Moneylife: Pune: Saturday, 17 August 2024.
In an order that would make
pension funds more transparent to retired employees, the central information
commissioner has ordered, last week, that the income and expenditure statement
as well as the balance sheet of the LIC Employees’ Pension Fund is public
information under the Right to Information (RTI) Act and stands to scrutiny
under section 4 disclosures.
CIC Vinod Kumar Tiwari observed that the RTI applicant, being a beneficiary as he is a retiree pensioner of LIC as also a stakeholder in the LIC Employees’ Pension Fund, is entitled to know where his pension is invested to assure himself and be assured of the family pension post his demise. He also mentioned in his order that RTI applicant C H Mahadevan “merely wishes to seek this information just to be assured that LIC Employees’ Pension Fund is managed properly.”
CIC Tiwari directed Madhavi Tari, secretary (RTI) and central public information officer (CPIO) of the LIC office in Mumbai and its first appellate authority (FAA), thus: “To maintain the balance between transparency and commercial confidential aspect,” they must “facilitate inspection of available and relevant records related to the information sought in the RTI applications within six weeks from the date of receipt of this order.”
Asking the CPIO to telephonically and in writing inform Mr Mahadevan about the date of inspection files, he also made it clear that he is “at liberty to make notes from the documents inspected in the office…but may not be allowed to take copies,” due to some reservations mentioned by the CPIO and FAA of the LIC office.
Mr Mahadevan, who had filed multiple RTI applications in this regard, had earlier received similar information from the same public authority but had been denied it this time. He argued, during the second hearing on 8 July 2024, that besides the RTI Act, some rules of the LIC pension scheme also permit disclosure of such information, including inspection of files.
He further elaborated that: “As per rule 8(2) of the LIC (Employees) Pension Rules 1995, power to appoint the trustees is vested in the board of the corporation As per rule 9, the trustees have to carry out the directions of the board of the corporation for the proper functioning of the fund, and the Pension Fund Trust deed is executed by LIC of India and the fund rules are part of the same. The fund rules are binding on the members, beneficiaries and the employer, viz Life Insurance Corporation of India. Further, the LIC Employees' Pension Trust created by LIC is governed by The Indian Trusts Act, 1882.
“Rule 57 of the Act reads: Right to inspect and take copies of instrument of trust, accounts, etc. –The beneficiary has a right, as against the trustee and all persons claiming under him with notice of the trust, to inspect and take copies of the instrument of trust, the documents of title relating solely to the trust-property and the vouchers (if any) by which they are supported to, and the cases submitted and opinions taken by the trustee for his guidance in the discharge of his duty.”
Mr Madhavan argued that besides him who is a direct beneficiary, “even common citizens including shareholders of LIC are entitled to see the annual accounts of the LIC Pension Fund Trust.”
As for the CPIO and the FAA, they reasoned that “The information sought is exempt under section 8(1)(d) of the RTI Act, 2005, as it involves commercial confidence, with the appellant attempting to access sensitive and important information regarding the Corporation's pension scheme.
“Additionally, various pension-related cases are currently sub-judice before different High Courts, and we fear that disclosing the information could affect the outcome of these cases.
“The data could potentially be used against this public authority in unpredictable ways. Therefore, to prevent any contingent and unforeseen losses, this public authority seeks to protect its sensitive and important data from future misuse. It is crucial to recognise the environment in which the public authority operates when determining exemptions related to commercial confidence, intellectual property, and other aspects under section 8(1)(d) of the RTI Act, 2005.”
CIC Tiwari countered that “Denial of information by the CPIO that the matter is sub-judice before the Hon’ble Court without substantiating the same under any of the exemption clauses under RTI Act was completely inappropriate.
“At the outset it is clarified that the RTI Act provides no exemption from disclosure requirements of sub-judice matters. The only exemption for sub-judice matters is regarding what has been expressly forbidden disclosure by a court or a tribunal and what may constitute contempt of court.”
