A BRIEF LECTURE ON CLASSES & RATES FAMILY PENSION AS GIVEN IN CCS PENSION RULES

DEARNESS RELIEF APPLICABLE TO PENSIONERS W.E.F. 01/08/2021

PENSION UPDATION LIKELY TO BE A REALITY FOR BANK RETIREES' SOON

GIST OF THE BIPARTITE TALKS HELD BETWEEN IBA & BANK UNIONS FOR BANK RETIREE'S PENSION REVISION

INVITATION TO BANK UNIONS FOR BIPARTITE TALKS WITH IBA FOR PENSION UPDATION & OTHER RESUDIAL ISSUES ON 22/07/2021

THE FALLACY OF FUNDING SCHEME BEING AN OBSTACLE TO PENSION UPGRADATION:- AN ARTICLE BY Mr. C H MAHADEVAN FORMER EXICUTIVE GM LIC

We have seen the stock argument of LIC in our legal case both in Delhi High Court and also in the Supreme Court as revealed in LIC's Counter Affidavits  that the Pension Scheme for LIC employees is a 'funded scheme' while that for Central Government employees is a 'Pay as you go' scheme citing it as a reason for  the inability of the Corporation to pay upgraded pension.

There is a glaring fallacy  in the argument of the  LIC for various reasons.

First and foremost, both our Pension Scheme and the Central Government Schemes are defined benefit schemes with a definite legal obligation to pay such benefit to the pensioners.So the question arises as to whether a scheme is defined by  the  statutory legal obligations  which  an  organisation has to fulfil or  by the mechanism set up for meeting such obligations.

If the funding mechanism had not  been put in place ,would  not the statutory  obligations still remain to be fulfilled through some other mechanism even if it is not under 'Pay as you go'?

The funding mechanism with a prescription in the pension rules for  annual actuarial valuation of  liabilities eminently enables the monitoring of the scheme both in terms of actual experience as well as in terms of quantification of the liability every year for budgeting purposes.There have been some defence  of the Central Government system with the argument that the Government can take up printing of notes when faced with a deficit.When such a situation arises,what will happen to the financial health and monetary equilibrium of our country's economy?The ultimate sufferers will be the people at large due a surge in inflation that will result, as financial prudence would be  given a go by for expediency.

It is worth noting that due to the pressures  that ravaged   the economy due to the Covid pandemic. the Central Government brought in a moratorium on payment of increase in  Dearness Allowance for employees and on increase in  Dearness Relief for pensioners  for the period from 1/1/2020 to 30/6/2021.Such a freeze did not happen in the case of LIC employees and pensioners for the reason that LIC employees were protected by Gazetted wage revision Notifications while pensioners were protected by the LIC Pension Rules 1995 supported by a funded scheme.

The logic advanced so far by LIC has been demolished  the moment the Central Government approved the upgradation of pension for the RBI employees in March 2018 albeit with prospective effect while theirs is  also a funded scheme.

Secondly, even though it is a funded scheme in LIC for all pensionable employees, despite the funding, the provision for the  pay-out cannot be said to be taking place in an equitable manner.The PF surrendered had been on a uniform scale for all the employees, while the benefits paid to officers governed by Rule 55B are relatively higher than for  the other pensioners for the reason that they are paid out of the LIC Pension Fund the amounts of pension  as payable to Central Government pensioners which includes upgraded pension arising out of implementation of Central Pay Commission Recommendations once in every ten years.Even on an actuarial basis, there is a discrimination in the matter of determining additional contribution to the Pension Fund with a higher share in respect of officers covered by Rule 55B than that for  the employees not covered by that rule.With this kind of discriminatory dispensation, it  is untenable for LIC to argue that additional liability cannot be borne for upgradation of pension for pensionable employees.

Thirdly, the  funding scheme  for LIC pensioners is in two parts ,viz the one with the Pension Trust which mostly belongs to the serving employees and the other with the P & GS department of LIC with whom the Trust has purchased immediate annuities for payment of pension for retirees and family pensioners .The amount collected by the P & GS dept for payment to pensioners will be clubbed with that collected under immediate annuities in one fund and the advantages of such clubbing will flow to the LIC in the commercial sense.This is the advantage that is derived by LIC as an insurer selling immediate annuities at the same time funding for the Pension liabilities as an employer.

