Dear Friends
I refer to the detailed letter of an unnamed pensioner in PC (LIC PENSIONER CHRONICLE) . He has referred to the argument taken by some of our pensioners that LIC pension scheme is a contributory scheme and hence we cannot expect the upgradation of pension as is being done for Government employees That is irrelevant as contributory or not contributory, the pension scheme should not be discriminatory amongst retirees of the same cadre at different
points of time.
No doubt LIC pensioners have contributed to the pension fund by surrendering their Corporation’s contribution of PF, but still, LIC has to augment the fund by infusing more than 90% of the yearly addition to the fund.This only means that even in a contributory pension scheme, LIC has the legal obligation to ensure that the fund is adequate to meet its liabilities to pensioners as laid down in Chapter III of Pension Rules, 1995 and also that there is no discrimination among pensioners.So there has to be relative parity in
pension if Articles 14 and 16 of the Constitution are not to be violated.
We must also remember the significance of the residuary provisions of the LIC Pension Rules under Rule 55A stating that wherever these rules are silent,the Central Govt Rules of 1972 will apply.
This is exactly the issue that the Supreme Court will examine in the hearing of the CAs.
So the pensioner has no need to be anxious on account of such unfounded and illogical arguments advanced by some cynical section of the pensioners.
With greetings,
C H Mahadevan
From DallasTX-USA
I refer to the detailed letter of an unnamed pensioner in PC (LIC PENSIONER CHRONICLE) . He has referred to the argument taken by some of our pensioners that LIC pension scheme is a contributory scheme and hence we cannot expect the upgradation of pension as is being done for Government employees That is irrelevant as contributory or not contributory, the pension scheme should not be discriminatory amongst retirees of the same cadre at different
points of time.
No doubt LIC pensioners have contributed to the pension fund by surrendering their Corporation’s contribution of PF, but still, LIC has to augment the fund by infusing more than 90% of the yearly addition to the fund.This only means that even in a contributory pension scheme, LIC has the legal obligation to ensure that the fund is adequate to meet its liabilities to pensioners as laid down in Chapter III of Pension Rules, 1995 and also that there is no discrimination among pensioners.So there has to be relative parity in
pension if Articles 14 and 16 of the Constitution are not to be violated.
We must also remember the significance of the residuary provisions of the LIC Pension Rules under Rule 55A stating that wherever these rules are silent,the Central Govt Rules of 1972 will apply.
This is exactly the issue that the Supreme Court will examine in the hearing of the CAs.
So the pensioner has no need to be anxious on account of such unfounded and illogical arguments advanced by some cynical section of the pensioners.
With greetings,
C H Mahadevan
From DallasTX-USA
