Existence Certificate

Wish GNS had retired as ED !

While joining this issue, I am of the view that heavens won't fall if the said attestation power for Existence Certificate to be submitted by LIC Pensioners every year is given to all Retired LIC Employees also so that all retired colleagues can extend help to their fellow brothers and sisters.

    

May I request our stalwarts like S/Sh.R.B. Kishore, C.H. Mahadevan and all other senior Retired EDs to take up  this issue with our current Top Management on priority basis.

B.R.Mehta

Panchkula

On the BANK FRONT

IMPROVEMENT IN PENSION – COURT CASES AND OTHER RELATED MATTERS.

The members are aware that the Pensioners Federation in State Bank of India has been struggling for improvement in the pension scheme in State Bank of India. The 7th bipartite Retirees of State Bank are paid pension the basis of their pre-revised salary as per the bipartite salary scales. In the case of 8th bipartite Retirees only Award Staff and O Ms are getting pension at the rate of 50% of their last drawn salary. All remaining ranks senior officers get their pension at the rate of 40% of their last drawn salary. In all other banks pension is calculated on the basis of 50% of the last drawn salary. The State Bank pensioners continue to suffer at the hands of Bank and Government of India, Ministry of Finance. There is no logic in paying 40% pension. This system

does not exist anywhere in the country.

All efforts to persuade the bank to rationalize the pension of State Bank employees could not yield any success. The Federation of the pensioners finally took a decision to file a special writ petition in the Supreme Court of India. After 2 years the Supreme Court transferred the petition to Delhi High Court. The Delhi High court unfortunately has clubbed our case with some other cases of Jharkhand High Court and the case now is slated to be heard on 25th of September 2014. The long delay in getting justice has sent a wave of frustration in the SBI pensioners across the country. The Federation has requested the United Forum of Bank Unions (UFI) to pay atterntion to the vows of the Bank pensioners and help in removing the injustice.

The Representatives of United Forum of Bank Unions recently met with the Finance Minister for directions to the Indian Banks Association to finalize the wage settlement. The matter, it is reported, is under consideration in the Finance Ministry. The Bank Unions are promising that they will strive for improvement in the pension scheme in the Banking Industry. Our past experience has been disappointing. Let us hope that wiser counsel will prevail this time and the unions will actually work for the improvement in the pension scheme.

In every meeting the members have been expressing their anger on the present state of affairs. They probably feel that the Federation/Asociations are not doing enough for the benefit of pensioners. We request the members to be patient and do not get carried away by rumours. Your representatives are aware of your frustration and are striving to work for the benefit of pensioners.

(Excerpts of Circular of SBI Pensioner Federation.-Ed.)

Courtesy: RB Kishore.

EXISTENCE CERTIFICATE

Dear Editor,

One of the today's issues is the submission of Existence Certificate.

This certificate needs to be certified by any of the following.

1.Gazetted Officer.  

2 Class-I officer of LIC  

3.HGA 

4.Development Officer with 5 years service as DO. 

5.Bank Manager 

6. Registered Doctors.

During the early years as pensioner, there is not much difficulty in obtaining the certificate as there are many younger colleagues in LIC offices who know the pensioners.

The difficulty starts after a few years when the serving younger colleagues, knowing the pensioners disappear because of their retirements or transfer elsewhere. This difficulty starts gaining momentum for the pensioners in the late seventies when many of them are unable to make any movement. Bank Managers remain busy during their working hours resulting in keeping the pensioners, approaching them for existence certificates, wait for hours.  More over, some of the Banks charge some amounts for such certificates.  Medical practitioners charge amounts equal to their consultation fees.

Gazetted officers are reluctant to issue existence certificate unless the pensioners are known to them personally. This problem is more relevant in metros like Chennai, Mumbai, kolkata, Delhi, Hyderabad, Bangaore.

