Chairman & Managing Directors are not employees of the Central
Government,but whole time Class I Officers of the LIC.Only their
appointing authority is the Government of India,just as MD is the
appointing authority of officers in lower cadres of LIC.
On Thursday, March 3, 2016, KML ASTHANA <asthanajaipur40@gmail.com> wrote:
On Tue, Mar 1, 2016 at 11:12 AM, t.r.madhava rao <madhava36@yahoo.com> wrote:
If MDs are Central Government Officers,where was the need for Rule no 55B in the LIC Pension Rules,1995?
Greetings.
C H MahadevanOn Thursday, March 3, 2016, KML ASTHANA <asthanajaipur40@gmail.com> wrote:
SIR
THIS
DISCRIMINATION WAS OBSERVED BY ME BUT IT HAD TO BE GIVEN SINCE THE
CHAIRMAN AND MANAGING DIRECTORS ARE THE EMPLOYEES OF THE CENTRAL
GOVERNMENT THOUGH PAID FROM LIC EXCHEQUER. IT IS THEREFORE THAT WHILE
DEALING WITH THE BOARD RESOLUTION IN THE EARLIER WRIT PETITION I HAD
TAKEN THE GROUND THAT THE BOARD IS AN EXTENSION OF THE CENTRAL
GOVERNMENT SINCE TWO ARE THE SECRETARIES IN THE MINISTRY OF FINANCE,
CHAIRMAN AND MDs ARE ALSO THE EMPLOYEES OF THE CENTRAL GOVERNMENT AND IF
THERE IS A PRIVATE MEMBER HE IS ALSO REPRESENTING THE CENTRAL
GOVERNMENT, THEREFORE, THERE WAS NO NEED FOR ANY FURTHER APPROVAL OF THE
CENTRAL GOVER.
KML ASTHANA
On Tue, Mar 1, 2016 at 11:12 AM, t.r.madhava rao <madhava36@yahoo.com> wrote:
C H MAHADEVAN
12/11/2014
PENSIONARY STATUS OF LIC CHAIRMAN AND MANAGING DIRECTORS
As per the information secured by Mr C S Murty from the Department of Financial Services (MoF) and LIC of India by invoking RTI Act 2005, the following facts emerge:
•
Chairman and Managing Director of LIC of India are appointed by the Central Government by exercising the powers conferred by Sec 4 and Sec 20 of LIC of India Act 1956 respectively.
Chairman is appointed in the pay scale of Secretary and Managing
Director in the pay scale of Additional Secretary.
•
Their salaries/emoluments/allowances are borne by LIC and are not reimbursed by the Ministry.
•
All Terminal dues (retirement benefits and pension) of Chairman and Managing Director are settled by LIC.
•
"The Pensionary benefits to Chairman & Managing Director of the Corporation are governed by Rule 55B of LIC of India(Employees)Pension Rules 1995 as amended on 13/8/2001 and the same reads as under:
RULE 55B
Pensionary benefits to employees mentioned in proviso to sub-rule (j) of Rule 2 and employees appointed as Managing Director under Section 20 of the Act (LIC Act 1956) and who were in service on or after 1st January 1996;
Notwithstanding anything contained in these rules, in respect of an employee appointed
as Managing Director under Section 20 of the LIC of India Act 1956,
and in respect of an employee covered by proviso to sub-rule(j) of Rule
2,who were in service on and after 1st January
1996, the pensionary benefits shall be calculated in accordance with
the provisions contained in the Central Civil Services(Pension)Rules 1972 and the Central Civil Services( Commutation of Pension)Rules,
1981, as applicable to Central Government servants and in accordance
with the instructions issued by the Central Government thereunder
from time to time;
Provided
that where such an employee who has retired on or after 1.1.1996 and
before the date of publication of these rules in the Official Gazette
or the family of such employee in the event of death of such employee, gives a notice in writing within 90 days of the publication of these rules,
expressing an option not to be governed by the provisions of this
rule, then , the provisions of the above paragraph shall not apply in
respect of such employee or the family of such employee as the case may be. Option once exercised under this proviso shall be final".
•
As
per the Central Government Notification dated 3/7/1996, the Chairman
of LIC is deemed to be an employee of the Corporation for the
purpose of L I C of India(Employees)Pension Rules,1995( vide Rule 2(j))
My comments
•
Considering all the above facts,
•
The question then arises as to how they can be governed by a set of pension rules different from that of otheremployees
governed by the same pension rules of theCorporation. The observations
of the Supreme Court inthe D S Nakra case become very significant, viz., therecannot be two different classes of pensioners under thesame pension scheme.
•
The
pensions of retired Chairmen and Managing Directors of LIC are paid
from the Fund constituted by the Corporation as required under Chapter
III of the LIC of India (Employees') Pension, Rules, 1995.Paying rates
of pension to them different from and more advantageous than those
applicable to retired employees of the lower cadres covered by these
Rules constitutes discrimination as brought out in theD.S.Nakra case judgment by the Supreme Court.
•
Thus having different
Pensionary benefits for LIC Chairman and Managing Directors on the one
hand and for other cadres of employees on the other is clearly
discriminatory and arbitrary and violates Articles 14 ( re:Equality
before law) and 16(re:Equality of opportunity in employment etc) of
the IndianConstitution.
•
Therefore the only way in which this discrimination canbe removed is to follow the Rules applied for the Chairman & Managing Directors retired on and after1st January 1996 onwards uniformly for all retired andretiring employees by giving similar options without discrimination.
On Tuesday, March 1, 2016 10:39 AM, Ram Prasad <rambhag123@yahoo.com> wrote:
Dear Asthana,
Shri
C.H.Mahadevean brought to my notice the Rule No-55-B of our pension
rule, which Idid not observe as my copy was 1995 edition. I am informed
that the amendment gives the option to the employees of the LIC who were
in the Chairman and Managing Directors cadres to go for the central
Govt. pension. I have to see the amended notification but I guess that
raises another type of discrimination on the basis of the cadre from
which they retired. Hope you will notice this.I have prepared a write up
& am waiting to seed the amendment to circulate.
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R. Ram Prasad
R. Ram Prasad
You can reach me on: +91-958-1717-000