21/9/2014
The Chairman,
LIC of India,
Cental Office
“Yogakshema”,
Mumbai
Dear Sir,
Re: Anomalies in Family Pension under
LIC Pension Rules, 1995.
Although representations have been made by LIC
Pensioners’ Associations for quite a past few years for revising the Family Pension which is
found highly inadequate, the glaring anomaly in family pension has
come in significant focus in the context of the calculations made by LIC for making a payment of dues to the petitioners to the Registrar Punjab & Haryana High Court,
Chandigarh under C.O.C.P. No.2975 of
2013 arising out of C.W.P. No 16346 of 2010,
On going through
the basis adopted by LIC for calculating
the difference in pension payable to the petitioners ,it was noticed that in respect of the 4 family pensioners, not only there were no arrears payable, but there
were also recoveries from
the family pensioners. Interestingly,
the recoveries were adjusted from the arrears payable to the deceased
petitioners and the total arrears were shown as a consolidated single amount
instead of giving a break-up for regular pension and family pension.
Consequently I attempted
calculation
of family pension for all cadres from Assistant to Executive Director by
assuming two dates of retirement as 31/7/1992
and 31/7/1997 and the date of death as 30/6/2013. The Basic pay was assumed as
at the maximum of the scale as applicable on the date of retirement.
The calculations are shown in the attached TABLE
A & TABLE B. It is clear from the illustration that if the method adopted
by LIC is followed for upgradation for pension as was done while depositing the amount in
Chandigarh HC Registry and also earlier in Jaipur HC Registry, not only the
regular pensioners, but also-more intensely-family pensioners will suffer
injustice. The calculations may kindly be got verified for accuracy by the
Central Office Personnel department.
Reportedly there were 12335 family pensioners in LIC as
at 31/3/2013.Not only these pensioners, but also the family pensioners of the
subsequent period will be the sufferers if the anomalies are not removed. It will be
appreciated that nowhere in the world, upgradation of pension results in
recovery of pension.
The family pensioners are a helpless lot with no one to
effectively take up their cause for obtaining justice. The very noble purpose
of notification of LIC Pension Rules
1995 will get defeated if family pensioners are left high and dry.
The main reasons
for such anomaly in family pension are as follows:
1. Basic faulty
formula adopted for fixation of family
pension;
2. Wrong
interpretation of LIC Board Resolution
while calculating revised pension for pre-August 1997 retirees without;
Ø Removing the
anomaly of differential DR slabs for pre
Aug 1997 retirees and in-service
employees upto 31/7/1997;
Ø Providing
weightage after merger of DR with Basic
Pension up to 1/8/1997 as was done for
in-service employees;
3. Not adopting
the similar upgradation
process on 1/8/2002 and 1/8/2007 also
for pensioners and family pensioners(with suitable weightage after DR merger)
which is also envisaged in the Jaipur
Single Judge Bench Order dt 12/1/2010 especially while allowing the WP no
654/2007 which has been refused to be stayed by the Supreme Court.
As the Corporation
is aware, the persisting delay in
equitable upgratdation of pension and family pension is taking its toll on the
hapless pensioners with obituaries being reported by the week.
I am sure as an
enlightened financial institution with a great image as success story as a
nationalized Life Insurance Corporation of over 58 years, the Corporation will not
allow such anomalies to linger frustrating a helpless group of pensioners and family pensioners who
are in the evening of their lives.
I hope you will
use your good offices to get the situation remedied at the earliest.
Thanking you,
Yours faithfully,
C H Mahadevan
