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Pensioners Benefit Account National Saving Pakistan |
Pensioners Benefit Account
What is Pension?
A pension is a fund into which a sum of cash is
brought in the course of an employee's employment years and from which
repayments are drawn to support the person's retirement from work in the shape
of periodic payments
Pensions are paid as an annuity, which means over a regular, constant period, to retired employees of an affiliation as compensation for former employment with that association.
The two most frequent pension types are known as a defined- advantage plan and a defined- contribution plan. Both plans are paid out in retirement, however they fluctuate in the formulation used to outline contributions and payouts upon retirement
Defined-benefit
Defined-benefit plans are calculated with a components
thinking about the employee’s salary, the years he/she worked for the
organization, and a multiplier set by means of the organization. Unlike
defined-contribution plans, the worker is assured an amount, which is set by
means of the system when the worker becomes a pension member. Defined-benefit
plans can be unfunded, which means that advantages are paid for with the aid of
the corporation as they’re paid out; or funded, which means that employers make
investments contributions in a fund that is paid out later.
Defined-Contribution Plan
Money contributed to a defined-contribution plan can both come out of the pension member’s income or from contributions made through her employer. Unlike defined-benefit plans, defined-contribution plans don’t promise a assured benefit. In that sense, they’re now not without a doubt pension funds, due to the fact contributions to the worker’s pension are positioned in a funding account and the annuity is tied to the fitness of the investment.
Pensioners Benefit Account (PBA)
PRODUCT HIGHLIGHTS |
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|
Categories: |
Accounts |
|
Product
Nature |
Accounts |
|
Beneficiaries |
Pensioners |
|
Maturity |
10
Years |
|
Profit
Paid |
Monthly
Basis |
|
Mode
of Investment |
Cheque,
Pay order & Cash |
|
Investment
Limit |
Minimum
10,000 and Maximum 5,000,000 |
Introduction
Keeping in view the difficulties faced by the
pensioners and for helping them have a regular channel of income even after
their retirement, the Government of Pakistan has launched Pensioners ’ Benefit
Account( PBA) with a maturity period of 10 years on January 19, 2003. The
deposits are maintained in the form of accounts and the profit is paid on
monthly base started from the date of opening of the account/ deposit.
How Can Invest?
The
pensioners of Federal Government, Provincial Governments, Government of Azad
Jammu & Kashmir, Armed Forces, Semi-Government and Autonomous bodies and in
case of the death of a pensioner their eligible family member can invest in
PBA.
How to open an Account?
Only one account, at a time can be opened at any
of the National Savings Centre (NSC) across Pakistan, Azad Kashmir and Gilgit
Baltistan, by filling in DA-I (Application Form), available free of cost from
NSCs.
Documents Required with the
Application Form
·
Attested copy of the Computerized
National Identity Card (CNIC)/NICOP
·
Copy of Pension Payment Order or any
document as a proof of Retirement;
·
Golden Hand Shake;
·
Voluntary Separation Schemes etc. as the case
may be, are required to be attached with the Application Form.
Mode of Deposits
The
PBA can be opened by depositing cash at the issuing office or by presenting a
Cheque, draft, and pay-order. The Account shall be opened immediately against
the cash payment. However, in the case of deposit through Cheque, draft and pay-order,
the Account shall be opened with effect from the date of realization of the
Cheque, draft, pay-order, after receiving the clearance advice.
Investment Limit
·
Minimum: Rs. 10,000/-, Maximum: Rs.
5,000,000/-
·
An investor can invest only seven
subsequent deposits in the account
·
The following are not allowed under any
circumstances:
1) More than eight deposits;
2) Exceeding the prescribed
limit of investment i.e. Rs. 5,000,000/- ;
3) more than one account across
Pakistan at a time.
o
In case of the violation of any of the
above conditions, the Account shall be treated as irregular with zero profit.
Any amount of profit already collected thereon would be irregular and shall be
liable to be recovered/deducted from the account holder/recipient of profit/
deposited amount.
Read FBR Access account
Withdrawal
of Deposit
Withdrawal
from the principle amount shall be in multiples of rupees one thousand. The
deposits can be withdrawn any time after the date of deposit subject to
deduction of service charges. If the deposit withdrawn before completion of
1,2, 3 and 4 years from the date of deposit then 1%, 0.75%, 0.5%, and 0.25%
respectively of the principal amount will be deducted.
deduction of Service charges |
|
|
Period |
Service
Charges Rate (Principal amount) |
|
Under 1 Year |
1% |
|
More than 1 year but less than 2
Years |
0.75% |
|
More than 2 years but less than 3
Years |
0.50% |
|
More than 3 years but less than 4
Years |
0.25% |
|
After 4 Years |
No Service Charges Deduction |
Rate of Return / Profit rates
The
continued re-investment option on maturity of deposits in PBA is available.
However, the profit rates on the date of re-investment will be applicable to
such re-invested amount. Last profit rate was updated on 25.03.2022, on
investment of Rs.100,000/- monthly profit is Rs.1,060/- profit rate is 12.72%
Zakat & Tax
The
withholding tax is not collected on the profit earned on the deposits made in
PBA. The investment made in the PBA is also exempted from Zakat.
