15 Jul 16, 10:26 AM
T Sampath Iyengar: Increase in pensions. What about state of our pension fund? Someone please enlighten.
15 Jul 16, 02:11 PM
JM Aboobucker: The Judge has raised a question that how a funded pension scheme can sustain the impact of upward revision of pension to all lic pensioners every 5 years as is done for in-service employees.
This is a serious question which our case managers should be well prepared to answer with facts and figures in the next hearing.
C H Mahadevan: If upward revision of pension is constitutionally required to be given, the Pension Fund will have to be made to sustain it by additional contributions by LIC after actuarial valuation of the pension fund every year. Under Chapter III of LIC Pension Rules 1995, the Pension Fund has to be maintained adequately by LIC to meet its obligations under the Rules including upgraded pension when legally required to be paid. It is not discretionery, but mandatory to ensure that the Pension Fund is able to sustain itself with the impact of adverse macro-economic and life expectancy factors so that LIC is able to fulfill its legal obligations under the Pension Rules.
15 Jul 16, 03:00 PM
parasuram: It is better to have a correct knowledge of the pension fund position. Bank Retirees have assimilated the pension fund position through RTI.
15 Jul 16, 07:18 PM
C H Mahadevan: As at 31/3/2015, there is an amount of Rs 32503.52 cr in the LIC employees'Pension Fund. For 2014-15, LIC has paid Rs 839.42 cr including commuted pension paid. The interest income alone is Rs 2425.16Cr. So the position of the LIC Pension Fund is very sound. No worry.
15 Jul 16, 08:56 PM
JM Aboobucker: What would be the annual outgo from the Pension Fund for meeting the current pension payments?
15 Jul 16, 10:16 PM
C H Mahadevan: Even if our pension is upgraded with an increase by 100% on an average, the pension outgo will still be less than 1% of the operating surplus.