Bringing cheer among employees of public sector insurance companies, the central government has decided to give one more pension option as retirement benefit to the 42,000 leftover officers and staff who missed this option in the past.To be precise, this benefit is applicable to those who have joined any of the Public Sector Insurance Companies (PSICs) on or before 28 June, 1995. On a poll year, the welfare measure is expected to benefit 42,720 employees (serving and retired) of which 24,595 are of Life Insurance Corporation of India (LIC) and 18,125 of public sector general insurers.
In a recent tweet, finance minister Arun Jaitley said: “Govt. approves one more pension option for leftover employees of Public Sector Insurance Companies who joined on or before 28.06.1995. To benefit 42,720 employees including 10,720 senior citizens”. The scheme would benefit employees in lieu of Contributory Provident Fund. “With the interest rates on bank deposits sliding down, it is better to have a steady pension income,” said an employee expressing enthusiasm on the move.
In April 1997, employees of LIC and public sector general insurance companies namely - General Insurance Corporation of India, National Insurance, Oriental Insurance Company and New India Assurance Company, who joined service on or before June 28, 1995, were given another opportunity to opt for pension, as a retirement benefit. The scheme was introduced after the insurers had hired large number of freshers in 1990.
However, many eligible employees could not exercise the option and there has been a long standing demand from them for another option. “In order to mitigate the hardship of such employees of whom many have retired, the government decided to one more opportunity to employees of PSICs,” said Financial Services Secretary Rajiv Kumar.
Who benefits?
Benefit is applicable to those who have joined any of the PSICs on or before 28 June, 1995.
Measure is expected to benefit 42,720 employees (serving and retired)
24,595 of the beneficiaries are from the Life Insurance Corporation of India
18,125 are from other public sector insurance companies