[rev_slider alias=”retirement-funds”]

Atlas Pension Fund

Atlas Pension Fund (APF) was established by a Trust Deed dated June 8, 2007 between Atlas Asset Management Limited (AAML), as Pension Fund Manager and Central Depository Company of Pakistan Limited, (CDC) as Trustee.

The objective of introducing Atlas Pension Fund is to provide the individuals with a portable, individualized, funded (based on defined contribution), flexible pension scheme assisting and facilitating them to plan and provide for their retirement. Atlas Pension Fund is a one-window facility investment in diversified portfolio of equity securities offering consistent returns and capital growth and fixed income instruments offering consistent returns and lower risk. Consistent with this policy, the Contributions received from the Participants shall be allocated Units in APF – Equity Sub-Fund, APF – Debt Sub-Fund and APF – Money Market Sub-Fund in accordance with the Allocation Scheme selected by the Participant giving them not only the power over how much to invest in their pensions, and how to invest it, but also to continue investing in their pension accounts even if they change jobs.

Fund Launch Date : June 28, 2007
Front-End Sales Load : 3% of contribution
Management Fee (Calculated on Average Annual Net Assets) : Equity Sub-Fund: 1.50%
Debt Sub-Fund: 0.75%
Money Market Sub-Fund: 0.50%
Registrar : ITMinds Limited: 99-B, Block “B”, S.M.C.H.S., Shahrah-e-Faisal, Karachi
Trustee : Central Depository Company of Pakistan Limited
Auditor : EY Ford Rhodes
Minimum Contribution : Rs. 5,000/- or 10% of monthly income (whichever is lower)
Allocation Schemes
Equity Sub-Fund
Debt Sub-Fun
Money Market Sub-Fund
(i) High Volatility
Min 65%
Min 20%
Nil
(ii) Medium Volatility
Min 35%
Min 40%
Min 10%
(iii) Low Volatility
Min 10%
Min 60%
Min 15%
(iv) Lower Volatility
Nil
Min 40%
Min 40%
(v) Customized*
0-100%
0-100%
0-100%

* Note: Customized allocation scheme should only be selected by participants who have an awareness of the various risks associated with investing in a particular assets class and are capable of making an informed investment decision after reviewing their risk/return requirements.

(vi) Lifecycle

Allocation (Sub-Funds)
High Tolerance for Risk
Moderate Tolerance for Risk
Low Tolerance for Risk
Equity
80%
70%
50%
25%
15%
70%
60%
40%
20%
5%
60%
50%
30%
10%
NIL
Debt
20%
30%
40%
45%
40%
30%
40%
50%
50%
45%
40%
50%
60%
55%
40%
Money Market
NIL
NIL
10%
30%
45%
NIL
NIL
10%
30%
50%
NIL
NIL
10%
35%
60%
Ages (years)
18-30
31-40
41-50
51-60
61 &
above
18-30
31-40
41-50
51-60
61 &
above
18-30
31-40
41-50
51-60
61 &
above
  • Pakistani national or over the age of eighteen years who hold a valid National Tax Number (NTN) or Computerized National Identity Card (CNIC).
  • Employer on behalf of their employees.
  • Non-resident Pakistani holding a National Tax Number (NTN) or National Identity Card for Overseas Pakistanis (NICOP).
  • Accumulated balances from recognized provident fund can be transferred to APF.

Contributions made in Atlas Pension Fund during any one tax year (i.e. between July 1 to June 30) shall be entitled to a tax credit under Section 63 of the Income Tax Ordinance 2001. The amount of tax credit allowed in any one tax year shall be calculated according to the following formula: (A / B) x C where;

A. Is the amount of tax assessed to the person for the tax year, before allowance of any tax credit under this part;
B. Is the person’s taxable income for the tax year;
C. Is the lesser of:

  • the total contribution to VPS in this year; or
  • 20% of the eligible person’s taxable income for the relevant tax year.