In view of this burning problem for the pensioners, the Associations / Federations should approach the CO for liberalising the requirement of Existence certificate by Specified officials (as mentioned above). The Central Government is considering dispensing with the attestation by gazetted officers and introducing the self attestation. Now the bank accounts can be opened with self attested copies of documents. Mobile Sims are activated on the basis of self attested documents.

Subir kumar Mazumder

MEDICLAIM TPA ID CARDS

'National Litigation Policy' - an update‏

In a bid to shed the tag of being the biggest litigant, the Narendra Modi government will soon put in place a 'National Litigation Policy' as part of its efforts to streamline governance and reduce burden on courts. The policy will help various Union ministries and departments define types of cases to be pursued in courts and those which need to be dropped after review. One of the aims of the policy is to ensure that good cases are won and bad cases are not needlessly pursued. The policy was launched by then Law Minister M Veerappa Moily in June 2010, but it could not be formalised and implemented due to a variety of reasons. The present government wants the Law Ministry to formalise the policy and implement it at the earliest. The final draft of the policy is likely to be sent to various Union ministries and departments as part of inter- ministerial consultations by the Department of Legal Affairs soon. After receiving comments, Law Minister Ravi Shankar Prasad will take it to the Union Cabinet for final approval.

See more at: http://www.igovernment.in/igov/news/41639/govt-shed-biggest-litigant-tag?utm_source=newslettercore&utm_medium=email&utm_campaign=20140825#sthash.qDaiVo7v.dpuf

(Recd thru S C Kapur)

Khushwant Singh

RAJA RAM Mehrotra is Professor of English at Benares Hindu University. He specialises in the use and misuse of English by Indians. In the latest issue ofEnglish Today, he has focused on obituary columns appearing in Indian newspapers. The words used are usually literal translations of the Hindi words. Thus Swargvaas becomes heavenly abode unknown to the Brits who do not treat death with the solemnity we do. They are coarse enough to make fun of it. To wit expressions like give up the ghost, peg out, bite the dust, pop off, kick the bucket, cash in one’s chips etc.

The word abode is archaic and no longer in use elsewhere in the English-speaking world. With us it has several variations: eternal abode, entered the portals of the Lord’s abode, rested on the Lord’s lotus feet. At times instead of abode, our obituaries have eternal home.

Some Victorianisms persist in obituaries sent in by Indian Christians. Amongst the most popular is "Safe in the arms of Jesus". Often blame is cast on God for taking away one’s relation:

He was plucked from God as he was the best flower on earth.
The Hindic family of religions subscribe to the belief that with death a person merges his or her

identity with God: Jyoti Jote miley ( as light mingles with light eternal). The other examples are:
He left us all to abide for ever with the Almighty.
He attained the lotus feet of the Almighty/Lord Mahavira.
We handed God’s gift back to him.
He passed on to the eternal glory.
She attained eternity.
He became more dear to God than to us all.
My precious gift flew away from my own lap to the Heavenly Father.
God withdrew him to light up a world elsewhere.
The greatest of the great called him.
He became one with Parmatman.

Life on earth is regarded as temporary halt in a continuous journey:

He left his earthly sojourn.

She travelled on a voyage of no return.

He made his journey to heaven.

She took departure from this world.

He left for his ultimate journey.

He left us for that journey to the unknown.

She departed from the ethereal to the celestial.

He left for an unknown destination never to return.

He completed his earthly journey.

He crossed over...
He slipped into the other world.
He glided away in a silvery flash.
His river of life reached its final destination on this day.
He entered the realm of immortal bliss.
His soul migrated from the ephemeral world.
He left this mortal world with Hari Om Namo on his lips.
Everyone who falls in battle becomes a martyr with slight variations like:
He attained martyrdom.
He laid down his life.
He embraced death for the honour of his country.
He went away to God while in uniform.

Professor Mehrotra maintains: "One of the basic tenets of Indian thought is to consider the whole world as a family (vasudhaiva kutumbakam) and hence a mourner prays not for the peace of his relative alone but of the others also who are no longer alive: On this day we also bow our heads to other departed souls and pray to God to keep them in a peace."

