EOBI Pension Hike from May 1, CNIC Records to Determine Age
The new verification procedure is expected to bring transparency to the EOBI pension system, and the increased pensions will benefit thousands of eligible beneficiaries. The recovery of pending amounts from institutions will also strengthen the EOBI fund, allowing it to support more pensioners in the future.
The Employees Old-Age Benefits Institution (EOBI) will increase pensions for its beneficiaries from May 1, with a new verification procedure that relies on Computerized National Identity Cards (CNIC) records instead of matriculation certificates, following the discovery of Rs2.79 billion disbursed to 5,131 fake pensioners.
The Public Accounts Committee (PAC) was informed that the move will result in a pension hike for EOBI beneficiaries, and the Ministry of Overseas Pakistanis secretary assured the committee that pension cases will be settled based on CNICs. The EOBI fund currently stands at Rs600 billion, with around 10 million businesses required to register with the institution. However, only 10 million pensioners are registered with EOBI out of a 70 million-strong labor force in the country.
An audit report revealed that over 5,000 pensioners' data was incorrect, with some receiving pensions despite being under the age of 55 or 60, violating eligibility criteria. The Auditor General of Pakistan (AGP) has revealed irregularities in the distribution of old-age pensions, with incorrect birth dates used to grant pensions resulting in discrepancies of up to 30 years in some cases. EOBI officials stated that they verify ages through CNIC and other sources, but admitted to age manipulation.
The committee also directed EOBI to recover Rs2.47 billion from 2,864 institutions that failed to fully register their workforce and pay due amounts, with Rs1.53 billion already recovered and efforts underway to recover the remaining Rs1 billion within a month. Certain sectors, including Export Processing Zones, Special Economic Zones, chemical sector, and industries linked with defense and universities, have been exempted from EOBI rules.
The Public Accounts Committee (PAC) has emphasized the need for a standard procedure for verifying pensioners' ages, and the Ministry of Overseas Pakistanis has agreed to rectify the issue. The committee directed the ministry to investigate and submit a report within a month, ensuring that the EOBI pension system is transparent and free from irregularities.