Pension Updation taken up with DFS, & other matters

FEDERATION OF RETIRED LIC CLASS I OFFICERS' ASSOCIATIONS     

President :    N.P. Bali 705, Sur, Veena Saaz, Thakur Complex, Kandivali (East), Mumbai - 400 101 Mob : 9820324213 Email Id - npbali@hotmail.com

General Secretary :    D Krishnan No.6/1, Sreshta Riverside Apartments, Wood Creek Road, Nandambakkam, Chennai - 600089 Tel : 9176635967 / 044 42850049. Email Id - dkrishnan1@gmail.com

E circular No.DK/50                                                11-12-2020

Reg: Pension Updation taken up with DFS, & other matters

Friends,

You must all be quite eager to understand what exactly is happening to our major issues concerning, Up-gradation of Pension, Improvement in Family Pension, Age limit for full pension to 67, etc. Here is a communication received from Sri Agnihotri , the Brain-Trust in AIRIEF, with whom we have been functioning in close coordination. This should give you an idea of how things are moving. Sri Anand Tyagi, from Lucknow, is the leader of the Retired Development Officers, and was their All India President in the days I was in Lucknow in the serving days. He has been extremely active in trying to reach the Govt. channels through his sources of influence. In fact, during our last Delhi visit in early 2020, for the SC Hearing which got adjourned, we met the Additional Secretary of Finance, Smt Dakshita Das, along with a Delegation that included Sri Anand Tyagi. It is that name of Sri Anand Tyagi, which has found mention in Sri Agnihotri's message, as narrated below

1.    "As you are aware, Smt. Ranjanben Bhatt, Member of Parliament from Vadodara has taken up our pension related issues with the Finance Minister vide her letter dated 12/09/2020. She also had a meeting with the Finance Minister wherein the officials of Department of Financial services were present, to resolve the issues. This initiative was taken by Shri Anand Tyagi.

2.    Subsequently, Shri Anand Tyagi met the officials of DFS on 23/11/2020 to follow up our issues. He informed that most of the officials in DFS (Insurance) were changed. New Additional Secretary now is Shri Ajay Agarwal and new Joint Secretary is Shri Sudhir Shyam. Shri Tyagi gave reference of our representation submitted to the Finance Minister through Madam Ranjanben Bhatt, MP and her meeting with the FM. The new team called for the details of meeting and the instructions of the Finance Minister, which were presented by the concerning lady officer. It was also informed that matter is referred to Law Ministry on certain issues. Shri Tyagi presented the issues systematically before the Joint Secretary. He gave a patient hearing and told that he has recently joined and not aware of the issues but he will do his best to resolve the issues. During the course of discussion, the matter of updation was discussed specifically on the basis of the notes submitted by us (appended herewith). The Joint Secretary advised Shri Tyagi that being the Sr.  Citizen, he need not come to DFS and the information will be given to him by the Department.

3.    Shri Anand Tyagi also had a talk with the Chairman on 29/11/2020, informed him about the meeting with DFS officials and requested for effective follow up with DFS. The Chairman informed that he was aware of the meeting and assured for following up the matter with DFS from his side.

4.    On 30/11/2020, Shri Tyagi got information from DFS that file has come back from Law Ministry with their approval on certain issues (reportedly family pension and increase in age from 65 to 67 for full Family Pension) and further action is under consideration of the department.

5.    In the meantime, our representation on our main issues were submitted to the FM through Shri Prahlad Joshi, Minister of Parliamentary Affairs, through the instrumentalities of Dharwad and also to Shri Rajnath  Singh, Defence Minister, through the instrumentalities of Lucknow, so that our case gets due importance. All these activities were initiated and monitored by Shri Tyagi in consultation with the leaders of joint front of the Pensioners Unions.

