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Sunday, April 03, 2016

PENSION CREDIT


If the  1st of the Month on which the pension is supposed to be credited happens to be a Holiday,  pension is credited to our account only on the 2nd of the month. In case, 2nd or the subsequent days also happen to be Bank Holidays or Holidays  for LIC, then , the pension will be credited only on the first working day after the Holidays are over. This practice is being followed only  by LIC of India. In State Bank of India, it is paid  on the last working day of the month, or whenever the salaries are paid to the in-service employees. On enquiry, I find  that  a similar procedure as followed by SBI is being followed for CG pensioners also. In fact, during festivals like Onam etc., the pension is paid  well in advance to the CG pensioners.
 
  The rationale, perhaps, bothering LIC seems to be, being pensioners or annuitants, pension payment is contingent upon survival of the  Pensioner. In other words, the liability of payment of pension  ceases once the pensioner dies (not where the family pension is opted) and ,therefore, if full pension is paid without  ensuring that the pensioner  was alive till the last working day of the month, it may be contrary to prevailing rules regarding payment of annuities. However, if my memory serves me right  LIC has issued a circular  clarifying that  irrespective of at which point of time during a month the pensioner dies , pension is payable for the full month and not for the period till the date of death of the pensioner. This has to be verified and in case  this is the position, there is absolutely no justification for LIC to continue doing what it is doing now. All streams of pensioners should take up this issue with LIC with the urgency it deserves,as we have scores of pensioners, even now, looking forward to the all important 1st of the Month.
 
And as for Self-certification of ‘existence’, as far as my knowledge goes , even though there has been a proposal by the Central Govt. no Public Sector Institution seem to have put it into practice.
 
  M.V.VENUGOPALAN