Meeting with the MD today 12.02.2020

Meeting with the MD today 12.02.2020

FEDERATION OF RETIRED LIC CLASS I OFFICERS' ASSOCIATIONS           

President :    N.P. Bali 705, Sur, Veena Saaz, Thakur Complex, Kandivali (East), Mumbai - 400 101 Mob : 9820324213 Email Id -npbali@hotmail.com

General Secretary :    D Krishnan No.6/1, Sreshta Riverside Apartments, Wood Creek Road, Nandambakkam, Chennai - 600089 Tel : 9176635967 / 044 42850049. Email Id -dkrishnan1@gmail.com

Ecircular No.DK/8                                           12-02-2020

REG:  MEETING  WITH  MD  TODAY

Friends,

Around 10th Jan 2020, I received a call from Madam Aruna Seth,  Secretary Personnel, CO, asking if I could go over to Mumbai for a chat with MD, on some pending matters. I said I could go over. The date for meeting was given as 12th Feb. 2020.

 The meeting looked a formal one, arranged in the Discussion chamber. Those who attended included MD, ED (Personnel), Chief Personnel, Secretary Personnel Smt Aruna Seth, and one officer of Manager rank. Our side was represented by Sri Arunachalam and I.

 I asked the MD what the purpose of this meeting was. He said, there were a number  of things on the unfinished Agenda of matters discussed/represented to them from our side, and these were reviewed in the presence of Chairman, ED legal, ED (P) and others, and they had not found a way of taking decisions on any of them. So, I asked whether we had been called to say 'NO' to all our pending matters. He smiled in acceptance. But said the Chairman was keen that it should be officially communicated.

 It was mainly on the pending items of the DHC order where they expressed difficulty. 

 I told him that we had come here to see if problems could be solved even if it meant some compromise from our side.  I took the example of the date LIC had wrongly reckoned from 2007 for the Arrears calculation. I said we could take a flat amount if not the exact balance. I said the other important point about rate of DR applied to pre-1993 retirees at 0.23% instead of 0.29% could also be sorted out in a similar way. We wanted to move on.

 Then I asked about 1992-93 retirees waiting for justice, now in their late 80s. I told him this was rank injustice to people similarly placed as MC Jain who won the point in SC. MD listened and said, let us re-examine the matter

 Then I asked about Captain Vasudevan's case for full pension after reckoning the Army Service of 4 years. Though there was no positive answer, we got to know later,  from Smt Aruna Seth, that a group of similarly placed ex-army people in LIC and outside had gone to Delhi HC and got a favourable verdict and she said 'you please verify it'.

 MD mentioned that even the Pension firmly on 1st of month is still not sorted out, since the NEFT transfers, on holidays are done only for individuals but not to corporates. He said since this was a decision by the banks and not RBI, he was following it up.

 MD also mentioned that 3 matters are lying with the Government for approval viz., Extending age from 65 to 67 for giving 7 years full pension for widows, Improving Family Pension to 30%, and increases for 80+ wallas.  He said he had discussed these with the ministry and every month our ED (P), on her Delhi visit, is following up.

 MD said, the 33 years' service for full pension has not been changed though he had discussed a number of times with the Ministry.  Similarly with Pension being reckoned on the basis of last month pay drawn, instead of  last ten months average. These changes have not happened.

 I made a repeat request for full medical check-up for pensioners once a year, which he said he will see.

 I discussed the Kolkata Voluntary Retirement case where the officer was denied the group insurance scheme. It was not covered in the Circular on Voluntary Retirement and he was shocked after his VR. I said if the point was about fitting in a younger age person into a higher age premium structure, the officer may not still mind joining such an offer.  ED (P) promised to review the case.

 The biggest gain of the visit was around discussions on Medi-claim matters. Sri Sanjay Gupta (Actuary) is the Nodal officer and he clarified on many things where we come into difficulties.  He said Nursing charges were not to be added to Room rentals. Where they do it, we can refer to him and he will solve it. Similarly, VRK's point about Asst.  Doctor's  fee not reimbursed was also not correct.

 Submitting  self-attested  copies should do, and Originals need not be submitted.

 The Deductions made out of the claimed amount, not informed to the claimant was another matter, which he said he would follow up on.

 There was quite some discussion on non-hospitalisation reimbursement on special Reports and why the fee paid to the MD Doctor was not reimbursed. He explained that the scheme basically was only for Hospitalisation, and these were extended concessions negotiated with New India Insurance Company, and they had only agreed for about 16 or so Special reports, that too without Doctor prescribing being paid, which actually would fall in the area of domiciliary treatment which is not part of this Scheme.

 He said Robotic surgery was permitted for certain difficult situations like cancer surgery, and spinal surgery.

 About the problems encountered on Cash-less scheme he has noted the points and has promised to take it up.

 Actually there are Zonal Nodal Officers too who can help in such cases. Sri Sanjay Gupta CO Nodal officer at ADM level, felt that the Nodal Officers at Zones need a training on these practical matters.

 He mentioned and demonstrated the use of LIC portal, which is part of the LIC site. That gives out all Circulars and changes are being up dated.

 Sri Gupta mentioned that the confusion, for local New India or TPAs, comes because they are more familiar with the general scheme the Insurance company  offers to others, whereas ours is a negotiated scheme with special features.

 Many members might still have questions, because this is a brief Circular drafted on my mobile while still in Mumbai.

This communication is supposed to be shared with all the Associations that met the Chairman last time, on 24-07-2019, though in a representative way we were called.

