We reproduce herein below the letter addressed by AIIPA to the Hon’ble Finance Minister, Government of India, New Delhi, with regard to the issues of insurance pensioners, which is self-explanatory.
28th September 2013
Hon’ble Minister for Finance,
Government Of India,
Issues of Insurance Pensioners
We, from the ALL INDIA INSURANCE PENSIONERS’ ASSOCIATION (AIIPA), representing a major chunk of Pensioners from the Public Sector Insurance Industry, are happy to note that the Government has taken a timely decision to constitute the Seventh Central Pay Commission for upward revision of wages for the Central Government employees that would benefit the Central Government Pensioners too.
Central Government Pensioners, who had retired prior to the year 1996, till then getting Basic Pension on the basis of their “Pay” at the time of retirement and Dearness Relief thereon with partial neutralisation, got updated Pension and Full Neutralisation thereon when the Government accepted of the Recommendations of Fifth Pay Commission, with yourself, heading the Finance Ministry then also.
Our Organisation has been urging upon the Managements of LIC and Public Sector General Insurance Companies and the Government ever since that such a benefit be extended to Insurance Pensioners too and it has been our repeated refrain especially after acceptance of the Recommendations of Sixth Pay Commission effective from January 2006.
However, there has been no positive response and Insurance Pensioners continue to be paid pre-revised Basic Pension with a certain section still getting truncated Dearness Relief.
AIIPA firmly believes that the demand for ending this differential treatment is most justified and Insurance Pensioners, as part of the Senior Citizens of this country, deserve to be treated on par with the Central Government Pensioners.
Pensioners from LIC and Four Public Sector General Insurance Companies and their families constitute an important segment of the population and they had, while in service, contributed to the growth of these Institutions and to the growth of Indian Economy and we are sure the Government will readily acknowledge their role.
Our Organisation thinks that Insurance Pensioners and their kith and kin have been appreciative of the efforts of the Government in matters like passing of RTI Act, Women’s Reservation Bill, MGREGA, Food Security Act etc.
The decision by the Government to grant increase in Dearness Allowance and Dearness Relief to Central Government employees and pensioners to compensate for higher cost of living is a welcome step and though insurance pensioners too get periodic revision in Dearness Relief, the compensation they are entitled as per rules is much less as they get Dearness Relief on pre-revised Basic Pension and a truncated Dearness Relief by some.
The Government, by granting higher Family Pension at Uniform Rate to the spouses of Central Government employees and granting similar benefits to RBI pensioners, has done yeomen service to those who had lost their beloved ones and inspite of our representations, LIC and GIPSA are yet to come out with positive response.
We feel solutions to the issues of Insurance Pensioners brook no further delay and Government should immediately initiate measures to grant Full Neutralisation to pre-August 1997 Retirees, grant uniform Family Pension at 30% for all those presently getting Family Pension and grant updated Pension to correspond to present wage levels to all the Pensioners drawing Basic Pension at lower CPI levels prevalent at the time of their cessation of service.
Having put their toil for the growth of LIC and GIC and their contribution to the National Exchequer and being part of a conscious section of the Senior Citizens, Pensioners from the Insurance Industry look forward to favourable decisions.
All India Insurance Pensioners’ Association (AIIPA) desires that the Hon’ble Finance Minister, taking into account the sentiments expressed herein and appreciating the merits of the issues put forth, uses his good offices to ensure justice is done to the cause of Insurance Pensioners.