FCC Rules Ombudsman Lacks Authority in EOBI Pension Dispute

ISLAMABAD: The Federal Constitutional Court (FCC) has determined that the Federal Ombudsman cannot exercise jurisdiction to override the entitlement conditions set forth in the Employees’ Old-Age Benefits Act, 1976, regarding old-age benefits that are not legally permissible.

In a judgement authored by Chief Justice Aminuddin Khan, the court emphasized that the Ombudsman’s jurisdiction cannot be invoked unless there is a clear act or omission that constitutes maladministration. The ruling came in response to an appeal from the Employees’ Old-Age Benefits Institution (EOBI), which contested a March 11, 2026, decision by the Islamabad High Court that mandated the payment of an old-age pension.

This ruling clarifies the limitations of the Ombudsman’s powers, ensuring that benefits cannot be granted without adherence to the statutory conditions. It underscores the importance of legal frameworks in protecting the integrity of pension systems and reinforces the necessity for compliance with established laws.

Moving forward, this decision may prompt a review of existing pension policies and the role of the Ombudsman in similar cases. Stakeholders in the pension sector will be closely monitoring any subsequent legal interpretations or legislative changes that may arise from this ruling.