 6(1) The Government
shall, by notification, appoint General Manager of the Fund on such terms and
conditions as it may determine.]
[4][(2)
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 Management Committee.
(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.
9.
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–
(a)
convicted of an offence of fraud or breach of trust or
any other offence involving moral turpitude;
(b)
adjudged 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 Pakistan; and
(f)
penalised 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.
11.
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.
12.
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.
CHAPTER- IV
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–
(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)
creation of sub-committees from amongst its Members to
make recommendations
on a specific issue or issues;
(g)
preparation of an annual report for submission to the
Government detailing the performance of the Fund;
(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.
14.
Delegation
of powers. – The Management Committee may delegate to the General Manager,
a sub-committee or a Member, any of its powers or functions:
Provided
that it shall not delegate the power to–
(a)
adopt, 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.
15.
Limitations
on the investment.– [6][Notwithstanding
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 institution cumulatively;
(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 or through managed portfolios in each
case.
CHAPTER-V
BUDGET, EXPENSES AND AUDIT
16.
Budget and
accounts. – [7][(1)
The General Manager shall prepare the budget of the Fund for a financial year.]
(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.
17.
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
Reserve Fund in such manner as may be prescribed.
18.
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.
CHAPTER- VI
MISCELLANEOUS
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).
20.
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.
21.
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 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 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.
23.
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.
24.
Rules. – The
Government may make rules for carrying out the purposes of this Act.
25.
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.
[1] This Act was passed by the
Punjab Assembly on 7 March 2007; assented to by the Governor of the Punjab on 26
March 2007; and, was published in the Punjab Gazette (Extraordinary), dated 29
March 2007, pages 4325-29.
[3] Substituted by the Punjab
Pension Fund (Amendment) Act 2008 (II of 2008). 5Substituted by the Punjab Pension Fund (Amendment) Act
2008 (II of 2008). 6Ibid.
[4] Ibid.
[5] Substituted ibid, for the
word “five”.
[6] Substituted by the Punjab
Pension Fund (Amendment) Act 2008 (II of 2008).
[7] Substituted by the Punjab
Pension Fund (Amendment) Act 2008 (II of 2008).
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