AMENDMENTS TO LIC PENSION RULES 1995 UNDER RULE 2(j) AND UNDER RULE 2(o)

AMENDMENTS TO LIC PENSION RULES 1995 UNDER RULE 2(j) AND UNDER RULE 2(o)

 

Rule 2(j)

As per original Pension Rules notified	After amendment vide  Government Notification dated 3/7/1996	After amendment vide Government Notification dated 7/7/2021
employee" means any person employed in the service of the Corporation on full-time work on permanent basis and who opts and is governed by these rules but does not include an employee retired before the commencement of these rules and who is drawing pension from the Pension Fund of the Oriental Government Security Life Assurance Company Limited in accordance with sub-regulation(2) of regulation 76 of the Life Insurance Corporation of India (Staff) Regulations, 1960, made under the Act;	"employee" means any person employed in the service of the Corporation on full-time work on permanent basis and who opts and is governed by these rules but does not include an employee retired before the commencement of these rules and who is drawing pension from the Pension Fund of the Oriental Government Security Life Assurance Company Limited in accordance with sub-regulation(2) of regulation 76 of the Life Insurance Corporation of India (Staff) Regulations, 1960, made under the Act; * Provided that where the Chairman of the Corporation appointed by the Central Government in accordance with Section 4 of the Act was immediately preceding such appointment an Employee of the Corporation, then, subject to the terms of any contract, agreement or letter of appointment or directions issued by the Central Government, such Chairman for the purposes of these rules shall also be deemed to be an employee of the Corporation	"employee" means any person employed in the service of the Corporation on full-time work on permanent basis and who opts and is governed by these rules but does not include an employee retired before the commencement of these rules and who is drawing pension from the Pension Fund of the Oriental Government Security Life Assurance Company Limited in accordance with sub-regulation(2) of regulation 76 of the Life Insurance Corporation of India (Staff) Regulations, 1960, made under the Act;   Provided that where Chief Executive of the Corporation appointed by the Central Government as defined in section 2 in accordance with Section 4 of the Act was immediately preceding such appointment an Employee of the Corporation, then, subject to the terms of any contract, agreement or letter of appointment or directions issued by the Central Government, such Chairman for the purposes of these rules shall also be deemed to be an employee of the Corporation.   Provided further that where the Managing Director of the Corporation appointed by the Government in accordance with Section 4  of the Act was immediately preceding such appointment an Employee of the Corporation, then, subject to the terms of any contract, agreement or letter of appointment or directions issued by the Central Government, such Managing Director for the purposes of these rules shall also be deemed to be an employee of the Corporation.

 

·       The effect of the amendment on 3/7/1996 is to bring the position of Chairman under the LIC Pension Rules 1995.

·       The amendment dated 7/7/2021 resulted in replacement  of the designation of Chairman to 'Chief Executive' and inclusion of Managing Director in the proviso.

 

Rule 2(o)

Original Rule notified	As modified vide Government Notification dated 14/5/1999	After  Government Notification dated 13/8/2001
" pay" includes:- (a)in relation to an employee who has retired or died on or  after  the 1st day  of January, 1986 but before  the 1st day of November,1993:- (i) the basic pay  including the  stagnation increments if any; and (ii all allowances counted for the purposes of making contribution to the Provident Fund and for the payment of dearness allowance: (b) in relation  to an employee who retires or dies while in service on or after the  1st day of November,1993:- (i) the basic pay  including the  stagnation increments if any; and (ii all allowances counted for the purposes of making contribution to the Provident Fund and for the payment of dearness allowance; and (iii) Fixed personal allowance not exceeding the last increment in the scale of pay; and (iv) dearness allowance calculated upto Index number 1148 in the All India Average  Consumer  Price Index for Industrial Workers in the series 1960=100;	(o) "pay" includes,- (i) the basic pay including the stagnation increments if any; and (ii) all allowances counted for the purpose of making contribution to the Provident Fund and for the payment of dearness allowance; and (iii) fixed personal allowance not exceeding the last increment in the scale of pay; if any, and (iv) in a case covered by the proviso to clause (j) or where the salary and other conditions have been fixed with the approval of the Central Govt., the dearness allowance calculated upto Index No.1148 in the All India Average Consumer Price Index for Industrial workers in the series 1960=100 applied on the basic pay drawn by him in the scale of pay notified by the Central Govt., for the post.   Provided that for the purpose of calculating average emoluments, as defined under sub-clause (d) of rule 2, in respect of employees whose ten months' period before retirement falls partly under pre-revised pay scales and partly under the revised pay scales, the pay for the period for which they have drawn pay as per pre-revised scales may be updated by including the dearness allowance actually drawn by them or the dearness allowance upto the AICPI to which the revised basic pay is pegged, whichever is less..	*(o) "pay" includes,- (i) the basic pay including the stagnation increments if any; and (ii) all allowances counted for the purpose of making contribution to the Provident Fund and for the payment of dearness allowance; and (iii) fixed personal allowance not exceeding the last increment in the scale of pay; if any,   Provided that for the purpose of calculating average emoluments, as defined under sub-clause (d) of rule 2, in respect of employees whose ten months' period before retirement falls partly under pre-revised pay scales and partly under the revised pay scales, the pay for the period for which they have drawn pay as per pre-revised scales may be updated by including the dearness allowance actually drawn by them or the dearness allowance upto the AICPI to which the revised Basic pay is pegged, whichever is less.

 

The effect of the amendment dt 14/5/1999 is as follows:

1.      The date 1/11/1993 has been removed. So the rule covers all retirees retired after 1/1/1986 for definition of pay.

2.      The post of Chairman is also included  for coverage under the definitions

3.      AICPI 1148 points is the pegging point for merger of DA on 1/8/1992 with pre-revised basic pay to arrive at the revised basic pay on wage revision after the post-merger weightage.Perhaps because at the time of Notification of the Pension Rules 1995 on 28/6/1995,because the wage revision w.e.f 1/8/1992 was not notified, A  calculated up to Index 1148 has been added as part of pay.But the moment the wage revision w.e.f 1/8/1992 was notified on 18/7/1996 and so the 'pay'  from 1/8/1992 for Class III & IV and from 1/4/1993 for Class I Officers would have already factored the DA at AICPI Index no of 1148 in the new scales. So the sub-clause 2(o) (iv) was redundant from 18/7/1996(from effective date of 1/8/1992 for Class III & IV & 1/4/1993 for Class I)  itself, but it was allowed to continue on 14/5/1999 when the Rule was modified to cover only Chairman & MDs and  the modified sub-rule (iv) was deleted finally on  13/8/2001 alongside insertion of Rule 55B as it had become infructuous.