Federal Constitutional Court Issues Important Ruling in EOBI Pension Case

The Federal Constitutional Court has delivered a significant ruling in the Employees' Old-Age Benefits Institution (EOBI) pension case, setting aside earlier orders that granted pension relief to a former bank employee. Chief Justice Aminuddin Khan penned the 12-page judgment, joined by Justices Aamer Farooq and Ali Baqar Najafi.

The case revolved around Javed Iqbal Bhatti, whose employment spanned five years, 10 months, and eight days. Despite receiving a Rs. 48,000 old-age grant in 2015, the court determined that Bhatti did not meet the eligibility criteria for a pension, as he had only been insured since July 1, 2008.

The court emphasized that receiving an old-age grant does not automatically confer an entitlement to a pension. It further clarified that disagreements over pension eligibility should be treated separately from complaints regarding maladministration, such as arbitrary treatment, discrimination, negligence, or unjustified delays. The bench held that merely receiving a denial of pension application does not constitute maladministration.

The Federal Constitutional Court's decision sets forth that eligibility, benefit amounts, and payment periods must be determined under the EOBI law, which includes review and appeal mechanisms. The court overturned the relevant orders from the Islamabad High Court, federal ombudsman, and the president, asserting that an order issued without jurisdiction cannot become valid through subsequent presidential or judicial approval.