Fund Type

NIT Pension Fund (NIT-PF)

Fund Structure

Unit Trust Scheme consisting of Sub-Funds under the VPS Rules 2005.

Fund Objective

To provide a secure source of savings and regular income after
retirement to the Participants

Eligibility

Every Pakistani national over the age of 18 years holding a valid
CNIC or NICOP

Minimum Contribution

The minimum amount to open an account is Rs. 1,000/- and the
minimum amount of contribution to an existing account is Rs.
500/- per transaction. There is no maximum limit of
contribution. However, Tax Credit will be available to the extent
specified in the income Tax Ordinance, 2001.

Contribution Frequency

Annual, semi-Annual, quarterly, monthly or as desired by the
participant

Contribution Mechanism

Cheque, bank draft, pay order (crossed account payee only),
titled “CDC - Trustee NIT Pension Fund” payable to the
Trustee on any Dealing Day. Any other electronic form of
Transfer.

Contribution in the form of Cash or any bearer instruments shall
not be made and accepted.

*The Pension Fund Manager may make arrangements with
Banks for online transfers from time to time. Such
Arrangements (if any) will be communicated to Participants
through the company’s website.

Investment Mechanism

Insurance premium (for optional insurance coverage)shall be deducted
unless waived from Contributions made by the Participant , followed
by deduction of applicable Front-end Fee. The remaining Contribution
amount is then credited to the Participant’s Individual Pension Account
and is invested in the underlying Sub-Funds of the NIT Pension Fund as
per the Allocation Scheme selected by the Participant.

Minimum Contribution

The minimum amount to open an account is Rs. 1,000/- and the
minimum amount of contribution to an existing account is Rs.
500/- per transaction. There is no maximum limit of
contribution. However, Tax Credit will be available to the extent
specified in the income Tax Ordinance, 2001.

Contribution Frequency

Annual, semi-Annual, quarterly, monthly or as desired by the
participant

Contribution Mechanism

Cheque, bank draft, pay order (crossed account payee only),
titled “CDC - Trustee NIT Pension Fund” payable to the
Trustee on any Dealing Day. Any other electronic form of
Transfer.

Contribution in the form of Cash or any bearer instruments shall
not be made and accepted.

*The Pension Fund Manager may make arrangements with
Banks for online transfers from time to time. Such
Arrangements (if any) will be communicated to Participants
through the company’s website.

Investment Mechanism

Insurance premium (for optional insurance coverage)shall be deducted
unless waived from Contributions made by the Participant , followed
by deduction of applicable Front-end Fee. The remaining Contribution
amount is then credited to the Participant’s Individual Pension Account
and is invested in the underlying Sub-Funds of the NIT Pension Fund as
per the Allocation Scheme selected by the Participant.

Investment Strategy

The Pension Fund Manager shall design investment strategy to
optimize returns on investments within the parameters of
Investment Policy specified by the Commission. The Pension
Fund Manager shall also offer different Allocation Schemes to
Participants to choose from, allowing them to adopt an
investment strategy, according to their risk / return
requirements

Reallocation Policy

Units held in the Individual Pension Account shall be reallocated
by the Pension Fund Manager between the Sub-Funds at least
once a year to ensure that the allocation of Units of all
Participants is in line with the Allocation Scheme selected by
them.

Front-end Fee

Maximum of 3 % on all Contributions as part of Wakalah Fee,
unless exempt under this Offering Document.

Management Fee

1.5 % p.a. on average Net Assets of each Sub-Fund as part of
Wakalah Fee.

Taxation

Tax Credit will be available to Participants on contributions
during any Tax Year subject to the limits prescribed under the
Income Tax Ordinance, 2001 (XLIX OF 2001).

Benefits / Withdrawal on Retirement

All Units of each Sub-Fund held by a Participant in his Individual
Pension Account shall be redeemed at the Net Asset Value
notified at close of the day of retirement or, if that day is not a
Business Day, the following Business Day. The Participant will
then have the following options, namely:
(a) to en-cash up to fifty percent (50%) or any percent as
admissible under the Income Tax Ordinance, 2001, of the
amount in his Individual Pension Account, without any Tax
deductions. Tax will be deducted at a rate of the average tax
percentage of the Participant for the previous 3 years, if the
Participant withdraws any amount over the limit admissible
under the Income Tax Ordinance 2001; and
(b) either to use the remaining amount to purchase an annuity
from a Life Takaful Company of his/her choice; or
(c) enter into an agreement with the Pension Fund Manager to
transfer his balance to an Approved Income Payment Plan
offered by the Pension Fund Manager or another Pension Fund
Manager and withdraw from it monthly installments for up to
15 years following the date of retirement, according to the
Approved Income Payment Plan.

Early Withdrawal / Withdrawal before Retirement

Participants at any time before retirement are entitled to
redeem the whole or any part of the Units held to their credit in
their Individual Pension Account. Tax may be applicable in
accordance with the requirements of the Income Tax
Ordinance, 2001 and, if applicable, will be deducted by the
Pension Fund Manager from the amount withdrawn

Transfers to and from other Pension Funds

Participants shall be entitled to transfer part or whole of their
Individual Pension Accounts from this Pension Fund to another
once a Financial year with 21 days’ notice. There shall be no Tax
or charges on such transfers. Similarly Participants are allowed
to transfer-in their funds from other Pension Funds and
approved Occupational Savings Schemes or approved
superannuation funds to this Pension Fund without
having to pay any Front End Fee to the Pension Fund Manager.

Transparency

Daily calculation and announcement of NAV of each Sub –fund

Distribution Restriction

Any income earned shall be retained and accumulated in the
respective sub-funds and no distribution / Dividend shall be
made from the Pension Fund.