Institutional Strategy

• Board of Trustees
• Mission
• Strategy
• Image Building
• Amendments in Regulations
• Computerization
• Investments

• Needs for Reform in EOBI
• Values
• Action Plan
• Reduce Expenses
• Revision of Processes
• Real Estate
• Monitoring & Inspection

• Vision
• Objectives
• Viability
• Legal Reforms
• Administration
• Publicity
• Training & Research

Board of Trutees

Secretary, Ministry of Labour, Manpower & Overseas Pakistani, Government of Pakistan

Institutional Strategy

• Board of Trustees
• Mission
• Strategy
• Image Building
• Amendments in Regulations
• Computerization
• Investments

• Needs for Reform in EOBI
• Values
• Action Plan
• Reduce Expenses
• Revision of Processes
• Real Estate
• Monitoring & Inspection

• Vision
• Objectives
• Viability
• Legal Reforms
• Administration
• Publicity
• Training & Research

Board of Trutees

Secretary, Ministry of Labour, Manpower & Overseas Pakistani, Government of Pakistan

Need for reforms in EOBI

• Make EOB Scheme viable and credible;

• Improve image of EOBI by eliminating corruption & inefficiency;

• Reduce expenses to make the Institution economical, efficient and effective;

• Improve record keeping through computerization to reduce compliance cost;

• Transform the Institution into a service oriented organization;

• Improve systems and procedures to make decision making and implementation transparent to restore and maintain confidence at stake-holders;

• Ensure quality of manpower by fixing proper standards for fresh recruitment and improving capabilities and attitude of existing manpower;

• Promote participative management through constant liaison and consultation with all stake-holders to make the Institution progressive, dynamic and responsive;

• Improve Risk-Management.

Vision

To be a viable, credible, progressive Institution devoted to provision of Social Security to all persons in service of Pakistan.

Mission

To transform EOBI into a viable, progressive and self-sustained organization, capable of providing retirement benefits to all citizens in service of Pakistan with active support of employers and employees to promote economic prosperity of all stakeholders

Values

• Transparency
• Trust
• Team Work
• Integrity
• Professionalism
• Meritocracy
• Courtesy
• Fairness

Objectives

• Extend Coverage of “State Pension Scheme” to all persons employed in Pakistan over a reasonable period.

• Transform the EOB Scheme into a viable and popular “State Pension Scheme” (SPS) for providing security of subsistence pension to all employees at most economical cost.

• Transform EOBI management into most efficient, economical and effective machinery for operating Public Pension Scheme.

• Promote voluntary registration by employers & employees and payment of contributions by making the Scheme more attractive and least cumbersome.

• Ensure generation of maximum income from the investment through honest, transparent and professional management.

• Ensure disbursement of due benefits promptly & gracefully.

Strategy

Constant review of processes, policies & procedures in consultation with stakeholders to improve viability, service, economy and efficiency;

• Introduce ‘Participative Management’;

• Undertake ‘Structural Re-organization and Adjustment’;

• Improve ‘Human Resource Management’;

• Improve ‘Risk Management’;

• Frame and implement comprehensive EDP Plan and modern technology;

• Undertake concrete measures for reduction in compliance cost and removal of irritants;

• Improve service to pensioners by introduction of measures to boost self respect and human dignity;

• Popularize the Scheme through education of employers & employees by most effective media campaign;

• Ensure expeditious dispute resolution through tripartite meetings;

• Ensure maximum use of facilities, opportunities and services offered by national and international organizations for achievement of above objectives;

• Make best use of lessons learnt from past-experience of the Institution, the  experience of developing/developed countries and comparable national institutions;

• Establish useful linkages, contacts and coordination with sister organizations working for labour welfare;

• Build in-house strong capabilities/capacity of crucial special skills like actuarial valuation, management of investment portfolio and EDP.  Meanwhile utilize advice/service of best consultants in specialized fields;

• Convert EOB Scheme into a State Pension Scheme (SPS) for employees based on defined contribution and benefit by mutual participation of employers and employees;

• Introduce legal changes to promote voluntary compliance, minimize discretion, remove anomalies and improve efficiency/service.

• Concentrate on core activity and high income generation in most desirable ways in accordance with overall macro economic policy.

• Adopt a Code of Conduct on the pattern of Code of Conduct for Civil Servants 1964.