Thus we can be sure that the LIC Pension Scheme as a funded scheme is a beneficial arrangement for LIC rather than a hindrance to upgradation of pension.

In my view, the 'Pay as you go'  scheme is one of expediency and a  'Funded' scheme is one of  financial prudence.The added advantage for LIC as an insurer is the incidental commercial opportunity it provides as an immediate annuity scheme for a group of about 60000 pensioners that it administers.The number will go on increasing at least upto 2045,when more than 95% of the employees covered by the LIC Pension Scheme would have retired.The total number of serving  employees who are pension optees together with the pensioners may be about 1,50,000 as on date including those who have joined the Scheme after OMOP.So the Funded Scheme is a gainful proposition for LIC and no stumbling block for upgradation.

 C H Mahadevan

RETIREMENT FUNCTION HELD AT THRISSUR DO

RETIREMENT FUNCTION HELD AT TRIVANDRUM DO3

HC directs insurance companies to clear bills quickly to prevent delay in patient discharge

BANK EMPLOYEES' PAY SCALE AFTER 11TH BIPARTITE SETTLEMENT

Bank Employees revised pay scale.

Workmen Pay Scale

Pay Fixation	Pay Scale
Clerical	Clerical for 20 Years
Pay Fixation 1	17900 – 1000(3) – 20900
	20900 – 1230(3) – 24590
	24590 – 1490(4) – 30550
	30550 – 1730(7)
Pay Fixation 2	42660 – 3270(1) – 45930
	45930 – 1990(1) – 47920
Subordinate Staff	Subordinate Staff for 20 Years
Pay Fixation 1	14500 – 500(4) – 16500
	16500 – 615(5) – 19575
	19575 -740(4) – 22535
	22535 – 870(3)
Pay Fixation 2	25145 – 1000(3) – 28145

Bank Officers Revised Pay Scale

Pay Fixation	Salary Scales
Scale1	36000 – 1490(7) – 46430
	46430 – 1740(2) – 49910
	49910 – 1990(7) – 63840
Scale 2	48170 – 1740(1) – 49910
	49910 – 1990(10) – 69810
Scale 3	63840 – 1990(5) – 73790
	73790 – 2220(2) – 78230
Scale 4	76010 – 2220(4) – 84890
	84890 – 2500(2) – 89890
Scale5	89890 – 2500(2) – 94890
	94890 – 2730(2) – 100350
Scale6	104240 – 2970(4) – 116120
Scale7	116120 – 3220(4) – 129000

The above pay scales are mentioned as per 11th Bipartite Settlement

 

LIC EMPLOYEES' GET A CHEERFUL WAGE REVISION

LIC Revised Pay Scale for Officer Class 1

Designation	Basic Pay (Rs) from 01.01.2017	Basic Pay (Rs) from 01.01.2012
Zonal Managers Chief Engineers / Chief Architects	(a) Ordinary Scale : 1,46,095 – 4415(8) – 1,81,415 (b) Selection Scale : 163755 – 4415(2) – 172585 172585 – 4735(1) – 177320 177320 – 5180(1) – 182500 182500 – 5370(4) – 203980	(a) Ordinary Scale : 89095 – 2685 (8) – 110575 (b) Selection Scale : 99835 – 2685(2) – 105205 105205 – 2880(1) – 108085 108085 – 3150(1) – 111235 111235 – 3265(4) – 124295
Deputy Zonal Managers / Senior Divisional Managers Deputy Chief Engineers / Deputy Chief Architects	130500 – 3780(3) – 141840 141840 – 4255(6) – 167370	79605 – 2300(3) – 86505 86505 – 2590(6) – 102045
Divisional Managers Superintending Engineers / Senior Surveyors of Works / Senior Architects	107820 – 3780(9) – 141840	65805 – 2300(9) – 86505
Assistant Divisional Managers / Senior Branch Managers Executive Engineers / Surveyors of Works / Deputy Senior Architects	87895 – 2645(1) – 90630 90630 – 2865 (6) – 107820 107820 – 3780(4) – 122940	53725 – 1610(1) – 55335 55335 – 1745(6) – 65805 65805- 2300(4) – 75005
Administrative Officers / Branch Managers Assistant Executive Engineers / Assistant Surveyors of Works / Architects	72115 – 2645(7) – 90630 90630-2865(6)-107820	44065 – 1610(7) – 55335 55335 – 1745(6) – 65805
Assistant Administrative Officers / Assistant Branch Managers Assistant Engineers / Assistant Architects	53600 – 2645 (14) – 90630 90630 – 2865(4) – 102090	32795 – 1610(14) – 55335 55335 – 1745(4) – 62315

