Procedures

Fund Description

Atlas KPK Islamic Pension Fund (AKPKIPF) was established by a Trust Deed dated August 03, 2023 between Atlas Asset Management Limited (AAML), as Pension Fund Manager and Central Depository Company of Pakistan Limited, (CDC) as Trustee.

Investment Objective and Strategy

The objective of the Fund is to provide Employees with an individualized, funded (based on defined contribution) as well as flexible pension scheme which is managed by professional investment managers to assist them to plan and provide for their retirement. The design of the scheme empowers the Employees to invest their pension savings as per their desired asset allocations. The Pension Fund Manager shall design investment strategy to optimize returns on investments within the parameters of Investment Policy specified by the Commission subject to such relaxations as may be granted in relation to specific sub-fund (s). However, for the initial three years from opening of Individual Pension Account (IPA) the contribution of Employees will be invested in Money Market Sub-Fund only.

Fund Facts

Fund Registration Date : October 02, 2023.
Front-End Sales Load : Nil.
Registrar : ITMinds Limited: CDC House 99-B, Block B, S.M.C.H.S, Main Shahrah-e-Faisal Rd, Karachi.
Trustee : Central Depository Company of Pakistan Limited.
Auditor : Shinewing Hameed Chaudhari & Co.
Minimum Contribution : The minimum amount of Contribution is Rs. 1,000/- or such other amount as may be prescribed by the Employer.
Shariah Advisor : Dr. Mufti Muhammad Wasie Fasih Butt.
Tax Credit : Tax Credit will be available to Participants on contributions during any Tax Year subject to the limits prescribed under Income Tax Ordinance 2001.
Expense Ratio :

Sub- Funds Maximum Total Expense Ratio excluding Takaful charges and Govt. levies (as % of Net Assets) Maximum Takaful charges (as % of Net Assets)
Money Market Sub Fund 0.75% p.a. 0.25% p.a.
Debt Sub Fund 0.75% p.a. 0.25% p.a.
Equity Index Sub- Fund 1.00% p.a 0.25% p.a.
Equity Sub- Fund 1.75% p.a. 0.25% p.a.

Takaful Coverage

The Pension Fund Manager provides Takaful coverage to the participants of AKPKIPF on their contributions through EFU Life Assurance Ltd. An amount equal to balance in Pension Account on the date of death / permanent disability subject to minimum of Rs. 500,000 and a maximum of Rs. 2,000,000.

Retirement Age

Within the age between sixty and seventy years or such age as may be prescribed in the Rules from time to time, which the Employee selects for retirement, in accordance with the provisions of the Rules.

Benefits / Withdrawal on Retirement

At the date of retirement of the Employee(s) all the units of the sub-funds in the Employee(s) Individual Pension Account shall be redeemed at the net asset value notified at close of the day of retirement and the amount due shall be credited to Employee(s) Individual Pension Account in the lower volatility scheme where no option is selected by the Employee(s) offered by the Pension Fund Manager. The Employee(s) shall then have the following options, namely:

A. To withdraw up to such percentage of amount from his Individual Pension account as specified in the KPK Rules; and
B. Use the remaining amount to purchase an annuity from a Takaful company and/or any other annuity plan as offered under the Rules of Employee(s) choice subject to such limits as prescribed by the Employer or
C. Enter into an agreement with the Pension Fund Manager to transfer Employee(s) balance to an Approved Income Payment Plan offered by the Pension Fund Manager as approved by the Commission.

Withdrawal before Retirement

Employee(s) at any time before retirement are entitled to withdraw the whole or any part of the Units held to their credit in their Individual Pension Account. Tax may be applicable in accordance with the requirements of the Income Tax Ordinance, 2001 and, if applicable, will be deducted by the Pension Fund Manager from the amount withdrawn. The withdrawal shall also be subject to conditions (if any) imposed by the Employer.

Note: The Employee(s) must understand that as per KPK Rules, in case an Employee withdraws any amount from his Individual Pension Account before attaining the retirement age; the Employer shall stop making employer’s contributions in the subject Individual Pension Account and shall not resume such contributions until the Employee deposits the withdrawn amount, along with an additional amount equal to one percent (1%) of the withdrawn amount for every completed month, since the date of withdrawal, in their Individual Pension Account.