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FEED BACK ON PENSION ISSUE OF RETIRED PTCL EMPLLYEE TO CHAIRMAN STANDING COMMITTEE NATIONAL ASSEMBLY



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We the Retired Employee of PTCL are grateful to you for taking interest in resolving our genuine grievances pertaining to the matter of unlawful award of 20% and 8% increase in pension bracketed in (a) and (b) category in respect of transferred employee of PTCL which is a violation of Federal Government’s Orders.

1. That Government of Pakistan has enhanced Pension in the Budget 2010-2011 and allowed 20% & 15% increase in Pension as well as grant of 25% Medical Allowance and 75% Family Pension vide Notification bearingNo.F.4(I)-Reg.6/2010/721 and otification No.F.16(I)-Reg,6/2010/778 dated 5th July,2010 which has not been taken into account by the Pakistan Telecommunication Employees Trust and create discrimination among Pensioners by not implementing orders in letter and sprit. (Photostat copy of the said letter is annexed and marked as Annexure-“ ”)

2. The unlawful decision taken in 54th meeting of the Board of Trustees of Pakistan Telecommunication Employees Trust, communicated by Director Pension PTET Lahore under his letter No.Pen/PTET/LHR/1110 dated 27-01-2011.(Photostat copy of the said letter is annexed and marked as Annexure-“ ”) . As per decision of PTET pensioners who retired prior to 1st July,1996 get increase to the extent of 20% without medical allowance and those who retired on or after 1st July,1996 get increase to the extent of 8% without medical allowance whereas in case of retired Transferred Employees of PTCL both category appointed as Government Servant, served in T&T, PTC and PTCL under same terms and condition. The Pensioner appointed in T&T and PTC and transferred to PTCL on 1st July,1996 completed their tenure of service and retired were entitled equally for Pensionary benefits under their terms and condition of service.

3. It is submitted that on 1st July,1996 ‘Transferred Employees’ were forcefully pushed under same terms and condition of service as was in Government (T&T) and Corporation (PTC) under Pakistan Telecommunication (Re-Organization) Act.1996 and handed over to a Company which came into existence under the Companies Ordinance 1984.
Nothing is on record that ‘Transferred Employees’ at the time of their transferred were offered equivalent Cadre wise post in other Organization to exercise option and they were compelled to serve in Government Basic Pay Scale in a Limited Company on the same terms and condition with the guarantee of Pensionary benefits of the Federal Government as Company did not offer any new employment contract to the Transferred employee till their retirement, while on the other hand Company on 1st January,1996 and thereafter started to recruit his own employee with heavy numeration Salary Package started from Rs.70000/= to 5000000/= under new terms condition/Contract which is on record and kept the Transferred Employee under Government Basic Pay Scale start from Rs/7000/ to Rs.60000/= (BPS-1 to 22) on the same and condition of their appointment.

4. Under the statutory provision of Section 45(2) of Telecom Act.1996, PTCL has to contribute funds to the extent of entitlement of retired Transferred Employee to PTET who shall manage Pension Fund and to receive pension share of transferred employees from PTCL and Federal Government for disbursement to pensioners as per their entitlement, they have no authority under any law to curtailed pensionary benefits in any manner.

5. Neither PTCL nor PTET have authority to divide pensioners into different categories and curtailed Pension of the transferred employee on the basis of their service in PTCL after 1st July,1996 and the status of the employees could not be changed/categorized unless and until defined under statutory provision. Employees transferred from T&T to PTC, status defined as ‘departmental employee’ and thereafter status become “|Transferred Employee” in PTCL as protected under Pakistan Telecommunication (Re-Organization) Act.1996 and in pursuance terms and condition of service can not be altered to their disadvantage and written consent of Transferred Emplyee is required.

