NOIP Writes to PM Modiji for LIC Pensioners Issues
National Organisation of Insurance Pensioners
Honourable Prime Minister of India,
Govt of India,
Re: Plight of LIC’s Pensioners
At the outset, we heartily congratulate you on your successful completion of almost 5 years as the most vibrant and dynamic Prime Minister of India working round the clock for the upliftment of the masses at large. We are equally happy that an enthusiastic and ever caring person like you with erudite and clear thinking blended with rich experience is manning the country. You are also well versed with the issues confronting each and every section of the Indian society including the LIC Pensioners. We profusely thank you and Shri Arun Jaitleyji, FM for having offered final option of pension of 1995 scheme to the left over 42000 odd existing/retired employees of the insurance sector that was pending for more than 23 years. We, the Lie’s Pensioners, look to you with hope and aspiration in resolving the long pending legal wrangle of Lie’s pensioners to render justice. We implore upon your personal intervention in respect of the following aspects to undo the injustice perpetrated on us.
1) Up gradation of Pension to all pensioners & 100% DR neutralization to those retired prior to 8/1997 – It is heartening to note that you did implement the promised ‘One Rank One Pension’ to the Military Personnel. VII Pay Commission has also recommended up gradation of basic Pension to Central Government pensioners. Recently RBI pensioners too were accorded the similar benefit. Analogically, we strongly feel, it should be made applicable to LIC pensioners also in the form of up gradation of pension with every wage revision for existing LIC employees. It is a grave fact that Executive Directors retired 20 years back are getting a pension, much less than the pension payable to a Clerk retiring now. This is a great anomalous situation indeed! Unfortunately LIC/GOI have been engaged in protracted legal battle with the hapless pensioners and the case was referred back by the SC in its verdict dated 31-03-2016 to the Delhi HC with certain directions in respect of CA No’s 8959- 3962/2013, 6995/2013, 9223/2013 and 9409-9410/2013 and verdict dated 27″ April 2017 has since been pronounced by the Delhi HC. Now the case is again in the Supreme Court since aggrieved pensioners preferred the SLP. Poor pensioners are being made to run from pillar to post from one Court to the other yearning for speedy justice. Legal battle has been protracted for more than 20 years which is in contravention to the 9 years’ old National Litigation Policy. Said Policy is in a limbo. Government should not be a compulsive litigant in respect of the cases pertaining to retiral/pension benefits of pensioners/senior citizens. No appeals should be preferred by the Government if this Conscientious Policy is to be made a reality. But alas, no due regard was given to the National Litigation Policy by the very authority which formulated it. (By the previous UPA-2 Government and continued by the present dispensation). About 55,000 LIC”s Pensioners would remember you in the annals of basic pension on the lines of recommendations by the VII Pay Commission and also granting 100% Dearness Relief neutralization to those pensioners retired prior to 01-8-1997. Hence we earnestlv reauest the Government to withdraw all litigations and upgrade basic pension with every ware revision to ensure equity and fair play. It has been decided by the Supreme Court in a famous Nakara case that all pensioners should be put on a similar footing irrespective of their dates of retirement. LIC trade union history as the Prime Minister who intervened and paved for up gradation of basic pension on the lines of recommendations by the VII Pay Commission and also granting 100% Dearness Relief neutralization to those pensioners retired prior to 01-8-1997. Hence we earnestly request the Government to withdraw all litigations and upgrade basic pension with every ware revision to ensure equity and fair play. It has been decided by the Supreme Court in a famous Nakara case that all pensioners should be put on a similar footing irrespective of their dates of retirement.
2) Family Pension- As per recommendations of VI Pay Commission family pension was increased to 30% of last pay drawn and full pension given if one completes 20 years of service. For RBI pensioners, the Government issued gazette notification dated 12-Jan 2013, granting flat 30% of last pay drawn as family pension and full pension if 20 years’ service is completed. Presently LIC Family pensioners get only about 30% of the gross pension drawn by the pensioner which amount is not sufficient to take care of basic needs after the demise of pensioner. we request the same quantum be paid to LIC’s family pensioner analogous to the pensioners of Central Govt.
