PSB establishes contributory pension fund

APP

ISLAMABAD: The Pakistan Sports Board (PSB) has established a Contributory Pension Fund to ensure long-term pension sustainability and to address future financial pressures.

This decision was made during the 34th PSB Board meeting, where amendments to the existing pension rules were discussed, said a press release.

Following the board’s approval, Director General PSB, Muhammad Yasir Pirzada, issued a formal notification for the establishment of the fund. It is estimated that around Rs. 73 million will be collected annually, allowing for timely pension payments and the potential to invest surplus funds in profit-generating schemes.

The fund will operate on a shared contribution model. Serving employees will contribute 10% of their basic pay, retired employees will also contribute 10%, and pensioners above the age of 72 will contribute 20%. PSB itself will contribute an additional 20% from its commercial/revenue account. Based on current staff numbers, the fund will gather approximately Rs. 1.569 million monthly from employees, Rs. 1.454 million from pensioners, and Rs. 3.138 million from PSB’s share—totaling Rs. 6.161 million per month or nearly Rs. 74 million annually. The account will be jointly operated by two officers nominated by the Director General.

As part of the reform package, PSB has also amended Rule 88 of its 2000 Service Rules to limit leave encashment. Now, employees retiring, resigning, or passing away will only be entitled to encash up to 365 days of unused leave. Previously, employees were allowed to encash 50% of any additional days beyond 365, which added extra financial burden to the organization. DG PSB Muhammad Yasir Pirzada emphasized that these reforms aim to strengthen the financial structure of the board and ensure a dependable pension system for all employees.