Income Payment Plan

The Atlas Monthly Pension Plan and Atlas Islamic Monthly Pension Plan (referred to as Income Payment Plans or IPP) are offered by AAML to the participants of Atlas Pension Fund (APF) and Atlas Pension Islamic Fund (APIF) or to participants of any other approved pension fund upon retirement.

Participants who transferred their provident fund balances to APF or APIF or any other approved pension scheme may also join the Income Payment Plans upon retirement.

The Income Payment Plans provide participants/investors a monthly income stream from accumulated balance in their individual pension account on retirement.

The monthly income commences from the Participant’s chosen retirement date and continues up to 15 years following the date of retirement, as allowed under VPS Rules, as amended from time to time. The monthly income will comprise of part repayment of outstanding balance on participant’s individual pension account and of part return earned on individual balance.

For joining the Income Payment Plan, the participants have to fill a Registration Form that will contain participants’ personal details, invested amount, selection of allocation scheme under investment plan and particulars of nominee(s). The participants’ shall be required to attach copies of their/nominee(s) CNIC/NICOP/B-Form and Zakat Affidavit.

The Participant can transfer the balance in IPP from one Pension Fund Manager to another Pension Fund Manager or from one Income Payment Plan to another Income Payment Plan only once in a financial year.

  • Under the Income Payment Plans, the accumulated balance to be transferred to IPP shall be invested in the units of sub-funds of APF or APIF, as chosen by the Participant.

Option 1

  • Total balance will be invested in Atlas Pension Fund/Atlas Pension Islamic Fund and paid in installments during the selected period of income payment plan. The allocation available under this option are:

Customized Allocation Scheme

Age Range Equity Sub Fund Debt Sub Fund Money Market Sub Fund
Up to Fifteen years Up to 50% Up to 75% Up to 100%

Option 2

  • 80% out of the total balance will be invested in APF/APIF – Money Market Sub Fund.
  • The remaining 20% balance will be invested according to the investor’s desired risk exposure, within the prescribed allocation limits. The allocation options available under the plan are:
Age Range Equity Sub Fund Debt Sub Fund Money Market Sub Fund
• Life Cycle Allocation Scheme
60 – 65 Years 15% 40% 45%
65 – 70 Years 5% 45% 50%
70 – 75 Years 0% 40% 60%
• Customized Allocation Scheme
Up to Fifteen years Up to 100% Up to 100% Up to 100%

At the expiry of the Atlas Money Monthly Pension Plan, the investor shall have option to use the outstanding balance in his/her individual Pension Account (if any) to purchase an Approved Annuity Plan from a Life Insurance Company of his/her choice or buy an income payment plan for another term or withdraw the amount from his/her account.

In the unfortunate event of the death of a participant, the nominee(s) (as identified by the nomination form) shall be the only person recognized as having any entitlement to the remaining balance of the deceased participant. However, the Pension Fund Manager or Trustee may at their discretion request the nominee(s) to provide succession certificate or other such mandate from a court of lawful authority, if they consider it necessary under law or prevailing circumstances.

The information given below is accurate as of the date of publication of this document. The taxability and rate of tax is subject to change from time to time, as may be announced by the Government. It is recommended that participants may seek professional tax advice regarding their own personal circumstances.

  • The transfer of any accumulated balance in the Individual Pension Account to IPP offered by the Pension Fund Manager shall not be subject to a withholding tax, as per Section 156(B)(I)(b) of the Income Tax Ordinance, 2001.
  • The monthly income from IPP shall be exempted from income tax under clause 23B of Part 1 of the Second Schedule of the Income Tax Ordinance, 2001, provided that the IPP is constituted for a minimum period of ten years.
  • The participant can elect to withdraw from the IPP partially or totally as and when they may decide, subject to applicable tax as per the Income Tax Ordinance, 2001.
  • The amount received as monthly installment from an income payment plan invested out of the accumulated balance of an individual pension account with the pension fund manager shall be exempted from tax provided the accumulated balance is invested for a minimum period of ten years as under Clause 23B of Part 1 of Second Schedule of the Income Tax Ordinance, 2001.
  • The payment made by Pension Fund Manager under Atlas Monthly Pension Plan / Atlas Islamic Monthly Pension Plan shall not be subject to any withholding tax.
In case of exceptional circumstances that may arise due to major law and order situation, closure of stock exchanges in Pakistan, closure of the banking system, strikes or other events that may render the Pension Fund Manager or Trustee unable to function or the existence of a state of affairs as a result of which disposal of any investment will not be reasonably possible, the Pension Fund Manager may redeem such units at the close of the next Business Day when these circumstances have ceased to exist.

Disclaimer: The invested amount may deplete depending on the capital market conditions and level of interest rates.