Pakistan is to dispatch its official panel to Singapore, under the lead of Establishment Division Secretary, to study schemes about pension and benevolent funds, official sources told Business Recorder. The decision was taken by the Cabinet in its meeting on February 10, 2010.
Sources said that the Cabinet was informed that benevolent fund and group insurance, introduced through the Federal Employees Benevolent Fund and Group Insurance Act, 1969, provide collective welfare and insurance coverage to employees of the federal government, Parliament, Supreme Court of Pakistan and those autonomous bodies which voluntarily join it, with the approval of the federal government.
The benefits provided by the fund include payment of monthly benevolent grant, lump sum payment of the sum insured, grant on invalidation, burial charges, marriage grants, farewell grant and educational stipends. Its affairs are administrated through a Board of Trustees.
The Cabinet was further told that contribution of the employees was too meagre to meet the welfare-oriented grants payments, and thus needed rationalisation. The Establishment Division argued that the current payouts exceeded the contributions which adversely affected the viability of the Fund. Finance Ministry and Pay and Pension Commission have also endorsed the proposed amendments.
The draft Bill, duly vetted by Law Ministry, proposing amendments in sections 12( C) and 13( 3) of the Federal Employees Benevolent Fund and Group Insurance Act, 1969 to make it more viable/productive, was, accordingly submitted to the Cabinet for approval prior to its placement before Parliament, as directed by the Prime Minister. The Cabinet approved amendments in the Federal Employees Benevolent Fund and Group Insurance (Amendment) Bill 2010 for the placement before Parliament as proposed by the Establishment Division.
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