LIC Revised Salary Structure for Class III

Designation	Basic Pay in Rs from 01.08.2017	Basic Pay in Rs from 01.08.2012
Higher Grade Assistant	35310 – 2370(3) – 42420 42420 – 2645(15) – 82095	21655 – 1445(3) – 25990 25990 – 1610(15) – 50140
Stenographer	29530 – 1690(4) – 36290 36290 – 1960(2) – 40210 40210 – 2390(3) – 47380 47380 – 2480(2)- 52340 52340 – 2645(8) – 73500	18135 – 1030(4) – 22255 22255 – 1195(2) – 24645 24645 – 1455(3) – 29010 29010 – 1510(2) – 32030 32030 – 1610(8) – 44910
Assistants Assistants Appointed as Receiving Paying Cashiers	23465 – 1375(1) – 24840 24840 – 1500(2) – 27840 27840 – 1690(5) – 36290 36290 – 1960(2) – 40210 40210- 2930(3) – 47380 47380 – 2480(2) – 52340 52340 – 2645(5) – 65565	14435 – 840(1) – 15275 15275 – 915(2) – 17105 17105 – 1030(5) – 22255 22255 – 1195(2) – 24645 24645 – 1455(3) – 29010 29010 – 1510(2) – 32030 32030 – 1610(5) – 40080
Projectionists Microprocessor Operators Record Clerks	23465 – 1375(1) – 24840 24840 – 1500(2) – 27840 27840 – 1690(5) – 36290 36290 – 1960(2) – 40210 40210- 2930(3) – 47380 47380 – 2480(2) – 52340 52340 – 2645(5) – 65565	13380 – 475(4) – 15280 15280 – 745(3) – 17515 17515 – 840(2) – 19195 19195 – 850(6) – 24295 24295 – 915(6) – 29785

LIC Revised Salary Structure for Class IV

Designation	Basic Pay in Rs from 01.08.2017	Basic Pay in Rs from 01.08.2012
Drivers	Rs. 21740 – 980(6) – 27620 Rs. 27620 – 1015(1) – 28635 Rs.28635 – 1220(12) – 43275	13380 – 600(6) – 16980 16980 – 620(1) – 17600 17600 – 745(12) – 26540
Sepoys, Hamals, Head Peons, Liftmen, and Watchmen	18930 – 775(5) – 22805 22805 – 825(8) – 29405 29405 – 980(1) – 30385 30385 – 1015(2) – 32415 32415 – 1220(3) – 36075	11660 – 475 (5) – 14035 14035 – 505(8) – 18075 18075 – 600(1) – 18675 18675 – 620(2) – 19915 19915 – 745(3) – 22150
Sweepers & Cleaners	17950 – 775(5) – 21825 21825 – 825(8) – 28425 28425 – 980(6) – 34305	11060 – 475(5) – 13435 13435 – 505 (8) – 17475 17475 – 600(6) – 21075

TMIE EXTENSION FOR AVAILING LTS FACILITY FOR SUPERANNUATED EMPLOYEES

FILE PHOTO FROM GENERAL INSURANCE EMPLOYEES STRIKE AT BANGLURU

JOINT FORUM OF UNIONS & ASSOCIATIONS OF PUBLIC SECTION GENERAL INSURANCE EMP0LOYEES TO OBSERVE STRIKE ON 17 MAR 2021 DEMANDING WAGE REVISION & PENSION UPDATION