3) computation of Basic Pension- For computation of pension, average of last 10 months’ basic pay or 50% of last drawn basic whichever is beneficial to the retiree, is taken for Government pensioners. This ensures un- anomalous situation if one retires in the intervening period of new wage revision. We request the same rule to be applied to LIC pensioners as thousands of pensioners are affected in LIC due to the faulty method of computation of pension, being followed in LIC in such cases.
4) Increased pension to very old pensioners – Government pensioners/family pensioners of age 80 and above get increased pension running up to 100% more for those reaching 100 years of age. The same may please be granted to LICs Pensioners/ family pensioners too.
5) One more pension option (final option)- We thank you profusely and also Shri Arun Jaitleyji, FM for granting final option for pension but the letter dated 2-3-2019 by the DFS to the Heads of PS Insurance companies gives worry to the retiree PF optees for the following reasons and might take away the real intent/effect of granting final option.
a) You are aware that erstwhile Chairman of LIC, Shri.S.K.ROY had written to DFS requesting them to grant final option of pension, further saying that the insignificant liability would be borne by the LICC.
b) LIC of India being the cash rich company can’t be compared with the ailing PS Banks and hence analogy cannot be drawn while implementing the final option for pension.
c) In all fairness PF portion of the management has to be refunded with a moderate interest rate.
d) The pension/family pension has to be released from the date of respective retirements. Contrararily, DFS letter vide item number (iii) says that pension is payable prospectively from the date of fresh notification.
e) Since the commutation of l/3rd is counted from the date of option now, commuted portion would be returnable 15 yrs hence from now, which many old retirees can’t hope to get due to their advanced age. Due to advanced age even the commutation factor would be very small and hence commutable portion of pension would also be paltry.
f) Hence fair justice demands that pension be paid from the date of respective retirement..
g) There are about 4 known peculiar cases of Engineers recruited as Direct Recruits in the cadre of Superintending Engineers etc in 1996 in Chennai. Though they were eligible by default to be covered under Pension Rules 1995, option for pension/PF was insisted to them and by ignorance of the default provisions, they opted for PF. We have also come to know that there are many ex-servicemen who joined LIC in 1995 to 1997 (after 28.6.1995) for whom pension was available by default. But in many Divisions they were also asked to give their option and they too opted for PF though by default they too were eligible to get pension and no option should have been Insisted. Hence, we request you to allow such new recruit to opt for pension now, since the fault lies on respective LIC offices for insisting option though pension was compulsory for them.
h) There are certain cases where employees opted for VRS (PF optees) for domestic problems (not going for greener pastures).Though they had completed more than 20 yrs of service (in some cases more than 30 yrs of service) their retirement was treated as resignation not as VRS, for the reason that they had not completed 55 yrs of their age on the date of such retirement. It is a gross Injustice to them, as the outdated provision of LIC of India (Employee’s) Staff Regulations, 1960 was invoked in their case to deny VRS to them. We request you to allow such retirees also to opt for pension now.
We fervently hope that your erudite self would incorporate the above requests so as to render justice to the PF retirees /spouses of such deceased retirees, lest the granting of final option for retirees, who have retired ever since the date of notification of 1995 (all retired after 28-6-1995) would be meted with great Injustice.
We request your erudite self to take steps to amend the LIC of India (Employees’) Pension Rules, 1995 to the above effect and oblige.
