Soundness of LIC Pension Fund as at 31.03.2017

LIC has been claiming that our Pension Scheme is a Funded Scheme vis-a-vis the Central Government method of 'Pay as you go' system.thereby projecting it  as one of disadvantage to LIC  to provide enhanced  benefits to LIC pensioners,the attached charts clearly show the strength of the Funded Scheme of LIC.

The Pension Fund shows a steady increase while the annual outgoes as a percentage show a long term declining trend.At the highest quantum of pension outgo in 2016-17,the Fund covers payment for more than 19 future years at the present rate   The steep  increase in the financial year 2016-17 can be attributed  to the arrears paid to the latest generation of pensioners who have naturally got the benefit of highest quantum of pension due to the latest wage revision as at 1/8/2012.So the Pension Fund in the long run is strong enough to absorb the effect of pension upgradation ,more  so as the LIC Pension Scheme is a closed scheme with no addition to the beneficiaries of the Fund from 1/4/2010 but only reduction  on the contrary from year to year.

Greetings.

C H Mahadevan

• PENSION BENEFITS PAID AS A RATIO OF PENSION FUND AT THE END

  OF THE YEAR

  Financia

  l Year

  Pension Fund at the

  end of the year

  (in Rs Cr)

  Bene#ts

  paid

  (in Rs Cr)

  % of Bene#ts paid to

  the Pension Fund

  No of

  years

  cover

  2007-08 3272.79 978.62 29.9 3.3

  2008-09 5632.93 443.13 7.9 12.7

  2009-10 7129.36 501.71 7.0 14.2

  2010-11 12698.49 637.76 5.0 19.9

  2011-12 16553.58 569.75 3.4 29.1

  2012-13 21073.09 1514.66 7.2 13.9

  2013-14 27038.98 1025.58 3.8 26.4

  2014-15 32578.13 1277.96 3.9 25.5

  2015-16 38925.12 973.05 2.5 40.0

  2016-17 45109.52 2307.57 5.1 19.5

  2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

  0

  5000

  10000

  15000

  20000

  25000

  30000

  35000

  40000

  45000

  50000

  3272.79

  5632.93

  7129.36

  12698.49

  16553.58

  21073.09

  27038.98

  32578.13

  38925.12

  45109.52

  978.62

  443.13

  501.71

  637.76

  569.75

  1514.66

  1025.58

  1277.96

  973.05

  2307.57

  LIC EMPLOYEES PENSION FUND VS ANNUAL PENSION OUTGO

  Pension Fund at the end of the year Bene#ts paid
• 

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