Government offers pension for employees of public sector insurance companies

Decision is expected to benefit 42,720 employees of which 24,595 are of LIC and 18,125 of other companies.

New Delhi: The government has decided to allow one more opportunity to employees of public sector insurance companies who joined the service by June 28, 1995, to opt for a pension as a retirement benefit, it was announced on Saturday.

In April 1997, employees of Life Insurance Corporation, General Insurance Corporation of India, National Insurance Company Ltd, Oriental Insurance Company Ltd, United India Insurance Company Ltd and New India Assurance Company Ltd were offered a similar opportunity.

But many eligible employees could not exercise the option. There has been a long-standing demand for another chance.

To mitigate the hardships of such employees of whom many have retired, the government has decided as a welfare measure to allow one more opportunity to employees of public sector insurance companies who joined service on or before June 28, 1995, to opt for the pension scheme of their respective organisations in lieu of contributory provident fund.

The decision is expected to benefit 42,720 employees (serving and retired) of which 24,595 are of Life Insurance Corporation and 18,125 of other companies, said an official statement issued by the Department of Financial Services.