Re: some vital points missed

Thank you, Ramesh garu, for the painstaking effort behind your email. It is informative and we shall certainly keep this in mind, while finalizing our written submissions in the coming week. As a quick response, I want to bring the following points to your notice. 1. Rule 6 of the LIC (Employees) Pension Rules 1995, mandated the Provident Fund Trust to transfer, immediately after the formation of the (Pension) Trust, the accumulated balance of the contribution of the Corporation to the PF Trust including interest accrued upto the date of transfer in respect of every employee. 2. We have already brought on record in all our Affidavits, that the 5% of valuation surplus, amounting to Rs. 2,497.03 Crores stands transferred to Central Government for the year 2015-16. 3. We have annexed dozens of charts and calculations to establish beyond dispute, that the Pension outgo even after revision constitutes a miniscule of any other outgo. 4. We are going to highlight in our written statement, two major areas that warrant managerial initiatives, to improve 'surplus' and thus pay better bonus to Policyholders. Also 'better churning' of the investments. 5. The opportunity I got yesterday to address the Bench was in the limited context of setting right the brazenly misleading explanations for the so called technical concepts, offered by LIC Team, to a Bench which is seen as a strong pro-policyholder, from the beginning. LIC has been unfortunately over-playing the Actuarial process card, taking undue advantage of the Judge's propensity to accept anything coming out of Actuarial process. In spite of the limited chance for me, encouraged by Justice Khanna's willingness to hear me, I strayed in to the area of talking on my case also. Not to be asked to resume my seat, if I was overstepping, I made my submissions calling it 'one last submission' each time and made it thrice. I missed out a fourth one, on 'closed category' feature of our petitioners, as the Court rose by then. But my purpose was served, as I could press the Bench to look for all those in my comprehensive rejoinder Affidavit. The Bench was seen delighted to have been enlightened on the 'other view' The bunch of Annexures authored by our Sri Mahadevan, had incontrovertible facts, figures and projections that would demolish every argument of LIC. That is the reason why we offered to file written submissions, not to miss out on anything and secured Court's consent. We are leaving no stone unturned and hope to make it at the hustings. Hearty thanks for your interest and the inputs. Lets keep in touch. - Thanks and regards, Sreenivasa Murty Mulukutla 106, Hill County Nizampet Road, Bachupally HYDERABAD 500090 +919177737356 On Wed, Feb 22, 2017 at 10:23 PM, vasigala ramesh <vbvramesh@rediffmail.com> wrote: sri murty garu, further to telephonic talk of date, I furnish the points to be putforth in your written submissions for which 10 days further time is given. Glad you scrutinized BANK PENSION & 100% DA CASES ALSO THAT WERE DISMISSED RECENTLY. The LIC & UOI raised LIFE FUND & succeded to garner ther matter around it but all forgotten how hefty dividends overeaten into LICs capacity to pay pension updation without hurdle. Instead of providing statutory pension liabilities, the PSBs and LIC prefer to decalare hefty dividends and provision of NPAs and extraordinary bonuses. Here are two Media comments http://www.business-standard. com/article/companies/lic- pays-dividend-of-rs-1-634-9- cr-to-govt-114121600583_1.html The country's largest insurer, Life Insurance Corporation (LIC), paid the government a dividend of Rs 1,634.90 crore for 2014-15 on Monday, according to a press statement by the Ministry of Finance. The budgeted proceeds for the year from dividend from Reserve Bank, other state-owned banks and financial institutions is Rs 62,414.18 crore, while from other state-owned companies, the centre expects proceeds of R s 27,815.10 core. WHAT IS THE PENSION UPDATION OUTGO PER YEAR AGAINST THESE HEFTY DIVIDENDS. http://timesofindia. indiatimes.com/business/india- business/Govt-expects-no- dividend-from-at-least-9-PSU- banks/articleshow/51487092.cms Against dividend payments of Rs 10,433 crore from banks, financial institutions and insurers in the budget estimates for 2015-16, the government has more than halved its projections to under Rs 5,100 crore in the revised estimates.Next fiscal, it expects a pickup with payout from these entities estimated to rise nearly 37% to Rs 6,974 crore. Of this nearly a third or Rs 2,215 crore will come from LIC, the government's favourite cash cow, followed by State Bank of India (Rs 1,143 crore) and Bank of Baroda (Rs 501 crore). For long, analysts have argued that the government should seek lower dividends *$#so that those earning profits can plough back a part of the funds to meet the capital requirements. The rise in bad debt and regulatory requirements has forced the government to provide more equity to public sector banks as the Centre has committed to maintain majority stake in these entities. (* $# My point is that govt should seek lower dividends in order to fecilitate the PSBs & LIC to comply with statutory provisions like Pension Liabilities) http://www.business-standard. com/article/finance/rbi-wants- all-psbs-to-have-uniform- pension-provision- 111071400059_1.html After coming down heavily on banks for not making adequate