Punjab finance department ends annual pension increases for government employees, effective today.
The Punjab Treasury Department has issued a notification to end the annual pension increase for government employees, an action that will have far-reaching effects on retirees across the province.
Key Facts of the Decision
A notification issued by Secretary of Finance Mujahid Sher Dil stated that the treasury has ended the annual increase in pensions that were provided through memos issued in 2011, 2015, and 2022.
Pension Increments Affected:
2011 Circular: Pension increases provided under Paragraph 2.
2015 Circular: Pension increments issued under Paragraph 1.
2022 Finance Department Notification: Increments outlined in Paragraph 1.
The new directive applies to all government employees retiring from today onwards, effectively halting these benefits.
The Secretary of Finance has sent instructions to all departments and institutions that the new policy is strictly to be enforced. The concern is that the financial security of many retirees is going to be affected since they had always relied on these annual increases.
Updates from EOBI: Better Engagement Measures
In a different development, Employees Old-Age Benefits Institution has brought in some new initiatives to streamline its process and engage more with the employers and the industrial associations.
Important Announcements by Acting Chairman Dr. Javed Shaikh
Help Desk Initiatives: EOBI has established a dedicated help desk every Monday at the premises of SITE Association of Industry. This initiative would be helping the members sort out the issues related to EOBI contributions and also clear the issues about the compliance requirements.
Digitalization of EOBI Operations:
Employers can now use digital tools, comprising unique user IDs and passwords, to register employee details and prepare payment vouchers.
These developments are meant to increase transparency and reduce contribution complexities.
Relaxation in Audit Procedures:
Just 4% of the registered units are audited every year.
The audit procedure has been relaxed. Earlier audits covered subsequent periods so that there was no repetition.
Financial Summary of EOBI:
The EOBI fund has Rs532 billion, invested in various schemes.
Monthly pensions of Rs5 billion are being disbursed to registered workers. The collection efficiency has shown marked improvement over the past few months.
Issues and Suggestions
While visiting the SITE industrial body, Dr. Shaikh admitted the concerns of employers:
EOBI contribution rate should be fixed.
Gratuity-paying employers should be provided with flexibility.
He also requested stakeholders to take these issues with the federal government. Further, Shaikh said that government departments were beyond EOBI’s purview, as the latter was concentrating on private sector compliance.
He instructed the regional heads to contact associations before giving notices under Section 81 to create mutual harmony.
Conclusion
The decision to stop annual increments in pension is a big policy shift, which asks the retirees to adjust themselves to the changing financial scenario. On the other hand, EOBI’s more effective measures are aimed at supporting employers and ensuring that services are streamlined.
During these changes, the stakeholders affected are advised to seek information and utilize the resources available to them to navigate these changes effectively.
