Post-retirement claims: SHC directs Centre, PSM to allocate funds

19 May, 2020

Sindh High Court (SHC) Monday directed federal government and Pakistan Steel Mills (PSM) to allocate requisite funds to settle the post-retirement claims of all retired employees of PSM.

A SHC bench issued these directives while hearing a petition, filed by some of retired employees regarding post-retirement benefits of PSM.

According to written court regarding the post-retirement benefits of all such retired employees of PSM who have not approached the Court, counsel for PSM, Deputy Attorney General (DAG) as well as officials of Finance & Cabinet Division admitted that post-retirement benefits have not been paid to such employees.

It was not disputed by any of the counsel and or party that subject to their entitlement, court observed and stated that such employees are also entitled to the same treatment that is being given to the present petitioners or to such other employees who have approached the court.

In view of this situation, Court ordered Federal Government and PSM to allocate requisite funds to settle the post-retirement claims of all such retired employees of PSM who have not approached the court, and to deposit the same with the Nazir of the court latest by 31.08.2020.

Court also ordered PSM to submit a complete list of claims of all such retired employees who have not approached the Court, within fifteen days at the request of federal government.

Order stated that in the last hearing, Federal Government and (PSM) were ordered to settle all the dues of the petitioners, subject to the condition that payments shall be made to them by the Federal Government latest by May 15, 2020 in terms of statement submitted before the court.

DAG placed on record statement along with several enclosures and reports submitted by the Secretary Finance Division and the Secretary Cabinet Division, which stated that in order to ensure compliance of courts order, Ministry of Industries and production in consultation with the Finance Division had submitted a summary to ECC of cabinet for settling outstanding liabilities of Ex-PSM employees, who approached the court.

DG disclosed that an amount of Rs.12.741 billion was approved for the purpose, out of which Rs.1.30 billion, which is ten percent of claims of the litigants was to be released in the first week of May 2020 in current fiscal and remaining ninety percent to be allocated in next financial year.

Counsel for PSM assured the court that ten percent amount would be disturbed only towards the post-retirement benefits of employees of PSM and shall not be utilized for any other purpose.

Joint Secretary Finance and Additional Secretary Cabinet Division submitted the undertaking that remaining ninety percent amount of these claims would be by deposited by federal government with the court by end of August this year.

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