Contradictions our Pension Rules,1995

Rule 35(2) of LIC Pension Rules 1995 reads as follows:

 " 35 (2) In the case of an employee retiring in accordance with the provisions of the Service Rules or of the Staff Regulations after completing a qualifying service of not less than thirty three years the amount of basic pension shall be calculated at fifty per cent. of the average emoluments."

The meaning is that this rule is applicable to all employees covered by the LIC Pension Rules 1995.

But Rule 55 B covers officers in the cadres of Chairman( now Chief Executive) and Managing Directors who are singled out for more liberal dispensation by making their pensionary benefits to be paid as per the CCS Pension Rules 1972( now repealed by CCS Pension Rules 2021)     and the Central Civil Services (Commutation of Pension) Rules, 1981, as applicable to Central Government servants and in accordance with the instructions issued by the Central Government there under from time to time.

Rule 31 of CCS Pension Rules 2021 reads as follows:

"31. Emoluments.- 

(1) emoluments

Fundamental Rules, 1922 which a Government servant was receiving immediately before his retirement or on the date 

of his death; and will also include non-practising allowance granted to a medical officer in lieu of private practice. 

Explanation.- Stagnation increment shall be treated as emoluments for calculation of retirement benefits"

Again Rule 44 of the CCS Pension Rules 2021 reads as follows:

"44. Amount of Pension.- (1) A Government servant, who retires under rule 33, rule 34, rule 35, rule 36, rule 37, 

rule 38 or rule 39, after completing a qualifying service of not less than ten years, shall become eligible for grant of a 

pension calculated at fifty per cent of emoluments or average emoluments, whichever is more beneficial to him, 

subject to a minimum of nine thousand rupees per month and maximum of one lakh twenty-five thousand rupees per 

month:

Provided that a Government servant who retires under rule 39 before completing a qualifying service of ten 

years but fulfils the conditions mentioned in sub-rule (9) of rule 39, shall also be eligible for an invalid pension 

calculated at fifty per cent of emoluments or average emoluments, whichever is more beneficial to him and the 

condition of completion of minimum qualifying service of ten years shall not be applicable for grant of pension in his 

case.....".

The implications of Rule 35(2)  and Rule 55 B  when considered side by side are that the top two cadre officers are provided more beneficial treatment in fixation of their pension on retirement at 50% of the emoluments or average emoluments whichever is more beneficial .

But in case of other cadres ,as we have experienced, pension is fixed at 50% of the average emoluments drawn during the last ten months of service before retirement.

Thus the there is a more liberal method for fixing basic pension for Chairman & Managing Director compared to other employees in the lower cadres whose basic pension is determined as per Rule 35(2).

The contradiction arises  because Rule 35(2) specifically does not exclude officers covered by Rule 55 B.Thus  the existence  of Rule 35(2) and Rule  55 Btogether in LIC Pension Rules 1995 violates Article 14  of the Constitution in my view.

I leave it to the legal experts  to consider whether my interpretation is correct. Our pensioner bodies have been repeatedly requesting LIC Management to consider amendment of Rule 35(2) as applicable to Central Government employees and RBI Pension Rules, but the Central Government has not given its approval. Now this matter has to be taken up as a part of our demand for making Rule 56 applicable in our legal fight.

C H Mahadevan