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: 23-01-2025
Cir No 4/2025
Smt. Neha Chauhan,
Joint Director (Insurance),
Department of Financial Services,
Jeevan Deep building,
Parliament Road, New Delhi.
Respected Madam,
Re : Pension Revision and allied matters in respect of pensioners of LIC of India
Madam, I was anxious to meet you personally and came thrice to your office. But to my ill luck, you were
out from office on various assignments. This is further to the meeting with you by our office bearers Shri.
Rajiv Sharma and Shri. Arvind Mittimani on the 21st instant. I here below give the details of pending issues,
which we have been following up with DFS since a decade.
The Pension Rules for LIC Employees were Notified on 28-06-1995 and were made effective from
01-11-1993 to those who have retired on or after 01-01-1986. These LICEPR, 1995 were based on the
then prevailing CCS Pension Rules, 1972 & CCS (Commutation of Pension Rules, 1983).
We would like to bring to your kind consideration the following few points expecting positive outcome at
the earliest.
I) PENSION REVISION WITH EVERY WAGE REVISION IN LIC :
Ever since the implementation of LIC Employees’ Pension, Rules 1995, the Basic Pension of the
Pensioner/Family pensioner has NOT UNDERGONE UPWARD REVISION even once in these 39 years.
Pension Revision is the need of the hour now, for the following reasons.
Justification i) The Pension Revision for Central Govt Pensioners came only with the
recommendations of V CPC submitted in 1997 and accepted by the Central Govt. So, with effect
from 01-01-1996 Revision in Pension was done for C G Pensioners by means of OM.
Justification ii) Since LICEPR, 1995 were based on CCS Pension Rules, 1972 and were notified prior
to the implementation of V CPC recommendations, provision for Pension Revision to LIC
Pensioners was not incorporated.
Justification iii) It is only in CCS Pension Rules, 2021 that provision for Pension Revision was
incorporated in the form of Rule 66.
Justification iv) LIC Pensioners are still in IV CPC mode, deprived of Revision for 39 years.
Justification v) The effect of this, is that a Pensioner retired prior to 31-07-1992 in Executive
Director cadre draws lesser pension than the present-day retiree Pensioner in Driver cadre. This is
the greatest anomaly on the earth and a great humiliation being suffered by the Super Senior
Pensioners.
Justification vi) In RBI, in 2019, their pensioners were given pension up dation as on 2012 wage
revision. And again in 2023, revision was made up to 2017 wage revision & both these pension
revisions were made applicable to family pensioners also.
Hence, there is an urgent need to revise the pension at the current wage revision level.
We are very much thankful to the present Govt, for enhancing the Family Pension to uniform 30% wef
11-09-2023. However, we appeal to you to Revise Family Pension also in the same proportion, when
Pension Revision is effected to Retiree Pensioners of LIC.
II) ONE MORE PENSION OPTION TO THE LEFT OUT EMPLOYEES:
We are very much grateful to Late Sri Arun Jaitley ji for giving OMOP (One More Pension Option) to LIC
employees in 2019. However, the following categories of Employees were left out in the option
notification. DFS notification did not allow them to exercise the option. All 3 categories put together; their
number is less than 200. Hence, they too may please be offered an option to join LIC Pension Scheme.
1. Directly Recruited Superintending and Executive Engineers:
Justification i) There are only about five directly recruited Superintending Engineers and Executive
Engineers (in single digit) who were recruited in 1996 or so.
Justification ii) Out of their sheer ignorance they opted for PF. They were denied the option to join
in 2019 notification.
Justification iii) They stand on the same footing as 28000 odd PF optees, who were given an
opportunity to join pension scheme. (because these 28000 employees also had opted PF in 1995
after the pension notification).
Justification iv) Total outlay is highly insignificant.
Justification v) LIC has already recommended this to DFS. Hence, please allow these engineers
(who are in single digit) to re-exercise option to join the Pension Scheme.
2. Ex-Servicemen joining LIC during 1996-97 :
Justification i) There are only about 80 such employees who belong to ex-servicemen category
who opted for PF.
Justification ii) There was a valid reason for them to opt for PF, as there was only ONE Family
Pension allowed for them that time. Either they were required to choose Military Family Pension
or LIC Family pension. Hence, they opted for PF in LIC.
Justification iii) However, this restriction was subsequently removed by Central Govt in 2013.
With this, the family of an Ex- serviceman will be eligible to get both Family Pensions.
Justification iv) Total outlay is highly insignificant.
Justification v) They too stand on the same footing as 28000 odd PF optees, who were given an
opportunity to join pension scheme. (because these 28000 employees also had opted PF in 1995
after the pension notification).
Justification vi) LIC has already recommended this to DFS.
Justification vii) Modiji, PM, has shown a lot of favour to ex-servicemen by offering OROP. These
people have guarded our borders during their defense services. A little favour to these
minuscule ex-servicemen of LIC would be a most welcome step.
Hence, they may please be allowed to opt for LIC Pension Scheme of 1995, now.
