Govt. extends superannuation age of LIC Chairman to up to 62 years

Union Government has extended superannuation age of IPO-bound LIC Chairman to up to 62 years.

Key Points

• Superannuation age was extended by amending Life Insurance Corporation of India (Staff) Regulations, 1960.
• Changes made in rules will be called as “Life Insurance Corporation of India (Staff) Amendment Rules, 2021.
• Retirement age for top executives of majority of PSUs is 60 years except in State Bank of India (SBI).

What changes have been made?

As per notification, if Central Government appoints Chairman for a term of office extending beyond sixty years of age, or extends the term of office to a period beyond sixty years, he shall not superannuate till such terms are completed or till he attains age of sixty-two years, whichever is earlier.

Background

Central government had approved a nine-month extension to LIC Chairman M R Kumar from June 30, 2021 to March 13, 2022, recently in the backdrop of insurer’s proposed initial public offer towards end of fiscal year 2021-2022.

IPO in LIC

Finance Minister during her budget speech said, Initial Public Offer (IPO) of LIC would be floated in 2021-22 under the government’s target of Rs 1.75 lakh crore disinvestment. Government has already amended Life Insurance Corporation Act, 1956 and Finance Act 2021 in order to facilitate the public offer. Under the amendment, government significantly increased authorised capital of LIC to Rs 25,000 crore from Rs 100 crore which will facilitate listing. Life Insurance Corporation Act, 1956 mandates, authorised share capital of LIC will be Rs 25,000 crore divided into 2,500 crore shares of Rs 10 each.

Month: Current Affairs - July, 2021