ISLAMABAD: Minister for Defence Production Rana Tanveer Hussain on Wednesday said a committee has been constituted to make Old Age Benefit Institute (EOBI) self sustainable and viable institute to enable it to pay pensions of registered employees in a smooth way.
Responding to Calling Attention Notice moved by Muhammad Pervaiz Malik, Mian Abdul Manan, Qaiser Ahmad Sheikh and Mehar Ishtiaq Ahmad, the minister said the committee headed by Finance Minister Ishaq would submit its report within 60 days.
The committee would deliberate about legal, financial aspects of increasing minimum pensions of the retired registered employees of EOBI.
He said a report says that EOBI would not be sustainable till 2021 due to increase in number of pensioners and persistent decrease in revenues. The pension increased from Rs 6000, to Rs 12,000 per person is being paid to registered employees as pension. The number of retired people is being increased.
In last few years-the pension of the EOBI has increased to Rs 75 billion as comparing to Rs 70 billion per annum.
It is a fact that the number of old people has increased in the country as comparing to diminishing number of contributors. It is being evaluated that how could help the federation to EOBI.
He said the EOBI Act 1969 has already been devolved after the enactment of 18th amendment, he said adding that the government was considering to give legal cover to its plan of making the EOBI viable and sustainable. Since the development of the subject federal government has no authority to increase contribution or otherwise. An act of Parliament would soon be presented in Parliament for the purpose.
The funds could be increased by enhancing the contribution of the employees as well as employers. Currently, 1 percent is being contributed by the employees and five percent by their employers.
Speaking on a Point of Order, Leader of the Opposition Syed Khursheed Shah said EOBI was a self sustainable institute it does not need government's support. Only 17 percent labour was registered with EOBI while 83 percent were unregistered.
The income of EOBI was Rs 5.6 billion per annum when he took over as minister during PPPP regime. The income had been increased to Rs 14 billion per annum when the PPP government completed its tenure.
Additionally Rs 12 to 13 billion per annum was earned through investment. The pension being paid to registered EOBI employees was Rs 10.5 billion. He said the employees should be burdened and the contribution of employers should be enhanced for increasing the income of EOBI.
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