The government has set up a committee to restructure the Employees Old-Age Benefit Institution (EOBI) after having realised that merely ‘ordering’ an increase in pensions for retirees was not sufficient to implement the decision.
In June 2013, the government announced that it would increase pensions of retirees insured by EOBI from Rs3,600 to Rs5,000 per month.
In June 2014, the government once again announced that the pensions would be increased, this time to Rs6,000 per month. However, EOBI has been unable to increase pensions from Rs3,600 a month, a level last set in July 2012.
Actuarial assessments of EOBI conducted last year have suggested that the Rs240 billion fund would begin running severe deficits and run out of funds within six years if the pension were increased while retaining the current structure.
Finance Minister Ishaq Dar set up the committee yesterday after meeting with EOBI executives to discuss the matter. State Bank of Pakistan Deputy Governor Saeed Ahmad, will chair the committee, which will include representatives of EOBI, the Securities and Exchange Commission of Pakistan, the finance ministry and the Ministry of Human Resources Development.
Making fool to poor elders