LAHOER

Minister Law, Finance, Excise and Taxation Mujtaba Shuja Ur Rehman has appreciated the efforts of the members of the Management Committee of Punjab Pension Fund and the Fund’s management for such a commendable performance and hoped that their professional approach in managing the Fund will bring greater success.

He expressed these views while presiding over the 18th meeting of the Management Committee of Punjab Pension Fund, the meeting was also attended by the Finance Secretary, Secretary Law & Parliamentary Affairs, Secretary Services, private members and the General Manager. Punjab Pension Fund is a separate legal entity created through Punjab Pension Fund Act 2007 for management of funds set-aside by the Government of Punjab for meeting future pension liabilities of its employees.

The Management Committee approved financial statements of Punjab Pension Fund for the year ended 30 June 2014. The Finance Secretary apprised the Management Committee that during the year net assets of the Fund grew by Rs. 5,928 million and reached Rs. 24,750 million at 30 June 2014. The increase in net assets during the year is 31.5% which is quite significant. The increase in net assets is due to increase in net income from investments (net of unrealized gains/losses) of Rs. 1,128 million and contribution received from Government of Punjab to the tune of Rs. 4,800 million.

The Finance Secretary further apprised that the Fund’s net rate of return during the year is 11.90% while discount rate during the year increased from 9% to 10%. The year-on-year Consumer Price Index (CPI) for the year was 8.22%. Fund’s benchmark return is CPI+3% but the Fund made a net return of 3.68% above CPI.

 The Management Committee showed its satisfaction on the performance of the Fund and hoped that the investment strategy being pursued will continue to yield satisfactory results in coming years.

The Management Committee approved Annual Report for the year ended 30 June 2014 which will be laid before the Provincial Assembly. The Management Committee also approved Punjab Pension Fund’s budget for FY2014-15, it concluded.