The Pakistan Sports Board (PSB) has launched a contributory pension fund to address rising pension liabilities and strengthen its financial sustainability. The move, approved during the board’s 34th meeting, is projected to raise around Rs73 million annually and forms part of a wider overhaul of PSB’s financial regulations.
The decision, which includes amendments to the board’s pension and service rules, was unanimously backed by PSB members. Following the meeting, Director General Muhammad Yasir Pirzada issued the official notification to establish the fund.
Under the new framework, serving employees and pensioners under 72 years will contribute 10% of their basic salary or pension, while pensioners aged above 72 will contribute 20%. The PSB itself will match these payments with a 20% contribution from its commercial/revenue account.
According to internal estimates, the pension fund will generate Rs6.161 million monthly, including Rs1.569 million from current employees, Rs1.454 million from pensioners, and Rs3.138 million from the PSB’s own contribution.
The fund will be maintained in a separate account and jointly operated by two officers nominated by the DG. Any surplus will be eligible for investment in profit-generating schemes to further enhance returns and long-term viability.
In a related reform, the board also moved to cap leave encashment at 365 days for employees who retire, resign, or pass away. The change, made through an amendment to Rule 88 of the PSB Service Rules 2000, replaces the previous system that allowed 50% encashment of leave beyond the one-year limit, which had added to the board’s financial burden.
“This change is necessary to curb long-term liabilities and align PSB’s service structure with modern financial management practices,” DG Pirzada stated.
The reforms are part of a broader strategy to modernize PSB’s financial and HR systems, with an emphasis on transparency, discipline, and long-term pension sustainability.
