Naveed Kamran Baloch orders examination of complaints by four retired Utility Stores Corporation employees and seeks a compliance report within 30 days.
ISLAMABAD: Federal Ombudsman Naveed Kamran Baloch has directed the managing director of the defunct Utility Stores Corporation (USC) and the chairman of the Employees’ Old-Age Benefits Institution (EOBI) to examine complaints concerning the calculation and enhancement of pensions for four retired USC employees from Karachi.
According to findings dated September 28, 2026, the ombudsman ordered the authorities to examine the complaints and resolve the grievances in accordance with applicable laws, rules, regulations and standard operating procedures (SOPs).
The authorities have been directed to submit a compliance report within 30 days of receiving the findings or explain the reasons for non-compliance.
The four complainants alleged maladministration over the enhancement of their EOBI pensions in line with their respective lengths of service. As their complaints concerned the same issue and agency, the cases were clubbed together for convenient and expeditious disposal.
The complainants said they had approached the relevant authorities for redressal, but their grievances had not been addressed.
EOBI cites pension settlements in 2022
In its response, EOBI maintained that the complainants’ pension cases had been settled in 2022 under the rules and regulations applicable at the time. Their old-age pensions were sanctioned and paid at the rates approved by the competent authority.
The institution further stated that pension revision requests could be considered under a new SOP, subject to fulfilment of prescribed requirements and submission of the necessary documents. Once the formalities are completed and approved by the relevant zonal office, the regional office may process the cases under the applicable procedure.
EOBI maintained that the original pension cases had been processed on merit under the rules in force at the time.
The complainants, however, submitted additional documents in support of their claims. These included EOBI correspondence concerning pension payments based on minimum wages, USC correspondence on payment of EOBI arrears for employees, acknowledgements of payments, requests from the USC Karachi Region for calculation of arrears and correspondence regarding the revision of pensions for USC employees in Islamabad under a formula-based pension arrangement.
Dispute centres on formula-based pension
During the final hearing on September 9, 2026, the complainants requested that their pensions be revised under the formula reportedly applied to USC employees in Islamabad.
They argued that the Islamabad employees had been granted pension revisions under the formula and that USC had deposited the required contributions with EOBI. They relied on the documents submitted during the proceedings to support their request for similar treatment.
The ombudsman examined the complaints, EOBI’s reports, the complainants’ rejoinder, supporting documents and submissions made by both parties.
The record showed that the pensions had been settled in 2022, while the complainants were now seeking revision on the basis of the formula reportedly applied to USC employees in Islamabad.
The central issue was whether the alleged short payment of pensions in relation to the complainants’ lengths of service amounted to maladministration by EOBI.
The ombudsman referred the cases to the USC managing director and EOBI chairman for examination and resolution under the applicable legal and procedural framework.
The directions require the authorities to address the grievances and report compliance within the stipulated 30-day period.