3. Resigned Employees: Justification i) There are less than 200 lady (majority) employees who opted for VRS for their
family commitments (not going to greener pasture) and who were PF Optees.
Justification ii) Though they have completed more than 20 years and up to 35 years of service,
their VRS was treated as resignation and not VRS, quoting Rule 19-§(2A) (a) of the LIC Staff Rules,
1960 and thus pension option was denied to them.
Justification iii) This is the most draconian Rule, which deprived them from getting Pension.
Because as per pension rules, one is permitted to opt for VRS if 20 years’ service is completed. For
your ready reference the Rule 19-§(2A) (a) is quoted below:
“Notwithstanding what is stated in sub-rules (1) and (2) above, an employee may be permitted to
retire at any time on completion of age 55 after giving three months’ notice in writing to the
appointing authority of his intention to retire.”
Justification iv) However, after introduction of LICEPR, 1995 one can opt for VRS after 20 years of
service without any age restriction.
So, this harsh & draconian Rule 19-§(2A) (a) should be deleted from LIC Staff Rules, 1960 and all
such Resignees be given One More Option to join LICEPR, 1995.
Justification v) There was a similar draconian provision in Bank Staff Rules also. Such resignees
were denied pension option in 2010. However, IBA allowed such employees who were treated as
Resignees to opt for Pension in the 12th BPS between IBA and UFBU in 2023 and as on date, it
stands implemented in all the Banks.
III) PENSION FIXATION ON LAST PAY DRAWN WHERE IT IS BENEFICIAL:
In LICEPR, 1995, on Retirement (whether superannuation/VRS) the Basic Pension gets fixed by taking into
account last 10 months’ average pay. This has led to a great anomaly in case of those who retire during
the wage revision period. For eg there was a wage revision in LIC effective from 1-8-2022. One who retires
in August 2022 to April 2023, comes under this anomaly. Suppose for the one who retires on 31-8-2022,
10 months’ counting back starts from August 2022 to November 2021. For August 2022, new revised basic
pay is taken. For other 9 months pre-revised old basic is counted with old DA for 9 months. Effectively, his
basic pension comes down, and over and above, reduced new DA rate is applied. Hence, after wage
revision, his gross pension will be reduced hugely.
Justification i) The 6th CPC recommended and GOI accepted to change the method of Pension
fixation at 50% of 10 months’ average OR 50% of last pay drawn, whichever is beneficial to the
retiring employee.
Justification ii) Even many State Governments too implemented this recommendation taking cue
from the 6th CPC.
Justification iii) Taking average of 10 months for fixation affects adversely – a) those who get their
Normal Grade Increment/Stagnation increment released within the last 10 months, b) those who
are placed on higher Scale (in lieu of Promotion) within the last 10 months etc.
Justification iv) LIC has recommended to DFS to grant both the options whichever is beneficial to
the retiring employee.
Hence, the Pension fixation be done on Last pay drawn OR last 10 months’ average, whichever is beneficial
to the employee.
ALL EARLIER CASES TO BE REOPENED AND PENSION BE REFIXED, EVEN THOUGH NO ARREARS ARE PAID.
IV) FULL PENSION (@50%) AFTER COMPLETION OF 20 YEARS OF SERVICE:
At present full Pension is payable on completion of 33 years of service. If service is less than 33 years, then
Pension is reduced proportionately.
This affects adversely the following categories of employees:
Justification i) Ex-Servicemen join LIC service at a higher age after retirement from Defense
service. So, they do not complete 33 years of service. Hence get proportionately lesser Pension.
Justification ii) Ex Emergency commissioned officers who join LIC, also cannot complete 33 years’
service. Neither they get pension from the Defense Dept nor their service in Defense services is
counted while fixing the pension in LIC. On both the counts they are losers.
Justification iii) The SC/ST/OBC persons join LIC service at a higher age, because of age
concession to them. They also do not complete 33 years of service. Hence get proportionately
lesser Pension.
Justification iv) Those who are directly recruited to higher cadres– like Chartered Accountants,
Engineers, Actuaries etc, do not complete 33 years of service. Hence suffer loss in monthly
pension.
Justification v) Development Officers recruited from Agent’s category also do not complete 33
years of service. Hence do not get full Pension.
Justification vi) The 6th CPC recommended and GOI accepted Full Pension ie 50% after completion
of 20 years of Service. Many State Govts followed the suit.
Justification vii) For Reserve Bank of India employees the period for getting Full Pension ie 50%
got reduced from 33 years to 20 years vide Circular dated 7th December 2012.
Hence, it is a dire necessity that LIC Pension Rules, 1995 be amended to give effect to Full Pension after
20 years of Service.
V) FAMILY PENSION at 50% TO FAMILY PENSIONERS UPTO AGE 67 YEARS:
Justification i) In 1995, the retirement age was 58 years. So, in case of the unfortunate death of
an Employee or Pensioner before age 65, the Family Pensioners were paid double the normal
family pension rate for 7 years OR till age 65 years whichever is earlier.
