The Pakistan Sports Board (PSB) today announced significant alterations to its pension system, including the formation of a Contributory Pension Fund and a cap on leave encashment, during its 34th board meeting. The reforms, officially enacted by PSB Director General Muhammad Yasir Pirzada, aim to bolster the organization”s financial stability and guarantee a reliable retirement plan for its workforce.
The newly established fund is projected to accumulate approximately Rs. 73 million yearly through a shared contribution framework. Active employees and retired personnel will each contribute 10% of their base salary, while pensioners over 72 will contribute 20%. The PSB will supplement these contributions with an additional 20% from its commercial revenue. This collaborative approach is expected to generate roughly Rs. 1.569 million monthly from current staff, Rs. 1.454 million from retirees, and Rs. 3.138 million from the PSB, resulting in a total monthly inflow of Rs. 6.161 million. Two officers appointed by the Director General will jointly manage the account.
In a further move to enhance financial sustainability, the PSB has modified Rule 88 of its 2000 Service Rules concerning leave encashment. Departing employees, whether through retirement, resignation, or death, will now only be eligible to redeem up to one year (365 days) of accumulated leave. The previous policy, which permitted cashing out 50% of leave beyond 365 days, placed a significant strain on the board”s finances. DG PSB Muhammad Yasir Pirzada stated that these changes are designed to fortify the organization’s financial footing and provide a secure pension system for all.