Renewal Expense Ratio- The only Laxman Rekha

It will be a travesty of justice if the very Pension Fund created by LIC for the benefit of its pensioners is used or misused by the LIC Mgmt. / G.O.I as an instrument for arbitrarily curtailing the Pension Payments. Far from it, what is actually called for is that , after every yearly actuarial valuation, funds adequate to meet the revision in pensionary payments  are to be transferred to the Pension Fund Corpus by LIC Mgmt.. The contention of LIC /G.O.I. that the Corpus in the Fund is a limiting factor is a misnomer and unacceptable. The only Laxman Rekha which is not to be breached is the Renewal Expense Ratio, and the  Mgmt. Expenses which includes salaries paid to in- service employees and Pensions paid to the Retirees have , all these long long years been well with in the 15% prudential norms prescribed in the LIC Act 1956, and the relevant comparative charts / statements in this regard have already been placed before the Hon’ble Court.
 Since the legal proceedings are meandering over a decade, any prudent organization like LIC  should have and must have  over these long years built up a Special Reserve by now for meeting these contingencies in LIC’s Books of Accounts. LIC Mgmt. should be called upon to submit these details together with the observations of the External Auditors  before the Hon’ble Judge.
R.V.RAMESH