LIC FAMILY PENSION FORMULA IS ANOMALOUS

From the calculations of family pension in relation to regular pension calculated by Mr C T Joshi,it comes out clearly that the percentage of Family Pension to Regular Pension varies between pre-August 1997 retirements and post -July 1997 retirements .Even if we leave out Minimum Pension cases from this comparison,the fact that one family pensioner gets lower percentage of regular pension compared to another family pensioner is illogical and unacceptable.Even within pre-August 1997 retirements ,the percentage between generations and the percentage between cadres in the same generation of pensioners are not uniform.Even the pension plans by LIC in some cases have been so designed that the pension payable to the spouse on death of the regular pensioner is fixed at 50% of the pension paid to the deceased pensioner.This indicates that the family pension should be not less than 50% of that  of the deceased regular pensioner in gross terms.In fact in case of RBI pensioners ,before the upgradation of pension,the gross family pension would have been 60% of the regular pension.In case of Central Government pensioners,the  basic family pension is 9000  corresponding to the  basic regular  pension   of 13250 of an employee retired after 1/1/2016 which works out to 67.9% of the regular pension.This means family pension of LIC & Bank pensioners has been under fixed.

So we need to pursue for improvement in family pension with the  LIC Management and the Government at least on RBI pattern.May be it may not happen till the pandemic situation eases.

C H Mahadevan