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Pension Funds

Key points for Pension Funds Investors

The fees and charges applicable to investors in a pension fund are briefly accounted for as follows:


Front-end Fee

The pension fund manager shall charge the participant a front-end fee of up to 3% of the fresh amount he has contributed to his individual pension account. Front-end fee is not payable in respect of the money a participant has already contributed; the balance a participant has transferred from the previous pension fund manager; and the balance a participant has transferred from a recognized provident fund.

Management Fee of the Pension Fund Manager

This is the remuneration payable to the pension fund manager for managing the balance in a participant's individual pension account. It is charged at the rate of 1.5% at the maximum and is paid on a monthly basis, in arrears on average balance during the month in your individual pension account.

Tariff Payable to the Trustee

This is the remuneration of the trustee in lieu of its services and shall consist of reimbursement of actual custodial expenses as well as annual tariffs.

Formation Cost

These are the costs representing initial expenses incurred for formation of the pension fund. These are allowed to a maximum of 0.5% of the seed capital or Rs. 750,000, whichever is lower. These costs are spread over a period of three years from the date of subscription of seed capital to the pension fund.

Other Expenses In Relation To the Pension Fund

These include expenses such as brokerage and transaction cost; legal costs in relation to the pension fund; bank charges on borrowing for meeting withdrawals requests; audit fee; annual fee of the SECP; and expenses incurred by the trustee for registering property in its name.


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