Discrepancy in Statistics of Pensioners

Copy of my email to LIC Chairperson. 

C H Mahadevan 

From: Colinjivadi Mahadevan <chmahadevan@gmail.com>
Date: Sun, 16 Oct 2022, 22:36
Subject: Discrepancy in Statistics of Pensioners
To: <chairman@licindia.com>

To

Chairperson,

LIC of India,

Mumbai

Dear Sir,

Recently in response to my application under RTI Act 2005,I obtained the following information from Central Office as at 31/3/2022:

Number of retiree-pensioners : 69158 (43541)

Number of family pensioners :  23240 (21527)

Number of total pensioners :   92398  (65068)

The figures in the brackets pertain to the year 2020-21.

I observed that the latest figures furnished to me were out of sync with the general trend of increase witnessed upto 31/3/2021.

There has been an unusual increase of 27330 pensioners in 2021-22 over the previous year.There has been also an unusual increase in the number of retiree- pensioners by 25617, whereas in the last 11 years the highest increase was 3101 in 2019-20 and 3839 in 2020-21 understandably as a result of one more option for pension granted in 2019.

As per the RTI information provided  to me, there were 4192 retirements in 2021-22 and 821 deaths in the year.Assuming all these exits from service from pension optees in service and there were no deaths of pensioners during  the year, the increase in the  number of pensioners could not have been more than 5013 to take the total to 70081 at the most.Besides, the total pensioners optees in service declined from 88770 as at 31/3/2021 to 79511 as at 31/3/2022 by 9259.Even if we add this figure to the previous year's figure,the total  number of pensioners cannot be  more than 74327.

Thus ,viewed from any angle, the figure 92398 seems to be inflated, unless the figures as at 31/3/2021 have been revised upwardly.

I have already brought this discrepancy to the notice of Executive Director  (Personnel) by a letter as well as orally.

I feel this discrepancy has to be addressed immediately and rectified as it has material implications on the actuarial valuations being conducted on the Pension Fund every year.If the number of pensioners is not properly reconciled from year to year,it may result in either underestimation or overestimating of pension liabilities resulting in inadequate additional contributions or over-funding through additional contributions.I believe that the pension of each live pensioner is taken in to account for estimating  future pension liabilities in the actuarial valuation,but I feel that it is also important that the total  number of retiree pensioners and family pensioners must be accurate.

As at 31/3/2021,the proportion of family pensioners was 33.1%,whereas  based on the latest years' figures furnished under RTI Act the proportion has declined to 25.2%.So now a doubt has arisen about the correct proportion of family pensions among the total pensioners.

I shall therefore be grateful if the correct figures of pensioners is communicated to me for at least last three financial years.

Thanking you,

Yours faithfully, 

C H Mahadevan

Executive Director (LIC)(Retd)