customerservices@faysalfunds.com   (021) – 111 329 725

Let’s secure the golden years you have worked for!


Retirement is a whole new stage of your life, and it should be on your own terms. Just because you’ve stopped working doesn’t mean your money has to. However, if you are financially unprepared, it can be a difficult time. We are offering customized retirement plan designed specially to meet your post retirement financial needs to ensure that you enjoy your golden years to the fullest with comfort and financial independence.

Fund Objective


The objective of introducing Faysal Islamic Pension Fund is to provide individuals with a portable, individualized, funded (based on defined contribution) and flexible pension scheme which is managed by professional investment manager to assist them to plan and provide for their retirement. The design of the scheme empowers the participants to decide how much to invest in their pensions and how to invest it, as well as to continue investing in their pension accounts even if they change jobs.

Fund Facts


Fund Type Open Ended
Investment Mechanism Forward Pricing
Tenure Perpetual
Category Shariah Compliant Voluntary Pension Scheme
Management Fee Up to 1.50% on average Net Assets of each Sub-Fund
Minimum Investment Initial = Rs. 1,000/- | Subsequent = Rs. 500/-
Front end Load Up to 3% on all Contributions
Risk Profile Low to High (As per Allocation Scheme)
Transparency Daily calculation and announcement of NAV
Trustee Central Depository Company of Pakistan
Auditor A.F Ferguson & Co.
Back Office Accounting Services IT Minds Limited

Benefits


Flexibility

Flexible and customized contribution option

Income Stream

Regular Shariah Compliant income stream post retirement

Lump-Sum Balances

1/2 Accumulated balance as lump-sum upon retirement

Personalized Asset Allocation

Customized asset allocation as per individual preference

Free Takaful Coverage

Life and disability coverage

Tax Rebate

Very substantial tax rebate as per Section 63 of ITO 2001

Select your Retirement Age

25 years from today, or any age between 60 and 70.

Portability

Your VPS will go with you wherever you go in your career.

Flexibility

Flexible and customized contribution option

Income Stream

Regular Shariah Compliant income stream post retirement

Lump-Sum Balances

1/2 Accumulated balance as lump-sum upon retirement

Personalized Asset Allocation

Customized asset allocation as per individual preference



Free Takaful Coverage

Life and disability coverage

Tax Rebate

Very substantial tax rebate as per Section 63 of ITO 2001

Select your Retirement Age

25 years from today, or any age between 60 and 70.

Portability

Your VPS will go with you wherever you go in your career.



Asset Allocation Scheme


Allocation Scheme Islamic Equity Sub-Fund Islamic Debt Sub-Fund Islamic Money Market Sub-Fund
High Volatility Min 65% Min 20% Nil
Medium Volatility Min 35% Min 40% Min 10%
Low Volatility Min 10% Min 60% Min 15%
Low Volatility Nil Min 40% Min 40%
Customized 0-100% 0-100% 0-100%
FIPF Termsheet
FIPF Brochure
FIPF Forms

Frequently Asked Questions


Know More About Faysal Islamic Pension Fund.

Who can join and contribute to Faysal Islamic Pension Fund?

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

What is the minimum initial and subsequent amount that I can invest in Faysal Islamic Pension Fund?

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.

What are requirements to contributions?

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.

What documents are required to be submitted with the Account Opening Form?

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.

What is the structure/Allocation Scheme of Faysal Pension Fund and Faysal Islamic Pension Fund?

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

Is change in Allocation Scheme allowed to the Participant?

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

What date can a Participant select as a retirement age?

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.

Can individual VPS account be pledged or adjusted against any liability?

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

How much Tax Credit I can claim by investing in a Pension Fund?

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.

Can a Participant invest in both Mutual Funds and Pension Funds at the same time? If yes, is the Participant entitled to tax credits for both type of investments?

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

Can a Participant continue to claim the investment allowance each year on the amount invested?

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

Can a Participant change the Pension Fund Manager and how frequently?

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.

Can a Participant switch from Faysal Pension Fund to Faysal Islamic Pension Fund?

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.

Is there any fee on transfer of accumulated balance from one Pension Fund Manager to another Pension Fund Manager?

No fee/load shall be charged on such transfers.

Can a Participant transfer his/ her Provident Fund (PF) balance to VPS?

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.

What are the choices available to a Participant at retirement?

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.

What happens in case of death of a Participant?

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.

What happens if a Participant wants to withdraw his/her accumulated amount before retirement age?

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.

Investment Committee


Mr. Khaldoon Bin Latif Chief Executive Officer
Mr. Faisal Ali Khan Chief Financial Officer
Mr. Ayub Khuhro Chief Investment Officer
Mr. Jamshed Aziz Head of Pension Fund
Syed Shahid Iqbal Head of Fixed Income
Mr. Khurram M. Arif, CFA Head of Equity
Mr. Umer Pervez Director Research
Mr. Imad Ansari Head of Risk
Mr. Khurram Salman Head of Compliance and Internal Audit (non-voting)