Around 3,000 retired employees of the Pakistan Civil Aviation Authority (PCCA) are facing severe financial crisis and difficulties from the last 5 years due to no increase in their pension. According to the sources, the Civil Aviation Authority was established in 1982. After its establishment, the CAA Board approved the salary structure for its employees. As regards to the Pension and other retirement benefits, CAA Board decided to adopt the Federal Government’s Pension Policy and Procedures.
Since establishment of the Authority in 1982, employees of the CAA have been receiving pensions according to the Federal Government’s formula and Procedures. Similarly, from 1982 to 2019, the increase in pensions was made in accordance with the Federal Government notifications. However, former DG Khaqan Murtaza stopped the increase in pensions for the employees retired after July 1, 2014, based on an assumption that the pension policy was delinked from the Federal Government on promulgation of the new service regulations in 2014. However, neither this matter was discussed in the Board meeting nor any decision was made by the Board. Further, it was not mentioned in any Admin Order issued after proclamation of new service regulations.
Former DG Khaqan Murtaza unilaterally decided to approve the increase in pensions for the years 2021, 2022 and 2023 according to the Federal Government’s notifications only for the employees retired before June 30, 2014. However, he stopped the pension increases for above mentioned years for the employees retired after July 1, 2014 based on the assumption that their pensions should had been increased after three years, which was highly illogical and reflects an incomprehensible thought considering ever high inflation during this period. Due to his misunderstanding and misinterpretation of the service regulations, the board approved the constitution of a Fact-Finding Committee to investigate this matter. Subsequently, some pensioners also reported this issue to the Senate Standing Committee on Aviation, which formed a sub-committee under Senator Saleem Mandviwala to find a solution to this burning issue.
Following the board’s decision, a three-member Fact-Finding Committee led by Senior Joint Secretary Aviation Division completed its report and presented its recommendations in a meeting held on 30 Jan 2024, Chaired by Senator Saleem Mandviwala. During the meeting, the Secretary Aviation/Chairperson Civil Aviation Board assured the Senate Committee that this matter would be presented before the board after the general elections on February 8, 2024, and on complete formation of board by the new government. It is worth mentioning that according to the PCAA Act 2023, it is necessary for the Prime Minister to appoint four (4) private members to complete formation of Board. Moreover, under the new Act, the presence of at least one private member is a mandatory requirement for the quorum of the board meeting.
On the other hand, various pensioners filed petitions in different courts against the discrimination and non-increase of their pension. Consequently, Islamabad High Court passed orders in January 2024 and directed the Secretary Aviation to resolve this long-outstanding issue within 60 days, but no result came out within the stipulated period. On 04 June 2024, in a meeting with a representative group of pensioners, the Secretary Aviation reiterated his argument that “this issue would only be resolved by CAA Board during next meeting.” However, constitution of Board is still incomplete due to non-appointment of 4 private members by the Prime Minister as required in PCAA Act 2023.
It is also important to note that due to the controversial and discriminatory policies adopted by the CAA Management, four (4) groups of pensioners have emerged so far:
1. Pensioners retired before 30 June 2014, whose pensions were increased by the CAA Management according to federal government notifications up to the year 2023.
2. The second group consists of pensioners who retired from July 2014 to June 2022. Their pensions have not been increased since 2020 according to the federal government notifications.
3. The third group comprised of employees who retired from July 2022 to June 2023. Despite no revision of pay scales by CAA in 2022, they were deprived of the previous pension increase allowed to other pensioners, which is against the procedures and basic principles of pension rules. They were only given a 20% increase from 01 July 2023, which created serious disparity and inequality among pensioners, as the Authority is paying higher pensions to employees retiring before 30 June 2022 as compared with the pension of employees retired from 01 July 2022 to 30 June 2023.
4. The fourth group consists of those employees who retired after July 1, 2023. They were not allowed any increase in pensions according to the federal government’s notification in 2023 notification. They were also not allowed the previous increases. Due to this discriminative policy, their pensions are even less than those of employees retired before 01 July 2022.
Due to the controversial and discriminatory policy adopted by the CAA Management, pensioners, whose majority comprised of low paid pensioners, are facing severe financial crises and difficulties to face their day to day expenses especially in this high inflationary environment. Many pensioners have been forced to sell their valuable items, ornaments etc. Thus, this situation has created a serious humanitarian issue due to the adoption of discriminative policies. CAA pensioners have appealed to the Prime Minister to immediately appoint private board members and resolve this long pending issue on priority basis and to issue orders to provide them immediate relief.
—(Retired Employees of Pakistan Civil Aviation Authority)
