What is JS Federal Islamic Pension Fund?

Overview

The Federal Government has introduced the Federal Islamic Contributory Pension Scheme to provide a structured, Shariah-compliant retirement savings solution for the employees of the Federal Government. Within this framework, the JS Federal Islamic Pension Fund (JSFIPF), managed by JS Investments Limited, helps employees build long-term retirement wealth while ensuring all investments comply with Islamic principles under the supervision of Al-Hilal Shariah Advisors The Fund enables participants to grow their retirement savings through regular contributions invested across four Shariah-compliant sub-funds, Equity Active, Equity Index, Debt, and Money Marketbased on the choice of the participant. This diversified investment approach is designed to balance risk, generate sustainable long-term growth and provide a reliable source of income after retirement.

JS Federal Islamic Pension Fund (JSFIPF) is a Shariah-compliant contributory pension fund managed by JS Investments Limited, with the AM1 rating from PACRA. Established under the Government of Pakistan’sFederal GovernmentDefined Contribution Pension Fund Scheme Rules 2024, the Fund is designed for the employees of Federal Government seeking a tax-efficient way to build retirement savings through individualized investment allocation while generating income after retirement.

Why Invest in JS Federal Islamic Pension Fund?

Key Benefits

• Shariah-Compliant Investments
• Competitive Returns
• Attractive Tax benefits
• Takaful Coverage
• Professional Management
• Diversified Shariah-Compliant Sub-Funds

Participants may avail a tax credit under Section 63 of the Income Tax Ordinance, 2001 on eligible contributions made during a tax year against salary income. Accumulated investment gains are currently tax-free, and participants may withdraw up to 25% of the accumulated amount upon retirement from the Scheme.

These features make the product a tax-efficient retirement and pension savings solution for the employees of Federal Government.

Who Can Invest in JS Federal Islamic Pension Fund?

The JS Federal Islamic Pension Fund (JSFIPF) is exclusively available to eligible employees of the Federal Government, providing a secure and long term retirement savings solution. Eligibility extends to individuals appointed through regular appointment on or after July 01, 2024, including:

• Civil servants of the Federal Government, including civilians paid from Defence Estimates;
• Personnel of the Armed Forces from the date notified by the Federal Government;
• Personnel of the Civil Armed Forces.

However, the following categories are excludedfrom eligibility:

• Employees appointed on a regular basis prior to July 01, 2024, even if subsequently re‑appointed against other civil posts of the Federal Government;
• Judges of the High Court of Islamabad and the Supreme Court of Pakistan.

At Retirement

At retirement, participants can withdraw up to 25% of their accumulated balance, while the remaining amount can be invested in annuity or periodic income plansin the manner prescribed in the VPS Rules, 2005.

Eligible employees remain participants in the scheme until retirement age or separation from Federal Government service, whichever occurs earlier, in accordance with the Federal Government Defined Contribution Pension Fund Scheme Rules, 2024. For the initial three years from the opening of an Individual Pension Account, all contributions must be invested exclusively in the Money Market Sub-Fund. Participants can only choose other allocation schemes after this three-year period subject to maximum aggregate exposure limit provided in second schedule of FGDC Pension Fund Scheme rules 2024