NATIONAL ORGANISATION OF INSURANCE PENSIONERS
Regn No.PN 4769 (Regd under Indian T U Act, 1926)
(Affiliated to Bharateeya Mazdoor Sangh)
BMS Office, Vishwakarma Bhavan, 185, Shaniwar Peth, Pune 411030.
President: T.C. Gunesh Kumar General Secretary: Ashok J. Joshi
Mob No: 9880683639 Mob No: 9561084182 & 9945104570
Date: 18-09-2024
Cir No 30/2024
The Chief Executive Officer & MD,
LIC of India, Central Office,
“Yogakshema”, MUMBAI.
Respected Sir,
Re: Request for reduction in the commutation period & grant of NGI (Normal Grade Increment)
due on the next day of retirement.
Regarding the captioned twin issues, we would like to place before you the following facts and
developments for your kind consideration and necessary action.
1) Reduction in the commutation period from 15 to 10 years.
We have already requested you through our earlier communication to reduce the commutation
period from 15 to 10 years. This is in deference to our charter of demands wherein we have
demanded the same and it was subject of discussion before the Deputy Central Labour
Commissioner, Bhubaneshwar during the conciliation proceedings held by NOIP with LIC.
Latest judgments by various courts in the country buttress our demand.
* Punjab & Haryana HC Interim order dtd 31-5-2024 in respect of CWP 14058 of 2024, wherein
interim injunction has been given to stop recovery of commuted portion, where the retirees
have completed 10 years after retirement.
* WP Nos 5617 & 7176 of 2024 filed in UP HC by 2 different sets of state govt pensioners- Interim
injunction given in both WPs ordering stoppage of commutation amount recovery, pending final
disposal.
* Central Administrative Tribunal (CAT), Jaipur ruled in similar cases of Railway retirees in OA No 413
of 2024 dtd 25-7-2024 and ordered stoppage of commutation amount to all the concerned retirees
who have completed 10.8 years after retirement and gave 8 weeks’ time for implementation.
As such, we request you to recommend to the DFS for reduction in commutation period from 15
to 10 years for LIC retirees and oblige.
2) Grant of Normal Grade Increment (NGI) to all those retirees where NGI is due on the next day
of retirement ✓ SC case- Civil Appeal No 2471 0f 2023, Director (Admn) & HR, KPTCL vs C P
Mundinamani. The SC has ruled that NGI is payable to the retiree if NGI is due on the
next day of retirement, while dealing this case.
✓ Indore HC, WP No 7740 of 2024, order dtd. 4-4-2024- The petitioner retired on
30-06-2012 and NGI was due on 1-7-2012. HC ordered NGI to be granted due on
1-7-2012 and arrears from the date of retirement, relying on SC case Civil Appeal No
2471 0f 2023, Director (Admn) & HR, KPTCL vs C P Mundinamani. M P & Rajasthan State
Govts have issued circular, instructing to grant NGI to all eligible state govt retirees.
✓ Jabalpur HC order dtd 30-08-2024 i/r of WP No 19950 of 2024 filed by Shailesh Tiwari,
retd ADM, LIC, against SDM Jabalpur and others. Shri.Tiwari retired on 30-06-2023 and
NGI was due on 1-7-2023. HC relied on SC case verdict in this matter too, and ordered
payment within a period of 6 weeks, by granting NGI as on 1-7-2023.
✓ As per relevant section of LIC of India (Staff) Rules, 2021, NGI becomes due after
completion of 365 days of service in the previous year. Accordingly, NGI becomes due
on the next day of retirement date for those who complete 365 days on the last day of
one’s service and whose NGI would be due on the next day of retirement.
✓ In view of all the developments and taking cue from the aforesaid judgment of the SC
on the subject, we appeal to you to consider granting of NGI to all such retirees whose
NGI is due on the next day of retirement. If it is deemed necessary to amend the
relevant section of granting of NGI in the Staff Rules, 2021, the same may please be
taken up with DFS.
We request you to recommend both the issues to DFS for their consideration and
approval and oblige.
With thanks and regards,
General Secretary
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