Revision of Non-Core and Another Option for Pension - oicoa
Revision of Non-Core and Another Option for Pension - oicoa
Revision of Non-Core and Another Option for Pension - oicoa
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THE NATIONAL CONFEDERATION<br />
OF<br />
GENERAL INSURANCE OFFICERS’ ASSOCIATIONS<br />
C/o I.T.Department, Head Office, The Oriental Insurance company Limited, A-25/27, Asaf Ali Road, New Delhi 110002<br />
President<br />
Jose Verghese<br />
Cell : 9444914088<br />
joseverghese@uiic.co.in<br />
joje29@yahoo.com<br />
CONFED/2011/SG/018<br />
Shri G.Srinivasan,<br />
Chairma, GIPSA,<br />
C/O United India Insurance Company Limited,<br />
24, Whites Road, Chennai<br />
28 th June'2011<br />
Working President<br />
Debaditya Ganguly<br />
Cell : 09433379587<br />
debaditya_g@yahoo.com<br />
debadityaganguly@<br />
newindia.co.in<br />
Secretary General<br />
Vivek Saxena<br />
Cell : 09871278625<br />
viveksaxena@<br />
orientalinsurance.co.in,<br />
wewakesaxena@gmail.com<br />
Addl. Secy. General<br />
S. Akilan<br />
Cell : 09487410038<br />
s.akilan@nic.co.in<br />
Treasurer<br />
S.K.Ahuja<br />
Cell : 09811287805<br />
skahuja@<br />
orientalinsuranc.co.in<br />
Re.: <strong>Revision</strong> <strong>of</strong> <strong>Non</strong>-<strong>Core</strong> <strong>and</strong> <strong>Another</strong> <strong>Option</strong> <strong>for</strong> <strong>Pension</strong><br />
Sir,<br />
We would like you to refer to the discussions held on 4 th August'2010,<br />
16 th March '2011 <strong>and</strong> finally on 18 th & 19 th April'2011 on the above<br />
subject. Some <strong>of</strong> the <strong>Non</strong>-<strong>Core</strong> were cleared by GIPSA but could not<br />
be cleared by the respective Company Board, we hope that these will<br />
be cleared shortly by all the Company Boards.<br />
As in<strong>for</strong>med by you on 18 th April'2011 at Chennai that the issue <strong>of</strong><br />
<strong>Another</strong> <strong>Option</strong> <strong>for</strong> <strong>Pension</strong> is still open <strong>and</strong> shall be taken up after<br />
the Financial results <strong>of</strong> the Companies. We would like to remind you<br />
that this issue is affecting 18,000 odd employees in the Industry. The<br />
financial outgo is not as high as projected by GIPSA initially. All the<br />
four Affiliate units <strong>of</strong> CONFED has carried out the calculations <strong>of</strong> the<br />
additional out go <strong>for</strong> <strong>of</strong>fering another option <strong>of</strong> <strong>Pension</strong> <strong>and</strong> we have<br />
found that it is not more than Rs. 600 Crores <strong>for</strong> all the four<br />
Companies. In fact one <strong>of</strong> our constituent has got the Actuarial<br />
valuation certificate <strong>and</strong> the additional outgo is around Rs. 100 crores<br />
<strong>for</strong> OICL. The copy <strong>of</strong> the Actuarial certificate is enclosed herewith.<br />
We would like to in<strong>for</strong>m you that banks have been allowed to amortize<br />
this amount over the next five years. Accordingly the total additional<br />
annual provisioning would go up by only Rupees 120 Crores <strong>for</strong> all the<br />
four Companies put together. Incidentally the Cost to Company (CTC)<br />
<strong>for</strong> <strong>Pension</strong> optees in the current financial year is almost ten times <strong>of</strong><br />
the PF optees. Sir, in view <strong>of</strong> the above we would request you to<br />
kindly take up the issue <strong>of</strong> <strong>Another</strong> option <strong>of</strong> <strong>Pension</strong> <strong>for</strong> the sake <strong>of</strong><br />
Equality among all the employees who could not opt due to some<br />
reason. The issue may be considered in a non-biased manner <strong>and</strong><br />
