Meezan Example

MEEZAN BANK LTD.
PAKISTAN
Retirement Plans
Retirement planning is one of the most important life-stage goals! Yet, many of us are unable
to plan prudently to ensure we have a comfortable and hassle-free post-retirement life. We can
help you plan your retirement in a convenient and efficient way.
Meezan Tahaffuz Pension Fund

Meezan Tahaffuz Pension Fund is Pakistans first and the largest Shariah Compliant Voluntary
Pension Scheme. MTPF is the best way to save and invest for your post-retirement needs and it
has the potential to deliver superior returns with the added advantage of providing immense
Tax Benefits* which significantly enhances the yield on your investment.
*As per prevailing tax laws
Investment Objective & Philosophy

The Fund seeks to provide participants a regular Halal income stream after retirement/disability when they
can no longer earn regular income to support their living so that they are not dependent on other members of
the society.
Contributions in MTPF are invested in various Shariah compliant instruments to earn Halal returns and
create wealth over the entire work life of the participant in accordance with the investment policy of MTPF.
You can invest money regularly or you can make lump-sum payments as and when you want.
You can choose from a wide range of investment options; the one that is most suitable for you will depend
on your retirement goals, age and your appetite for risk. Your payments will be invested in the particular
scheme that you choose with the aim of growing your individual pension account.
Key Benefits
Meezan Tahaffuz Pension Fund is Pakistans first Shariah Compliant voluntary pension
scheme
It is a Tax Efficient Structure and the Best Way to save for your Retirement wherein you
can avail Tax Credit (as per ITO Section 63) on up to 20% of your taxable income.
Additional catch-up incentives are provided to over 40 years age investors, with a maximum
tax credit on 30% of taxable income till 55 years or older. This is in addition to Tax credit
facility on investment of upto Rs. 1,500,000 or 20% of annual taxable income (whichever is
lower) in open end mutual funds.
The Pension Fund is Fully Yours and you have the choice of selecting allocation schemes
Its Flexible, Its Convenient Choose to invest regularly through monthly, quarterly,
half-yearly, yearly installments or contribute as and when you want, without any risk of
penalties on missing payments.
Its Portable Your pension account will stay with you (remember its all yours!) even
when you change jobs. Contributions can be resumed at any time either through the new
employer, your personal contribution or both. Unlike conventional employee benefit funds
which get disbanded when an employee changes job, your account in MTPF stays intact and
continues with or without the new employer. Moreover, you can transfer your pension
account to another Pension Fund manager of your choice as and when you like, again
without any charge or penalty.
Lump-sum Payment available on Retirement On retirement, participants can

withdraw up to 50% of the accumulated balance from their pension account, free of tax.
Premature Retirement Death or disability, as defined in VPS Rules is deemed as

retirement. This entitles the nominees to encash 50% of the accumulated balance, again free
of tax.
Range of Investment Options A variety of investment allocation schemes to choose

from, customized to suit specific needs and requirements of the participant.
Free Takaful Cover Free of cost Takaful protection for Natural Death, Accidental
Death, Permanent Total Disability and Accidental Medical Expenses upto Rs. 5 Million on
investment of Rs. 100,000 and above.
Choose Your Retirement Age A participant can select a retirement age between 60 and
70; and also change it at a later date, if he or she wants due to change of circumstances.
Allows you to systematically save during work years, so that you can benefit on
retirement
Managed by the only Shariah compliant Asset Management Company in Pakistan with a
solid track record of over 20 years, and under the supervision of the Shariah Supervisory
Board of Meezan Bank headed by Justice (Retd.) Mufti Muhammad Taqi Usmani.
This Product Is Suitable For Investors Who Are Seeking:
To build a voluntary pension for financial security after retirement
Flexible and convenient investment which does not penalize for missing payments
100% exposure to one particular asset class for building retirement as per the risk and
return requirement
Risk and return potential Low- High as per the allocation scheme.
*Investors are encouraged to consult their Investment advisors prior to investing in the
product.
Key Features
Scheme Name Meezan Tahaffuz Pension Fund
Scheme Type Open-end Islamic Voluntary Pension Scheme
Date of Inception June 27, 2007
Fund Size Jun 30, 2016 Rs. 6,549 million
Objective of the scheme To provide participants a regular Halal income at the time
of retirement and at an age when ones capacity to work is
diminished, so that one is not dependent on other members
of the society.
Allocation Schemes Six Asset Allocation Schemes:

