Meeting with the Managing Director

A delegation of the Joint Front of LIC Pensioners' Associations met Shri Sat Pal Bhanoo, Managing Director, LIC of India on 9th Feb. 2024 at Central Office, Mumbai for redressal of the grievances of LIC pensioners. Shri N P Chawla and Shri B R Mehta represented LIC Class I Retired Officers' Association, Panchkula; Shri C H Mahadevan and Shri M V Ramana represented Retired LIC Class I Officers Association, Hyderabad and Shri Ranjan De Sarkar and Shri M P Agnihotri represented All India Retired Insurance Employees Federation. Apart from M D Shri Sat Pal Bhanoo, Shri R K Dube, Executive Director (Per), Shri Anirban Sarkar, Executive Director (Per), Shri L Chendurnathan, Chief (Per) and Shri Sanjay Gupta, Dy. Secretary were also present.

The meeting started at 4 PM. Shri C H Mahadevan, Retd. ZM, greeted the Managing Director with a bouquet and presented the memorandum. Shri N P Chawla, Retd. ZM, introduced the participants and congratulated the Managing Director and team LIC for the splendid performance of LIC in first nine month of the current Financial Year on various counts, as well as for significant improvement in its share value which has touched the ever high figure since launch of the IPO.

Coming to the subject of the meeting, Shri Chawla informed the Managing Director that certain grievances of the pensioners, as stated in the memorandum, are pending for a long period, and need immediate resolution. Shri Chawla invited the attention of the Managing Director towards the fact that there is grievance resolving mechanism for various groups of people related to LIC, but unfortunately there is no such provision for the pensioners who are an important part of LIC. While thanking the Managing Director for allowing the personal meeting, Shri Chawla proposed to discuss the matters one by one. Shri C H Mahadevan started the discussions and other delegates viz. S/S M P Agnihotri, B R Mehta, Ranjan De Sarkar and M V Ramana ably assisted him.

• I.
  Revision of Pension: We informed the grave disparity in pension paid to the pensioners who were retired in earlier wage revision periods. The data supporting our statement were discussed in detail and explained how the past pensioners in all the cadres are getting a very low pension. We also presented the data of retired regular pensioners, family pensioners and the in-service employees who have opted for the pension and stated that our pension scheme being closed-ended, the number of the pensioners will be reducing gradually. We stressed that the pensioners being a vulnerable group subjected to very high mortality need immediate relief and LIC may kindly consider payment of ex-gratia amount if the pension revision is going to take time to reach finality.

  We also cited some live examples and informed the amount of pension from the current pension slips of the pensioners retired from different classes, during the earlier wage revision periods to show how abysmally they are paid. We shared the feelings of the senior pensioners on their plight and conveyed their aspirations and expectation to the Managing director. In view of the present social pattern, deteriorating health of our super senior pensioners and the current rate of inflation, the pensioners are finding it very difficult to meet with their day to day needs. Citing excerpts from the record of agreed conclusions on introduction of the indexed linked pension scheme conveyed vide CO letter dated 14/01/1994 and the provisions of various rules like Rule 54, 55, 55A and 56, we pleaded that demand for pension revision with wage revision, is as per the intent of rules and totally justified to eliminate the grievances.

  Citing the precedence, we informed that the benefit of pension upgradation has been given in RBI & NABARD and a clause of ex-gratia payment, as an immediate relief, is added and accepted in the MOU of recent Bipartite Settlement of PSU banks. Countering the plea of high cost of pension, we pointed out that the amount of 'contribution' to the pension fund is erroneously being quoted as 'pension outgo', which is in fact the provision of pension for the future retirees, thus the future liability. 'Pension payout' is the amount paid to the retired pensioners on the 1st day of the following month, as provided in Rule 54. For the FY 2020-21, amount of pension paid was Rs. 1808 Crs. whereas amount of contribution was Rs. 10071 Crs. and amount of employees' remuneration & welfare benefit was Rs. 26606 Crs. Thus, pension paid was only 6.8% of the employees' remuneration.

  It was informed by Shri R K Dube, ED (Per) that Finance Ministry is of the view that employees/pensioners of LIC are the employee of Commercial Organisation so they are different from the CCS employees. We contended that our demand is not to be treated as CCS employees but to invoke the provision of Rule 56 of our Pension rules.

