The PIA must revert to giving their retired employees 50 per cent of their salaries as pensions
KARACHI: I would like to draw the government’s attention towards the injustice the retired employees of Pakistan International Airlines (PIA) have been made to face for a long time as there has been only one single increase in their pensions betweem 2009 and 2016. The national airline gives its employees 32 per cent of their total salary as pension but the formula (which was adopted in 2003) it applies in the end makes the pension calculated on their basic pay. This is not fair. As per rules, all other government organisations give their retired employees 50 per cent of their salaries as pensions. This was also in practice by PIA till the end of 2003. The management must revert to that practice.
Similarly, the payment of the commuted amount and Matured Group Insurance should be given to retired employees at the time of their retirement. As per current practices, the group insurance amount is paid to the family of an employee upon his death during his service up to the age of 60 years. This was extended after retirement but restricted up to the age of 65 years. This means that if the employees want their own amount back, they should either die or heirs should arrange their death before 65 years of age. This is ridiculous. The management should pay the group insurance to the employees at the time of their retirement or upon their death at any age. Another issue is of commuted pension. It must be refunded to a retired employee after attaining the age of 70 years or to his heirs as is the practice in all government departments because it is part of the pensionable amount mortgaged/sold to the employer by the employee for a period of 10 years. This money should never be snatched from the retired employees or from their heirs because it is a deposit with the employer for an agreed/stipulated period.
I request the finance minister and chairman of PIA to look into these issues and provide relief to the retired employees of the national airline.
Basher Ahmed
Published in The Express Tribune, June 5th, 2016.
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