(The Tribune)

Obituary

ATM free transactions being reduced from Nov 1st

The RBI's decision to cut the number of free transactions on other banks' ATMs will have widespread ramifications. Starting 1 November, if you conduct more than three transactions on other banks' ATMs in a month, you will be charged Rs 20 per transaction. The apex bank has also allowed banks to charge customers if they use their own bank ATMs more than five times a month. This applies to transactions in six metros: Mumbai, Delhi, Chennai, Kolkata, Bangalore and Hyderabad.

Courtesy: RK Sahni
Read more at:
http://economictimes.indiatimes.com/articleshow/40770193.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst 

LIC's investments

We plan to invest about  50,000 crore in the equity market, while 2.5 lakh crore in Bonds --S.K.Roy, Chairman LIC.
(Courtesy: RK Viswanathan)

I am contributor to Mediclaim Scheme since inception, though there was no occasion for me to claim anything from the scheme. I feel happy that I did not have to file a claim so far, though I retired 11 years ago. I wish to continue to be so. While in service or after retirement I was helping colleagues in filling claim forms and helping them to get relief from the scheme. 

While we feel that the cover is enhanced substantially under floater policy for current year, the important aspect many would miss is the totally inadequate provision for TPA services under the policy. Anyone can see the copy of policy document available in the Chronicle Blog. I doubt whether majority saw it. The schedule of the policy reveals that TPA services are available only for treatment/surgeries on hospitalisation in SPECIFIED DISEASES. These specified contingencies are ...Cancer, Cardiac surgeries, Neuro surgery, Renal failure as also ACCIDENT/TRAUMA and includes Organ transplant. I do not know how

The accident victim pushed to death...

many pensioners prefer to have their organs removed and transplanted. Such cases will be very very few, presuming miracles can be done at advanced ages and follow what in Statistics is known as POISSON DISTRIBUTION. ( I think I still remember the subject of statistics and probability distributions.) 

So it is obvious TPA services are not available in all cases of sickness/treatment at hospitals. The services are available only for a few and perhaps rare cases. So what does it mean? Do the figures of enhanced cover under the scheme have any real meaning?  I FEEL IT IS LIKE GOLD IN PYRAMIDS. OR THE AVAILABILITY OF RARE GEMS ON OCEAN BED. In fact it amounts to denial of TPA availability. The Insurance Company has the satisfaction of getting substantial good business year after year from LIC under group scheme. LIC is satisfied that it is making available a good scheme to its employees/pensioners. The TPA also is happy that he has business from a big employer like LIC. The Persons covered under the scheme have no reason to be happy. 

Most of us do not claim small amounts spent by us for routine occasional bouts of sickness like viral fevers and a sprained leg. We prefer to bear the cost for ourselves as that would not require us to wait for the mercy of the Insurance Company and go round our offices to collect cheques. At this advanced age most of us have cover at best for us and spouses. That is all. No dependants on us who need our attention. In fact we are at an age when we need the attention of sons, daughters-in-law and other children. We feel lucky if they shower their love and attention on us.

Ultimately the point is TPA services are available ( please observe) for cases requiring deposit of huge amounts of money for surgeries or treatment. In all other contingencies you have to fend for yourself. DO WE HAVE ANY FACILITY FOR ADVANCE PAYMENT BY LIC IN CASE OF HIGH COST TREATMENT ( WHICH LIC CAN LATER RECOVER FROM MEDICLAIM PROCEEDS.?  THIS FACILITY IS AVAILABLE TO THOSE IN SERVICE. Do the pensioners belong to another species? Does LIC feel all the claims from pensioners under mediclaim scheme are likely to be rejected by the insurer? We are not worthy even for an advance for high cost treatment. Time to sit up and think. Everyone kindly think. In addition if the hospitals refuse to serve us simply because the employer LIC or TPA did not issue us identity cards what is our fate? 