• II.
  100% D R for Pre-01.08.1997 retirees: In view of the Central Government's approval of 100% neutralisation to the Pre-Nov 2002 pensioners of PSU Banks, we requested for accepting our long pending demand also on the same lines.
• III.
  Consideration of enhanced Pension on reaching 80 years and at quinquennial ages thereafter: As stated in item no. I above, we requested for invoking the provisions of Rule 56 in this case also.
• IV.
  Fixation of Basic Pension at 50% of average emoluments or last drawn pay whichever is beneficial to the employee: It is a genuine grievance of those who retire within nine months of the effective date of wage revision and hence may kindly be considered on the same lines as have been provided in CCS Pension rules/RBI Pension rules.
• V.
  Enhancement of notional age (of deceased retiree/employee) from 65 years to 67 years: We requested that our demand is restoration of benefit which was available before the retirement age was increased to 60 years from 58 years.

  In respect of item no. III, IV and V, Shri R K Dube, ED (Per) informed that these demands are refused by the Finance Ministry, but he assured that the same will be again taken up for favourable reconsideration.

• VI.
  Mediclaim Matters: In the matter of inclusion of voluntary retirees who are excluded in the circular dated 01.09.2023, inclusion of Dental treatment and removal of GST, The ED (Per) expressed inability to consider our request.Yet, we tried to convince MD but they not assured but they they informed to relook into the matter.In respect of the cities, where criteria of covering them in A or B class cities is not met with because of different population criterion of each part, Shri Dube said that proposals can be sent for their consideration. Similarly, suggestions on concession on preventive health check-up, concession on domiciliary treatment may also be sent at the earliest for their consideration.
• VII.
  Minimum Pension for Family Pensioners: Consequent upon omission of Appendix V, the provision of minimum pension stands removed. We requested for setting revised norms for Minimum Family Pension in view of the latest circular issued to increase the rate of Family Pension uniformly to 30%. ED (Per) informed that they have examined the issue and they have not found any case where the Family Pension is less even than the Minimum Pension provided in the Rule 36.
• VIII.
  Group Term Insurance Scheme: Responding to our demand for covering all retirees up to age of 75 years irrespective of date of retirement, it was informed by ED (Per) that the proposal is not feasible due to cost factor and the youngsters have objection on the high burden.
• IX.
  Addition to qualifying service in special circumstances: We requested to consider addition in number of qualifying years in respect of Development Officers coming from agent's category, Ex-servicemen, Engineers, etc. as per the provisions of Sec 27 of our Pension rules citing the example of PSU banks. ED (Per) informed that the matter has been examined and could not be found feasible for general application. However, specific case may be considered on merits. We insisted that relaxation for the candidates from agency quota is given recognising the marketing experience as the LIC's own agent, and hence such cases should be considered under Rule 27. We requested for reconsideration of this demand.

Responding to the demands stated at item number X and XI of the memorandum on restoration of the commuted value after 12 years and pension to the employees who resigned from the services of the Corporation, ED (Per) showed inability to consider the same, on technical grounds.

Similarly, on the demand of payment of pension on the last working day, the Managing Director inquired whether pension is being paid on 1st of the following month. It was informed that the issue is monitored and proper coordination is ensured with the banks to ensure that pension is paid on the 1st of the following month.

The Managing Director and team of Personnel Dept. gave a patient hearing to our submissions, interacted on each point and provided reasoned responses. Shri Chawla requested the Managing Director for his deliberation in the matter of resolving the grievances and meet with the expectations and aspirations of the pensioners.

Shri Sat Pal Bhanoo, Managing Director, addressing the delegates informed that at Central Office, they are aware of the grievances. The Corporation recognises the contribution of the pensioners and they will do their best to resolve the grievances within the liability the Corporation may bear. On the issue of information sharing with pensioners, the Managing Director stated that the corporation may think of such meeting on the Pensioners Day, celebrated by the pensioners. He informed that during Insurance Week Celebration, generally pensioners are invited. We brought to the notice of the Managing Director that invitation to the retired employees for insurance day celebration is not extended uniformly and requested to advise the subordinate offices suitably in this regard. The Managing Director also advised the recently retired pensioners to undertake the job of the Corporation as CLIA, IMF, etc. where their experience and expertise may be utilized and they can keep themselves gainfully busy.

The meeting concluded with a vote of thanks to Shri Sat Pal Bhanoo, Managing Director, Shri R K Dube, Executive Director (Per) (retiring on 29/02/2024), Shri Anirban Sarkar, Executive Director (Per) (who is to take over charge from Shri Dube), Shri Chendurnathan, Chief (Per), Shri Sanjay Gupta, Dy Secretary (Per) and the MD secretariat by Shri M P Agnihotri.

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(1) All India Retd. Insurance Employees' Federation 

(2) Retired LIC Class I Officers' Association (Hyderabad) 

(3) LIC Class I Retd. Officers' Association (Panchkula)