The Pension Fund Manager provides worldwide accidental death and disability coverage up to the age of 60 years, through Jubilee Life Insurance Company Limited. The sum insured shall be the lower of 100 times of monthly contribution amount or Rs. 4,000,000/- (The premium cost is to be borne by the participant who opts for insurance coverage and it will be deducted from the contribution amount).

You select your retirement age which can be anytime between the ages of 60 and 70 or 25 years of maintaining a VPS account whichever is earlier.

Benefits at Retirement:

At retirement, you can choose to do any of the following without incurring any tax liabilities:

  • Withdraw up to fifty per cent (50%) of the accumulated amount in your Individual Pension Account as cash (any amount beyond this limit will be taxed at a rate equal to your average rate of tax of the last three consecutive years, as specified in the Income Tax Ordinance, 2001); and
  • Use the remaining amount to purchase an Approved Annuity Plan from a Life Insurance Company of your choice; or
  • Enter into an agreement with the Pension Fund Manager to transfer the remaining balance to an Approved Income Payment Plan offered by the Pension Fund Manager or another pension fund manager and withdraw from it, monthly installments for up to fifteen years following the date of retirement; after which the remaining amount can be used to purchase an annuity from a Life Insurance Company of your choice.

Note: Any withdrawals before retirement age or in excess of allowable lump sum at retirement will be subject to withholding tax. The payments from the APF – Income Payment Plan or Approved Annuity Plan would be subject to tax deductions.

Monthly Installments from Income Plan are exempt from tax as per clause 23B of Part 1 of Second Schedule of Income Tax Ordinance 2001, provided that the investment is made for a minimum period of ten years.

Disclaimer: All investments in pension funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies, the risks involved and tax implications. Withdrawals before the retirement age are subject to tax under provisions of the Income Tax Ordinance 2001.

Atlas Pension Islamic Fund

Atlas Pension Islamic Fund (APIF) was established by a Trust Deed dated August 31, 2007 between Atlas Asset Management Limited (AAML), as Pension Fund Manager and Central Depository Company of Pakistan Limited, (CDC) as Trustee.

The objective of introducing Atlas Pension Islamic Fund is to provide the individuals with a Shariah Compliant, portable, individualized, funded (based on defined contribution), flexible pension scheme assisting and facilitating them to plan and provide for their retirement. Atlas Pension Islamic Fund is a one-window facility investment in diversified portfolio of Shariah Compliant equity securities offering consistent returns and capital growth and Shariah Compliant fixed income instruments offering consistent returns and lower risk. Consistent with this policy, the Contributions received from the Participants shall be allocated Units in APIF – Equity Sub-Fund, APIF – Debt Sub-Fund and APIF – Money Market Sub-Fund in accordance with the Allocation Scheme selected by the Participant giving them not only the power over how much to invest in their pensions, and how to invest it, but also to continue investing in their pension accounts even if they change jobs.

Fund Launch Date : November 6, 2007
Front-End Sales Load : 3% of contribution
Management Fee (Calculated on Average Annual Net Assets) : Equity Sub-Fund: 1.50%
Debt Sub-Fund: 0.75%
Money Market Sub-Fund: 0.50%
Registrar : ITMinds Limited: 99-B, Block “B”, S.M.C.H.S., Shahrah-e-Faisal, Karachi
Trustee : Central Depository Company of Pakistan Limited
Auditor : EY Ford Rhodes
Minimum Contribution : Rs. 5,000/- or 10% of monthly income (whichever is lower)
Shariah Advisor : Dr. Mufti Muhammad Wasie
Allocation Schemes
Equity Sub-Fund
Debt Sub-Fun
Money Market Sub-Fund
(i) High Volatility
Min 65%
Min 20%
Nil
(ii) Medium Volatility
Min 35%
Min 40%
Min 10%
(iii) Low Volatility
Min 10%
Min 60%
Min 15%
(iv) Lower Volatility
Nil
Min 40%
Min 40%
(v) Customized*
0-100%
0-100%
0-100%

* Note: Customized allocation scheme should only be selected by participants who have an awareness of the various risks associated with investing in a particular assets class and are capable of making an informed investment decision after reviewing their risk/return requirements.

