LIC Employees Latest News – Cost sharing by employees to exercise the final pension option
ALL INDIA INSURANCE EMPLOYEES’ ASSOCIATION
LIC BUILDING SECRETARIAT ROAD HYDERABAD 500 063
Cir.No.19 / 2019
17th May, 2019
All the Zonal/Divisional/State/Regional Units
Cost sharing by employees to exercise the final pension option
The employees are aware that AIIEA has been taking up with Central Office to provide some facility like allowing the withdrawal of employees’ share of PF on non-repayable basis to those employees who have to bear the cost @ 3.7 times of pay to join the 1995 pension scheme. The matter has been taken up by com. H.I. Bhatt, Joint Secretary, AIIEA who is a Member of PF Trust on behalf of our organisation. He wrote to Chairman, LIC on the above issue and the contents are re-produced hereunder.
AIlEA’s efforts will continue in this regard.
17th May, 2019.
LIC of India and Chief PF Trustee,
Final Pension Option – Cost sharing by employees exercising the option
I am happy that administrative instructions for implementation of Gazette Notification dated 23rd April, 2019 amending the LIC Employees’ Pension Scheme 1995 have been issued. The existing employees who exercise the option to join the scheme have to pay an amount equivalent to 3.7 times of Pay as on 1.3.2019 in addition to the transfer of entire Employer’s contribution and accumulated interest standing to the credit of their account.
The employees’ unions have been requesting to allow non-repayable withdrawal from their own contribution to help the employees to make the additional contribution, to join the Pension Scheme.
This will mitigate some hardship in raising the funds. The administrative instructions have met this request partially. The employees retiring within 180 days from the date of notification have been allowed the facility of transfer of additional contribution from their PF accumulation. This is because the existing rules allow non-repayable withdrawal within one year of the retirement and the facility extended requires no amendment to the PF rules.
I am a member of the PF Trust representing the employees. I feel there should not be any difficulty in extending similar benefit to all those exercising the pension option. I do agree that this requires the approval of the PF Trust through a resolution or amendment to the PF rules. I suggest that this request be considered positively. In this connection, I request you to convene a meeting of the PF Trust as early as possible so that a decision is taken in this regard.
I am hopeful of a positive response from you. I would like to inform that I am endorsing a copy of this letter to other members of the PF Trust.
MEMBER, PF TRUST.