Announcement for Punjab
Government Employees
Punjab Pension Fund
Punjab Pension Fund
MCB Investment Management Limited (MCB Funds) collaborates with the Government of Punjab to manage the Defined Contribution Pension Schemes under the names âMCB Punjab Pension Fundâ and âAlhamra Islamic Punjab Pension Fundâ.
If you were employed by the Government of Punjab on or after 8th January, 2024, you are required to opt for the Defined Contribution Pension Scheme constituted under the Punjab Defined Contribution Pension Scheme Rules, 2025.
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Key Benefits
Market Competitive Returns
MCB Fundsâ existing pension funds have delivered market-competitive returns over time, and it is on the strength of this proven expertise that we bring you Punjabâs retirement solutions. Market-competitive returns that add happiness to every day!
24/7 Customer Service
Our 24/7 customer service provides you with reliable, uninterrupted support; anytime, any day!
24/7 Customer Service
Our 24/7 customer service provides you with reliable, uninterrupted support; anytime, any day!
Expert Financial Advisors
Meet our expert financial advisors for comprehensive and personalized financial solutions because your needs are our priority.
MCB Punjab Pension Fund
The MCB Punjab Pension Fund (MCB PPF) is designed to help Government of Punjab employees build reliable, long-term retirement savings and post-retirement income through a professionally managed, conventional investment portfolio.
The fund pursues its objective by allocating contributions across a balanced range of traditional asset classes in accor- dance with the investment allocation policy defined under the Punjab Defined Contribution Pension Scheme Rules, 2025. Its focus is on delivering consistent growth, effective risk management, and flexible income options at retirement, ensuring financial security throughout an employee’s retirement years.
Alhamra Islamic Punjab Pension Fund
The Alhamra Islamic Punjab Pension Fund (ALHIPPF) aims to provide Government of Punjab employees with a fully Shariah-compliant avenue for long-term retirement savings and post-retirement income, consistent with the structure outlined under the Punjab Defined Contribution Pension Scheme Rules, 2025. The fund invests exclusively in Islamic investment instruments, including Shariah-screened equities, Sukuk, Islamic money market instruments, and a dedicated KMI-30 index sub-fund, ensuring diversified exposure while remaining firmly within the principles of Islamic finance. Its objective is to facilitate halal, long-term wealth accumulation and financial stability, supported by robust Shariah oversight and ethical investment practices. Our Shariah Board is supervised by the Shariah Advisory Board comprising Justice (Retd.) Mufti Muhammad Taqi Usmani, Dr. Mufti Muhammad Zubair Usmani, and Dr. Mufti Ejaz Ahmad Samdani.
Who can invest?
The following employees of the Government of Punjab are eligible to opt for the âMCB Punjab Pension Fundâ or the âAlhamra Islamic Punjab Pension Fundâ:
- An employee appointed on or after the commencement of the Punjab Civil Servants (Amendment) Ordinance, 2023 (I of 2024), excluding any person who was appointed as a Government servant against a pensionable post before the commencement of the said Ordinance and was subsequently inducted into any Provincial service through proper channel after the Punjab Civil Servants (Amendment) Ordinance, 2023 (I of 2024) came into force.
- An employee regularized as a civil servant through any legal instrument issued on or after the commencement of the Punjab Civil Servants (Amendment) Ordinance, 2023 (I of 2024). Such an employee shall be considered an employee for the purposes of the Punjab Defined Contribution Pension Scheme Rules, 2025 from the date of issuance of the legal instrument, regardless of the effective date of regularization.
An employee shall be deemed to be an employee solely for the purposes of the Defined Contribution Pension Scheme until reaching the age of retirement. No further contributions shall be made to the employeeâs pension account by either the employer or the employee if the employee leaves service before attaining the age of retirement for any reason whatsoever.
Start Your Pension Journey in 4 Simple Steps!
Step 2
Click on âApply Schemeâ in the Application Requests section
Step 3
Under the âFund Manager Selectionâ section, select MCB Funds as your preferred AMC.
Step 4
In the âSelect Scheme Typeâ category, choose Conventional or Islamic, based on your preference.
Benefits & Features
- A disciplined way to save for retirement through regular contributions.
- Joint contributions from both the Government of Punjab and the employee.
- Diversified investment exposure across multiple asset classes.
- Attractive tax benefits, including tax credit under Section 63 of the Income Tax Ordinance 2001.
- Flexibility to switch between Conventional and Shariah-compliant pension schemes, or between pension fund managers, free of cost under Voluntary Pension System Rules, 2005.
- Freedom to choose their preferred Pension Fund Manager and investment mode (Conventional or Shariah-compliant).
- Digital convenience, including easy balance tracking through iSAVE account mapping.
Allocation Scheme
(a) Life Cycle Allocation Scheme
This Allocation Scheme requires the Participants to allocate their contributions in a pre- planned allocation strategy as per their age. The younger the Employee, the higher the allocation towards equity market due to his/ her risk-taking ability with reference to long term horizon.
| Age | Equity Index Sub-Fund | Equity Active Sub-Fund | Combined Exposure to Equity | Debt / Money Market Sub-Fund |
|---|---|---|---|---|
| For the period of 3 years from date of account opening | 0% | 0% | 0% | 100% (Money Market Sub-Fund Only) |
| Up to 30 years | Max 50% | Max 25% | Max 50% | Min 50% |
| 31-40 years | Max 40% | Max 20% | Max 40% | Min 60% |
| 41-50 years | Max 30% | Max 15% | Max 30% | Min 70% |
| 51-60 years | Max 20% | Max 10% | Max 20% | Min 80% |
(b) Default Asset Allocation Scheme
In the event no choice is made by the Employee, a Pension Fund Manager, keeping in view the profile and age of the Employee, shall allocate the Contributions to the default Asset Allocation Scheme as follows:
| Age | Equity Index Sub-Fund | Equity Active Sub-Fund | Debt Sub-Fund | Money Market Sub-Fund |
|---|---|---|---|---|
| For the period of 3 years from date of account opening | 0% | 0% | 0% | 100% |
| Up to 30 years | 30% | 10% | 30% | 30% |
| 31-40 years | 20% | 10% | 30% | 40% |
| 41-50 years | 15% | 5% | 20% | 60% |
| 51-60 years | 10% | 0% | 10% | 80% |
Disclaimer:All investments in pension funds are subject to market risks. Employees of the Government of Punjab are advised in their own interest, to carefully read the contents of the Offering Document in particular the Investment Policies mentioned in clause 7.2, the Risk Factors mentioned in clause 7.10 and 7.11, and the Warnings in clause 11 before making any investment decision.
According to section 63 of the Income Tax Ordinance, 2001, an individual Pakistani who holds a valid NTN, CNIC, or NICOP issued by NADRA and derives income chargeable to tax under the head âSalaryâ is entitled to a tax credit for the tax year in respect of any contribution paid in the year by the person to an approved pension fund under the Voluntary Pension System Rules, 2005.
The tax information provided herein is based on the interpretation of MCB Investment Management Limited. Employees of the Government of Punjab are advised to seek independent professional tax advice in this regard. Withdrawal from a pension fund before retirement may have tax implications.
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