Need for immediate revision of minimum family pension consequent on deletion of Appendix V

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 MUMBAI

dt: 08.01.2024

Dear Sir

ReNeed for immediate revision of minimum family pension consequent on deletion of Appendix V

This is further to our letter dated 12/10/2023.

After the recent Gazette Notification dated 11/9/2023, Rule 39 (c) of the LIC Pension Rules 1995 reads as follows:

"after retirement from service and was on the date of death in receipt of a pension or compassionate allowance, the family of the deceased shall be entitled to family pension, the amount of which will be determined at a uniform rate of thirty percent of pay plus thirty percent of allowances which are counted for making contribution of Provident Fund but not for dearness allowance and in no case the family pension shall be less than the amount of minimum family pension determined by the Board from time to time."

It is further stated in the Notification that the Appendix V shall be omitted. The above amendments come into effect from the date of the Notification, viz. 11/9/2023.

For this reason, the rates of minimum pension taken in the illustrations are no longer valid from 11/9/2023.The Notification had no effect on the family pensioners who were already in the 30% slab of last pay who were drawing minimum pension except that for family pensioners of retirees after 1/8/2022, new rates of minimum family pension will have to be got determined by the LIC Board.

But, for the two higher slabs for granting 20% and 15% of last pay, with the omission of Appendix V, the minimum pensions that were existing prior to the Notification were no longer valid from 11/9/2023 as actually a vacuum has been created for these two slabs for the various retirement groups up to the latest one from that date. In the light of this, the illustrations given in the circular CO/OS/Uniform family pension dated 21/9/2023 cannot be considered as correct as no minimum pension figures for family pensioners determined by the LIC Board post the Notification are in place.

Contd..2

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Besides, the Delhi High Court in its judgment dt 27/4/2017, despite rejecting the prayer of pensioner-petitioners for upgradation of pension, had ordered upgradation of minimum pension drawn by pensioners as a safeguard to protect the right to life of the minimum pensioners under Article 21 of the Constitution. With the deletion of Appendix V and with family pension fixed at 30% of last pay uniformly, there will be no scope for upgradation in minimum pension as, with the enhancement of the rate to 30% of last pay, there will be no family pensioner drawing minimum pension after the revision under the two higher slabs. If minimum pensions are not revised as suggested by us in our letter dated 12/10/2023, the letter and spirit of the Delhi Court judgment dated 27/4/2017 will be violated.

We are not aware whether the Corporation has initiated any step to seek approval of any new quantum of minimum pension from the LIC Board. In case it is not so, we urge upon your good self to take necessary steps to take the matter to the LIC Board for suitable decision to determine revised rates of minimum family pension consequent on the deletion of Appendix V.

Thanking you,

Yours faithfully

SECRETARY (M V RAMANA)

………………………………………………………………………………………………………………………………………… E-mail; m.ramana1956@gmail.com Address: H.NO: 16-2-836/A/16, LIC Colony, Saidabad, Hyderabad 500059