Approx. 42,720 employees of the Life Insurance Corporation (LIC) and other public-sector insurance companies who have joined on or before 28 June, 1995, are now allowed to opt for the pension scheme, as a retirement benefit.
With the interest rates on bank deposits dropping, a pension ensures a steady income, and is therefore very welcome to most serving and retired employees.
The sum that a retired employee refunds as the insurance company’s share of the provident fund can be recovered via monthly pension in just a few years.
This welfare scheme will be of great benefit to the almost 43000 current and retired staff, of which almost 25000 belong to LIC and over 18,000 to the general insurance companies of the public sector.
This is the second time that the central government is offering such an opportunity. Earlier in 1997, employees of LIC and certain public-sector general insurance companies who joined service on or before June 28, 1995, were offered an opportunity to opt for pension, as a retirement benefit. The scheme followed a recruitment drive that took place in 1990, wherein many freshers were taken on.
At that time, many employees had not been able to exercise the option and there were demands for another option.
To help these employees, many of whom have now retired, the Government has decided to allow yet another opportunity to opt for a pension scheme in lieu of contributory provident fund.
Those who had resigned from the companies will not be eligible for the option.