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Saturday, September 27, 2014

Provisions on "Minimum Pension" in LIC Pension Rules,1995‏

The following provisions in LIC Pension Rules amended upto 2000 are significant:

"36. The amount of minimum pension  shall be
(a)----
(b)----
(c) Rs 1100;- per month in respect of employees belonging  to Class I, Class II,Class III, & Class IV who have  retired or died  on or after the first day of August,1997;

(d)In case of any wage revision in future, the amount  of minimum pension payable  to an employee shall be determined  by the Corporation  corresponding to the index in which  the scale is linked.
(The Corporation has determined that the  amount of minimum pension shall be Rs 1480/- per month in respect of employees  belonging to Class I, Class II,Class III, & Class IV who have retired or died  on or after the first day of August,2002)."

Based on this,LIC might have also  revised the minimum pension in respect of employees belonging to Class I, Class II,Class III, & Class IV who have  retired or died  on or after the first day of August,2007after the wage revision notification of 2010, although I am not readily aware of the revised minimum pension amount.

But, reading between the lines, these provisions lay down a principle of revision of  minimum pension  after every  wage revision  corresponding to the index in which the scale is linked.
When this principle is  followed for minimum pension,there is no  reason why upgradation of regular pension and family pension should not be  effected  by LIC  what with, the Jaipur SJB judgment,LIC Board Resolution and the Punjab  & Haryana High  Court judgment refused to be stayed by the Supreme Court.

These provisions  can  come in handy when the cases are argued on 12/11/2014 in the Supreme Court.

With greetings,
C H Mahadevan