6. PTCL representative in 54th meeting of PTET Board of Trustees meeting forcibly manuplated pensionary benefits of retired transferred employees to their disadvantage and to gain the financial benefits in the interest of PTCL misguided the BOT without justification of any law enforced and intact. Transferred employees for the grant of increase in pension with effect from 1st July,2010 has been categorized unlawfully and Secretary IT declared transferred employees who remain in service of PTCL after 1st July,1996 are out of domain of Government Servant as such they are not entitled for increase in pension as announced by Federal Government whereas PTCL has not offered any employment Contract to Transferred employee on or after 1st July,1996 as has been offered to employees working on New Compensation Pay Grade (NCPG), New Terms and condition (NTC)/Contractual employees as such status of Transferred employee remain intact under statutory provision of Section 59 (2) of the Pakistan Telecommunication (Re-Organization) Act.1996 protected the Regulations framed under PTC Act.1991 and keeps rights of employees intact as Rights once granted to the transferred employees remain protected and change of ownership does not extinguish such rights.

7. PTCL was privatized in 2006 and is not an organ of the State and it is managed and controlled by the Etisalat but what about the employees who were initially appointed as Government Servant and retired under the Government Rules and Regulation and PTCL use Pension Form CSR-25 on their retirement. The said Form is a part and parcel of Civil Service Regulation applicable to Civil Servant and accordingly use the terms for transferred employees under the captioned “Name at S.No.1” as Civil Servant which clearly indicate that Pensionary benefits of transferred employees from T&T to PTCL are being dealt in accordance with the Civil Service Regulation and retiring employees Pension papers prepared and calculated under the said provision and not by the PTCL Rules. Photostat copy of Pension papers is annexed and marked as Annexure-“ “

8. Under Section 46 (d) of the Pakistan Telecommunication (Re-Organization) Act.1996, PTET maintained Pensioner’s rights intact up to the period of 30th June,2010 and every increase in Pension announced by Federal Government implemented in letter and sprit but after 1st July,2010 PTCL unlawfully interfere in the affairs of PTET through Board of Trustees withheld enhanced Pension for a period of more than 6 months and make plan to put Retired PTCL employees under different categories to curtailed increase in pension arbitrarily with effect from 01-07-2010.

In view of the above it is submitted that issue of increase Pension of transferred employees of PTCL has not been examined in its true prospectus we would therefore request before your good self to have a look to ask concerned quarter to come forward with a clear picture in a transparent manner to remove ambiguity in next schedule meeting in accordance with law. Following papers are appended herewith under the heading
Appendix-1 “Legal Status of PTCL and PTET”,
Appendix-2 “Legal status of PTCL Pensioner”,
Appendix-3 “Responsibilities of PTET, PTCL and Federal Government”
Appendix-4, “Question about violation and ambiguity”
We pray for your health and prosperity
With best wishes
Regard

Pak Telecom Pensioner Trust

Appendix-1


As per PTCL Annual Report 2010 page No.43 Note 1.1 of the Financial Statement, it is mentioned that PTCL was incorporated in Pakistan on December,31, 1995 and commenced business on January,01, 1996. The Company was established to undertake the telecommunication business formerly carried on by Pakistan Telecommunication Corporation (PTC). The business was transferred to the Company on January,01, 1996 under the Pakistan Telecommunication (Re-Organization) Act.1996 at which date the Company took over all the properties, rights, assets, obligations and liabilities of PTC except those transferred to National Telecommunication Corporation (NTC), Frequency Allocation Board (FAB), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET).
PTCL incorporated under the Companies Ordinance 1984 and was Privatized in 2006, management and administrative function of PTCL stand transferred to Etisalat a Company incorporated in UAE. PTA has issued a license to the PTCL in Pakistan for a period of 25 years commencing January,01,1996 for an agreed license fee of Rs.249,344 thousand in the year ended June,30,2005.

PTET is a corporate body performing functions in connection with the affairs of Federal Government under the Trust Act.1884. Its function and powers define under section 45 of Pakistan Telecommunication (Re-Organization) Act.1996 and managed by a Board of Trustees consisting of Six Trustees, three to be appointed by the Federal Government and three by the PTCL for a period of three years, unless earlier removed by the appointing authority i.e. Federal Government.

