Why EOBI Is Not Increasing Pension?

Employees Old Age Benefit institution provides financial support to the retired employees of private sector organisations. I recently, the following reasons and factors found in deep research why EOBI has not raised pension for a long time. 

Pension Not Increasing Factors?

Fund Matters

When a country’s economy is not performing well things prices are fluctuating. EOBI might try to provide more money to retired people. For example when you have less money in your pocket and you can’t buy many things for your daily life. 

Not Enough Funds

EOBI might not have enough funds to increase the pension of retired employees. If EOBI did not receive enough funds from the contributors and investors then how can EOBI pay much to pensioners? 

Follow Rules & Regulations

EOBI is working under the Government of Pakistan. Employee old age benefits institution follows the government rules and regulations. If the Government says to use less money on pension payments then how can EOBI increase pension? 

Saving For Future Life

EOBI make sure that it can provide pensions to retired employees for the long term. If it may use a lot of money now, then it does not have enough funds for the future. So EOBI is trying to be careful in this way. 

EOBI Dealing With Paperwork

Sometimes EOBI go through a lot of paperwork and follows the rules and regulations before increasing retired employees’ pensions. Therefore EOBI follow such rules before making any changes in pension amount. 

Final Words:

EOBI hold off on increasing pension payments because of a lack of funds, following government rules and regulations and planning about saving for the future. A lot of paperwork is also the main reason for not increasing pension for a long time.