(vi) Lifecycle

Allocation (Sub-Funds)
High Tolerance for Risk
Moderate Tolerance for Risk
Low Tolerance for Risk
Equity
80%
70%
50%
25%
15%
70%
60%
40%
20%
5%
60%
50%
30%
10%
NIL
Debt
20%
30%
40%
45%
40%
30%
40%
50%
50%
45%
40%
50%
60%
55%
40%
Money Market
NIL
NIL
10%
30%
45%
NIL
NIL
10%
30%
50%
NIL
NIL
10%
35%
60%
Ages (years)
18-30
31-40
41-50
51-60
61 &
above
18-30
31-40
41-50
51-60
61 &
above
18-30
31-40
41-50
51-60
61 &
above
  • Pakistani national or over the age of eighteen years who hold a valid National Tax Number (NTN) or Computerized National Identity Card (CNIC).
  • Employer on behalf of their employees.
  • Non-resident Pakistani holding a National Tax Number (NTN) or National Identity Card for Overseas Pakistanis (NICOP).
  • Accumulated balances from recognized provident fund can be transferred to APIF.

Contributions made in Atlas Pension Islamic Fund during any one tax year (i.e. between July 1 to June 30) shall be entitled to a tax credit under Section 63 of the Income Tax Ordinance 2001. The amount of tax credit allowed in any one tax year shall be calculated according to the following formula: (A / B) x C where;

A. Is the amount of tax assessed to the person for the tax year, before allowance of any tax credit under this part;
B. Is the person’s taxable income for the tax year;
C. Is the lesser of:

  • the total contribution to VPS in this year; or
  • 20% of the eligible person’s taxable income for the relevant tax year.

The Pension Fund Manager provides worldwide accidental death and disability coverage up to the age of 60 years to the participants of APIF on their contributions through Pak Qatar Family Takaful Limited. The sum insured shall be the lower of 100 times of monthly contribution amount or Rs. 4,000,000/- (The premium cost is to be borne by the participant who opts for insurance coverage and it will be deducted from the contribution amount).

You select your retirement age which can be anytime between the ages of 60 and 70 or 25 years of maintaining a VPS account whichever is earlier.

Benefits at Retirement:

At retirement, you can choose to do any of the following without incurring any tax liabilities:

  • Withdraw up to fifty per cent (50%) of the accumulated amount in your Individual Pension Account as cash (any amount beyond this limit will be taxed at a rate equal to your average rate of tax of the last three consecutive years, as specified in the Income Tax Ordinance, 2001); and
  • Use the remaining amount to purchase an Approved Annuity Plan from a Life Insurance Company of your choice; or
  • Enter into an agreement with the Pension Fund Manager to transfer the remaining balance to an Approved Income Payment Plan offered by the Pension Fund Manager or another pension fund manager and withdraw from it, monthly installments for up to fifteen years following the date of retirement; after which the remaining amount can be used to purchase an annuity from a Life Insurance Company of choice.

Note: Any withdrawals before retirement age or in excess of allowable lump sum at retirement will be subject to withholding tax. The payments from the APIF – Income Payment Plan or Approved Annuity Plan would be subject to tax deductions.

Monthly Installments from Income Plan are exempt from tax as per clause 23B of Part 1 of Second Schedule of Income Tax Ordinance 2001, provided that the investment is made for a minimum period of ten years.

Disclaimer: All investments in pension funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results. Please read the Offering Document to understand the investment policies, the risks involved and tax implications. Withdrawals before the retirement age are subject to tax under provisions of the Income Tax Ordinance 2001

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.