Rule 54 of the LIC (Employees) Pension Rules, 1995

From: Colinjivadi Mahadevan <chmahadevan@gmail.com>
Date: Thu, Jan 16, 2020 at 6:56 AM
Subject: Rule 54 of LIC (Employees)Pension Rules 1995.
To: <ed_personnel@licindia.com>
Cc: <mdsk@licindia.com>, <chairman@licindia.com>

To

 Executive Director(Personnel),

L I C  of India,

Central Office

Mumbai

Madam,

I refer to  your circular  Ref: Per/ER-A/Pension/Disbursement dated 08/01/2020 addressed to Zonal Managers.

Rule 54 of the Pension Rules state, 

"Manner of payment of pension -A pension fixed at a monthly rate shall be payable monthly on or after the first day of the following month."

You have mentioned in the last para of your circular that all pension disbursing units should ensure payment of pension invariably as per Rule 54 of LIC of India (Employees)Pension Rules,1995,i.e on the first working day  of the following month without any delay.While your intent in issuing these instructions is very well  appreciated,there is a basic flaw in Rule 54  of the Pension Rules.When it states "on or after the first day", it provides a lee-way for delayed payment of pension without any mandated accountability on the Corporation due to the open ended nature of the due date for pension stated in the Pension Rules.It is surprising that such a wording in the Rule has been allowed to remain for more than 24 years without amendment.

LIC being  an enlightened employer,I am sure you will appreciate,its obligations should be documented in the Rules appropriately.In that respect,the words,"or after" need to be deleted from Rule 54.Experience has shown that Pension Disbursing offices have been literally complying with Rule  54 by often making payment of pension after the first day of the following month causing immense hardships to LIC Pensioners.Even if the delay occurs due to certain problems arising in the bank network,the responsibility for payment of pension on the first day of the month lies with LIC as you will agree and LIC may need to attune systems suitably.

I hope the Corporation will take immediate steps to amend Rule 54 suitably and ensurer that the monthly  pension credit is provided in the bank accounts of pensioners  positively on the first day of the following month, especially when RBI has advised Banks to provide credit under NEFT transactions even  if the day happens to be a holiday.

Thanking you,

C H Mahadevan

Executive Director(LIC)(Retd)

Chennai