Appendix-2



“Telecommunication employees” definition u/s 2 (t) of the Pakistan Telecommunication Re-Organization Act.1996 employees of the PTC who are transferred to the employment of the PTCL, under sub-section (3) of Section 36 of the Act were employees of the Corporation the former Telegraph and Telephone Department of the Federal Government and are receiving or are entitled to receive pensionary benefits from the PTC.
“Transferred employees” terms and condition of service Under Section 36 (2) of the Act shall not be altered adversely by PTCL except in accordance with the laws of Pakistan or with the consent of the ‘Transferred Employees’ and award of appropriate compensation whereas Federal Government u/s 36 (4) shall assume responsibility for his pensionary benefits and PTET u/s 46 (d) of the Act will make provision for the payment of Pensions to the extent of Pensioner’s entitlement.
Section 59 (2) of the Pakistan Telecommunication (Re-Organization) Act.1996 protected the Regulations framed under PTC Act.1991 and keeps rights of employees intact as Rights once granted to the transferred employees remain protected and change of ownership does not extinguish such rights.

Appendix-3

PTET a body corporate to maintained Pension Fund created under Section 44 of Pakistan Telecommunication Re-Organization Act.1996 and under section 45 of the said Act all assets and liabilities of PTC vest in Pension Fund created by Trust Deed dated 2nd April,1994,
Under Section 45 sub Section 2 PTCL shall contribute to the Pension Fund the amount determined by the Actuary representing the unfunded proportion of the accrued pension liabilities which shall be assumed by the PTCL from the effective date specified in the order under section 35 of the Act.
Under Section 46 (a) PTET take over and assume the liability of Pension Fund including contributions of the PTCL to the Pension Fund.
u/s 46 (b) PTET shall obtain payment from PTCL of the amount determined by Actuary as representing the unfunded proportion of the accrued pension liabilities.
u/s 46 (c) determine, at the commencement of each financial year, the amount to be contributed to the pension Fund by the PTCL
u/s 46 (d) PTET shall make provision for the payment of Pensions to telecommunication employees to the extent of their entitlement.

Telecommunication employees’ definition u/s 2(t) of the Pakistan Telecommunication Re-Organization Act.1996 means the employees of the Corporation were employees of the Corporation the former Telegraph and Telephone Department of the Federal Government and are receiving or are entitled to receive pensionary benefits from the Corporation.
Under Section 36 (1) of the Act
person transferred from Corporation (PTC) to Company (PTCL) declared ‘transferred employees’
Under Section 36 (2) of the Act
terms and condition of ‘transferred employees’ shall not be altered adversely by the Company (PTCL) except in accordance with the laws of Pakistan or with the consent of the ‘Transferred Employees’ and award of appropriate compensation.
Under Section 36 (3) of the Act
At any time within one year from the effective date of the order vesting property of the Corporation (PTC) in the Company (PTCL), the Federal Government may, with the prior written agreement of a “Transferred Employee”, required him to be transferred to or revert him back and be employed by the FAB, NTC, Trust (PTET) or the Federal Government on the same terms and conditions to which he was entitled immediately before such transfer.
Under Section 36 (4) of the Act
On transfer of a transferred employee, the Federal Government shall assume responsibility for his pensionary benefits without recourse to the Pension Fund.

Under Section 46 (b) and (c) of the Pakistan Telecommunication (Re-Organization) Act.1996, PTCL legally bound to own accrued pension liabilities and contribute amount at the commencement of each financial year to (PTET).
Under Section 46 (d) of the Pakistan Telecommunication (Re-Organization) Act.1996, PTET shall make provision for the payment of Pensions to telecommunication employees to the extent of their entitlement.
According to definition, employees transferred from PTC to PTA, NTC, FAB, and PTET considered as telecommunication employees and in PTCL defined as transferred employees who are receiving or are entitled to receive pensionary benefits in T&T, PTC.

Appendix-4

QUESTION ABOUT VIOLATION AND AMBIGUITY CREATED IN DISBURSMENT OF ENHANCED PENSION TO PTCL RETIRED EMPLOYEES BY THE BOARD OF TRUSTEES OF PTET

1. As to why PTET allowed increase Pension to retired Transferred Employee, considering them One category from 1st July,1996 to 30th June,2010 and under what law?


2. What was the intention to divide retired PTCL Pensioners under different categories in the year 2011 and under what law?

