March 08, 2007	Thursday	Safar 18, 1428

Please Visit our Sponsor (Ads open in separate window).

LAHORE, March 7: The Punjab Assembly unanimously approved on Wednesday the Punjab Pension Fund Act of 2006 to fulfil a requirement under the Punjab Resource Management Programme, funded by the Asian Development Bank.

The new legislation will not only enable the government to create a reserve pension fund, enough to generate resources to discharge its annual pension liabilities but also make pension an off-budget item, according to a statement of objects and reasons of the act.

Removal of the pension from the budget will create fiscal space for channelling resources towards the socio-economic development of the province.

The fund will be a body corporate with perpetual succession, common seal, power to enter into contract and may sue or be sued by its name.

The management and administration of the fund will be managed by a nine-member committee, headed by the provincial chief secretary. Other members include the Planning and Development Board chairman, secretaries of finance, law, parliamentary affairs and human rights departments, the secretary (services) of the services and general administration.

The committee will have five non-official members that include: a general manager who will also be its secretary, besides four people from the private sector.

A non-official member will be a member of the Institute of Chartered Accountants of Pakistan or the Institute of Cost and Management Accountants of Pakistan. He or she will be appointed for a renewable term of three years.

The general manager should have 12 years experience in banking, accounting, custody of investment assets, management of pension fund assets or unit trust. The committee will establish standards and procedures for investment by formulating a policy, invest amounts from the reserve fund, transfer any profit generated through the investment to the fund and initiate proposal to make or amend the rules.

The committee will be empowered to borrow money from the government or any other institution, employ people as may be necessary for the purposes of the act, make sub-committees, prepare an annual report to be submitted to the government about the details of the fund performance.

However, certain limits on investment have been imposed to safeguard the interest of the fund. The committee cannot make investment from the fund in any foreign market or firm for a period of more than three years. The committee will neither invest more than 25 per cent of the fund in one financial institution nor more than 75 per cent in the government bonds. Investment cannot be made of more than five per cent of the fund in corporate or other bonds or short-term financial instruments per issue of the bond, besides in third party products, unit trust or through managed portfolios in each case.

Dr Asad Ashraf of the Pakistan Muslim League-Nawaz pointed out quorum when Lawn Minister Raja Basharat moved the bill before the house. Speaker Afzal Sahi ordered count and the teller informed him the house had full quorum.

Deputy Opposition Leader Rana Sanaullah said on a point of order the house had quorum because of the presence of opposition members. The quorum was pointed out just to show that opposition was also with the government employees.