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Reading: PAA’s Split Pension Policy Leaves 2,500+ Retirees in Distress
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PhotoNews Pakistan > Pakistan > PAA’s Split Pension Policy Leaves 2,500+ Retirees in Distress
Pakistan

PAA’s Split Pension Policy Leaves 2,500+ Retirees in Distress

Web Desk
By Web Desk Published December 8, 2025 2 Min Read
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Pakistan International Airlines (PIA). Photo: Pakistan Observer
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Retired employees of the Pakistan Airports Authority (PAA) are raising serious allegations of unfair treatment. While the authority operates under a single umbrella, it reportedly enforces separate pension rules for different groups of retirees. Over 2,500 former employees claim they are being deprived of legitimate annual pension increases.

According to Express News Pakistan, this non-uniform implementation has caused severe financial hardship for many retirees over the past five years. The PAA management is accused of creating four distinct categories for pension increases:

  1. Category 1: Employees retired on/before June 30, 2014. They receive all pension increases regularly.
  2. Category 2: 2,280 employees retired between July 1, 2014, and June 30, 2022. They are denied increases for 2021, 2022, 2024, and 2025.
  3. Category 3: 309 employees retired between July 1, 2022, and June 30, 2023. They miss increases for 2024 and 2025.
  4. Category 4: Employees retired between July 1, 2023, and June 2025. They are denied the 2024 and 2025 increases.

The current management previously declared pension increases from 2016 to 2019 as “excess payments” for Category 2. However, it recently approved increases for 2011 and 2015. Retirees question the logic of deeming some years valid and others excessive.

A complaint led to an inquiry by the Senate of Pakistan. Officials from Aviation, HR, and Finance were summoned but could not prove the 2016-2019 increases were “excess.” Retirees Haseeb-ur-Rehman and Afzal allege this report is being concealed from the PAA Board and the Senate.

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A separate three-member committee headed by the Aviation Secretary also reportedly found no evidence of excess payments. This finding is also allegedly withheld.

Retirees argue that the 2014 rules mandate uniform principles for all, rendering discrimination based on retirement date legally baseless. They demand the public release of all inquiry reports.

When contacted, a PAA spokesperson stated that the authority grants increases in accordance with federal government rules and its own regulations. Regarding the dispute, the spokesperson confirmed a resolution proposal has been prepared for the upcoming board meeting, with the final decision resting with the board.

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