Frequently Asked Questions

Following individuals are eligible to join Faysal Pension Fund and Faysal Islamic Pension Fund:
• All Pakistani Nationals/Expatriate Pakistanis over 18 with valid Computerized National Identity Cards (CNIC) or National Identity Card for Overseas Pakistanis (NICOP) and desirous of availing tax credit. Such individuals may include -Salaried individuals; Self-employed individuals (sole-proprietors)
• All Employers who wish to provide a pensions system for their employees’ welfare and are unable to do so currently. Such employers may include Corporates, SMEs or any Entrepreneur/ businessmen who wish to provide benefit as an additional remuneration to their valued employees.
• Recognized provident funds that have the provision allowing them to transfer these funds to a professionally managed Private Pension Fund Manager

A Participant can open a Voluntary Pension Scheme (VPS) account with the Pension Fund Manager with a minimum investment of Rs 1,000 and for subsequent contributions the minimum threshold is Rs 500.

Eligible persons themselves as well as along with their employers are allowed to contribute into one or more pension funds. The amount of contribution can be paid in one lump sum or in installments into one or more pension funds.

Copy of CNIC, Copy of NTN, Salary Slip, Bank Account, Zakat Declaration (where applicable), FATCA form, KYC Details, Risk Profiling questionnaire, Copy of Pension Fund Account Statement (In case of transfer from another pension fund manager), Employer Contribution Form (In case of contribution by employer) and Health Questionnaire Form for free Takaful coverage.

Both Faysal Pension Fund and Faysal Islamic Pension Fund comprises of the following three sub-funds:
• Equity Sub-Fund;
• Debt Sub-Fund; and
• Money Markey Sub-Fund

Yes, a participant can change from one Allocation Scheme to another as and when required till retirement.

Participant can choose his/her age of retirement between sixty and seventy years or after 25 years of joining VPS, whichever comes first. However, participant is required to submit a notice of withdrawal to the Pension Fund Manager thirty days prior to the chosen date of retirement.

No. VPS account cannot be used for:
• Lien, pledge or encumbrance
• Attachment in the execution of decree
• Chargeable or assignable on the bankruptcy of participant

Tax credit can be claimed as per the following formula:
(Tax Payable Before Tax Credit) ÷ (Taxable Annual Income) x Lower of (Contribution into VPS, 20% of Annual Taxable Income).
Salaried Participants can claim tax credit by simply providing the Account Statement issued by Pension Fund Manager to their Human Resource Department with the request to reduce the tax liability accordingly. Self-employed individuals can reduce their annual tax liability at the time of filing their annual Income Tax Returns by the tax credit allowed on the amount of eligible investment in VPS.

Yes, one can concurrently invest in Mutual Funds and Pension Funds to avail tax credit facility under both investments in the same year.

No, Participants can only avail tax credit for the Tax Year on investments made in that particular year in VPS.

Yes, Participants can change the Pension Fund Manager once in a Financial Year by giving a notice prior to at least 7 working days, as per VPS Rules, 2005.

Yes, a participant can change the Pension Fund once in a Financial Year giving a notice prior to at least 7 working days, as per VPS Rules, 2005.

No fee/load shall be charged on such transfers.

Yes, a participant can transfer his/her PF balance to VPS. No tax credit can be claimed on transfer of balance from PF to VPS. Neither will such balance be taxed if withdrawn prior to retirement age.

At retirement, a Participant can choose any one of the following:
o Redeem 50% without withholding tax and remaining 50% will be offered through Income Payment Plans by the PFM for a minimum of 10 years (Fixed & Flexible). Participant will receive profit on regular basis and withholding tax will not be applicable on the same;
o Transfer all units in the Income Payment Plan (Lower Volatility Scheme). Participant will receive the profit on regular basis and withholding tax will not be applicable on the same.

In the unfortunate event of the death of a Participant, the nominees as mentioned in the Nomination Form shall be entitled to the balance held in Individual Pension Account of the deceased Participant.

Participant may redeem all or partial units in his/her Account before attaining the retirement age. The Pension Fund Manager does not apply any penalty or fees for early withdrawal however, the amount so redeemed shall be subject to deduction of Income Tax at his/her average tax rate for the last three years.