Justification ii) However, the retirement age got increased to 60 years on the recommendation of
5
th CPC and accepted by GOI and OM dated 30th May, 1998 was issued. The same was applicable
from 1st May, 1998. The GOI accepted recommendation of 5th CPC and vide OM ref: P&PW(E)
dated 02-02-1999, extended family Pension at 50% up to age 67 years.
Justification iii) LIC has recommended this to DFS for consideration.
In LIC the same would have been implemented in 1999 itself. But despite several attempts to get it done,
no positive result emerged.
At least now we hope, this would see the light of the day.
It is a different matter that at present in some cases Family Pension is paid at 50% for 10 years, where the
employee dies while in service.
VI) ADDITIONAL PENSION TO RETIREE PENSIONERS & FAMILY PENSIONERS AFTER ATTAINING AGE 80:
Justification i) The 6th CPC recommended and GOI accepted the recommendation of Additional
Pension to Retiree Pensioners and Family Pensioners at the rate of 20%, 30%, 40%, 50% and 100%
of Basic Pension on attaining the age of 80, 85, 90, 95 and 100 years respectively vide OM ref
38/37/08–P&PW(A) dated 02-09-2008.
Justification ii) Almost all State Govts also extended this benefit to their super senior pensioners.
Justification iii) LIC has already recommended this to DFS.
Even after lapse of 19 years, LIC Pensioners have been deprived of this benefit.
The reason given by 6th CPC for granting Additional Pension holds good in case of LIC Pensioners
as well.
Hence this benefit also be extended to LIC Pensioners.
VII) REDUCTION IN PERIOD FOR RECOVERY OF COMMUTATION AMOUNT:
The recovery period of Commutation Amount is 15 years, as per LICEPR, 1995. There is a need for
reduction in the term of recovery.
Justification i) This period was fixed when the interest rate was 12%. Now that the interest rates
have come down to 6 to 7%.
Justification ii) Mortality rate has come down and longevity of pensioner has increased. Thus, full
recovery of commuted portion is ensured.
Justification iii) Some of the State Governments like Gujarat etc have reduced the period from 15
years to13 years, on their own.
Justification iv) Many litigations are pending in various High Courts and stays/verdicts are coming
out in favour of the pensioners.
So, to avoid unnecessary and unproductive litigations, an Actuarial investigation may be caused by GOI
and suitable decision to reduce the Period of recovery of C V may please be taken at the earliest. For those
from whom full 180 months recovery has been made, the excess amount so recovered, may please
refunded to them.
VIII) GRANT OF INCREMENT DUE ON NEXT DAY OF RETIREMENT:
Justification i) The Supreme Court of India vide its Judgement in:
Director (ADMN) KPTCL vs C P Mundinamani, 2023 SCC Online SC 401,
it was held that Increment falling due on 1st JAN & 1st July should be released to the employee
although he has retired on 31st Dec OR 30th June and has completed 12 months of service.
This Judgement was implemented by GOI. Several WPs followed this. The GOI filed SLPs/ Review
Petitions etc. Finally, they issued an OM on 14-10-2024 accepting the SC Order and granting
Notional Increment and counting it for Pensionary Benefits.
Justification ii) The ratio laid down in the above Judgement of SC was made applicable in
Shailesh Tiwari vs SDM LIC of India and others (WP – 19950 – 2024). Mr. Tiwari retired on
30-06-2023 and judgement was passed to grant Increment due on 1st July and to refix the Pension
and pay arrears with 7% interest, by the High Court of Madhya Pradesh at Jabalpur.
Hence, it is imperative that the LIC of India also honours the above Judgements and releases Notional
Increments to all those whose Increment falls due on the next day after retirement. The Pension fixation to be reopened in all such cases and arrears to be paid.
IX) 100% DR neutralization to those who retired prior to 1-8-1997
Even now the truncated DR (Dearness Relief) is being paid to those pensioners retired prior to
1-8-1997 but not 100% neutralization.
Justification i) After plethora of cases in various Courts including SC, ultimately the case was
decided by the Delhi HC in 2017 and unfortunately the verdict gave a DR, which worked out to be
less than 100% neutralization, though the judge accepted the petitioner’s demand, but
erroneously fixed the rate of DR.
Justification ii) Similar issue was pending with the IBA and also in various Courts in respect of Bank
pensioners, who retired prior to 1-11-2002. At last, such Bank retirees got the full relief after the
IBA signed the minutes with the UFBU (United Forum of Bank Unions), wherein 100% DR
neutralization was granted to such retirees. This MOU was signed after bilateral discussions,
despite the fact that this issue was pending in various Courts. Hence, usual alibi that the matter
is sub judice, was given a go by. This MOU already stands implemented in Banks after the
approval of DFS.
Hence, we appeal to you to grant 100% DR neutralization to the pensioners who retired prior to 1-8-1997.
In view of the above justifications provided in respect of each issue, we implore upon you to provide the
desired succour and oblige.
With kind regards,
Yours Sincerely,
General Secretary
(Ashok J. Joshi)