3. Does the law permit PTET for such division of Pensioners?

4. Whether Board of Trustees of PTET can over rule Federal Government’s authority or curtailed entitlement of Guaranteed Pensionary benefits? (Transferred employees receiving or are entitled to receive pensionary benefits in T&T, PTC).

5. Whether employees transferred in the year 1991 from T&T to PTC and in the year 1996 from PTC to PTCL were not considered as Government Servant? If so under what law?

6. Whether employees transferred from PTC to PTCL on 1st July,1996 were given new Contract of employment by the Management of PTCL if so what was the terms and Condition of their service?

7. Whether condition applied under Section 36 (3) of the Pakistan Telecommunication (Re-Organization) Act,1996 any equivalent cadre wise post offered to the Transferred employee on 1st July,1996 by concerned quarter? Is there any prior written agreement of transferred employee exist/available with PTCL or PTET, if so declare terms and condition?

8. What is the difference of employment in PTCL those who transferred from T&T to PTC defined under section 9 of PTC Act.1991 as ‘departmental employees’ thereafter in PTCL on 1st July,1996 defined under section 36 of Pakistan Telecommunication (Re-Organization) Act,1996 as ‘Transferred Employees’ and those who got appointment under New Compensation Pay Grade (NCPG), New Terms and condition (NTC)/Contractual employees have same legal status ?

9. Whether NTC/Contractual/NCPG employees are entitled to get Pension/Gratuity after retirement from PTET, if not which department is responsible for Compensation of service benefits and what is its nature?

10. What is the reason of litigation between PTCL and EOBI? Why claim for payment of Company’s and employees contribution amounting to Rs.1,496,829 thousand for the period from 1st January,1996 to 31st May,2005 has been claimed by EOBI and on what basis, as reported in PTCL Annual Report 2010 at page No.108 Notes 16.3 of the Consolidated Financial Statements? Who are the employees against whom claim is pending towards EOBI?

11. What is the present legal position of “transferred employees” who forcibly pushed in PTCL?

12. Whether approved funded pension plan operate through PTET exclusively meant for employees recruited prior to January,1996 and continue served forcibly as transferred employees in PTCL? Can it be divided/categorized further? If so under what law?

13. Whether unfunded pension scheme operates by PTCL for employees recruited on a regular basis on or after January,1996? Can transferred employee be included under this category and under what law?

14. Can PTCL alter protected terms & condition of service of transferred employees adversely? If so under what law?

15. Have PTCL contributed Pension share of retired PTCL employees as per their entitlement?. Have PTCL transferred the amount to PTET shown under PTCL Statement of Financial Position as at June,30,2010 described the same as Non-current Liabilities under Employees retirement benefits as Rs.15,512,803 thousands refer page No.38 and Note 9 at Page 52 of PTCL Annual Report 2010.

16. What future welfare plan PTET has devised for retired employees and what benefit extended towards children’s education of PTCL retired employees as was provided to them during service?

17. Why PTET has engaged employees of PTCL in his own Organization (their names and designation available on PTET Web site) and why PTET has not provided an employment opportunity to Retired PTCL employee?

