PSB Reforms Pension System With New Fund, Annual Collection To Hit Rs. 73 Million

Big news coming from the Pakistan Sports Board (PSB)! In a bold step towards financial reform, the PSB has officially launched a Contributory Pension Fund aimed at securing long-term sustainability for its retired and serving staff.

This major move was greenlit during the 34th Board meeting and confirmed through a notification issued by DG PSB Muhammad Yasir Pirzada. So, what’s the buzz all about?

Well, this new pension system is designed to ease future financial burdens and make pension disbursement smooth and timely — no more delays, no more uncertainties. On top of that, the fund is expected to generate around Rs. 73 million annually, which can also be invested into profit-generating ventures. Sounds like a smart move, right?

How Will It Work?

The new pension model is contributory, which means everyone chips in:

Serving and retired employees will contribute 10% of their pension.
Pensioners above 72 years of age will contribute 20%.
The PSB itself will contribute 20% from its commercial revenue account.

Based on current figures, here’s how the monthly collections break down:

Rs. 1.569 million from employees
Rs. 1.454 million from pensioners
Rs. 3.138 million from PSB’s own share

That totals up to a monthly collection of Rs. 6.161 million, which translates into a yearly fund of almost Rs. 74 million. Impressive, isn’t it?

The account will be jointly operated by two officers nominated by the Director General, ensuring transparency and accountability.

Changes to Leave Encashment Rules

That’s not all. As part of the reforms, the PSB has also updated Rule 88 of its 2000 Service Rules — specifically the part about leave encashment.

Previously, employees could encash 50% of any unused leave days beyond 365. This led to an extra financial strain on the board. Now, the new rule says:

Only up to 365 days of unused leave will be encashable for employees who retire, resign, or pass away.
No extra encashment beyond that cap.

A Step in the Right Direction

According to DG Muhammad Yasir Pirzada, these reforms are all about building a solid, dependable, and sustainable pension system. And honestly, it makes perfect sense — ensuring that employees are supported post-retirement while keeping the organization financially healthy.

Final Thoughts

This isn’t just a policy change — it’s a visionary reform that shows the PSB is serious about responsible governance. With the Contributory Pension Fund and updated service rules, the Pakistan Sports Board is setting a precedent that other public institutions should definitely take notes from.

Keep an eye on these changes. They’re shaping the future of public sector pensions — one smart move at a time.