BELOW IS IN REPLY TO NIARAS KERALA RTI
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F. No. S-11013/47 /2016-Ins.I
Govemment of India
Ministry of Finance
Department of Financial Services
Subject: Issues related to LIC and Public SectorGeneral
Insurance Companies Pension updation matters.
The issues being examined at this Department relates to various pension matters of employees of LIC and Public Sector General Insurance Companies (PSGIC).
The related matters and progress on the same, are as under
(i) Pension to be computed @ 50% of the last pay or average emoluments, whichever is more beneficial to the employee, as against the existing method of computing pension @ 50% of l0 monthly average emoluments.
The subject proposal is not agreed to and the same has been informed to LIC vide this departrnent letter dated 23.2.2021.
(ii) The existing slab rates of farmily pension (30%, 20%, and 15%,depending on pay slabs) may be modified to the uniform rate of farmily pension @ 30% of last pay.
A proposal in this regard has been received from LIC and the same is under consideration at this Departrnent. LIC has conveyed the estimated liability in terms of actuarial impact for revised family pension for existing family pensioners work out to Rs. 1397 crores. No such proposal is received from GIPSA for PSGICs.
(iii)The provision of enhanced family pension @ 50% of the last pay or twice the family pension in case of an employee dying in seryiee or after retifement, which is at present admissible for 7 years or till the employee would have attained the age of 65, may be changed to 10 years or till the age of 67.
Ptoposal to increase period from 07 years to 10 years is not agreed to, whereas to modify the existing upper age of 65 to 67 is under considetation and a revised draft notification has been received from LIC.
(iv) Revision of pension of retired employees with every wage revision for serving employees. It is observed that, as mentioned in the Corporation letter, the matter is currently Sub-judice in the Supreme Court. Thus, until that matter attains legal finality, it would not be appropriate to consider the matter.
(v) Grant of additional pension to those pensioners who are of the age of 80 and above on the lines of the position as obtaining in respect of Central Govemment pensioners under CCS (Pension) Rules,1972.
The subject proposal is not agreed to and the same has been infomed to LIC vide this department letter dated 23.2.2021.
(vi) Request to extend Pension scheme of 1995 to employees including Ex-servicemen, who were re-employed in LIC and PSGICs on or after 28.6.1995 on attaining the age of 35 years or more and who had ealier opted for CPF.
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The matter is under consideration at this Deparmrent and LIC and GIPSA have been requested to intimate the number of pensioners and the financial implications of this proposal in terms of the actuarial impact vide this depaffinent letter dated 11.11.2021.
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FPP
The matter is under consideration of the Department LIC and GIPSA have been requested to intimate the numberof pensioners and financial impact vide this department letter dated11.11.2021.
(vii) Extension of pension option as allowed in 2019 to those employees of LIC and PSGICs, who were in service prior to 28.6.1995 and had ealier opted for CPF and later (resigned) before completing the age of 55 years but after rendering 20 years; service.
The Subject proposal is not agreed to and the same has been informed to LIC arid GIPSA vide this department letter dated 30.11.2021.
(viii) Request to extend pension scheme of 1995 to employees absorbed from Loss Prevention Association of lndia (LPA) in GIC-Re and PSGICs.
The subject matter was examined by the consultant and he has proposed that the the same is not agreed to, file shall be put up for approval.
(ix) Request to extend pension scheme of 1995 to retired/ serving employees of the erstwhile Tariff Advisory Committee (TAC) absorbed in GIC_Re and PSGICs.
The subject matter is under consideration at this Department and as per GIPSA the number of employees to be 22 and the financial implications of this proposal would be Rs. 9.09 crores.
(x) Delinking of full pension from 33 years of qualiyting service.
LIC vide their letter dated 11.10.2021 has informed that presently the subject proposal is not under consideration at their end.
2. In view of the above mentioned position, in order to have a complete view on the numbet of pensioners and financial implications in terms actuarial impact for the whole insurance sector for the mattets mentioned at point No. (ii) above, if approved, we may request GIPSA and LIC to intimate the same as per DFA please.
M-16011/01/2023-Ins-I
3382412/2023/INS-I SECTION DFS
-110-
F. No. S-11013/47 /2016-Ins.I
Govemment of India
Ministry of Finance
Department of Financial Services
Subject: Issues related to LIC and Public Sector General Insurance Companies Pension updation matters.
The issues being examined at this Department relates to various pension matters of employees of LIC and Public Sector General Insurance Companies (PSGIC).
The related matters and progress on the same, are as under
(i) Pension to be computed @ 50% of the last pay or average emoluments, whichever is more beneficial to the employee, as against the existing method of computing pension @ 50% of l0 monthly average emoluments.
