Here’s an overview of the LIC of India (Employees) Pension Rules, 1995

 Here’s an overview of the LIC of India (Employees) Pension Rules, 1995, specifically highlighting the structure and maintenance of the Employees’ Pension Fund, which supports pensions for LIC’s own retired employees:

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🧾 Legal Structure & Pension Fund Basis

The LIC (Employees) Pension Rules, 1995 were issued under Section 48 of the Life Insurance Corporation Act, 1956, effective from 1 November 1993  .

These rules establish a formal LIC Employees’ Pension Fund, governed by a trust structure to ensure pension payments to retired employees who opted into the scheme  .

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🔧 Composition & Governance (Rule 7 & Rule 8)

Rule 7 (Composition of the Fund): LIC is obligated to contribute sufficient resources into the Pension Fund to service present and future pension liabilities. Contributions must also include additional sums when pensions are upwardly revised  .

Rule 8 (Trustees & Administration): LIC's Board appoints trustees to oversee operations. The trustees must execute the directions of the LIC Board, and the trust deed is legally binding under the Indian Trusts Act, 1882  .

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🎯 Key Features of Pension Fund Maintenance

• A Non-Contributory, Defined Benefit–Style Scheme

Though nominally funded, the scheme operates similarly to government pensions (like CCS Pension Rules). LIC holds legal discretion to fund pensions through this structured trust rather than a pure “pay-as-you-go” mode  .

• Index-Linked Pension Adjustments

The pension is linked to the Consumer Price Index, and trustees may authorize revisions when required.

However, in practice, annual increases may be inconsistently implemented, and retirees often must follow up actively for Dearness Relief or pension enhancement  .

• Transparency & Pensioner Rights

Retired employees are entitled under RTI to inspect records of pension fund balance sheets and investment details.

The Central Information Commission has ruled that beneficiaries may view these documents (though full copies may be restricted)  .

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📊 Pension Calculation & Eligibility Highlights

Amount of Pension (Rule 35): Pension equals 50% of the average qualifying emoluments, plus 50% of eligible allowances drawn in the last 10 months of service—subject to minimum bars and rounding rules  .

Employees with fewer than 33 years of qualifying service receive proportionate pension, but not less than the minimum specified.

Additional rules cover commutation, family pension, voluntary retirement, and early exit benefits under specific circumstances  .

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✅ Summary Table

Topic Key Provisions Under LIC Pension Rules, 1995

Pension Fund Structure A defined trust-based fund funded by LIC Board contributions

Trustee & Governance LIC Board appoints trustees; fund governed by Indian Trusts Act

Pension Adjustments Indexed to CPI; revisions discretionary, require trustee approval

Fund Transparency Pensioners can inspect fund records under RTI (rule 8(2))

Pension Calculation (Rule 35) 50% of average emoluments + 50% allowances; prorated for shorter service

Forfeiture / Commutation Allowed under specific rules, with minimum limits

Family Pension / Commutation Detailed provisions for survivors and dependents

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💡 What This Means for LIC Retirees

LIC maintains a dedicated Pension Fund to honor its pension commitments, not merely a pay-on-demand ledger.

Pensions are meant to be periodically revised, but implementation often lacks clarity—vigilant retirees may need to proactively request adjustments.

Pensioners have a right under law to access the fund’s financial data to understand investments and sustainability.

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R K SAHNI