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NIT Pension Fund is established in Pakistan as a Voluntary Pension Fund through a Trust Deed, dated May 14, 2015, entered in between National Investment Trust Limited in its capacity as the Pension Fund Manager and Central Depository Company of Pakistan Limited in its capacity as the Trustee and authorized under the Voluntary Pension System (VPS) Rules, 2005.

Offering Document

1st Supplementary Offering Document

Fund Manager Report

The Pension Fund shall initially consist of four (4) Sub-Funds to be called

i. NIT-PF Equity Sub-Fund (the “Equity Sub-Fund”)
ii. NIT-PF Debt Sub-Fund (the “Debt Sub-Fund”)
iii. NIT-PF Money Market Sub-Fund (the “Money Market Sub-Fund”) and
iv. NIT-PF Commodities Sub-Fund (the “Commodities Sub-Fund”)

After successfully managing the above mentioned Sub-Funds, the Pension Fund Manager may, with the approval of the Commission, launch other Sub-Funds through a Supplementary Trust Deed and a Supplementary Offering Document for investments in other asset classes, including securitized investment in real estate or in assets outside Pakistan (for avoidance of doubt, additional Sub-Funds may include combinations of new and existing classes of assets). Thereafter, any reference to the Sub-Funds in the Trust Deed or the Offering Document shall be construed to include any such new Sub-Fund.


The objective of introducing NIT Pension Fund is to provide individuals with a portable, individualized, funded (based on defined contribution) and flexible pension scheme which is managed by professional investment manager to assist them to plan and provide for their retirement. The design of the scheme empowers the participants to decide how much to invest in their pensions, and how to invest it, as well as to continue investing in their pension accounts even if they change jobs.

Salient Feature of Pension Fund

Fund Name 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 National Tax Number or a CNIC or NICOP
Minimum Contribution The minimum amoun 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 or 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 as may be acceptable to the Pension Fund Manager and the Trustee.
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.
Allocation of Contributions & Allocation Schemes Contributions shall be allocated among the Units of Sub-Funds at Net Asset Value , as per the selected Allocation Scheme , from amongst the following Five(5) Schemes being offered by the Pension Fund Manager.
Allocation Scheme Equity Sub Fund Debt - Sub Fund Money Market - Sub Fund Commoditis Sub Fund
High Volatility Min 40% Min 40% Nil Max 25%
Medium Volatility Min 20% Min 40% Min 10% Max 15%
Low Volatility Min 05% Min 60% Min 15% Max 15%
Lower Volatility Nil Min 40% Min 40% Nil
Cutomized Allocation Scheme 0 - 100% 0 - 100% 0 - 100% 0 - 100%
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 atleast 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, unless exempt under the Offering Document
Management Fee 1.5 % p.a. on average Net Assets of each Sub-Fund.
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 OF2001)
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)toen-cashup to fifty percent (50%)or any percent as admissible under the Income TaxOrdinance,2001,oftheamount 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 3years,iftheParticipantwithdrawsayamountover the limit admissible under the Income Tax Ordinance, 2001; and
(b)either to use the remaining amount to purchase an annuity from a Life Insurance 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 anytime 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.

Withholding Tax

The Trustee on the advice of the Pension Fund Manager shall withhold any tax or tax penalty from payments to the Participants or, in accordance with the Trust Deed and the Offering Document, to their nominated survivors, executors, administrators or successors, as the case may be, applicable under the Income Tax Ordinance, 2001 (Ordinance No.XLIX of 2001) and shall deposit the same in the Government treasury.

Retirement Age

The Participant may choose his/her Retirement Age which would be between sixty and seventy years or twenty-five years since the age of first contribution to a pension fund whichever is earlier. Participant shall send a notice to the Pension Fund Manager at least thirty days before the chosen date of Retirement

If a Participant suffers from any of the following disabilities, which render him/her unable to generate any income he/she may, if he/she so elects, be treated as having reached the Retirement Age at the date of such disability and all relevant provisions shall apply accordingly, namely:

  • loss of two or more limbs or loss of a hand and a foot;
  • loss of eyesight
  • deafness in both ears
  • severe facial disfigurement;
  • loss of speech;
  • paraplegia or hemiplegia;
  • lunacy
  • advance case of incurable disease; or
  • wounds, injuries or any other diseases etc., resulting in a disability due to which the Participant is unable to continue any work.

