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Tuesday, March 01, 2016

PENSIONARY STATUS OF LIC CHAIRMAN AND MANAGING DIRECTORS


As per the information secured by Mr C S Murty from the Department of Financial Services (MoF) and LIC of India by invoking RTI Act 2005, the following facts emerge:

Chairman and Managing Director of LIC of India are appointed by the Central Government by exercising the powers conferred by Sec 4 and Sec 20 of LIC of India Act 1956 respectively. Chairman is appointed in the pay scale of Secretary and Managing Director in the pay scale of Additional Secretary.
Their salaries/emoluments/allowances are borne by LIC and are not reimbursed by the Ministry.
All Terminal dues (retirement benefits and pension) of Chairman and Managing Director are settled by LIC.
"The Pensionary benefits to Chairman & Managing Director of the Corporation are governed by Rule 55B of LIC of India(Employees)Pension Rules 1995 as amended on 13/8/2001 and  the same  reads as under:

RULE 55B

Pensionary benefits to employees mentioned in proviso to sub-rule (j) of Rule 2 and employees appointed as Managing Director under Section 20 of the Act (LIC Act 1956) and who were in service on or after 1st January 1996;

Notwithstanding anything  contained  in these rules, in respect  of an employee appointed as Managing Director under Section 20 of the LIC  of India Act 1956, and in respect of an employee covered by  proviso to sub-rule(j) of Rule 2,who were in service on and after 1st January 1996, the pensionary benefits shall be calculated  in accordance with  the provisions contained  in the Central Civil Services(Pension)Rules 1972 and the Central Civil Services( Commutation  of Pension)Rules, 1981, as applicable  to Central Government   servants and in accordance  with the instructions issued  by the Central Government  thereunder from time to time;

Provided that where such  an employee who has retired  on or after 1.1.1996 and before the  date of publication of  these rules in the Official Gazette  or the family of such employee in the event of death of such employee, gives a notice in writing within 90 days  of the publication of  these rules, expressing an option not to be governed by  the provisions  of this rule, then , the provisions of the above paragraph shall not apply  in respect of such employee or the family of such employee as the case may be. Option once exercised  under this proviso  shall be final".

As per the  Central Government  Notification  dated 3/7/1996, the Chairman of LIC  is  deemed to be  an employee  of the Corporation for the purpose of L I C of India (Employees)Pension Rules,1995 [ vide Rule 2(j) ]

 (Received from TR Madhava Rao)