Similarly, a 15% increase was given to the pensions drawing from over 10 years and 10% increase was allowed to the pensions for less than 10 years. The management with the issuance of this current circular (Circular No. 21/2019) has suspended the Circular No. 14/2013 dated April 19, 2013.
At the same time, the management gave more than 70% salary increase to different cadre of the airline as per their position. Sadly, this was another injustice to the retired employees of the airlines by the management as this increase after six years was not as per laws and regulations. It is worth adding here that there was only one time increase in the pensions (in 2013) between 2009 to 2017.
The ground reality is that the management should have given 60% increase (for past six years) in the pensions because as per rules there should be 10% increase (like the government does in federal budgets every year) in the pensions of the retired employees every year. The fact is that the management has to increase the pension of retired employees as per its circular No 21/2003 dated July 31, 2003.
The circular clearly mentions that 'in future revision/suitable increase in pension shall be linked with salary revision of serving employees'. Another issue is that the national airline gives its employees 32 percent of their total salary as pension.
But the formula (which was adopted in 2003) it applies in the end makes the pension calculated on their basic pays, which is not fair. As per rules, all other governmental organizations give their retired employees 50% of their salaries as pensions. This was also in practice at PIA till the end of 2003.
This is the reason the retired employees have been demanding since long that the airline should either give them 50 percent pension on their basic pay. Or make the 32 percent pension to be given on their total salaries without applying the said formula.
Hence, the management of the PIA should increase pensions in line with the salary increase (with the ratio of serving employees) and in future pension increase should be made as per increase in federal budget every year by the government.