Islamabad, Dec 3: The Punjab Treasury Department’s announcement that annual pension increases for public servants will no longer be granted is expected to greatly impact retirees.
This move, which Secretary of Finance Mujahid Sher Dil formally announced, affects three pension groups that were previously eligible for annual increases. Pension increases approved by memoranda in 2011, 2015, and 2022 will no longer be applicable to retirees as of right now.
In particular, the 2015 circular’s paragraph 1 pension increase, the 2011 circular’s paragraph 2 pension increase, and the 2022 Finance Department letter’s paragraph 1 pension increase have all been withdrawn. In accordance with the new directive, the Secretary of Finance has instructed all ministries and institutions to put the decision into effect right away, stopping the yearly pension increases.
This policy change has been seen as a major setback for public-sector workers, directly impacting their retirement benefits. In a related development, Dr. Javed Shaikh, Acting Chairman of the Employees Old-Age Benefits Institution (EOBI), said that a support station will be set up every Monday at the SITE Association of Industry premises to handle member concerns regarding EOBI contributions.
Shaikh emphasized the digitization of the EOBI system during a visit to the SITE industrial body. This allows registered units to enter personnel information and create vouchers using the user IDs and passwords they have been given. He pointed out that the agency was providing lenient audit procedures, with audits from the prior period into the next two years, and that only 4% of registered units nationwide were audited.
Although government agencies are not under the EOBI’s purview, Shaikh urged employers to voice their concerns to the federal government on fixed EOBI contributions and relaxations about gratuities.He also revealed that the EOBI fund had increased to Rs532 billion, made investments in several schemes, and was paying registered workers Rs5 billion in pensions each month. In recent months, the institution recorded better collection for the first time. Additionally, he instructed the regional head to consult with the SITE association prior to sending out Section 81 notices.