My dear top executives of LIC, New India Insurance and TPA ....kindly place yourselves in the place of the unfortunate pensioners and think. You will certainly realise the gross injustice that is being perpetrated. Do you high and mighty think that you would never retire? 

I can go on and on. But I come to my refrain as the only purpose I have is to highlight the serious difficulties faced by pensioners in unforeseen, sudden sicknesses or accidents.

Regards, B. Ganga Raju, Hyderabad 

Meeting with the Finance Secretary

The Chairman must have said something during his talks about issue of DA/DR anomalies, which we said for the present the DA/DR issue has become stale since it came to an end on 31/7/1997 in case the pensions are revised on that date and for the present we have come about the revisions of pensions. However, we said that LIC Board had taken a decision to remove the DA/DR anomaly way back in November, 2001 wherein the Central Government was fully represented since two Jt. Secretaries from the Finance (Insurance) Department were the members besides the Chairman and two Managing Directors, who are themselves representatives of the CG being on their roles and out of two private members one had raised this issued. The Resolution was unanimously approved still it was left for the approval of the CG, which has not come within these 13 years though it was not necessary as the Counsel for the CG had stated before the HC and was never controverted by the CG, still LIC is continuing Proxy litigation just to harass the poor pensioners. Mr. Sandhu expressed his dissatisfaction on this.

Shri Sandhu then called Mr. Srivastava, Director Insurance (LIC) who showed his ignorance about the two issues and the litigations. Then Mr. Sandhu asked the Director to collect all the details from LIC about the reasons for not implementing the judgments and unwanted litigations without
the notice of the Director.

We cannot definitely say what the Chairman told Mr. Sandhu but felt the Chairman told him that the issue of DA/DR anomaly was referred to the Govt. and the issue of revision was a wider one involving Banks and GIC Pensioners also. We immediately replies it is strange the LIC Chairman is interested in the pensioners of Banks instead of his own Corporaton and detailed the different procedure and states of the Banks and LIC, there is no parity whatsoever. Further what we are demanding is the implementation of the Notifications and not even a single paisa over that, Notifications do not say that these revised pay scales will not be applied to retired employees while as per the Pension Rules and various judgments we are and will remain the employees, and the Notifications are issued under the provisions of the LIC Act, then where is the question of prolonged litigation.

It seemed the Chairman wanted to know as to who were the people who called on him(Mr. Sandhu) and Mr. Sandhu replied and just repeated that many people have come from the Federation.

Thereafter Mr. Sandhu asked Mr. Shrivastava to look into the matter of DA/DR anomalies and clear the same. He reverted to us to say that he was fully convinced of our problem of no revision /upgradation of pensions for all these years and that HC Order was also in our favour, but the same was a wider issue involving Banks and GIC Pensioners also. But , he said ‘let us see and we will try to find out a way’. The meeting was then over with thanks to Mr. Sandhu and a photograph.

We then met Mr. Ravi Shankar ,Secretary Deptt Of Pensions GOI. He went through our memorandum. Two jt. Secretaries of his deptt. were also present. They asked for many clarifications which were duly given to them.

The Secretary informed us that his Deptt. was responsible for solving problems of the Central Govt Pensioners and that this problem of LIC Pensioners had come to him for the first time. He may not take any decision on our problem of revision/upgradation of pension in LIC because being beyond his jurisdiction but assured us that he was fully convinced of our case and that it was not a happy position that the pensions in LIC have not been revised/upgraded all these years and more so when the Cours judgments are also in our favour. He assured us time and again that he would write to the Secretary Deptt Of Financial Services recommending to consider the issue with a positive frame of mind and sympathetically and give a copy of his letter to us also and would help us in the manner to follow up the issue on our behalf.

The meeting was then over with thanks to the Secretary and the two Jt. Secretaries and a few photographs.

Thus we feel it is a good development and we must pray to the Almighty for early success.

KML ASTHANA
42A, MOTI NAGAR, GURJAR KI THADIM,
GOPALPURA BYEPASS,
JAIPUR-302019

Deficiency in medical scheme administration, procedural entanglement and sad demise of a pensioner...