6.    Friends, I am happy to inform that Madam Ranjanben Bhatt, Hon'ble MP, Vadodara has reminded Hon'ble Finance Minister vide her letter dated 10/12/2020 to grant relief to LIC Pensioners at the earliest (Letter attached). Shri Tyagi ji informed that she has also had a talk with Hon'ble Finance Minister and Hon'ble MoS and requested for early action in the matter.

7.    During this hard time of COVID -19 PANDEMIC, we are trying to take up our issues at all appropriate levels, following up and requesting for a prompt action through whatever channels are available. Shri Anand Tyagi ji is doing a great job by using his contacts and personally involving in the activities being undertaken. We do not know to what extent we would be successful; but we are sharing the steps being taken up for redressal of our issues.    

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NOTE ON PENSION REVISION FOR RETIRED EMPLOYEES OF  LIC OF INDIA

Why Pension Revision is necessary?

i.          Pension to the retired employees of LIC of India started from 01/11/1993 (Gazette Notification was made on 28-06-1995). The benefit of Pension was extended to those who retired after 01/01/1986. Basic Pension of the employees who retired between the period from 1/1/1986 to 31/7/1987 was updated (revised) as per Rule 35 (1). At the time of retirement, these employees were getting pay and DA as per the scales and rate of DA fixed at CPI 332. Their Basic Pension was updated to allow them rate of DR at CPI 600, bringing them at par the employees who retired during next wage revision period i.e. from 1/8/1987 to 31/7/1992.  

ii.         For the employees who retired after 31/7/1992, Basic Pension calculated on the date of retirement remains fixed for ever. Dearness Relief on the Basic Pension, so fixed, is given at the rate existing on the date of retirement but number of slabs are determined on the basis of current Consumer Price Index (determined on Half Yearly basis in Feb. and Aug. every year).

iii.       After 1/8/1987, the pension is not revised with wage revision; the employees who retired during earlier wage revision periods are getting meagre pension, which hardly suffices for their day-to-day needs. They are also gravely discriminated from the similarly placed pensioners who retired during subsequent wage revision period.

Following table shows how employees of same designation retired in the wage revision period 1987-1992 (1987-1993 in case of Class 1 and Class 2 Officers) are getting much less amount in comparison to those retired after 1/8/2012 i.e. current wage revision period.

The table shows that the employees retired before 31-07-1992 / 01-04-1993 are getting much less amount of total pension. Such surviving employees are only a few, but their pension is pathetically low and discrimination is frustrating.    

Table   showing Pension paid as on 31/08/2020     

Designation	Retd during Wage Revision Period 1987-1992			Retd. during current wage revision period (from  2012-continuing)
	Basic Pension	Dearness Allowance	Total	Basic Pension	Dearness Allowance	Total	Difference
Executive Director	3500	27899	31399	55618	39378	94996	63597
Divisional Manager	2675	24607	27782	39807	28181	67984	40202
A. A. Os	2130	22432	24562	31158	22060	53218	28656
Dev Officer	1940	21115	23055	27538	19497	47035	23980
Assistant	1490	16821	18311	20845	14758	35603	18782

 Table showing Pension Anomaly with every wage revision in the cadre of

 Executive Director as on 31/8/2020

Following data show as to how the difference in Basic Pension, DR and Total Pension is increased with every subsequent wage revision:

Period of Retirement	Gross Basic Pension	DR as at 31/8/2020	Gross Total Pension as at 31/8/2020	Monthly Loss in Pension on account of non-upgradation	% of loss due to non-upgradation
1/8/1987 to 31/3/1993	3500	27899	31399	63597	66.9
!/4/1993 to 31/7/1997	7000	31720	38720	56275	59.2
1/8/1997 to 31/7/2002	11800	39353	51153	43843	46.2
1/8/2002 to 31/7/2007	17503	41052	58555	36441	38.4
1/8/2007 to 31/7/2012	29075	50111	79186	15810	16.6
1/8/2012 to 31/1/2021	55618	39378	94996	0	0.0

Similar anomalies have crept in all other designations of employees.

