Apropos a letter published in this section, it is hereby clarified that the Employees’ Old Age Benefits Institution (EOBI) is a statutory body established to fulfil the requirements of Article 38(C) of the Constitution of the Islamic Republic of Pakistan that is “to provide for compulsory social protection of all persons employed in the services of Pakistan, by compulsory Social Insurance or other means”. To discharge these responsibilities, EOB Act, 1976 was promulgated and EOB Scheme was introduced to ameliorate the lot of working class. As per section 21 of EOB Act, 1976, the Institution is bound to have, at intervals of not more than three years, an actuarial valuation made in the prescribed manner of its liabilities and no change in rate of contribution or benefit under this Act shall be made without proper actuarial valuation.
The 10th Actuarial Valuation of EOBI Assets & Liabilities was held on 31-12-2019 and on the basis of the said valuation, between 2018 and 2020, EOBI minimum pension was increased from Rs6,500 to Rs8,500 — which constitutes a 31% increase. The RFP (Request for Proposal) of the latest 11th Actuarial Valuation of EOBI Assets & Liabilities will be advertised in the 1st week of October 2022. Actuarial Valuation in the only mechanism to ascertain sustainability of Fund and to determine how much impact of increase in pension can the Fund sustain to ensure long-term viability of the scheme in the interest of current and future pensioners.
Linking the issues of pensioners with those of EOBI employees is not relevant. EOBI is presently working with only 46% strength and the employee’s salary structure and other allowances are in sync with Federal Government employees and are approved by the Board.
Published in The Express Tribune, September 25th, 2022.