RTI applicant C H Mahadevan had sought the following information:
Please furnish the following for the financial years 2007-08 to 2014-15:
CIC Vinod Kumar Tiwari observed that the RTI applicant, being a beneficiary as he is a retiree pensioner of LIC as also a stakeholder in the LIC Employees’ Pension Fund, is entitled to know where his pension is invested to assure himself and be assured of the family pension post his demise. He also mentioned in his order that RTI applicant C H Mahadevan “merely wishes to seek this information just to be assured that LIC Employees’ Pension Fund is managed properly.”
CIC Tiwari directed Madhavi Tari, secretary (RTI) and central public information officer (CPIO) of the LIC office in Mumbai and its first appellate authority (FAA), thus: “To maintain the balance between transparency and commercial confidential aspect,” they must “facilitate inspection of available and relevant records related to the information sought in the RTI applications within six weeks from the date of receipt of this order.”
Asking the CPIO to telephonically and in writing inform Mr Mahadevan about the date of inspection files, he also made it clear that he is “at liberty to make notes from the documents inspected in the office…but may not be allowed to take copies,” due to some reservations mentioned by the CPIO and FAA of the LIC office.
Mr Mahadevan, who had filed multiple RTI applications in this regard, had earlier received similar information from the same public authority but had been denied it this time. He argued, during the second hearing on 8 July 2024, that besides the RTI Act, some rules of the LIC pension scheme also permit disclosure of such information, including inspection of files.
He further elaborated that: “As per rule 8(2) of the LIC (Employees) Pension Rules 1995, power to appoint the trustees is vested in the board of the corporation As per rule 9, the trustees have to carry out the directions of the board of the corporation for the proper functioning of the fund, and the Pension Fund Trust deed is executed by LIC of India and the fund rules are part of the same. The fund rules are binding on the members, beneficiaries and the employer, viz Life Insurance Corporation of India. Further, the LIC Employees' Pension Trust created by LIC is governed by The Indian Trusts Act, 1882.
“Rule 57 of the Act reads: Right to inspect and take copies of instrument of trust, accounts, etc. –The beneficiary has a right, as against the trustee and all persons claiming under him with notice of the trust, to inspect and take copies of the instrument of trust, the documents of title relating solely to the trust-property and the vouchers (if any) by which they are supported to, and the cases submitted and opinions taken by the trustee for his guidance in the discharge of his duty.”
Mr Madhavan argued that besides him who is a direct beneficiary, “even common citizens including shareholders of LIC are entitled to see the annual accounts of the LIC Pension Fund Trust.”
As for the CPIO and the FAA, they reasoned that “The information sought is exempt under section 8(1)(d) of the RTI Act, 2005, as it involves commercial confidence, with the appellant attempting to access sensitive and important information regarding the Corporation's pension scheme.
“Additionally, various pension-related cases are currently sub-judice before different High Courts, and we fear that disclosing the information could affect the outcome of these cases.
“The data could potentially be used against this public authority in unpredictable ways. Therefore, to prevent any contingent and unforeseen losses, this public authority seeks to protect its sensitive and important data from future misuse. It is crucial to recognise the environment in which the public authority operates when determining exemptions related to commercial confidence, intellectual property, and other aspects under section 8(1)(d) of the RTI Act, 2005.”
CIC Tiwari countered that “Denial of information by the CPIO that the matter is sub-judice before the Hon’ble Court without substantiating the same under any of the exemption clauses under RTI Act was completely inappropriate.
“At the outset it is clarified that the RTI Act provides no exemption from disclosure requirements of sub-judice matters. The only exemption for sub-judice matters is regarding what has been expressly forbidden disclosure by a court or a tribunal and what may constitute contempt of court.”
RTI applicant C H Mahadevan had sought the following information:
Please furnish the following for the financial years 2007-08 to 2014-15:
- Income & Expenditure Statement of LIC Employees’ Pension Fund.
- Balance Sheet of LIC Employees’ Pension Fund.
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