Now refer to PTCL Annual Report 2010 page No.49 it is mentioned that PTCL operates various retirement/post retirement benefit schemes. The Plans are generally funded through payments determined by periodic actuarial calculations or up to the limits allowed in the Income Tax Ordinance,2001. The Company has constituted both defined contribution and defined benefits plans.
At page No.50 of PTCL Annual Report, 2010 Defined benefit plans described under Note No.5.21 (b) (i) (ii) as “The Company operates an approved funded pension plan through a separate Trust called PTET for its employees recruited prior to January,01,1996 when the Company took over the business from PTC. The Company also operates an unfunded Pension Scheme for employees recruited on a regular basis on or after January,01,1996.
(ii) Gratuity plan “The Company operates an unfunded and unapproved gratuity plan for its New Terms and conditions (NTC)/ contractual employees.
As per above explanation, it is crystal clear that award of 20% and 8% increase in pension bracketed in (a) and (b) category in respect of transferred employee as decided in 54th meeting of the Board of Trustees of Pakistan Telecommunication Employees Trust communicated by Director Pension PTET Lahore under his letter No.Pen/PTET/LHR/1110 dated 27-01-2011 is a clear cut violation of the law. Transferred Employees who retired prior to 1st July,1996 get increase to the extent of 20% and those who retired on or after 1st July,1996 get increase to the extent of 8% whereas both category appointed as Government Servant, served in T&T, PTC and PTCL under same terms and condition. The so called division by the Board of Trustee of PTET is a kind of discrimination and unlawful as Pensioner appointed in T&T and PTC and transferred to PTCL on 1st July,1996 completed their tenure of service and retired were entitled equally for Pensionary benefits under their terms and condition of service.
It is further submitted that on 1st July,1996 ‘Transferred Employees’ were forcefully pushed under same terms and condition of service as was in Government (T&T) and Corporation (PTC) under Pakistan Telecommunication (Re-Organization) Act.1996 and handed over to a Company which came into existence under the Companies Ordinance 1984. Nothing is on record that ‘Transferred Employees’ at the time of their transferred were offered equivalent Cadre wise post in other Organization to exercise option therefore they were compelled to serve in Government Basic Pay Scale in a Limited Company on the same terms and condition with the guarantee of Pensionary benefits of the Federal Government as Company did not offer any new employment contract to the Transferred employee till their retirement, while on the other hand Company on 1st January,1996 and thereafter started to recruit his own employee with heavy numeration under new terms condition/Contract which is on record and kept the Transferred Employee under the terms and condition of their appointment and under the statutory provision PTCL has to contribute funds to the extent of entitlement of retired Transferred Employee and have no authority under any law to curtailed pensionary benefits in any manner.
PTET who manage Pension Fund has only role to receive funds from PTCL and disbursed it to pensioner as per their entitlement.

CONCLUSION

Neither PTCL nor PTET have authority to divide pensioners into different categories and curtailed Pension of the transferred employee on the basis of their service in PTCL after 1st July,1996 as whenever any change occurred status of employees defined in the Act. On transferred from T&T to PTC their status defined as ‘departmental employee’ and thereafter status become |Transferred Employee” on transferred to PTCL on the same terms and condition protected under Pakistan Telecommunication (Re-Organization) Act.1996 which can not be altered to their disadvantage and in case of any change their written consent is required. Moreover there exist no direct employment contract between the transferred employee and Company (PTCL) as such Categorizations for the purpose of enhanced Pensionary benefits in respect of transferred employees is unlawful, however person who appointed directly by PTCL under their Employment Contract may determine his own terms and condition as has been done in case of employees working presently in PTCL on New Compensation Pay Grade (NCPG), New Terms and condition (NTC)/Contractual employees who has been appointed on or after 1st July,1996 can be categorized in whatever way Company like but not the Transferred Employees.

WITH REFERENCE TO DAILY NEWS ISLAMABAD (APP) MARCH,15,2011
1. Under what entitlement T&T/PTC Employees retired before January,1996 were considered as Government Servant and Employees retired after 1st January,1996 have been considered out of domain of retired servant of T&T/PTC whereas both were the appointees of Telegraph and Telephone Department.
2. Transferred Employees who retired after 1st January,1996 from PTCL are not within the domain of retried servant of T&T/PTC, why Pension and Pensionary benefits were paid to them from Government Funding.
3. Whether employees transferred from T&T/PTC and then PTCL on 1st January,1996 were given any new Employment Contract by the Management of PTCL if so what was the terms and Condition of their service? Why transferred employees remain under employment of Limited Company in Government Pay Scale till their retirement.
4. PTET allowed 20% and 8% increase in Pension without Medical Allowance and 75% Family Pension upto December,1995 instead of upto December,2000 arbitrarily in the year 2011 in contravention of the Federal Government order by creating discrimination established categories of retried Employees of PTCL,? Does the law permit PTET for such division of Pensioners?
5. Have PTCL contributed Pension share of retired PTCL employees as per their entitlement?. Have PTCL transferred the amount to PTET shown under PTCL Statement of Financial Position as at June,30,2010 described the same as Non-current Liabilities under Employees retirement benefits as Rs.15,512,803 thousands refer page No.38 and Note 9 at Page 52 of PTCL Annual Report 2010.
 
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