THE DISPUTED PARA 54B OF GIC PENSION RULES

** “54B. Pensionary benefits to employee mentioned in proviso to clause (k) of paragraph 2 who was in service on or after 1.1.1996 –

Notwithstanding anything contained in this Scheme, in respect of employee covered by the proviso to clause (k) of paragraph 2, who was in service on or after 1^stJanuary, 1996, the pensionary benefits shall be calculated in accordance with the provisions contained in the Central Civil Services (Pension) Rules, 1972 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 Provided that where such an employee, who has retired on or after 1.1.1996 and before the date of publication of this Scheme in the Gazette or the family of such employee in the event of death of such employee gives a notice in writing within 90 days of the publication of this Scheme, expressing an option not be governed by the provisions of this paragraph, then, the provisions of the above paragraph shall not apply in respect of such employee or the family of such employee, as the case may be. Option once exercised under this proviso shall be final.

    55.Residuary provisions –

Matters relating to pension and other benefits in respect of which no express provision has been made in this scheme shall be Governed by the corresponding provisions contained in   the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Commutation of Pension) Rules,1981,applicable for Central Government employees.

  The below given Para 2 Gives the definition of the terms used in GIC pension scheme as shown under

  2. Definitions - In this scheme, unless the context otherwise requires -

(a) "Act" means the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

PROVISO  (k)  OF PARA 2 

 (k) "Employee" means any person employed in the service of the Corporation or a Company on full time work on permanent basis and who opts and is governed by this scheme;

*”Provided that where the ****Chairman-cum-Managing Director

Corporation or Chairman-cum-Managing Director of the Company, was an employee of the Corporation or the Company, immediately preceding his appointment to the post of ****Chairman-cum-Managing Director of the Corporation or the Company, as the case may be, then such ****Chairman cum- Managing Director of the Corporation or the Company, shall also be shall also be deemed  to be an employee of the Corporation or the Company, as the case may be, for the purposes of this scheme, subject to the terms of any contract, agreement or letter of appointment or directions issued by the Central Government.”

The proviso (k) of Para gives definition of the Tern Employee where ever it is found in GIC pension scheme & further confirms that the Chairman of the company  who was employee of the company prior to his appointment as Chairman  is also deemed to be an employee for the purpose of this scheme. It is to be noted that the Chairman is appointed on contract basis for a specific period by the finance ministry &can be appointed from outside the company in such case he will not come under the definition of an employee.

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