provision for increased pension liabilities arising out of wage revision, the Reserve Bank of India (RBI) now wants all public sector banks to have uniform pension liabilities. According to sources in the banking industry, the central bank sees no reason why each public sector bank should have different pension liabilities, since the inputs which go into calculation of pension provision are nearly the same. "RBI says the salary structure is same, the mortality rate is similar and the attrition rate is almost the same for all government-owned banks—at around 0.5 per cent. There is no reason for different actuarial estimates for banks. It feels all public sector banks should have similar actuarial estimates," said a banker after discussing the matter with RBI officials. The basic pension of retirees from all government banks is 50 per cent of the last salary drawn. Bankers said actuaries of different banks have different estimates, particularly on parameters like the discount rate and the attrition rate for calculating pension liability, which has led to a variation in the burden. As far as the mortality rate is concerned, most banks follow Life Insurance Corporation of India's estimates. The pension provision issue cropped up in the last quarter of the previous financial year, when State Bank of India (SBI) had sought the regulator's approval for pension provision from the bank's capital reserve for wage increases. As a prudential practice, banks make provision out of their profit and loss account. To use capital reserves for provision, banks need RBI's approval. After RBI's approval, SBI charged nearly Rs 8,000 crore from its reserves to provide for pension liabilities. As a result, SBI's capital eroded, with Tier-I capital falling below eight per cent. Though RBI had allowed SBI to make provisions from reserves for pension liabilities, the regulator had made it clear that such requests would not be entertained in the future. The central bank had come down heavily on the bank's chairman and managing directors at an interaction. The regulator had also made it clear such practices were non-compliant with International Financial Reporting Standards. In 2010-11, provisioning had increased sharply because of the pay revisions agreed during the ninth bipartite settlement. Wages were raised 17.5 per cent and a second pension option was given to both current and retired employees. Gratuity limits were also increased from Rs 3.5 lakh to Rs 10 lakh. According to RBI's financial stability report, the expected additional liability for 24 public sector banks was Rs 30,366 crore, which constituted 81.9 per cent of their net profit for 2009-10. Indian Banks' Association has been mandated by RBI to prepare a pension scheme to facilitate the assessment by banks and help provide adequate provisions for such liabilities. So, what was going inside LIC is also well gauzed by the fact of COOKED UP FIGURES furnished in the Court recently. Just to please Govt with hefty dividends and to have good public image to show higher bonuses, LIC also not adequately provided for last so many year the pension liabilities. NOW MOST IMP. POINT > After switching over to Pension Scheme from PF obligations, PSBs and LIC did not provide adequately year by year the future pension obligations. How it happened, Once PF expnses erased, the insstitutions are free from expenses to that extent as there not much immediate obligation for pension payments as of now, they provided nil or very minimal. Had they continued the pension provisions atleast upto PF expenses till then incurred, the Pension Fund would have better coverage. Now not having done that and all the years the PSBs and LIC paid hefty dividends and bonuses, NOW THE GOVT & POLICYHOLDERS should aspire for less in order to fecilitate statutory pension obligations. The Govt should, rather to say, give back its overeaten food back to LIC for proper pension provisions. OFCOURCE, THE JUDGE ALSO REALISED THAT PROPER BALANCING OF ALL EXPENSES. For that, we can question when wages are raised every 5 years, wont that effect policyholders benefits. For that wage revision is stopped. The expansion of business and inflationary tendencies will automatically take care of everything. A calling of the following figures will confirm LICs tricks in mismanaging / improper provisioning of Pension Fund for which govt. should supplement now. 1. Yearly PF expenses for 5 years before introduction of pension scheme. 2. Yearly pension provisioning by LIC since introduction of Pension Scheme. (HERE LIC MAY SAY THAT AT THAT TIME PENSION LIABILITIES VERY LESS, BUT IT SHOULD PRUDENTLY PROVIDE FOR PENSION FUND TO THE EXTENT OF ITS PF EXPENSES ATLEAST EVERY YEAR ON SWITCH OVER TO PENSION SCHEME & FURTHER HIGHER PROVISIONS ON EVERY WAGE INCREASE EQUAL TO NOTIONAL INCREASE OF PF AMOUNTS ON WAGE INCREASE). 3. Yearwise DIVIDENDs to CENTRAL GOVT & OTHER SHAREHOLDERS OF LIC IF ANY SINCE INTRODUCTION OF PENSION SCHEME. 4. WRITE OFFs in LIC like NPAs wite off in Banks yearwise All these show how PROPER PENSION PROVISIONING OVER YEARS DISTORTED BY LIC JUST TO PORK OUT HEFTY DIVIDENDS TO GOVT. & WRITE OFFs that can be avoidble. On furnishing these, I hope The Judge will have better impression and sympathy for Pensioners. With Kind Regards and Best Wishes =VBV Ramesh From: RK SAHNI <rksahni278@yahoo.co.in> Sent: Wed, 22 Feb 2017 14:35:03 To: vasigala ramesh rediffmail.com

