THIS is with reference to Mr Moinuddin Quraishi's letter (March 16) in Dawn. To me the EOBI pension is the most liberal pension scheme I have ever come across. It is unprecedented that an employee who contributes for only five years till he/she reaches the superannuation age of 60 or 55 years for men and women respectively becomes entitled for a lifelong pension.

It has his /her spouse, surviving children under eighteen years of age become entitled for pension. This does not stop here if the pensioner is not survived by a spouse or his/her children are over 18 years, the surviving parents become entitled for estate pension for the balance period.

I wonder how the EOBI fund managers keep the fund viable with such a liberal pension regime when investment opportunities are scarce in this part of the world specially Pakistan due to continuous political turmoil and severe law and order situation. Paying Rs2,000 per month, the minimum pension under the EOB Scheme, for average 20 to 25 years means the EOBI doles out Rs600,000 on a total received contribution of Rs21,600 only. I wonder if any actuarial valuation is carried out by the EOB fund managers to justify such a liberal pay out.

I however agree that Rs2,000 is too meagre an amount to make both ends meet for a poor pensioner in this high inflation era. The EOBI should enhance contribution rates to the international standards and enhance minimum pension to Rs6000 per month.

SHAHNAZ JAVED
Karachi