Dear Editor,

I happened to read Sri Gangaraju's post in LIC PC regarding the deficiency in our medical scheme which due to delay in procedural entanglement ended with the sad demise of a senior pensioner from Hyderabad. The reading of the post was heartrending and I was wondering whether our group medical scheme has been properly administered. The medical scheme per se may be good but the utility can be judged only by the outcome of execution.

The central theme of Sri Gangaraju's post, if I have understood correctly, is about the issues involved in examining the roles played by the parties to the scheme. As I see there are four parties having some involvement in the proper execution of the scheme. They are, LIC, New India Assurance Co., TPA appointed by New India Assurance Co., and the Member(in our context the pensioner who has joined the mediclaim policy).

What are the roles played by each of the above parties? LIC and New India Assurance have negotiated and agreed to extend certain hospitalization facilities through a group mediclaim plan. LIC is a channelising agent for remitting the premium after collecting the same from the participating members apart from routing the claim documents to the insurer/TPA. New India Assurance Co. is to appoint a TPA, which I believe has been done by the Insurer. The last party is, member (in our case those pensioners who have opted to join the scheme). The scheme provides for limited cashless facility for getting medical treatment without requiring the member to pay upfront the hospital deposit for getting admitted to the designated hospital for treatment.The TPA is supposed to issue an identity card to the member to avail of this facility. What is expected of the member is at least to know the group policy no. and some identification details (in the absence of ID card issued by the TPA).

From the reading of Sri Gangaraju's post it appears that a senior pensioner had an emergency requiring hospitalisation. Unfortunately the hospital could not admit him in the absence of the required documents for extending cashless facility. Though some efforts were made to get the required documents from the relevant authorities, there was delay in obtaining the same.

Unfortunately in the meantime the pensioner passed away. The hospital insisted on the family members of the deceased pensioner to settle the bill for completing the formalities.

This raises a few fundamental issues. What are the roles (responsibility/accountability) of the  parties to our medical insurance scheme?

Mediclaim cashless service.

• LIC -- As a master policy holder is it not necessary for LIC to inform each participating member about the broad features of the scheme including the policy details, member identification details etc. by way of certificate of membership? In the absence of the above, is LIC not indirectly responsible for ensuring that all the participating members are issued with an ID card, at least for availing cashless treatment facility?
• New India Insurance Co. (insurer) -- As an insurer it has to do all those acts for proper administration of the policy. I feel that as part of this responsibility it has also to ensure that all the members of the mediclaim policy are issued with ID card by the TPA. It appears that there is no machinery in place to furnish details of the membership to the enquiring parties through a 24/7 customer care centre (In today's environment many organisations are making use of latest available technology to meet contingencies such as emergency hospitalisation). 
• TPA - Though sufficient time has elapsed since the introduction of the group medical scheme, I wonder whether members are issued with ID cards for availing cashless hospitalisation facility. TPAs can also set up suitable machinery to respond to emergency calls from the participating members.
• Participating pensioners -- At least what they can do is to obtain a certificate of participation from the office from where they are drawing pension so that they will have some document to show to the hospital authorities for extending cashless hospitalisation facility.

What I have jotted above are some of my stray thoughts after reading the sad episode of the family of the deceased senior pensioner having to run from pillar to post for mobilizing funds apart from undergoing the trauma caused by the loss of the family member.

If you feel it is a print-worthy matter for posting in LIC PC, you may do so exercising editorial prerogative.

Regards

T K S Narayanan

Pension updation issue

It is really very nice to know from yesterday's mail reg AIRIEF Delegation under leadership of 
Sh.K M L Asthana  meeting Secretary Finance taking up issue of Pension Updation for all LIC 
Pensioners. 
As per my view,  it is a very big issue involving all Pensioners in RBI, Banking and Insurance 
Industry.  So Pensioners from all these sectors unitedly can create more pressure upon GOI 
for an early favorable solution or alternatively  a clear direction from Supreme court can help 
all of us.
Let us be clear that we have to fight a very long and tough battle but finally we all are going to win.
Ham Honge Kaamyaab Ek Din Pura Hai Vishwas.

