Sub:- Discrimination to GIC & LIC PENSIONERS
The Central Govt. has notified the General insurance pension scheme 1995 vide Extra ordinary gazette part II section 3 sub section II dated: 28/04/1995. As per this scheme the qualifying service for full pension of 50% of last drawn basic is 33 years and rate commutation of pension is 33%. This scheme was prepared by taking the relevant portion of the central civil service (pension) rules 1972 which was modified up to that date. This is evident from the residuary provision contained in Para 55 of our scheme which states that “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 provision contained in CCS (pension) rules 1972 or CCS (communication of pension) rules 1981, applicable to central employees”.
Hence it is logically concluded that CCS (pension) rules 1972 & General insurance pension scheme 1995 are corollary to each other. In other words CCS (pension) rules 1972 is the basic structure of General insurance pension scheme 1995.
Whereas this is the relation between each other, the CCS (pension) rules 1972 have been modified twice with the implementation of 5th and 6th CPC report. The latest being 6th CPC implementation office memorandum F No 38/37/08-P&PW (A) Gov. of India dated 02/09/2008. According to Para 5.2 of this memorandum the linkage of full pension with 33 years of qualifying service shall be dispensed with. Once a government servant has rendered the minimum qualifying service of twenty years, pension shall be paid at5 50% of the average emolument for last 10 months. Another important modification effected to CCS (communication) rules 1981 is by the Para 9.1 of the above memorandum which states that “A Govt. servant shall continue to commute a lump sum payment of maximum 40% of his pension. (We are still following 33 years of qualifying service for full pension and rate of commutation 33%)
Those amendments to, CCS (pension) rule, 1972 which are favorable to GIC pensioners have not been implemented in GIC pension scheme 1995 and those which are unfavorable to GIC Pensioners have been implemented with retrospective effect. One of such example is that New contributory pension scheme has been introduced to CCS pensioners w.e.f. 01/01/2004 amending CCS (pension) rules 1972 along with the 6th CPC implementation. Same amendment has been made to, GIC pension scheme implementing new contributory pension scheme with retrospective effect to all GIC pensioners w.e.f. 01/01/2004. This is discriminatory in nature and against the spirit of article 226 of our constitution.
Since nothing is mentioned in our GIC pension scheme 1995 regarding modification of improvements, we have to depend on the CCS (pension) rules 1972 and CCS (commutation) rules 1981 as per the Para 55 of GIC pension scheme 1995. (Which is the only remedy mentioned in our scheme)
Hence it is requested to modify the GIC pension scheme 1995 chapter vi & chapter viii for delinking 33 years of qualifying service with full pension and to increase the rate of commutation from one third to 40% as per the above CCS pension and commutation modification rules contained in Para 5.2 & Para 9.1 of government of India ministry of personnel, public grievances & pensions, department of pension & pensioners’ welfare office memorandum F.NO.38/37/08-P&PW (Dated 02/09/2008
ENCL: F.NO.38/37/08-P&PW (A) dated 02/09/2008, GIC Pension Scheme 1995.
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