 They have promised to share the names of all Zonal Nodal officers for our Medi-claim.  This perhaps is no way to share information through a scrappy Circular drafted without any flair. I thought speed was of the essence here. 

 I must add here, that though this was negative kind of message from the CO, we made full use, trying to tell them that we had come in a positive spirit of compromising on matters. We want to get a move on and that they should review matters from that spirit. We mentioned about Pension Revision giving live examples of how very senior retirees were suffering on account of erosion in value of their pension.

 Thanks and best wishes  

  D.Krishnan

General Secretary

- February 12, 2020

Why the need for Pension updation & Is there any provision for Updation in our scheme

The GIC Pension scheme 1995 was drafted with basic Principles of CCS Pension rules 1995 as amended up to 4^th central Pay commission. Consequently the formula of fixation of Pension is adopted from the CCS pension rule as amended on the implementation of 4^th CPC in 1995.

The Core values taken from the CCS Pension rules as amended up to 1995 are as follows

1) 50 % Pension for 33 years & Pro rata for lesser years.

2)  Minimum Pension & Minimum Family Pension as mentioned in 4^th CPC.

3) The rate of Commutation of Pension (30%)

The above three core values as amended in CCS Pension Rule 1972 up to 7^th CPC are as follows.

1) De linking of 33 years of service for full pension by  introduction of 50% Pension for 20 years( VRS) and above, 50 % Pension for 10 years and above in case of Superannuation Pension. The Pro rate Calculation is done away with.

2)  Minimum Basic Pension & minimum basic family Pension as per CCS Pension rule as on date is Rs 9000 & The rate Of family pension is 30% flat on last drawn basic pay where as in GIC Pension Scheme the minimum Pension varies from Rs 375 to 3010 only between wage revision carried out so far.

3) The rate of Commutation is 45% against our 33%  

Why the need for Pension updation & Is there any provision for Updation in our scheme 

The Non Updating of above three core values in GIC pension rules 1995 has made it redundant & static Scheme compared to our Mother Scheme CCS Pension rules 1995.

There is no mention of revision of pension in CCS Pension rules 1972 but still Central Govt Pension is getting updated along with every Wage revision. Consequently the CCS Pension rules 1972 get amended with every Pension revision due to implementation W.E.F. 5^th CPC to 7^th CPC.

Employees with a  a huge amount to their credit  as employers contribution to their Provident fund have surrendered & joined the GIC Pension Scheme 1995 relying on the mother CCS Pension Rules 1972  which is getting amended time to time as per  Pension revision  as envisaged   in Para 55 of GIC Pension rule Scheme1995.

The rationale behind every Pay/ pension revision is the erosion of money value due to unforeseen contingencies  like inflation & price rise which cannot be compensated by the Dearness allowance which is granted from time to time the purpose.

The family Pensioners are the most affected lot due to this non updating of changes in core value of CCS Pension rules in GIC Pension rule1995.

In order to allow 30% of last drawn pay as family pension Pro rata calculation is to be ceased forth with otherwise the spouse of Late employees retired on superannuation having less than 20 will draw family Pension more than her late retired employee.

In short employee may be preferred to die to allow her spouse to draw more pension than he is drawing presently.

This Problem can be explained as given below.

Last drawn Basic pay of employee= Rs 44000

Basic Pension for 33 years  = 22000

Pro rata Pension for employee retiring on

Superannuation having 18 years = 22000x18/33  

                                                          = 12000 (A)

Family Pension 30% flat on Basic Pay = 44000

         Family Pension as per this         = 13200 ( B)

Family Pension B is more than the retired employee Pension A.

The RBI Which is also under Department of Financial Services has removed Pro rata Pension Prior to sanction of 30% flat family Pension on last drawn basic Pay.

 

ADJOURNMENT OF SLPS AT WHOSE BEHEST ?

OUR CASES ADJOURNED TO 19.02.2020
Diary No.- 21826 - 2017
ALL INDIA INSURANCE PENSIONERS ASSOCIATION THR. ITS PRESIDENT vs. UNION OF INDIA
Case Details
Diary No 21826/2017 Filed on 21-07-2017 05:25 PM
PENDING
    [SECTION: XIV]
Case No. SLP(C) No. 019799 - / 2017  Registered on 04-08-2017
(Verified On 04-08-2017)
Present/Last Listed On05-02-2020 [HON'BLE MR. JUSTICE S. ABDUL NAZEER and HON'BLE MR. JUSTICE HEMANT GUPTA] [CL.NO. : 7]Status/StagePending - (Motion Hearing
[DISPOSAL/FINAL DISPOSAL AT ADMISSION STAGE - CIVIL CASES]) List On (Date) (19-02-2020)-Ord dt:05-02-2020Tentatively case may be
 listed on (likely to be listed on)19-02-2020 (Computer generated
Our case in SC today
Our case adjourned to 19th February 2020 as LIC sought it on technical grounds. The bench will hear on main issue of SLP only on the next date... No more on DA/DR issue

ADJOURNMENT OF SLPS AT WHOSE BEHEST ?

Mr KML Asthana had sent a letter on 30 th January 2020 seeking adjournment due to ill health and the letter was received in the S.C. Registry on 4/2/2020.The LIC counsel took the plea that the request for adjournment was not circulated to them and hence service was not complete.It was a technical ground taken by LIC Counsel for adjournment.

There is no point on fixing blame on anybody.This is in the nature of the legal system in our country.

But one thing we can be happy about is that main arguments on SLPs will be taken up on 19 th February.

C H Mahadevan