BRMehta
Panchkula

Mediclaim cashless hospitalisation scheme

THIS IS THE TYRANNY OF THE LIC GROUP MEDICLAIM SCHEME WHEN THERE IS 
NO WORTHWHILE CASHLESS HOSPITALISATION SCHEME.

THERE IS THE OTHER SIDE ALSO. THE CARE HOSPITAL IS ALSO RESPONSIBLE FOR THE DEATH OF THE 83 YEAR OLD PATIENT FOR DELAYING TREATMENT IN A LIFE THREATENING SITUATION.

SUCH HOSPITALS SHOULD BE BLACK-LISTED BY LIC AND ALL PENSIONERS SHOULD BOYCOTT SUCH HOSPITALS BY GIVING WIDE PUBLICITY.

Kind regards.
C H Mahadevan

Varishtha Pension Bima Yojana Reckoner

A CORRECT SAMPLE QUOTATION of Purchase Price for PENSION ranging from Rs 3000 to 

Rs. 5000 pm. See Tabular Charts from renowned Agent reproduced below.

R.B.KISHORE
VP,AIRIEF

Courtesy: K Jayachandran, Chief Life Insurance Advisor, LIC of India, Chennai.

Letter addressed to TPA

ISSUES RELEVANT FOR A PROPER ANALYSIS OF THE DEPOSIT MADE BY LIC IN P & H HIGH COURT, CHANDIGARH UNDER C O C P No 2975 of 2013 Arising from C W P No 16346 of 2010

 L
LIC’s undertaking before the P & H HC, Chandigarh and the HC Order dated 7.7.2014:

“Learned counsel for the respondents no. 2 to 4 states that the calculations regarding the benefits to be given to the petitioner are being assessed and the same will be deposited before this Court within a period of six weeks from today. Let needful be done within a period of six weeks from today. In case the petitioner makes an appropriate application for release of the amount, the same shall be considered as and when the same is moved. List again on 27.1.2015”.

2. It is important to note that neither in LIC’s undertaking nor in the HC Order dated 7.7.2014, any mention was made as to how and on what basis “the calculations regarding the benefits to be given to the petitioner are being assessed”. Notwithstanding the same, it was normal and proper for the Petitioners to infer from the undertaking given on 7.7.2014 that the calculations regarding the benefits to be given to the Petitioners would be, as ordered by the P&H HC Judgement dated 9.11.2012. That was the only way for LIC to get discharged from the Contempt proceedings.

3. In the Affidavit filed on behalf of LIC while depositing the sum of Rs. 33,67,838/- it was stated in para 4: “ That in view of the above, the amount as required to be paid to the writ petitioners in terms of Judgement in CWP No 16346 of 2010 decided on 9.11.2012 has been deposited in this Hon’ble Court.

In the calculation sheet attached to the Affidavit, the amounts 

as applicable to each of the Petitioner/Pensioner are shown under the 

following headings:

Pre-revised Basic Pension (A)

Dearness Relief as on 1.8.1992 (B)

Dearness Relief as on 1.8.1997 (C)

Revised Pension as per Board Resolution (A+B+C)

Amount to be deposited up to July 2014

(Note: The actual numbers are not reproduced here, firstly because they are faulty and also to protect the privacy of the Petitioners concerned. The unacceptable basis for the deposit, however, will be taken to the notice of the Court. )
  

. It follows that as per the Affidavit filed by LIC, the deposit made is purportedly in terms of the Judgement dated 9.11.2012 AND the Board Resolution.
5. Let us look at the operative portion of the Judgement dated 9.11.2012.
“After hearing learned counsel for the parties, we are of the considered opinion that since it is

not in dispute that similar relief prayed for by the petitioners has been granted by the learned Single Judge of the Rajasthan High Court in the case of Krishna Murari Lal Asthana (Supra) which has been maintained in appeal and the petitioners are satisfied with the same order, the present writ petition is thus, allowed, in terms of the order passed in the aforesaid case namely Krishna Murari Lal Asthana (Supra)”.

