Investor Presentaiton
Chapter VI – Debt, Pension and GPF Liabilities
Punjab Pension Fund's Performance
-
Time Weighted Return (TWR) earned by the Fund is summarized as under:
Annualized Return for the period
Period
Gross Return
Net Return*
FY 2008-09
15.21%
15.00%
FY 2009-10
13.79%
13.61%
FY 2010-11
13.48%
13.32%
FY 2011-12
13.96%
13.79%
FY 2012-13
12.85%
12.69%
FY 2013-14
12.05%
11.90%
FY 2014-15
15.90%
15.73%
FY 2015-16
10.79%
10.63%
FY 2016-17
10.28%
10.14%
FY2017-18
9.07%
8.95%
FY 2018-19
FY 2019-2020 (Projected)
8.05%
7.95%
17.69%
17.62%
Jul 2008-June 2020 (CAGR)
13.86%
13.75%
*Net Return means the return after deducting expenses incurred on management of PPF
The investment strategy followed over the years has worked well. Pension Fund continues to earn an attractive real rate of return because of
its high yielding portfolio of PIBS, TFCs and NSS.
General Provident Fund
In addition to the Pension Scheme, Government requires its permanent employees to subscribe to the General Provident (GP) Fund, which is
a Defined Contribution Scheme. General Provident Fund contributions are deducted from salaries of Government employees and credited to
GP Fund Account, which is part of the Public Account of the Province.
Government has a fiduciary responsibility for these contributions. To avert the possibility of using Public Account
Provident
Fund
Deduction
from
Salary
balances as a source of cash for meeting Government expenditures, there was
a need to create a separate GP Investment Fund. There was also a need to
replenish the amounts earlier utilized from GP Fund Account as the
Government had historically maintained a common cash balance for both
Provincial Consolidated Fund and Public Account. Based on these
considerations, Government of the Punjab passed Punjab General
Provident Investment Fund Act 2009 to establish an investment fund for
management of GP Fund liabilities of the Government.
General Provident Fund Liability
The amount of GP Fund payment of a Government employee is the accumulated contribution
deducted from his/her salary during service increased by mark-up /interest rate announced by the Government on such contributions on annual
basis.
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