An assessment certificate from the medical board approved by the Commission and appointed by the Pension Fund Manager or any such procedure that the Commission has approved would be required to confirm any of the disability, specified above

Investment Policy

The NIT Pension Fund through its four Sub-Funds, NIT-PF Equity Sub-Fund, NIT-PF Debt Sub-Fund, NIT-PF Money Market Sub-Fund and NIT-PF Commodities Sub-Fund, under its umbrella, will invest in equities, fixed income, money market and in those Commodities future contract that are traded at the Pakistan Mercantile Exchange.

Risk Disclosure

Investors must realize that all investments in mutual funds and securities are subject to market risks. Our target return / dividend range cannot be guaranteed and it should be clearly understood that the portfolio of NIT Pension Fund is subject to market price fluctuations and other risks inherent in all such investments


The Units of the Sub-Funds of the Pension Fund are not bank deposits and are neither issued by, insured by, obligations of, nor otherwise supported by the Commission, the Stock Exchanges, any government agency, the Trustee or any of the sponsors, shareholders or employees of the Pension Fund Manager or any of the investors of the Seed Capital Units or any other Bank or financial institution.


  • Tax Credit For Contribution to the Pension Fund

An eligible person, as defined in sub-section (19A) of section 2 of the Income Tax Ordinance, 2001, deriving income chargeable to tax under the head “Salary” or the head “Income from Business”, will be entitled to a Tax Credit for a Tax Year in respect of any contribution or premium paid in the year by the person to the Pension Fund under the VPS Rules, 2005.

The amount of a person’s Tax Credit allowed under Sub-section (1) for a Tax Year shall be computed according to the following formula, namely:–



A is the amount of tax assessed to the person for the Tax Year, before allowance of anyTax Credit under this Part;

B is the person’s taxable income for the tax year; and

C is the lesser of –

(i)the total contribution or premium referred to in sub-section (1) paid by the person in the year; or

(ii)twenty percent (20%) of the person’s tax able income for the relevant Tax Year Provided that a person joining the Pension Fund at the age of forty-one (41) years or above, during the first ten (10)years starting from July 1, 2006, shall be allowed additional contribution of two percent (2%) per annum for each year of age exceeding forty years. Provided, further, that the total contribution allowed to such person shall not exceed fifty percent (50%) of the total taxable income of the preceding year;

  • Tax Exemptions

Exemptions under Clause (57) sub Clause (3) (viii) of Part-I of the Second Schedule of the Income Tax Ordinance, 2001:

(a) Total income of the Pension Fund approved by the SECP under the VPS Rules, 2005.

(b) Profit or gain or benefit derived by the Pension Fund Manager from a pension fund approved under the VPS Rules, 2005 on redemption of the seed capital invested in the Pension Fund.

  • Withholding Tax

A pension fund manager making payment from individual pension accounts, maintained under an approved pension fund, shall deduct tax from any amount:

  • Withdrawn before the age of retirement, provided that tax shall not be withheld in the following cases
    • eligible person suffering from any disability which render him unable to continue with any employment at the age which he may so elect to be treated as retirement age or the age as on the date of such disability if not so elected by him; or
    • on the share of the nominated survivor of the deceased eligible person
  • Withdrawn, if in excess of fifty per cent of his accumulated balance at or after the retirement age, provided tax shall not be withheld in the following cases
    • the balance is invested in an approved income payment plan;
    • the balance is paid to a Insurance company for the purchase of an annuity plan;
    • the balance is transferred to an another individual pension account of the eligible person; or
    • the balance is transferred to the survivors approved pension account in case of the death of the eligible person

The tax is required to be withheld at the last three year’s average rate of tax which shall be computed in accordance with the following formula:



A= the total tax paid or payable by the person on the person’s total taxable income for the three preceding years; and

B= the person’s total taxable income for the preceding three years.

  • Zakat

Units held by resident Pakistani Participants shall be subject to Zakat at two and a half percent (2.5%)on lower of the par value of Units and Redemption price under Zakat and Ushr Ordinance,1980,(XVIIof1980), except those exempted under the said Ordinance. Zakat will be deducted at source from redemption / withdrawal payment, and paid into the Government Treasury.


The tax and Zakat information given above is based on the Pension Fund Manager’s interpretation of the law which, to the best of the Pension Fund Manager’s understanding, is correct but Participants are requested to seek independent advice from their tax advisors so as to determine the taxability arising from their Contributions to the Pension Fund.