Government decides to allow one more opportunity to employees of Public Sector Insurance Companies who joined on or before 28th June, 1995

Press Information Bureau
Government of India
Ministry of Finance

02-March-2019

Government decides to allow one more opportunity to employees of Public Sector Insurance Companies who joined on or before 28th June, 1995

The Government of India has decided to allow one more opportunity to employees of Public Sector Insurance Companies (PSICs) who joined on or before 28th June 1995, to opt for Pension, as a retirement benefit.

Pension was introduced as a retirement benefit in PSICs with effect from 28th June 1995. In April 1997, employees of LIC and Public Sector General Insurance Companies namely, GIC, NICL, OICL, UIICL and NIACL, who joined service on or before 28th June 1995 were given another opportunity to opt for Pension, as a retirement benefit.

However, many eligible employees could not exercise the option and there has been a long standing demand from them to be given another option.

In order to mitigate the hardship of such employees of whom many have retired, Government has decided as a welfare measure, to allow one more opportunity to employees of PSICs who joined service on or before 28th June 1995, to opt for the Pension scheme of their respective organizations, in lieu of Contributory Provident Fund.

This decision is expected to benefit 42,720 employees (serving and retired) of which 24,595 are of LIC and 18,125 of PSGICs.

PIB

Government pulls up ministries on pension delay issue, sets October 15 deadline for report

Government pulls up ministries on pension delay issue, sets October 15 deadline for report

NEW DELHI: The government has raised objections to delay in starting pensions to retiring officials because their respective departments fail to issue a certificate validating the service five years before they actually retire. All ministries have now been asked to study the case of each soon-to be retiring employee to avoid such an occurrence.

The PM-led ministry of personnel has written to all ministries on September 16 that they need to submit a report by October 15 in this regard and non-compliance with the statutory requirement of issuing the said certificate “may be viewed seriously”.

As per the existing rules, a certificate regarding ‘qualifying service’ is required to be issued by the Heads of Offices after completion of 18 years of service of an employee and again 5 years before the date of the person’s retirement. “It has been noticed that the certificates regarding qualifying service are not invariably issued to the government servant as required under the rules,” the letter stated.

“It has been observed by this department that processing of pension cases of the employees retiring quite often get delayed on account of the issues relating to verification of service. Although detailed instructions regarding verification of service have been issued by DoPT and by this department, these instructions are not meticulously adhered to resulting in delay in sanctioning of retirement benefit of the employees,” said the September 16 letter.

The letter specifies a format under which all ministries have to furnish a statement now by October 15 regarding the status of issue of service verification certificates. Each ministry has to specify the number of employees to whom the certificate has been issued after 18 years of their service and 5 years before their retirement, to whom the certificate is due and number of eligible employees in respect of whom the issue of certificates is in due process. The government is streamlining the system of pension issue, including introducing an Aadhaar-based online ‘annual life certificate’ submission system.

“It has been observed by this department that processing of pension cases of the employees retiring quite often get delayed on account of the issues relating to verification of service. Although detailed instructions regarding verification of service have been issued by DoPT and by this department, these instructions are not meticulously adhered to resulting in delay in sanctioning of retirement benefit of the employees,” said the September 16 letter.

The letter specifies a format under which all ministries have to furnish a statement now by October 15 regarding the status of issue of service verification certificates. Each ministry has to specify the number of employees to whom the certificate has been issued after 18 years of their service and 5 years before their retirement, to whom the certificate is due and number of eligible employees in respect of whom the issue of certificates is in due process. The government is streamlining the system of pension issue, including introducing an Aadhaar-based online ‘annual life certificate’ submission system.

Source: http://m.economictimes.com/