The Roshan Pension Plan is a Voluntary Pension Scheme that aims to provide a personalized and flexible opportunity to fund Roshan Digital Account Holder’s Retirement. The Investment will be managed by a team of Professional Pension Fund Managers. AL Habib Roshan Digital Account Holders can save to maintain financial stability and comfort in the form of steady income after retirement. The Overseas Pakistani Roshan Digital Account Holder can now decide how much to invest in this scheme, and they can continue to invest even while switching jobs.
AL Habib Roshan Digital PKR Account Holders only
A very flexible savings cum investment plan
Desired investment exposure to high yielding assets
Facilitates individuals to save systematically for their retirement savings topped with investment returns
After reaching retirement age, get monthly income from your accumulated investments or withdraw a lump sum amount
Contributions allocated among the Units of Sub-Funds as Net Asset Value, as per selected Allocation Scheme:
|Allocation Scheme||Equity Sub Fund||Debt Sub Fund||Money Market Sub Fund|
The Roshan Pension Plan (RPP) is a Voluntary Pension Scheme run by a Pension Fund Manager who manages the voluntary contributions made by a participant, whether employed or not, or by an employer on his behalf, based on Voluntary Pension Scheme Rules, 2005. It is a saving mechanism where an individual saves from his/her current income in order to retain financial security and comfort in terms of regular income after retirement.
RPP is a steady income given to a person (usually after retirement). RPP is a saving, or a contribution, which is collected during the working life of an RDA holder and invested for profit. After the opted retirement date, the account holder is entitled to a steady monthly income from a fund built up from the earlier savings.
A Participant is an (NRVA individual /Roshan Digital PKR Account holders) who has contributed or on behalf of whom contributions are made into the pension scheme. (NRVA is Non-Resident Pakistani - Rupee Value Account)
Pension Fund Manager means an asset management company, or a life insurance company duly authorized by the Securities and Exchange Commission of Pakistan (SECP) to efficaciously manage the contributions made by or on behalf of participants in pension fund and meet such other conditions as may be prescribed from time to time by the SECP.
All Roshan Digital PKR Account holders with NRVA having a valid CNIC/NICOP/POC and a source of income are eligible to invest in RPP.
Minimum age is 18 years and Maximum age is 69 years.
AL Habib Asset Management Limited (AHAML) was incorporated in year 2005 as an unlisted public limited company. AHAML is licensed to carry out Asset Management, Investment Advisory and Pension Fund Manager Services, under the Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 and Voluntary Pension System Rules, 2005. AHAML is also a member of the Mutual Funds Association of Pakistan (MUFAP).
AHAML is offering Pension funds in both Conventional and Islamic Shariah Compliant category i.e. AL Habib Pension Fund and AL Habib Islamic Pension Fund.
NRVA/Roshan Digital PKR Account holders can open Pension Account with AHAML by visiting the following link: https://bdctstlampra03/pensioner-plan
Minimum Initial amount is Rs. 10,000/-
A fund’s Net Asset Value (NAV) represents the value per unit at a given point of time. The NAV is equal to the fair market worth of assets held in the portfolio of a Fund, less liabilities, divided by the number of units currently in issue.
NAV Per Unit = (Current Fair Market Value of Assets – Liabilities) / Total Number of Units Outstanding
The sales price of a unit might be different from the NAV, if there is an element of “Sales Load”. The sale and redemption price are declared on a daily basis by the fund manager on its website.
An investment allocation scheme, which provides an opportunity to create a personalized retirement fund through regular contributions, with allocations adjusted according to the age & risk-taking capacity of the investor.
Currently RPP provides following options to the participants to select a Pension Allocation scheme according to their requirements:
|Allocation Scheme||Equity Sub Fund||Debt Sub Fund||Money Market Sub Fund|
Yes, at any point of time during the year.
AL Habib Asset Management Limited shall invest according to strategy to optimize returns on investments within the parameters of Investment Policy specified by SECP.
Pension Fund invest in following three asset class depending upon investor preference:
Money market fund invest primarily in Government securities like T-Bills and PIBs. These are riskless asset and has stable return
Debt fund investment in daily product and Term deposit receipt (TDR) of Banks. These are riskless asset and his stable return
Equity Fund invest in share of listed company. Investment is done in shares of fundamentally strong companies to optimize investor return. Nonetheless, investment in shares fall in category of risky asset whereby higher risk correlate with higher return.