without an approach “those who did not opt earlier let them suffer”.<br />
NATIONAL INSURANCE COMPANY OFFICERS ASSOCIATION<br />
NEW INDIA ASSURANCE OFFICERS ASSOCIATION<br />
ORIENTAL INSURANCE COMPANY OFFICERS ASSOCIATION<br />
UNITED INDIA INSURANCE OFFICERS ASSOCIATION
THE NATIONAL CONFEDERATION<br />
OF<br />
GENERAL INSURANCE OFFICERS’ ASSOCIATIONS<br />
C/o I.T.Department, Head Office, The Oriental Insurance company Limited, A-25/27, Asaf Ali Road, New Delhi 110002<br />
We would also request you to implement the NPS in our Industry at par with banks & LIC<br />
irrespective <strong>of</strong> the fact that a circular was initiated in one <strong>of</strong> the Company in 2004 itself. Sir,<br />
let us be fair in our approach in this matter, all the <strong>of</strong>ficers who have jointed the industry<br />
between 2004 -2010 should not be penalized. Although Government had notified the scheme <strong>for</strong><br />
Government sector but was not m<strong>and</strong>atory <strong>for</strong> us to implement as a number <strong>of</strong> Government<br />
directives such as Study Leave with Pay, Child care leave, Transfer on Spouse grounds etc. have<br />
never been considered in our industry. Moreover the money deducted has not been invested<br />
anywhere <strong>for</strong> the last more than seven years as PRFDA was not <strong>for</strong>med <strong>and</strong> <strong>Pension</strong> Managers<br />
were not there.<br />
We have always been taking up the <strong>Non</strong>-<strong>Core</strong> issues in two parts, one with Financial impact<br />
second without any Financial implications. While the results <strong>of</strong> the four Companies are being<br />
finalised shortly, we underst<strong>and</strong> now GIPSA shall be able to get some more <strong>Non</strong>-<strong>Core</strong> Issues<br />
cleared. Meanwhile we would request you to kindly get the issues without any financial implication<br />
cleared immediately such as:<br />
1. Reduction <strong>of</strong> Minimum Earned Leave from Six to Five.<br />
2. Change in Designation on the lines <strong>of</strong> Banks e.g. AO – AM, AM – Dy. Mgr., Dy. Mgr. -<br />
Manager, Manager – Chief Manager, Chief Manager – AGM.<br />
3. Revamping <strong>of</strong> Housing Loan Scheme – The limits <strong>and</strong> provisions <strong>of</strong> Housing Loan are age old<br />
<strong>and</strong> needs immediate revamping. The Housing Loan may be viewed as an Investment<br />
instrument equivalent to Govt. Securities wherein the net yield is around 6.5%. The<br />
interest on additional loan i.e. 7.5% is one percent more than the yield on Govt. Securities<br />
<strong>and</strong> is the safest investment in financial terms. This may prove the best Human Capital<br />
Investment from HR angle also. Revamped Housing loan will definitely be able to arrest the<br />
increasing attrition rate in the Industry.<br />
4. <strong>Revision</strong> <strong>of</strong> Vehicle Loan to all the Officers on the lines <strong>of</strong> LIC <strong>and</strong> as proposed <strong>for</strong><br />
Officers on Marketing side in our companies. Four vehicle is no more a luxury, it is a<br />
necessity now. Officers are <strong>for</strong>ced to take the Four vehicle loan from other Financial<br />
institution whereby the interest outgo is more. A loan facility available within the company,<br />
not only will become one <strong>of</strong> the motivating factor but also be a factor in reduction <strong>of</strong><br />
attrition.<br />
Sincerely yours,<br />
(Vivek Saxena)<br />
Secretary General<br />
NATIONAL INSURANCE COMPANY OFFICERS ASSOCIATION<br />
NEW INDIA ASSURANCE OFFICERS ASSOCIATION<br />
ORIENTAL INSURANCE COMPANY OFFICERS ASSOCIATION<br />
UNITED INDIA INSURANCE OFFICERS ASSOCIATION