Recovery of Commuted Portion of Pension of LIC Pensioners not completed 15 years of retirement.

LIC Class One Retired Officers Association Panchkula salutes Sh S K Awasthi jee ( From Lucknow) General Secretary Federation of Retd LIC Class One Officers Associations  for sending very nicely drafted letter dated 09.09.2024 to CEO & MD LIC regarding reducing Commutation recovery period urgently 

Regards

B R  Mehta 

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FEDERATION  OF  RETIRED   LIC    CLASS  I   OFFICERS'   ASSOCIATIONS

PATRON:               G.N. S RIDHARAN,

Ph:9841072951

Email:

oppilisri@gmail.com

PRESIDENT :

E. I. THOMAS

Ph: 9847420023

E mail

:bobbythomasei@yahoo.in

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GENERAL   SECRETARY :

S. K. AWASTHI

Ph:  9451663802,   7007886404

Email:

skawasthi1944@yahoo.com

SECRETARY   (COORDINATION.):

O. P. VASHISHTHA

Ph: 9412992518

E mail:

opv_ram@yahoo.com.

Ref. SKA/CO/18                                             Dt. 09.09.2024                          

 

Sri Siddhartha Mohanty ji,                                                                   

C. E. O.  & M. D.,   L. I. C. Of India,   

MUMBAI.  

Reg :  Recovery of Commuted Portion of Pension of

LIC Pensioners not completed 15 years of retirement.

 

Dear Sir, 

        It is nearing three decades when Pension Scheme was introduced for the benefit of LIC employees, with provision of commutation of Basic Pension once only to the maximum of 1/3rd,  recoverable from monthly pension over a period of 15 years. This duration of recovery period and commutation factors age wise,  were decided taking into consideration the then prevailing Bank Rate of interest and the Mortality Rate. Over such a long period,  the Bank Rates and Mortality Rates have seen sea changes though recovery term is kept fixed at 15 years.    Now it is felt that the period of 15 years of recovery of commutation amount, is unequitable and unrealistic and  NEEDS TO BE REVIEWED BY LIC,  to make it realistic and equitable to relieve the pensioners. During various Judicial Reviews that took place recently, High Courts have logically found that the 15 years period of recovery of commutation is unrealistic due to sharp fall in rate of interest and have directed to stay the recovery beyond a period of 10 years 8 months. It has already been implemented by a few State Governments for their pensioners.

An identical  Writ Petition No. 17605/2024 was filed by 16  LIC pensioners in the Punjab & Haryana High Court , after it delivered order of stay for PNB Pensioners, and the Punjab & Haryana High Court has  already  ordered LIC to stop  further recoveries from 16 petitioner  pensioners till its next hearing , which we presume  must be in your knowledge.   It is also learnt that the Central Administrative Tribunal, Jaipur Branch has passed its final order  in the matter of Railway pensioners,   to refund the  amount already recovered by Railways  beyond 10 years and 8 months to the affected pensioners. 

 

Looking at the current scenario and to avoid a spate of expected Writs, WE WOULD LIKE TO SUGGEST/DEMAND, AS UNDER :-

1.  A Committee be constituted by LIC forthwith to review the issue of present recovery period of 15 years for the commuted amount, taking into account the current Bank Rate and Mortality Rate and suggest the appropriate period of recovery so that no excess recovery is made from the pensioners in future.

 

2.  Till a final decision is taken by the LIC on the recommendations of the Committee, the recovery of commutation beyond 10 years 8 months must   be stopped forthwith to avoid future refunds. 

 

3.  If the Committee finds that some excess recoveries have already been made from the pensioners,towards commutation,  necessary orders may be issued to refund the same to the affected pensioners. 

 

Looking at the urgency of the issue vis a vis identical legal developments around, we hope appropriate  steps will be taken by LIC without loss of time to  resolve the issue to relieve the pensioners.

 

    With regards. 

                                                                                        Yours Faithfully                                              

                                                                                          S. K. Awasthi

                                                                                      Genl. Secretary,

                                          Fedn. of Retd. LIC Class I Officers' Associations

 

CC: Sri Sat Pal Bhanoo ji

Managing Director, Central Office,

L. I. C of India,  Mumbai. - 400 021

 

CC: Executive Director (P)

 

CC: Executive Director (E&OS)