DEAR ALL,
The Jaipur Single Judge Bench Order dated 12th Jan 2010 directs LIC as follows:
The respondent Corporation is directed to take a decision for implementation of the resolution dated 24.11.2001 passed by the Board.
When LIC decides to implement the Board Resolution (as otherwise they will be exposed to the charge of contempt of court), they should normally follow the principle of merger of DR with Basic Pension as at 1/8/1997 for pre August 1997 pensioners and upgradation of pension on that date by the weightage of 11.25% as was done for in service employees. It is believed that the rate of 11.25% is only an average and the actual weightage will vary according to the cadre and Basic Pension drawn by the retirees in the respective cadres.
The penultimate sentence in the Order states, The benefit arising out of the directions above would, however, be considered by the respondent Corporation so that every retired employee may get the same benefit. This would imply that while implementing the Board Resolution, parity in pension should also be maintained in each cadre. In other words, the decision taken in the Board Resolution should only be taken as an enabling one whereas the Corporation has to go a step further in ensuring parity in pension by stage to stage revision of pension. This in my opinion would require much more weightage than 11.25% which is to be taken as the threshold rate.
I have prepared a chart, as given below, indicating the actual weightage required to be given on merger of DR with Basic Pension on 1/8/1997,1/8/2002 &1/8/2007 to ensure stage to stage revision of pension at the minimum, maximum and average scales of basic pension for your kind information.
It will be observed from the above that, barring at the lower cadres, much higher levels of weightage need to be adopted than 11.25% if disparity in pension is to be avoided in compliance with the the Jaipur Single Judge Bench Order dated 12/1/2010
With greetings.
C H Mahadevan