6. We now need to necessarily visit the concluding part of Jaipur Judgement dated 12.1 .2010:
“In light of the discussion made above, both the writ petitions are allowed. The Respondent Corporation is directed to take a decision for implementation of the resolution dated 24.11.2001 passed by the Board. The respondent Corporation cannot provide different criteria for grant of dearness allowance to the existing pensioners based on cutoff date i.e. 31.7.1997. The benefit arising out of the directions above would, however, be considered by the respondent Corporation so that every retired employee may get the same benefit. Costs made easy”.
(M.N. BHANDARI) J

7. Continuing the trailing exercise to move to the origin of relevant judicial pronouncement, it is the Board Resolution dated 24.11.2001 that becomes sacrosanct. It has to be implemented and there is no need for Government approval for the same.

8. LIC now claims to be depositing the amount in terms of the Chandigarh HC Order AND as per Board Resolution. The critical issue is: IS LIC REALLY DOING SO? NO IT IS NOT. LIC IS TRYING TO DENY WHAT IS CLEARLY GRANTED BY JUDICIAL PRONOUNCEMENTS AND FOR THAT PURPOSE IS NOT HESITATING EVEN TO MISLEAD THE COURTS OF LAW.

9. The Board Resolution is too well known to be reproduced but still for the sake of total clarity here it is:
“Executive Director (Personnel) introducing the subject mentioned that there was three different rates for different groups of pensioners at present depending on their dates of retirement, which cause considerable administrative inconvenience. Chairman pointed out that he has since received a communication from Dr. S. Ram Khanna, Board Member, which refers to his meeting with the Retirees Federation and requested examining the proposal in detailed. The Note is in line with the demands made by the Federation, viz., giving effect to the proposal from 1.11.1993 and upgradation by giving weightage of 11.25% as in the case of in service employees. Chairman pointed out that these have been considered before placing the matter to the Board and it was felt that the same would increase the financial burden very substantially and may be unaffordable for the Corporation. Chairman pointed out that the implications of the proposal made have been actuarially determined at Rs.51.37 crores and the annual outlay be in the region of 6 to 8 crores. After some discussion the Board approved the proposal and suggested that it should be implemented prospectively and after obtaining Government approval.”

10. What was approved in the Board Resolution which LIC now refuses to see? It is: giving effect to the proposal from 1.11.1993 and upgradation by giving weightage of 11.25% as in the case of in service employees. LIC should answer a straight and simple question – “Is this part of the Resolution complied with while depositing the money in Jaipur or Chandigarh”. If so how and if not why?

CONCLUSION FOR NOW 

LIC first tried the mischief in Jaipur. Was able to get away with it, due to a number of factors. Naturally, it is playing the mischievous game again now in Chandigarh. But it will not be able to get away this time. Will get exposed – fully and squarely.

Shri C H Mahadevan has made a dissection of the amounts mischievously deposited and what ought to have been done by LIC, to escape the contempt charge. These are being made available to the Petitioners before P & H HC in Chandigarh, to assist them on their next course of action.
Tail piece: Blissfully, Supreme Court when it takes up the tagged Appeals for final Hearing will address the larger issues like points of law in the Appeals and Constitutional Provisions involving Articles 14 & 16 etc., and not bother itself to look in to the trivial issues like the interpretation of the Board Resolution (or the spelling errors in it or the grammar howlers etc.,).

Let’s hope our Leaders, the Petitioners and their Counsel, elevate themselves to the level of arguments taking place in Supreme Court and emerge victorious.