It is a well-known fact that with the vast changes in the economy, market, social values and consumption pattern, the cost of living, in general, and that for very old persons in particular, has been increasing very fast.  And, therefore, there is a necessity for relief to be given to LIC Pensioners by way of pension revision (updation).  

iv.       Pension to employees of LIC is governed by legislation and not by settlement/agreement. LIC of India (Employees) Pension Rules, 1995 were made by the Central Government as provided in Sec. 48 (2) (cc) of LIC of India Act, 1956 and are amended from time to time by Central Government unilaterally.

v.        Similar grievances of the employees of Central government were removed by allowing parity among the similarly placed pensioners from Fifth Pay Commission by allowing modified parity from 1/1/1996 and then full parity from Seventh Pay Commission. The residuary provision of LIC Pension Rules (vide Rule 56) mandates for providing the benefit of Parity in pension among similarly placed pensioners of LIC also, which can be done by allowing Pension Updation with every wage revision to the LIC Pensioners.

vi.       LIC Employees Pension Scheme is neither a contributory nor a restricted fund Scheme. Adopting the best accounting practices, LIC created a Pension Fund with the provision of upwards revision of the pension, as and when it becomes necessary. So, being a funded scheme cannot be a ground for denial of Pension Updation. 

vii.      LIC Pension Rules provide the benefit of Pension revision to the Chairman and Managing Directors of LIC (Rule 55B). 

viii.     Anomalies in payment of pension based on date of retirement were brought to the knowledge of LIC Management after the pension amendment notification dated 22/06/2000. LIC of India appreciated the grievances and recommended revision of pension vide its Board Resolution dated 24/11/2001. It was suggested that the following updation formula to upgrade the basic pension/family pension in respect of employees who have retired between 01.01.1986 to 31.07.1997 may be adopted:

"a. The basic pension/family pension payable in relation to AICPI 600 points or 1148 points, as the case may be, shall be upgraded by merging the Dearness Relief payable upto AICPI 1740points, and

b. On the pension so upgraded, Dearness Relief of 0.23% of basic pension shall be paid or become recoverable for every 4-point rise or fall of AICPI from 1740 points. It is suggested that the above amendment shall be made from the date of its notification in the official gazette and no arrears on account of Pension/Family Pension/Commutation Value or Dearness Relief shall be payable."

Similar procedure has to be followed with every wage revision so that unnecessary classification among similarly placed pensioners is eliminated.  M P Agnihotri

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The Udupi Association will be formally launched on the 9^th of Jan 2021.  Their membership list is almost 80 for a start!  I have planned to go over there for the occasion. Sri O P Vashisht , who has evinced keen interest in the area of expansions of units under the Federation, and  our special ambassador in that area, would also be making it for the Launch Function.

I have taken up with the ED ( E&OS), CO, regarding the Guest House restrictions currently imposed on retirees being given allotments. I have also followed up on an earlier initiative regarding extending the time-limit for the Last LTC being availed of by Retired Officers in view of the Lock-down conditions. Such extension is already given to retiring employees of Class III &IV.

This month of December should ideally have seen our All-India Executive Committee Meeting taking place. Because of the times we are passing through, members felt that this year's EC Meeting could be given a slip. The suggestion of even holding it in the virtual mode did not find favour.

As a result of this major departure from the norm, it would be the endeavour to send to the EC Members, the Report of the Secretary and the Accounts for the year (Un-Audited for now). The Report will be brief and not covering wider global concerns, as is usually done. This should be reaching the EC Members in another few days.

Meanwhile, the Associations which have not conducted their General Body Meeting by Circulation as done by Lucknow, as the leader in this behalf should get this approval from their members for an extension of the same team for a year more, for the record of it, and more importantly, send to the Federation, the subscription amount due annually, based on the membership numbers.

Wishing all our members a very safe and healthy period into Xmas and beyond into the New Year.

D.Krishnan.

General Secretary