The subject proposal is not agreed to and the same has been informed to LIC vide this department letter dated, 23.2.2021.
(ii) The existing slab rates of family pension (30%, 20%, and l5%), depending on pay slabs) may be modified to the uniform rate of family pension @ 30% of last pay.
A proposal in this regard has been received from LIC and the same is under consideration at this Department. LIC has conveyed the estimated liability in terms of actuarial impact for revised family pension for existing family pensioners work out to Rs. 1397 crores. No such proposalis received from GIPSA for PSGICs.
(iii)The provision of enhanced family pension @ 50% of the last pay or twice the family pension in case of an employee dying in service or after retirement, which is at present admissible for 7 years or till the employee would have attained the age of 65, may be changed to 10 years or till the age of 67.
Proposal to increase period from 07 years to 10 years is not agreed to, whereas to modify the existing upper age of 65 to 67 is under consideration and a revised draft notification has been received from LIC.
(v) Revision of pension of retired employees with every wage revision for serving employees. It is observed that, as mentioned in the Corporation letter, the matter is currently sub-judice in the Supreme Court. Thus, until that matter attains legal finality, it would not be appropriate to consider the matter.
(v) Grant of additional pension to those pensioners who are of the age of 80 and above on the lines of the position as obtaining in respect of Central Government pensioners under CCS (Pension) Rules,1972.
The subject proposal is not agreed to and the same has been informed to LIC vide this department letter dated 23.2.2021.
(vi) Request to extend Pension scheme of 1995 to employees including Ex-servicemen, who were re-employed in LIC and PSGICs on or after 28.6.1995 on attaining the age of 35 years or more and who had earier opted for CPF.
M-16011/01/2023-Ins.I
338241/2023?INS-I DFS
-111=
from pre-page:
The matter is under consideration at this Department and LIC and GIPSA have been requested to intimate the number of pensioners and the Einancial implications of this proposal in terms of the actuarial impact vide this department letter dated 11.11.2021.
(vii) Extension of pension option as allowed in 2019 to those employees of LIC and PSGICs, who were in service prior to 28.6.1995 and had earlier opted for CPF and later (resigned) before completing the age of 55 years but after rendering 20 years' service.
The subject proposal is not agreed to and the same has been informed to LIC and G IPSA vide this department lerter dated 30.11.2021.
(viii) Request to extend pension scheme of 1995 to employees absorbed from Loss Prevention Association of India (LPA) in GIC-Re and PSGICs.
The subject matter was examined by the consultant and he has proposed that the same is not agreed to, file shall be put up for approval.
(ix) Request to extend pension scheme of 1995 to retired/ serving employees of the erstwfule Tariff Advisory Committee (TAC) absorbed in GIC-Re and PSGICs.
The subject matter is consideration at this Department and as per GIPSA the number of employees to be 22 and the Fiinancial implications of this proposal would be Rs. 9.09 crores.
(x) De linking of full pension from 33 years of qualifying service.
LIC vide their letter dated 11.10.2021 has informed that presenty the subject proposal is not under consideration at their end.
2. In view of the above mentioned position, in order to have a complete view on the number of pensioners and Financial implications in terms actuarial impact for the whole insurance sector for the matters mentioned at point No. (ii) above, if approved, we may request GIPSA and LIC to intimate the same as per DFA please.
M-16011/01/2023-Ins-I
File No. S- 1103/47/2016-IN-I(Pt) ( Computer No. 300420643)
3382412/2023/INS-I SECTION DFS
Note # 18 Reference note #14 above
eF No. S-11013i47/201 6-lns.l
Subject: Uniform rate of family pension @ 30% of last pay to LIC and Public Sector General insurance Companies employees.
1.The issues under consideration are the proposals of the LIC and General ensurers (Public Sector) Association of lndia (GIPSA) to fix a uniform rate of family pension @ 30% of last pay, in place of the existing slab system whereby family pension is paid at varying rates of 30%, 20% and 15%, depending upon pay slabs.
2. In this regard,it is stated that the subject matter is being examined by this Department and in order to examine the matter further, LIC and GIPSA may be advised the provide the following data
(i) No. of existing family pensioners as on date
(ii) No. of family pensioners being paid @ 30%:
(iii) No. of family pensioners being paid @ 20%:
(iv) No. of family pensioners being paid @ 15%
3. ln addition to the above, if the rate of family pension is revised to uniform rate of 30%, the total annual additional outgo in terms of its financial implications and source of funds may also be seek form LIC and GIPSA.
4. ln view of the above, if approved, we may seek the required data as stated in para 2 and 3 above as per DFA/3oo291761 to LIC and DFA/3oo29763 to GIPSA please.
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