>
Subject: Re: [PENSIONERS' VOICE & SOUND TRACK Editor: R K Sahni ] Judgment Reserved FW ERI BOI

email id of shri m s murty

sreenivasa.murty@gmail.com

with regards,

rksahni

278 Sector 5,

Urban Estate,

Kurukshetra

Haryana PIN 136118
BLOG:
www.rksahni.blogspot.in
Namedas-
"PENSIONERS VOICE & SOUND TRACK"

Mobile: 09416137078

LL: 01744_230406

On Wednesday, 22 February 2017 11:19 AM, vasigala ramesh <vbvramesh@rediffmail.com> wrote:

thanks Read his elaborate proceedings in Court including his direct submisions on allowing by judge, in pensioners chronicle. Very nice.

But in additon to Life Fund, he should have touched how hefty dividends so far enjoyed by shareholders instead of prudent provisioning for Pension Liabilities also over the years.

with best wishes
pl inform sri srinivasa murthy's email id if havingl
=vbv ramesh



From: er iyer <eriyer47@yahoo.co.in>
Sent: Tue, 21 Feb 2017 16:55:35

Subject: Fw: [PENSIONERS' VOICE & SOUND TRACK Editor: R K Sahni ] Judgment Reserved FW ERI BOI

Regards, E.R.Iye

----- Forwarded Message -----
From: Blogger <no-reply@blogger.com>
To: eriyer47@yahoo.co.in
Sent: Tuesday, 21 February 2017 4:45 PM
Subject: [PENSIONERS' VOICE & SOUND TRACK Editor: R K Sahni ] Judgment Reserved

Message received from MSM at 4.37PM

"Arguments ended. Judgement reserved. Yesterday it was Hyderabad's day. Today it was Sreenivasa Murty' day, if LIC Pensioners permit me to say so.
I had a God (Bench & NG) given chance to address the Bench for over fifteen minutes in two spells, to counter LIC's absurd interpretations of Life Fund etc.,
too tired to continue now.
God bless LIC Pensioners.?"

Greetings.

C H Mahadevan

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Posted By Blogger to PENSIONERS' VOICE & SOUND TRACK Editor: R K Sahni on 2/21/2017 04:45:00 pm

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