1. High Volatility
2. Medium Volatility
3. Low Volatility
4. Lower Volatility
5. Life Cycle Plan
6. Customized Allocation
Minimum Investment Rs.1,000

Amount
Scheme Name Meezan Tahaffuz Pension Fund
Lock-in Period No lock-in (investor will be taxed on redemption), however

a commitment to remain invested till retirement is the
essence of the scheme
Management Fee 1.5%
Entry Load 3%
Exit Load Nil
Rebalancing Frequency Semi- Annually*

*exceptions may apply in compliance with Offering
Document
Tax Benefits EET Structure

Tax Exempt Contributions
Tax Exempt earnings throughout the Investment

Period
Tax on 50% of accumulated amount, Tax free

withdrawal of remaining 50% balance
Asset Allocation Schemes
Equity Sub Debt Sub Money Market Gold Sub

Fund Fund Sub Fund Fund
High Volatility Min 40% Min 20% Nil Max

25%
Medium Min 20% Min 40% Min 10% Max

Volatility 15%
Low Volatility Min 05% Min 60% Min 15% Max

05%
Lower Nil Min 40% Min 40% Nil

Volatility
Life Cycle Plan
Automatically adjusts your allocation from High Risk assets towards Lower Risk based on
Equity Sub Debt Sub Money Market Gold Sub
Fund Fund Sub Fund Fund
your age profile
Variable 0-100% 0-100% 0-100% 0-

Volatility 100%
Fund Performance Highlights
FY16 FY15 FY14 FY13 FY12 FY11 FY10
MTPF Equity 18.1 26.6 32.4% 54.9 16.8% 36.0 31.50%

Sub Fund % % % %
MTPF Debt Sub 4.5% 6.4% 7.7% 8.3% 9.5% 10.9 8.50%
Fund %
MTPF Money 4.0% 6.9% 6.9% 7.8% 10.9% 10.7 8.50%

Market Sub Fund %
Source: https://www.almeezangroup.com/what-we-offer/retirement-plans/

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MEEZAN BANK LTD.

Meezan Tahaffuz Pension Fund

*As per prevailing tax laws

Investment Objective & Philosophy

Lump-sum Payment available on Retirement On retirement, participants can

Premature Retirement Death or disability, as defined in VPS Rules is deemed as

Range of Investment Options A variety of investment allocation schemes to choose

To build a voluntary pension for financial security after retirement

Scheme Name Meezan Tahaffuz Pension Fund

Scheme Type Open-end Islamic Voluntary Pension Scheme

Date of Inception June 27, 2007

Fund Size Jun 30, 2016 Rs. 6,549 million

Allocation Schemes Six Asset Allocation Schemes:

Minimum Investment Rs.1,000

Lock-in Period No lock-in (investor will be taxed on redemption), however

Management Fee 1.5%

Exit Load Nil

Rebalancing Frequency Semi- Annually*

Tax Benefits EET Structure

Tax Exempt earnings throughout the Investment

Tax on 50% of accumulated amount, Tax free

Asset Allocation Schemes

Equity Sub Debt Sub Money Market Gold Sub

High Volatility Min 40% Min 20% Nil Max

Medium Min 20% Min 40% Min 10% Max

Low Volatility Min 05% Min 60% Min 15% Max

Lower Nil Min 40% Min 40% Nil

Life Cycle Plan

your age profile

Variable 0-100% 0-100% 0-100% 0-

Fund Performance Highlights

FY16 FY15 FY14 FY13 FY12 FY11 FY10

MTPF Equity 18.1 26.6 32.4% 54.9 16.8% 36.0 31.50%

MTPF Money 4.0% 6.9% 6.9% 7.8% 10.9% 10.7 8.50%

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