A LONG and difficult struggle by pensioners from the banking sector is nearing an end, and one can only hope that it ends well for them. The biggest banks of the country froze their pension schemes starting as early as 1991, in some cases switching to a provident fund instead in an effort to contain their long-term liabilities. The decision might make commercial sense, but it has left many retiring employees collecting pensions as low as Rs800, in some cases even for officers who retired at a senior level. For those who have rendered a lifetime of service, collecting pensions of this minuscule amount must feel like an insult, and the employees have rightly gathered together to take their case to court. After a battle lasting more than a decade, it appears some relief might finally be on the horizon.

Banks have enjoyed a highly profitable run while the legal battle has waged in court. Since the original freezing of the pensions as far back as 1991, all large banks have been privatised except for National Bank. Compensation for top executives, the court was told, can be as high as Rs10m (per month). Such exorbitant remuneration is enjoyed only by a handful of senior executives. Perhaps the State Bank or the SECP, as the case may be, ought to make it mandatory for the banks to reveal the pay gap that exists between the highestand lowest-paid employees. That would surely make for some stunning disclosures. Given the exorbitant profitability of the banks, and the kinds of dividends they have paid to their shareholders, it is truly surprising that they can be so harsh on pensioners. This is one of the big downsides of privatisation, where bank operations may have turned around, and branches become more lavish, but where the key functions that the banks are supposed to perform have suffered.

Amongst those functions is taking care of their retired workforce.