Roshan Pension Plan FAQ.

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 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 individual (NRVA holder) who has contributed or on behalf of whom contributions are made into the pension scheme.

Pension Fund Manager means an asset management 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 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 70 years.

Faysal Funds (Faysal Asset Management Limited) is a subsidiary of Faysal Bank Limited (FBL). FBL is holding 99.99% shares of Faysal Funds. Faysal Funds was incorporated in Pakistan under the Companies Ordinance, 1984 on August 6, 2003 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services.

Faysal Funds is an Investment Manager that delivers structured and customized professional investment solutions to its domestic and international clientele. Their endeavors are directed towards facilitating clients with investing in multiple asset categories to diversify risk in a prudent manner, while capitalizing on the ever-shifting financial and real-economy dynamics within Pakistan as well as across international waters to generate that coveted investment alpha.

NRVA holders can open Pension Account in MTPF by visiting the following link:
https://digionboard.faysalbank.com/Pension/AccountOpeningPension.aspx

Rs. 10,000/-.In order to properly build a pension fund , one should have to first determine the amount required on a monthly basis after the time of retirement. In addition, one will have to work out how much will he/she need to set aside
on a monthly basis to come with a lump sum amount large enough to create an annuity, which provides a desirable monthly income after retirement.

A fund’s Net Asset Value (NAV) represents the value per unit at a given point of time. The NAV is equal to the market worth of assets held in the portfolio of a Fund, minus liabilities, divided by the number of units currently issued to investors.

NAV Per Unit = (Current Market Value of all the Assets – Liabilities) / Total Number of Units Outstanding

The sales and redemption price of units might be different from the NAV if there is an element of “Sales Load / Front End Load” or “Back End Load”. The sale and redemption price is declared on a daily basis by the fund manager on its websites.

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.

It provides following options to the participants to select a Pension Allocation scheme according to their requirements:

Yes, at any point of time during the year.

Faysal Funds will invest the pension fund money in different Shariah Compliant equity, Shariah compliant Income and shariah compliant money market instruments with the aim to maximize return of participants.

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. They can be referred from monthly Fund Manager Report (FMR) from Faysal Funds website.

The participant can contribute any time at his/ her own convenience.

Profit will not be distributed to the participant, it will accumulate with the investment and after retirement participant can get the benefits. However, in case of early withdrawal of any amount it will be subject to deduction of applicable taxes.

The term of the allocation scheme would depend on the age of the investor, as 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 and payment of tax thereon (if applicable).

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, as cash;
• To enter into a Monthly Income Payment Plan (MIPP) till the age of seventy-five years or earlier, according to an income payment allocation scheme, approved by the SECP. Disbursement of MIPP is subject to applicable Tax laws.
• To use the remaining amount to purchase an annuity from a Life Insurance Company / Family Takaful company of his/her choice.

In case of death before retirement:

In the unfortunate event of the death of a Participant, the Next of Kin selected at time of Roshan Digital Account Opening shall be entitled to the balance held in Individual Pension Account of the deceased Participant.

• 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

The withdrawal of 50% at the time of Retirement age remains tax free, however, over and above amount shall be subject to payment of tax @ of participant’s average tax rate of the preceding three years.

Not necessarily. The entire amount can be shifted for Monthly Income Payment Plan (MIPP) or 50% tax free can be withdrawn.

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.

The Participant will have the option to place the amount selected for MIPP purposes in one of the following allocation schemes of MTPF for systematic redemption of units in order to get a periodic payment.

1. Medium Volatility (Minimum 35% Equity, Minimum 40% Debt, Minimum 10% Money Market)
2. Low Volatility (Minimum 10% Equity, Minimum 60% Debt, Minimum 15% Money Market
3. Lower Volatility (0% Equity, Minimum 40% Debt, Minimum 40% Money Market)

Withdrawals can be made through any of these three options;

1. Systematic Withdrawal Option – Under this option the Participant shall instruct the Management Company to pay a fixed amount at the end of each Period. This payment option will not be available to participants choosing Medium Volatility Option.
2. 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.
3. 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 Faysal Bank Roshan Digital Accounts are not subject to compulsory deduction of Zakat as per rule 24-A of the Zakat Collection & Refund Rules, 1981.

Faysal Islamic Pension Fund is a Shariah Compliant saving scheme managed by an asset management company in Pakistan - Faysal Funds which is a group company of Faysal Bank Limited. Besides providing all the other benefits associated with investment in mutual funds, Faysal Islamic Pension Fund gives the added comfort of being supported by strong sponsors, professional fund managers, credible Shariah Advisor, and a carefully selected portfolio of investments which ensure financial prudence as well as Shariah compatibility.

No.

E-statement is sent on each transaction and on monthly basis. However, participant can request Faysal Funds for e-statement.

Yes.

Retirement age can be changed, on written request for maximum up to 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.

Takaful protection up to Rs. 5mn from Takaful providing companies being offered to all participants with participation contribution of PKR 10,000/-, subject to submission of a Health Questionnaire. The eligibility of availing protection is up to the age of 60 years.

A summary of coverage for Natural Death & Accidental Death is provided below: