Increase in Family Pension to a uniform rate of 30% for PSGIC pensioners notified on 11.02.2026.

To all affiliated Units.

Dear Comrades

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  Congratulations - Increase in Family Pension to a uniform rate of 30% for PSGIC pensioners notified on 11.02.2026.
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  Around 15,000 existing family pensioners to benefit.
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  AIIPA would ensure early implementation and pursue other demands of Pensioners.

At last, the long and patient wait of PSGI family pensioners has come to an end. The Government of India has now issued the gazette notification granting enhanced family pension at a uniform rate of 30% of the last drawn pay, without any ceiling, to the family pensioners of PSGI Companies effective from 11.02.2026 [Notification No. SO 719(E) dt. 11.02.2026]

As all are aware, AIIPA has been representing the issue of increased family pension to Insurance Pensioners at par with pensioners of other sectors for the last several years. We organised conventions, demonstrations, dharnas etc. to draw the attention of powers that be. AIIPA units approached about one hundred MPs of various political affiliations and enlisted their support to our cause. A delegation of AIIPA, accompanied by Com John Brittas, MP met the Hon'ble Finance Minister, Smt. Nirmala Sitharaman on 02.08.2023 urging upon her to accord sanction for the benefit recommended by the Board of LIC of India and the Governing Body of GIPSA in September, 2019 and December, 2021 respectively. The Finance Minister reacted that the Government would not stand in the way, if the respective managements had no objection.

But to our dismay, the Government granted the increased family pension only to LIC pensioners with effect from 11.09.2023, leaving out family pensioners of PSGI Companies without any valid reason. We have been approaching all the authorities concerned ever since to end the discrimination. We addressed letters to the Union Finance Minister, the Chairman, GIPSA and the Secretary, DFS requesting them to consider grant of this benefit to PSGI pensioners without further delay. In the meantime, AIIPA conducted agitations to mount pressure on the management and government. We met Chairman, GIPSA several times to press the demand.

A delegation of AIIPA comprising Coms. Satanjib Das, M. Kunhikrishnan and J. Gurumurthy met Shri Parshant Kumar Goel, IAS, Joint Secretary of Department of Financial Services at New Delhi on 27.03.2025 and urged him to accord expeditious approval. The Joint Secretary, DFS, informed the AIIPA delegation that the increased family pension would be granted once the wage revision question is settled and expressed hope to resolve the issue by 30.04.2025. We impressed upon him the necessity to de-tag the family pension issue and to notify it without delay considering the long suffering of family pensioners and the nature of pension being paid through annuity process that might impact on effective date. He appreciated our arguments and assured to consider issuance of gazette notification separately for grant of increased family pension if the wage revision process was delayed.

As recently as on January 21, 2026, a delegation of AIIPA comprising Coms M.Kunhikrishnan, J.Gurumurthy and D.Krishnamurthy met Smt Girija Subramanian (Chairperson, GIPSA) at Mumbai and sought her urgent intervention to break the stalemate. She assured that DFS approval would be obtained on priority and we would get the happy news very soon. The Press Information Bureau of Ministry of Finance vide its Press Release dated January 23, 2026 has since confirmed DFS approval for the agreed Family Pension increase along with the agreed wage revision.

As a result of this Notification, out of a total of 15,582 existing family pensioners in PSGICs, barring 967 family pensioners (in class 4) who are already receiving 30% of last pay, 2,745 family pensioners who are receiving 20% and 11,870 family pensioners who are now receiving 15% of last pay (2745+11870=14,615) will get their family pension revised to 30% with effect from the date of notification, viz 11.02.2026.

We are exploring feasibility of getting the increased family pension benefit through annuity at least from 01.04.2025 (start of the financial year) or a one time lumpsum payment in lieu of arrears. This demand has been placed before Chief Executive, GIPSA on 10.02.2026.

We congratulate the JFTU of officers and employees of Public Sector General Insurance Companies for achieving a decent wage revision effective 01.08.2022, despite all odds. AIIPA takes pride in being part of the JFTU struggles all along. Those of PSGIC retirees who retired after 1.8.2022 will get wage arrears for the period upto the date of their retirement and re-fixation of pension with arrears of commutation difference (non-taxable). AIIPA shall follow up for release of these benefits without delay.

With greetings,

Comradely yours,

General Secretary..