ANOTHER VITAL POINT NOT TO BE IGNORED

1. In exercise of powers conferred under Sec 48 of the Act 31 of 1956, the GOI had made a Residuary provision duly got approved by the Parliament  under Rule 56 that empowers the  Chairman to be  GOVERNED  by CCS Pension Rules,1972 and 1981 in respect of which no express provision has been made in these Rules.

2.Though a provision was expressly made for updation  of pension under Rule 35 (1) on account of revision in pay w.e.f.31st day of July, 1987 , with requisite formula provided for the purpose under Appendix III,   no expression could  explicitly be made for further updation on account of Revision in pay structure of the employees that forms the basis for fixation of the benefits of pension payable on retirement. 

3.Hence the Rule 56 clearly mandates the Chairman to necesarily invoke the  provision thereunder to implement subsequent updations of pension as is being implemented in case of GOI employees through CCS Pension Rules and the administrative instructions being issued from time to time by the GOI therefor. 

4. Rule 5(3),7(f), 11,13(a)&(b)clearly and categorically mandates the Corporation to provide all the requisite funds as defined in the said rules and administer payments of benefits accordingly.

5.No where in the Rules, it was mentioned that the formation / creation of the Fund and its administration shall depend exc- lusively on the discretion of the Corporation depending on its profit earning capacity or otherwise.

6. No scope was given by the Parliament while passing the LIC Employees' Pension Rules that they do create  a piquant situation in conflict with the provisions of the Act under any circumstances.

7. Necessarily the objective of introducing Pension in lieu of CPF for employees  in the Corporation in line with the Liberalised Pension Scheme,1986 of GOI is not to override the provisions of the Act.

8.Hence no necessity to argue about the funds for Pension Trust  that ought to be statutorily provided for and managed under the Rules cited supra which are in full force and not abrogated,modified  or nullified by the Parliament as of date.

9.Hon'ble Apex Court has in its judgment dt 01 07 2015 clearly agreed that revision of Pay and revision of Pension are inseparable.

10.The same rationale shall apply to the PS bodies falling within the meaning of Article 12 of the Constitution of India.LIC being a Public Sector Corporation owned by GOI,  the same rationale shall apply as mandated under Rule 56 in fulfillment of the GOI 's objective in introducing Pension Scheme in lieu of CPF in LIC of India.

All the Best.

VOX POPULI.

Katari Satyanarayana.