16th November 1973

No. LCS (Pension Fund Rules)/71. In exercise of the powers conferred by clause (b) of subsection (5) of section 118 of the Punjab People’s Local’ Government Ordinance, 1972, the Governor of the Punjab is pleased to make the following rules, to establish and maintain pension fund out of which shell be paid any pension/gratuity granted to members of Local Councils Service and employees of the Provincial Local Government Board on their retirement, namely :

1. Short title and commencement.

(1) These rules shall be called the Punjab Local Councils Service Pension Fund Rules, 1973.

(2) They shall come into force on such date or dates and shall apply to such area or areas as the Punjab People’s Local Government Ordinance, 1972, is applied respectively.

2. Definitions. In these rules unless the context ‘otherwise requires, the following expressions shall have the meanings hereby respectively assigned to them, that is to say.

(a) “Board” means Provincial Local Government Board constituted under rule 24 of the West Pakistan Local Councils and Municipal Commit¬¨tees Service Rules, 1963;

(b) “Fund” means the Punjab Local Councils Service Pension Fund, constituted under rule 3;

(c) “Government” means the Government of the Punjab.

(d) “Local Council” means a Local Council constituted under the Punjab People’s Local Government Ordinance, 1972;

(e) “Ordinance” means the Punjab People’s Local Government Ordinance, 1972, and

(f) “Service” means the Punjab Local Council Service constituted under the Ordinance.

3. Local Councils Service Pension Fund.

(1) There shall be constituted or the Province of the Punjab, a .Fund to be known as the Punjab Local’, Councils Service Pension Fund.

(2) To the credit of the Fund shall be placed

(a) the balance of such fund as on the coming into force of these rules, was at the disposal of the Board;
(b) such fund as the Local Councils are required to contribute for the maintenance of the Fund;
(c) all sums received by the Board on account of pensions from the Local Councils in respect of members of the Service—
(d) all sums paid by the Board on account of pension contributions in respect of the Service and other staff employed by the Board;
(e) all grants made by the Government and other authorities; and
(f) all loans raised and profits accruing from Investments.

4. Payment by the Local Councils. Each Local Councils shall pay to the Board, such charges on account of pension, special pension/gratuity fly contribution of the members of the Service, as may be specified by the Board.

5. Application of the Fund. The moneys from time to time credited to the Fund shall be applied:
Firstly. In the payment of pension and gratuity (including special pension and gratuity) to the members off the Service and their families in case of death in accordance with the relevant pension rules; and
Secondly. In the repayment of the loans raised for pension purposes.

6. Custody or investment of the Fund.

(1) The Fund shall be kept in the National Bank of Pakistan or in any such other manner as may be specified by the Government from time to time.

(2) The Board may with the previous sanction of the Government, Invest the surplus Fund In the Past Office Saving Bank Account / Defence Saving Certificate/Cash cum Bonus Scheme or any other Scheme approved by the Government.

7. Accounts.

(1) Accounts of the receipts and expenditure of the Fund shall be kept in the manner and form prescribed by the Board in consultation with the Director, Local Fund Audit; and

(2) annual statement of the accounts shall be prepared after the close of each financial year and forwarded to the Government and the Local Councils concerned.

8. Audit. The accounts of the Fund shall be audited as if it were a Local Fund.

9. Administration.

(1) The Fund shall be administered by the Board;

(2) The power of operation of the accounts of the Fund shall vest in the Chairman of the Board; and

(3) The Chairman of the Board may delegate the powers of operation. of the accounts to the Secretary or other Officers of the Board.