Pensioners issues

RETIRED LIC CLASS I OFFICERS` ASSOCIATION

President: Y Venkateswarlu (9440467768)

HYDERABAD ( REGD NO: 934 /2014) Vice-President: CH Mahadevan

(9349314013)

Secretary: M V Ramana

(9848590636)

To

The Chairperson LIC of India Central Office "Yogakshema" MUMBAI

DT: 12.08.2023

Dear Sir

Re: Pensioners` issues

We wish to place before you some key issues relating to LIC pensioners including the members of our Association. The pensioners of LIC of India are facing a lot of problems, a good many of them at their fag end of life. The problems have been brought to your notice by various Pensioners` Associations, but cognizant remedial measures have not been visible so far. We are once again putting forth before you some important issues for your favourable consideration to extend possible relief to the pensioners :

The Board of LIC of India passed a resolution in the Board meeting held on 24.11.2001 recommending updation of pension and sent to the Govt of India. Though 22 years have passed, there is no concrete decision has come out. As a result, the Pensioners` Associations have been compelled to seek redressal through Courts of Law. The matter has been pending in Supreme Court with 6 Special Leave Petitions filed in 2017 by various Associations and a group of individuals. The next hearing is scheduled for 05.09.2023 after repeated adjournments over the past four years.

Though, the matter is sub judice, we feel that the matter may be discussed with the Department of Financial Services under the Ministry of Finance and a suitable proposal for the benefit of pensioners can be submitted by the Corporation to the Supreme Court if deemed proper . The Central Government has already approved upgradation of the pension for RBI pensioners in March 2019 albeit with retrospective effect. Recently, DFS has constituted a Committee for pension related matters of SBI and had directed the Committee to submit its report by 21.07.2023. Similarly, as reported, the representative of PSU Banks - IBA has been advised to have talks with representatives of pensioners on their issues immediately and arrive at a mutually agreed consensus. More recently a MOU has been signed between IBA and the United Forum of Bank Unions on 28/7/2023 agreeing for 100% Neutralisation of Dearness Relief for pre November 2002 Bank retirees subject to approval by the Government. We had also addressed a letter to you on 30/7/2013 requesting you to initiate the process in respect of pre-August 1997 retirees of LIC who are in a similar situation. We hope the matter is receiving your active consideration Keeping in view the recent developments taking place on Pensioners` problems related to Bank pensioners, we urge upon you to take up LIC pensioners' pending issue for pension updation also for redressal.

Contd…2

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The increase in rate of Family pension from 15% to 30% has been pending with the Department of Financial Services for about the last 4 years after approval by LIC Board in 2019. In September 2021, the Central Government had increased the rate of Family Pension for PSU Bank family pensioners from 15% to 30% and recently, the same rate has been applied to RRBs also. The family pensioners of LIC- with their meagre pension income- are desperately awaiting the increase in the rate of pension as had happened in Banking sector in this matter. The various LIC Pensioners` Associations have been following up with you in this matter but no tangible results have materialised with the result there have been deaths of retirees and family pensioners taking place during this waiting period causing a lot of financial hardships. When it could be implemented for more than a lakh and half of family pensioners of Public Sector Banks, it is strange that the increase in pension has been unduly delayed a little more than one-sixth of that number of LIC family pensioners. We humbly appeal to you to take necessary steps for an early issue of the of the Notification in the Gazette given the strong and better financial affordability of the Corporation in comparison with Banks.

Some of the pensioners/retirees on retirement either voluntary/regular could not opt for Group Medical Scheme for one reason or other. Though the Corporation, gave an option in March 2011 to join the Group Mediclaim Scheme, many of them could not join due to non-receipt of communication providing such an option. This issue has been repeatedly brought to the notice of the Corporation for the last 2 years but there is no favourable response. The Corporation was kind enough to give 3rd option to join in the Life Insurance Corporation of India (Employees) Pension Rules 1995 in 2019/20, but, the same mercy has not been extended in respect of providing another option to left over retirees/family pensioners to join the Group Medical Scheme though the financial burden on this count is much less than for the one more option for pension of over Rs 11000 cr. The Corporation was also generous enough to include independent children of the retiree members in the Group Mediclaim Scheme last year even though they were outsiders Hence we request you to show some sympathy to the left over pensioners who are insiders of the Corporation.

We heartfully appreciate the Corporation for taking steps for credit of pension in their respective Bank accounts of pensioners on the first of following month. For the last 9-10 months, majority of pensioners are by and large happy in this matter. Yet, some of the Divisions are not able to ensure credit of pension on the 1st. As such, we request you to give necessary instructions to all Offices of the Corporation to streamline the system for ensuring the credit of Pension positively on 1st.

The Corporation is known for practicing the best HR policies and practices. As part of a sound HR policy, some of the Pensioners` Associations could meet your predecessor Sri M R Kumar in July 2017 and we had satisfying discussions with him. As a result of such discussions, the Pensioners are getting credit of pension on 1st itself. After that meeting, we are unable to have another chance to meet our Chairperson in person. In this connection, we would request you to give us an appointment on a one suitable date for our representatives to meet you in the month of August/Sept., 2023 to have fruitful discussions on the crucial issues pending for resolution.

Thanking you & with regards,

Yours faithfully,

SECRETARY (M V RAMANA).

……………………………………………………………………………………………………………………………………… E-mail; m.ramana1956@gmail.com Address: H.NO: 16-2-836/A/16, LIC Colony, Saidabad, Hydera