PSB revises leave encashment policy, launches Contributory Pension Fund

The Pakistan Sports Board (PSB) has made amendments to its Service Rules 2000, significantly revising the leave encashment policy to limit financial pressure on the organisation, reported 24NewsHD TV channel on Sunday.

According to PSB Spokesperson Muhammad Yasir Pirzada, now only 365 days of earned leave will be encashed in case of retirement, resignation, or death.

He said previously, employees were entitled to a basic salary on 50% of any leave beyond 365 days.

Pirzada stated, “This practice had been straining PSB’s limited financial resources. The reforms aim to establish a sustainable pension system and ensure timely disbursement of future liabilities.”

Contributory Pension Fund introduced:

To support long-term pension sustainability, PSB has launched a Contributory Pension Fund, projected to accumulate Rs73 million annually.

Key Policy Details:

As per the key policy change, there will be a 10% contribution each from employees and retirees, and after age 72, retirees will contribute 20%, matched by 20% from PSB.

Monthly breakdown:

Employees: Rs1.57 million

Pensioners: Rs1.454 million

PSB’s share: Rs3.138 million

Total monthly collection: Rs6.161 million

Annual total: Rs73.9 million

Why reform needed?

According to the working paper, PSB paid over Rs535 million in pensions over 3 years.

With annual increments in pension amounts, the financial burden was becoming unsustainable, and projections showed that within five years, continued payments would become impossible without reform.

Reporter: Rozina Ali