EOBI Pensioners Welfare Association (EPWA) Saturday demanded the government to immediately increase the pension to Rs25,000 per month.
In a press conference, the representatives of the association also demanded that private institutions and their employees from all over the country should be registered with EOBI, their country-wide contributions should be received, and every insured person should be issued an EOBI registration card (PI-03).
The EOBI pension scheme should be made universal, and the facility of individual registration and country-wide contributions should be provided to every employed Pakistani between the ages of 18 and 45 on a daily basis.
EPWA should be represented on the Board of Trustees (BoT):
The term of the current EOBI Board of Trustees (BoT) ended in 2015. Therefore, after immediate analysis of the board, a new board should be formed with representation of the real representatives of workers and employees and EPWA should be represented on EOBI’s board as a real stakeholder.”
At present, the number of elderly, disabled, and orphaned pensioners under EOBI has exceeded 500,000 throughout the country. Despite the high cost of living, they are only receiving a meager monthly pension of Rs8,500, which is equivalent to putting a drop in the ocean in the face of the ongoing economic crisis and skyrocketing inflation in the country. This ordinary amount is not enough for an elderly person or a sick couple to survive even for a week. It should be noted that the last increase in EOBI pension was implemented in January 2020, and according to the law, it was mandatory to increase pension after every three years of Actuarial valuation of the department’s liabilities and assets.
However, instead of immediately addressing the demand of hundreds of thousands of pensioners, EOBI’s administration is ignoring it and keeping silent. It is regrettable that despite several letters sent by the representative of pensioners and the national organization EPWA, which expose the administration of EOBI as entirely illegal and immoral, they do not even bother to respond.
They said that their demand is immediate relief should be provided to pensioners by raising the monthly pension to at least Rs25,000.
EOBI was established 47 years ago, with the primary objective of providing pension benefits to employees working in the private sector, particularly those in their old age. However, even after the passage of 47 years, the inadequate performance of this national agricultural institution is such that a significant portion of the country’s workforce, consisting of millions of employees who serve in thousands of private institutions, still cannot register with EOBI to secure their pension benefits. So far, only 10 million out of the country’s workforce of 750 million have been able to register with EOBI, which means that the majority of employees, about 83%, are being denied their fundamental right to pension benefits, as well as leaving their dependents helpless in case of their disability or death. This raises questions about the performance of EOBI.
The Board of Trustees, management, and field operations of EOBI are equally responsible for the criminal act of depriving the basic rights of pension benefits to millions of employees in the private sector. The association said that corrupt field officers who are involved in corruption on a large scale, with their criminal neglect and secret dealings, are partners in crime with the Board of Trustees and management, resulting in the failure of timely registration of millions of employees with EOBI.
Due to this corruption, EOBI is suffering annual losses of PKR 8 billion. The administrative negligence and collusion of field operations with corrupt field officers have resulted in the denial of old-age benefits to millions of employees and have caused enormous financial loss to EOBI.
Illegal suspension of Matching Grant by Federal Government:
Under the EOB Act 1976, the Federal Government is required to provide the Employees’ Old-Age Benefits Institution (EOBI) with Matching Grants on an annual basis. (Matching Grants equal to the amount of annual contribution collected from EOBI’s insured persons). Unfortunately, the Federal Government has illegally suspended EOBI’s Matching Grant since 1995. As a result, EOBI’s pension fund is gradually declining.
Recommendation for the establishment of EOBI Pension Bank:
The association recommended that EOBI, while necessary legislation, should establish its own separate and autonomous bank for the collection of contribution and distribution of pensions to registered insured persons. EOBI has already designated Habib Bank, National Bank of Pakistan, UBL, Tameer Microfinance Bank, and now Bank Al-Falah since its inception. However, due to the frequent changes in banks, despite bearing heavy expenses, registered insured persons and pensioners are not provided with efficient services and proper care, and EOBI’s heavy funds are stuck in these banks.
