EOBI Pensioners Pension Increase Still in Wait – TheNews Report

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EOBI pensioners still waiting for increase in their pension – TheNews Report

Islamabad (Daily TheNews/Saeed Ahmed/Thursday, February 19, 2015) – Despite passage of 7 months EOBI has failed to comply with the orders of the federal government with regard to make 75 per cent increase in pensions of more than 400,000 pensioners both government and private employees as a result their financial problems have mounted particularly when there is unprecedented price hike.

EOBI Pension Formula:

          (Avg. monthly wages x No. of yrs of Insurable Employment)
50

EOBI Current Pension Rates:

Minimum          RS. 3600/=

Maximum         As Per Formula

EOBI Pensioner without Increase from 2012 (Daily Express News report Dated 18 Feb, 2015)
EOBI Pensioner without Increase from 2012 (Daily Express News report Dated 18 Feb, 2015)

It merits mentioning here that the federal government in the national budget for the fiscal year 2014-15 had announced increase in pensions from Rs3,600 to Rs6,000 being paid through EOBI with effect from July 2014. Ironically, more than seven months have elapsed but the orders still stands not implemented.

A large number of pensioners, including Khalid Mahmood, Fazal Hussain, Mehboob Elahi, Karamat Hussain, Fatima Qudsia, Saeed Farooqui and Nasir Zaidi along with many others, alleged that they were receiving a small amount of pension which is just Rs3,600 for the last two and a half years. However, the present PML-N government on great demand of pensioners had announced increase in their pensions by 75 per cent with effect from July 2014. However, despite the government orders, they are still receiving old amount of Rs3,600 which according to 75 per cent raise should have become Rs6,000 per month.

EOBI Pensioners
EOBI Pensioners

They, while providing documentary evidence, informed that prior to the announcement of the orders by the federal government, an emergent meeting of Board of Trustees (BOT) was convened by EOBI on June 23, 2014 at Karachi which adopted a decision to make raise in pensioners of all government and private employees from Rs3,600 to 6,000. The summary of the meeting was forwarded to the federal government which also gave its nod to EOBI for making raise in pension by 75 per cent.

Similarly, Rana Tavir Hussein, Federal Minister for Defence Production, had also announced that the pensions of employees being paid through EOBI would be raised from Rs3,600 to Rs6000.

However, these retired employees alleged, the government orders have not been implemented yet by EOBI as a result of which they are suffering from financial hardships.

They have demanded of Prime Minister Mian Nawaz Sahrif to take notice of the matter regarding violation of government orders by EOBI and issue directives for making immediate increase in pensions with effect from July 2014 to minimize their financial sufferings.

When this correspondent approached EOBI Director Ghulam Muhammad while commenting initially claimed that the government had raised pensions of government employees and his department deals with the cases of private employees. However, when his attention was drawn towards the summary of its BOTs meeting forwarded by EOBI to the government, the senior official accepted the facts. He said that on forwarding a summary, the government had formed a committee to decide over the matter. The summary was forwarded almost three months ago. However, the government has not responded positively into this matter. He said it has been learnt that the head of committee belonging to finance division has refused to make increase in pensions at the pretext of shortage of funds with the government.

Ghulam Mohammad, to a question, agreed that the government makes announcements of increases, however, no notification is issued thereafter to the concerned departments, so people start blaming us without knowing any reason behind the scene.

He said that in order to make increase in pensions of employees only private and not government, EOBI needs 50 per cent funding from the federal government. Remaining 50 per cent amount against pensions is afforded by EOBI.

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