Action Plan

Key activities of EOBI are enumerated below;

• Registration of Employers
• Registration of Employees
• Collection of Contribution
• Disbursement of Benefits

The Action Plan prepared in the light of Vision, Mission and strategy in respect of key activities is as under:-

Viablity

• The rate of fixed contribution shall be determined on the basis of authentic actuarial valuation report by one of the two most well-known actuaries namely M/s. Akhtar & Hassan (Pvt.) Ltd. OR Sidat Hyder Morshid Associates (Pvt.) Ltd

• Actuarial valuation shall be made every three years instead of five years.

• No change in the pension schemes involving enhancement of financial obligation of the “State Pension Authority” shall be made without actuarial valuation and provision for matching finances to meet the resource gap.

• Statutory period of actuarial valuation shall be reduced from five to three years and actuarial certificate attached to financial statement to certify financial health of the Scheme.

• Transparent systems and procedures shall be enforced and periodic meetings shall be held with representatives of employers & employees to solicit their views on ways and means of generation of maximum income from contribution, investments and other possible avenues.

• At appropriate time, the Institution shall be got ISO 9000 certified to establish credibility of Institution by international standards.

• State Pension Scheme shall be backed by Government guarantees   

Image Building

• Eradication of corruption by designing the scheme, system and procedure which eliminate the possibility of corruption;

• Minimize contact with employers by E.Os

• Minimize discretion by switching over to system of indirect verifications;

• Close monitoring, supervision and audit;

• Improve registration record of employers, employees, contributions and supply computer-generated ledger of Accounts periodically for reconciliation and confirmation;

• Cleaning of records by de-registration of defunct units, waiver/write off of irrecoverable arrears and reflect correct picture in Monthly Progress Reports, fixing realistic targets and reflecting correct figures in Accounts & Financial Statement;

• Revive annual communication of cumulative contribution to the credit of each employee;

• Generate list of defaulters showing contributions not paid or less paid through computer;

• Generate list of persons whose pension shall become due during the year with exact dates and amount of pension through computer;

• Publicize the measures taken to improve transparency, viability and credibility of the Institution;

• Hold seminars, workshops to discuss the reforms with national and international experts.

• The name of the Institution may be changed from EOBI to “State Pension Authority (SPA)”. In contrast to Private Pension companies the name of EOB Scheme shall be changed to State Pension Scheme (SPS).

Reduce Expenses

• Set up a joint Economy Committee of officers and staff to review expenses and suggest ways and means to reduce the same.

• Right sizing the strength of the Institution;

• Restructuring to reduce redundant tiers of hierarchy;

• Reduce number of Zonal Offices and delegate powers to make administrative adjustments such as closure of field offices not needed, making adjustments of officers and staff within the zone according to work load;

• Make best use of Information technology/and EDP systems;

• Belt-tightening by all concerned;

• Review of vehicle use and entitlement of petrol/sui-gas limit in view of reduction of visit to employers;

• Economy in use of telephone through improvement in system – telephone expenses limit.

• Systematic and economical ways of maintenance of buildings & vehicles and assets;

• Economy drive in use of stationery, electricity and other routine expenses;

• Regulate traveling

• Control over-time

• Improve system of medical reimbursement to check misuse of facility by unscrupulous elements.

Legal Reforms

• Restrict payment of pension where contribution has not been paid by the employers

• Amnesty for fresh registration and correct declaration of employees with payment of correct contribution

• The information of contribution for State Pension Scheme not to be utilized for any other law

• Simple pension scheme based on fixed contribution and benefits to be made

• Actuarial Valuation to be made every three years

• No change in contribution and benefit or other provisions having financial implications to be made without actuarial valuation

• The Board may co-opt any person having special technical knowledge and skill in relevant field like actuarial valuation, investment management, information technology etc. for specific purpose.  He may attend as many meeting as required by the Board

CONSENSUS ON THE FOLLOWING ISSUES HAS YET NOT BEEN EVOLVED

• Introduce penalty for misuse of self-assessment

• Accord power to collect information for determination of number of employees or wages being paid from authorities concerned

• Accord power to recover contribution from Directors where the same can not be recovered from the Private Limited
  Companies

• Universal self-assessment scheme with provision for test-check of cases selected on the basis of parameters

Amendments in Regulations

• Constitution of De-Registration Committees shall be changed to include employer and employee representative from local chambers nominated by respective members of Board of Trustees approved by the Board

• Rate of statutory increase may be raised from  1-1/2% to 2% per month to reduce incentive for non-payment of contribution

• Provision for reference of invalidity cases to medical superintendent shall be made in case of difference of opinion among members of Medical Board

• #* Annual financial health certificate for “State Pension Scheme (SPS)”, given by the Auditors along with audit report to promote credibility of Scheme, shall be prescribed

#*    Method of Implementation to be evolved

Revision of Processes