For Shariah Compliant Pension Fund investment will be made in Shariah Compliant equity, Shariah compliant Income and money market instruments with the aim to maximize return of participants. All investments policies are made under the supervision of Dr. Mufti Ismatullah from Darul-Uloom Karachi.
Sales Load fee under Roshan Pension Plan is 100% waived off.
There is no Backend Load under Roshan Pension Plan
Management fee is charged up to 1.5 % per annum of the net assets value of the Pension fund.
Rates of return under RPP are market driven, however, historical returns in various avenues of investment are considered for the purpose of illustrations. These can be referred from monthly Fund Manager Report (FMR) from AL Habib Asset Management website.
The participant can contribute any time at his/ her own convenience.
Since investment is daily valued at fair market price, accordingly any gain on investment is included in the NAV (price) of unit. There is no formal distribution of Profit to the participant, it will accumulate with the investment where participant can get the benefits.
The allocation scheme can mature any time between 60 and 70 years or the age which he/she will be after 25 years from the date of first contribution into a VPS; whichever comes first. However, the participant is free to redeem as and when desired, with returns up to the day of redemption, subject to applicable tax thereon (if any).
All accumulated funds at the date of retirement of the participant will be available to him/her with the following options, namely:
To withdraw Tax-Free up to fifty percent (50%) of the amount in his/ her individual Pension account.
To enter a monthly Income Payment Plan (IPP) approved by the SECP from the remaining amount, up to 15 years. Disbursement of IPP is subject to applicable Tax laws. OR
To use the remaining amount to purchase an annuity from a Life Insurance Company / Family Takaful company of his/her choice.
Not necessarily. The entire amount can be shifted for Monthly Income Payment Plan (MIPP).
A participant at any time before retirement shall be entitled to redeem the total or part of his/her accumulation subject to payment of tax @ of his/her average tax rate of the preceding three years.
In case of death before retirement:
All his/ her investment will be available to the nominated survivors as per Succession Certificate issued by the Court or NADRA with the following options:
Withdraw his/her share of the amount subject to the conditions laid down in the Income Tax Ordinance 2001.
Transfer his/her share of the amount into his existing or new individual pension account to be opened with the Pension Fund manager,
Use his/her share of the amount to purchase an annuity on his/her life from a Life Insurance Company, only-if his/her age is fifty- five years or more; or
Use his/her share of the amount to purchase a deferred annuity on his/her life from a Life Insurance Company to commence at age fifty-five years or later
In case of disability before retirement:
The person will be treated as retired and will get all the benefits as on retirement
Withdrawals can be made through any of these three options.
Systematic Withdrawal Option – Under this option the Participant shall instruct the Management Company to pay a fixed amount at the end of each Period.
Actual Appreciation Payment plus Fixed Amount – Under this option the Management Company shall calculate the amount a Participant receives based upon the actual appreciation of Participation Amount at the end of the Period plus a fixed amount. If investment depreciates during the Period, only fixed amount shall be paid to the Participant through his Participation Amount. Fixed amount shall be revisited annually to adjust for any depreciation in account balance.
Balance to remaining number of Months Methodology – The value of total remaining balance shall be divided into the remaining number of months in the selected period. This exercise shall be undertaken at the end of each year.
In case of death of the MIPP participant, the successor(s) can continue with the Plan after converting the funds under their name for remaining period. If withdrawn early the tax will be applied as per law.
Pension funds are similar to other open-end funds in terms of their returns. However, they are regulated under VPS rules while Open end funds are regulated under NBFC regulations 2008. Tax Credit is available in VPS Investment as per Section 63 of ITO 2001, for individuals who also have some source of income in Pakistan.
State Bank of Pakistan (SBP) has clarified that AL Habib Roshan Digital Accounts are not subject to compulsory deduction of Zakat as per rule 24-A of the Zakat Collection & Refund Rules, 1981.
AL Habib Asset Management is a wholly owned subsidiary of Bank AL Habib Limited, managing nine Open-end Schemes and several Discretionary and Non- Discretionary Portfolios. The Company has a vast customer base comprising individuals, sole-proprietorships, retirement funds and public and private sector entities. The Assets under Management of AHAML as on June 30, 2022 are over 50 billion.
E-statement is sent on each transaction and on monthly basis. However, participant can request AL Habib Asset Management for e-statement.
Retirement age can be changed, on written request for maximum upto the age of 70 years.
Yes, there is no restriction in VPS Rules, 2005. The Participant after retirement can open another pension account with the same Pension Fund manager or with any other Pension Fund Manager subject to that participant’s age is lesser than 70 years.