Bank Al-Falah charges Rs. 26 per transaction for its services to EOBI. Furthermore, the bank’s decision-making process is costly, highly complex, and a test of patience. Therefore, recommendation is that EOBI should immediately consider the establishment of “EOBI Pension Bank” to streamline its services.
EPWA EOBI, a representative and nationwide organization of pensioners, is ready to cooperate for all types of legal and technical assistance.
EOBI: Misuse of Powers, Corruption, and Embezzlement by Unscrupulous and Effective Officers
The Pakistan Real Estate Investment and Management Company (PRIMACO) is a private company that was established using the Real Estate Department of the EOBI and illegally funded with 100 million rupees from the employee pension fund, the association alleged. This construction company has been working on large-scale shopping malls and hotels in Karachi, Lahore, Islamabad, and Faisalabad for the past 15 years but has not yet completed any project successfully. PRIMACO is referred to as the “white elephant” of the EOBI. The Board of Trustees needs to immediately terminate this failed company, which is putting an enormous burden on the EOBI.
The journalist community is also deprived of EOBI registration and pension rights:
The association pointed out that several major media organizations have been left out of the EOBI registration, leaving thousands of journalists, their families, and other staff who provide services to small media outlets without pension rights. EOBI needs to take immediate action in this regard.
Majority of Female Employees are Deprived of EOBI Registration and Pension Rights:
A large number of female employees, including teachers in private educational institutions, garment industry workers, pharmaceutical industry workers, media personnel, and workers in other sectors, are providing significant services as employees. According to the EOBI law, female employees and workers in the informal sector are entitled to the same rights as male employees, but many of them are not registered with EOBI and are deprived of pension rights.
Sahara Insurance Company should be immediately revived:
In the past, the compassionate management of EOBI (Employees’ Old-Age Benefits Institution) had established “Sahara Insurance Company” with the 500 million rupees collected from the pension fund to provide medical care and treatment facilities to insured individuals and pensioners. This was certainly a commendable step. However, unfortunately, since the change of management, this insurance company has become completely inactive, and the EOBI administration is silent on this matter.
Their demand is that Sahara Insurance Company needs to be revived immediately according to the demands of the time.
Public access and stakeholders should be given access to EOBI’s website:
EOBI’s website should provide access to the general public and all stakeholders to its services and performance, audited accounts, investment amounts, and benefits, Board of Trustees’ meetings’ minutes, circulars, and administrative decisions. The facility of the link should be provided to every registered laborer and insured person to provide their registration and country of residence information. Awareness and information about registration and pensions should be provided to laborers and employees in EOBI.
Insurance policyholders face severe difficulties in obtaining pensions:
Most of the regional heads of the Employees’ Old-Age Benefits Institution (EOBI) have established state within a state in their regional offices for their ulterior motives. They demand unnecessary verified documents related to employment from the employers, such as pension requests from old and helpless insured individuals, oath documents, and marriage certificates. This is beyond the reach of this weak and disadvantaged class to present. Requesting these documents in the presence of the National Identity Card (CNIC), EOBI registration card PI-03, and FRC is illogical and highly unnecessary. This practice of EOBI’s regional heads is a clear violation of the EOB Act 1976.
As a result, elderly insured individuals face great difficulties in obtaining their rightful pension when they retire or in the event of the death of a helpless and needy insured individual/pensioner, making it very difficult for their dependent survivors to obtain their legitimate pensions. Regional offices have imposed unreasonable and merciless conditions for pensioners.
These officials are creating difficulties in the lives of pensioners by imposing their own arbitrary conditions while their own expenses are exorbitant. Remember that the EOBI Chairman and Directors do not receive salaries from government funds, but from EOBI funds. This institution, which has 900 employees, puts a burden of Rs1.8 billion on workers, while the actual owners of the institution, i.e., pensioners, pay only a meager amount of Rs8500. Whereas in the whole country, the minimum pension limit is set at Rs10,000 rupees.
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