M Sreenivasa Murty

courtesy: twitter-@MANJULtoons (recd thru RB Kishore)

Varishtha Pension Bima Yojana Details And Opinion

CA Chirag Chauhan

1. Introduction: Government of India in the Union Budget 2014-2015, announced the revival of Varishtha Pension Bima Yojana. Excerpts from budget speech by Honrable Finance Minister are, “NDA Government during its last term in office had introduced the Varishtha Pension Bima Yojana (VPBY) as a pension scheme for senior citizens. Under the scheme a total number of 3.16 lakh annuitants are being benefited and corpus amounts to Rs.6,095 Crore. I propose to revive the scheme for a limited period from 15^th August 2014 to 14^th August 2015 for the benefit of citizens aged 60 years and above”

LIC of India has been given the sole privilege to operate this scheme.

2. Benefits :

a. Pension Payment :

During the lifetime of Pensioner, a pension in the form of immediate annuity as per mode chosen by the Pensioner shall be payable.

b. Death Benefit:

On death of the Pensioner the Purchase Price shall be refunded.

3. Eligibility Conditions and Other Restrictions:

 i.      Minimum Entry Age:  60 years (completed)

 ii.      Maximum Entry Age:  No limit

a)     Minimum Pension:       Rs. 500/- per month

1. Rs. 1,500/- per quarter,
2. Rs. 3,000/- per half-year
3. Rs. 6,000/- per year

b)    Maximum Pension:      Rs. 5000/- per month

1. Rs. 15,000/- per quarter,
2. Rs. 30,000/- per half-year
3. Rs. 60,000/- per year

Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies issued to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.

 4. Payment of Purchase Price: The plan can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.

The minimum and maximum Purchase Price under different modes of pension will be as under:

Mode of Pension	Minimum Purchase Price	Maximum Purchase Price
Yearly	Rs. 63,960/-	Rs. 6,39,610/-
Half-yearly	Rs. 65,430/-	Rs. 6,54,275/-
Quarterly	Rs. 66,170/-	Rs. 6,61,690/-
Monthly	Rs. 66,665/-	Rs. 6,66,665/-

The Purchase Price to be charged shall be rounded to nearest multiple of Rs.5/-.

5. Mode of pension payment:  The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through ECS/NEFT only.

The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.

6. Sample Pension rates per Rs.1000/- Purchase Price

The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:

                                                          

i. Yearly: Rs. 93.8069 p.a.

ii. Half-yearly: Rs. 91.7045 p.a.

iii. Quarterly: Rs. 90.6767 p.a.

iv. Monthly: Rs. 90.0000 p.a.

The pension instalment shall be rounded off to the nearest rupee.

These rates are not age specific.

7. Surrender Value: The policy can be surrendered aftercompletion of 15 years. The Surrender Value payable will be refund of Purchase Price. However, under exceptional circumstances, if the pensioner requires money for the treatment of any critical/terminal illness of self or spouse then the policy can be surrendered before the completion of 15 years and the Surrender Value payable shall be 98% of Purchase Price.

8. Loan: Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.

The rate of interest to be charged for loan amount would be determined from time to time by the Corporation.

Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.

9. Taxes: Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax payable as per the prevailing rates shall be payable by the policyholder on Purchase Price. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

10. Free Look period: If a policyholder is not satisfied with the “Terms and Conditions of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections.

The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty.

11. Author Opinion-  The Rate of Interest which a senior Citizen earns on Nationalize Bank FD is around 9.75% . However there is limiting period of 10 years up to which you can make your Fix Deposit. Interest Rate scenario change depending upon Inflation and RBI policies. Expectation from RBI is softening of Interest rate going forward in coming years as growth picks up and inflation softens. So in next 5 to 10 years if interest rate comes down to 5 to 7% this Pension plan can be better way to block the interest rates @9.36%.and earn a steady 5000/- PM when you invest maximum amount. There is one time Service tax of 3.09% applicable on the premium amount. However considering interest rate scenarios and growing economy one can take benefit of the policy.

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

(Courtesy: RK Sahni)

Public Providend Fund (Amendment) Scheme, 2014

Courtesy: RK Sahni