LIC Family Pension (Second Amendment) Rules, 2023

Last updated: 12 September 2023

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The Ministry of Finance has introduced the LIC Family Pension (Second Amendment) Rules, 2023, amending the 1995 pension rules. These new rules, effective from their publication date, specify that the family of a deceased LIC employee who was receiving a pension or compassionate allowance upon retirement will be eligible for a family pension. The family pension will be calculated at 30% of pay plus 30% of certain allowances, excluding dearness allowance, with a minimum amount set by the Board.

MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 11th September, 2023

G.S.R. 662(E).— In exercise of the powers conferred by section 48 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Central Government hereby makes the following rules further to amend the Life Insurance Corporation of India (Employees’) Pension Rules, 1995, namely:—

1. Short title and commencement.—(1) These rules may be called the Life Insurance Corporation of India (Employees’) Pension (Second Amendment) Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Life Insurance Corporation of India (Employees’) Pension Rules, 1995 (hereinafter referred to as the principal rules), in rule 39, in sub-rule (1), for clause (c), the following shall be substituted, namely: - (c) after retirement from service and was on the date of death in receipt of a pension, or compassionate allowance, the family of the deceased shall be entitled to family pension, the amount of which shall be determined at a uniform rate of thirty per cent of pay plus thirty per cent of allowances which are counted for making contribution to Provident Fund but not for dearness allowance, and in no case the family pension shall be less than the amount of minimum family pension determined by the Board from time to time”.

3. In the principal rules, Appendix V shall be omitted.

[F. No. S-11013/47/2016-Ins.I]
MUKESH KUMAR BANSAL, Jt. Secy

FAQ :

The new rules are called the Life Insurance Corporation of India (Employees') Pension (Second Amendment) Rules, 2023.

These rules come into effect on the date of their publication in the Official Gazette.

The family of a deceased LIC employee is eligible if the employee had retired from service and was receiving a pension or compassionate allowance at the time of death.

The family pension is calculated at a uniform rate of thirty per cent of pay plus thirty per cent of allowances that are counted for Provident Fund contributions, but not dearness allowance.

Yes, in no case shall the family pension be less than the minimum family pension amount determined by the Board from time to time.

Yes, Appendix V of the principal rules shall be omitted.