6) implementation of the Order dtd.17-12-2012 in DBSA1492/2002 passed by the HC of Rajasthan at Jaipur – M.CJain’s case
You are aware that Lie’s SLP (Civil) No.16713/2014 and Petitions for SLP to Appeal-CC No.8094/2014 arising out of the impugned order captioned above, have been dismissed by the Honorable Supreme Court vide its order dated 02-07-2014. We request you to immediately arrange to initiate the implementation of the captioned order to similarly placed Cl I officers who retired after 01-08-1992 and up to 31-03-1993. LIC has refused to apply the said verdict to similarly placed officers (who are in hundreds). It is pertinent here to note that your erudite self in your epoch making speech on the day of golden jubilee celebrations of Delhi High Court called upon all the concerned Ministries to avoid unnecessary litigations and to implement SC’s verdicts to all similarly affected petitioners (relating to employees/ pensioners).
LIC pensioners have a perception that though your Govt is sincere in solving the genuine problems, the bureaLICratic process seems to be coming in the way by not allowing the Ministers to have a free hand. Unlike in the case of GOI pensioners (where the pension ,s paid simply debiting the Consolidated Fund of India), LIC has a formidable pension fund duly contributed by the LIC pensioners during their active service. Hence LIC pensioners stand on a different and solid footing as far as the financial viability is concerned.
As such we implore upon you to have your personal intervention in the matter and give solace to the pensioners of LIC by suitably amending LIC employees’ Pension Rules, 1995.
Gratuity Act [amendment). 2018- Effective Date
Thousands of LIC pensioners were deprived of the benefit of increased gratuity of Rs.20 lakhs since the effective date was decided as 29-03-2018.
In the meanwhile we have come across OM No.W-02/0036/2018-DPE (WC)-GL-XIX/18 dtd 10 July 2018, issued by the Ministry of Heavy Industries and Public Enterprises, Dept of Public Enterprises giving clarifications regarding effective date of Amendment to Gratuity Act. The
gist of the said OM is as follows-
1) Subject to “Affordability” of the CPSEs enhanced gratuity is payable wef 01-01-2017 till 28-03-2018 to Executives and Non-unionlsed Supervisors of CPSEs where pay has been revised wef 01-01-2017.
2) Whereas on and after 29-03-2018. new gratuity limit is applicable to all employees of all the CPSEs irrespective of affordability, as it is a statutory provision
3) Above instruction are not applicable to Insurance and Banking Sectors
To decide the effective date, the GO! is empowered by the Amendment to Gratuity Act. 2018.
Hence the effective date could have been decided as 01-01-201O for LIC retirees, unfortunately the effective date 29-03-2018 Is made applicable to LIC retirees too. though LIC is one of the leading, cash rlch CPSUs. For CPSEs effective date is given as01-01-2017 subject to ‘Affordability’ of each CPSE. Why the step motherly treatment is meted out to LIC retirees.
As far as affordability is concerned LIC stands on top of all CPSUs in the country. The very fact that LIC has decided to save the beleaguered IDBI Bank which is on the verge of collapse under the weight of its own NPAs, showsthefmancialcapabilrtyofLIC.lt is paradoxical to note that LIC has given an affidavit In the Supreme Court In the litigation related to pensioners (who have demanded upgradatlon of basic pension with every wage revision In LIC), saying that It cannot afford to bear the additional outlay lf the demand is agreed to: but on the other hand it has made arrangements to Infuse a huge sum of Rs 15000 crores to bail out IDBI Bank. This double standard by the LIC when it comes to pay something to its own employees/pensioners is abhorable. This being the factual position, LICcan easily afford to pay enhanced gratuity of Rs 20 lakhs to its retirees retired on or after 01-01-2016 and upto 28-03-2018.
Hence once again we appeal to you earnestly to issue one more OM allowing LIC to pay enhanced gratuity to its retirees wef 01-01-2016. This OM maybe made applicable only to LIC
as LIC the problem of general applicability of this date can be obviated.
Once again we Implore upon you to bring out one more specific OM for LIC of India giving effetely date of enhancement of gratuity as 01-01-2016 and oblige.
Anticipating favorable response for all the above issues, Sir.
With kind regards,