THIS is apropos of S.M. Asadullah Faiz’s letter ‘EOBI pension amount too small’ (April 12) regarding increase in EOBI pension.

It may be appreciated that the Employees Old-age Benefit Institution generates its fund through contributions from registered employers and employees (insured persons) to meet its pension liabilities.

Accordingly, the viability of the Institution’s fund and its ability to enhance benefits totally depends on timely payment of contributions by employers and employees and its profitable investment in high-yielding securities and stocks.

EOBI pensioners like widows and the disabled above 60 years are paid from a fund maintained by contributions of employers, employees and return on investment.

EOBI pensioners are governed by Sections 21, 22 and 23 of EOB Act, 1976. Any increase is to be made taking into consideration the long-term viability of the fund and views of the actuaries.

It may further be mentioned that the ‘actuaries’ are of the view that with present rates of contributions and benefits the fund would not be viable in the long run.

In the light of the Labour Policy 2010, the matter regarding the increase in the pension amount to EOBI pensioners is under consideration of the government. as soon as a decision is arrived at, we shall be pleased to notify the same.

QAMAR RIAZ Media Adviser Employees Old-Age Benefits Institution Karachi