The Government of Punjab, Finance Department, has recently introduced some significant amendments to the Punjab Pension Funds Rule 2007. These modifications aim to enhance the pension system and address various concerns related to the well-being of retired government employees. In a letter dated 12th July 2023, the Finance Secretary of the Punjab finance department outlined the amendments, ensuring a more robust and efficient pension fund framework for the future.
In the exercise of the powers under section 24 of the Punjab pension fund Act 2007 governor of Punjab modifies Some rules of the act.
Amendments in Rule (2)
Governor of Punjab makes amendments in Rule (2) in sub-rule (1) after clause (1). Here it modifies that pension liabilities mean obligations of the government. These obligations lie under section 18 of the Punjab civil servant apps 1974.
Insertion of sub-Chapters after Chapter IV
The modifications also include the insertion of Sub- Chapters after Chapter -IV.
Estimate of withdrawal of profits, limits on withdrawal of profit from reserve funds, And the process of withdrawal from reserve funds is also inserted in Chapter IV.
Estimate of withdrawable profit
- New modifications and amendments in the fund are an estimate of the size of the fund and annual profit. This is withdrawable not later than the end of the third quarter of the ongoing financial year.
- The finance department also checked the budgetary allocations on the estimates of these withdrawable profits. Rule 13A provides these estimates of withdrawal profits in the annual budget as non-tax receipts Under
Limits on withdrawal of profits from reserve funds
The annual limit for withdrawal or profit from the fund to discharge pension liabilities must not be more than 50% of the net profits. Funds from previous fiscal years realize this withdrawal up to 50%.
Restricting the Computing Amount
Funds from the previous fiscal years provide that the computed amount shall restrict at a lower than the Contributed amount of government. As government contributes reserve funds during the previous three financial years.
The computed amount also restricts the amount of profits that is in excess of the highest closing value of the fund. The highest closing value of the fund at closing off any previous financial year is considerable.
Process of withdrawal from reserve funds
- The amount can be withdrawn after approval of the management committee. Except this, No amount is withdrawable from the fund.
- In order to withdraw the profits during the ongoing financial years the finance department can communicate its actual requirements to the fund.
- The general manager can place the requirements of the finance department before the managing committee. It helps with the consideration and approval to withdraw profits.
- The management committee also approved the withdrawal of profits from the reserve funds subject to rule 13B.
- the general manager conveys the decision of the management committee to the finance department.
The Transfer of Provincial Consolidated Funds
The amendments in Punjab pension funds also include the transfer of provincial consolidated funds. After amendments the finance department issues sanctions for the transfer of proceeds and realizes there is a fund two the provincial consolidated funds. The management committee finalized the approval of the withdrawal of funds.
