'DIFFICULT TO DIGEST' - discussion continues...
I also take liberty to briefly clarify why the pressing demand of updating of pension and 100% neutralisation in DR is as per 'Law' and not unjust or unreasonable.
"Down down with anti-labour policy"; "Hamaari maange puure karo yaa kursi Khaali karo"; "Daadaagiri chamachaagiri nahi chalegi, nahi chalegi" etc. slogans are not uncommon during any wage revision and wage related struggles with the managements. The serving employees are compelled to go on strikes against the management inconveniencing the general public. Here, A may appreciate why such kind of hullagulla against the management and the GOI, as the management acts more often at the behest or command of the bureaucrats sitting in Delhi. Who derives the maximum benefit of every pay revision? The maximum beneficiaries are those at the top, excluding the Chairman etc. They are entitled to / enjoy HAG+, Apex or Cabinet Secretary pay of GOI. May their tribe flourish.
Probably, by this time next year, thirty plus lakh GOI employees and fifty lakh of GOI pensioners and family pensioners would get the benefit (on certain fitment norms - approximately - 40% increase over the previous pension and family pension was ensured in the last two CPCs) 7 th CPC scales. The pensioners and family pensioners, who have crossed 80 etc. have been getting 20%... 100% more in their pension since January, 2006.
A relative of mine is now 85 plus, He got Rs.450 plus negligible DR when he retired 30 years ago. His basic now is Rs.12189/- and he is entitled for 100% neutralisation in DR since January, 1996. It is 113% from 01-01-2015. The GOI which has been, in the true spirit of welfare society, have been benevolent not only to their serving employees but also to the pensioners, who served for nation building (no sarcasm intended- the country has grown - no denying fact - not withstanding, some dead woods and corruption in some places) and their dependent family pensioners. The GOI is also more considerate to the pre 1986 retiree, ex gratia recipients.
But, the GOI continue to be unkind to the bank and LIC pensioners. The lot of family pensioners and pre 1986 retirees of banks and LIC is not right to say that they belong/ed to great and giant x- bank/institution-LIC.
Oh! What a rule : the pre 1997 LIC pensioners and pre 2002 bank pensioners are not entitled to get 100% DR???
RBI is not GOI. But, the Governors of RBI seem to wield or exercise better power. A governor gave updation of pension - the pension of all those retired prior to 01-11-1997, was fixed as per pay scales of Nov.1997. It was denied by GOI. But, the pensioners continue to get pension as per pay scales of 1997 as the Bombay High Court has stayed the GOI direction. The family pensioners of RBI get 30% of pay of retiree since last two years. RBI, the Governor, has been gracious to grant- enhanced-almost doubled, the medical allowance to the pre 1986 ex gratia recipients-retirees from 01-04-2015: Rs.6800/- to Class IV, Rs.7600 to Class III and from Rs.8800 to Rs.11200/- to different grade of officers.
Some thing must be preventing the LIC management. LIC family pensioners and pre1986 retirees belong to 'neglected sector'. A relative of mine, a pre 1986 retiree, who moved with Shri Madhu Dandavate etc. got less than Rs.3000/- ex gartia. He died last year. He is no more to know the meagre hike in DR granted at some periodic intervals, that too at the mercy of GOI.
Is it wrong if the pensioners seek empathy from the Top management and for that matter from A or B?
D.S.Nakhara fought for the fundamental rights enshrined in the Constitution of India. His case is quoted in almost all court cases fighting for pension related matters. Recently, pre 2006 pensioners fought court cases with GOI for (re) revision of pension for about five years. They won the case at the SC of India despite half a dozen SLPs and the curative petition. To elaborate the point, I would like to mention that my Salaji of 60+, being the legal heir, expects to get arrears, in about five months,for the period his father and mother lived - from 01-01-2006 till the dates of their death.
The LIC pensioners thirteen + years court battle for updation of pension is not different. If all goes well with the pensioners, the beneficiaries will be all, the past, the present and the future pensioners. The LIC has perpetual existence unless and until the GOI wants to cease its function...A will (no option as on date) retire as a pensioner on superannuation or earlier if he volunteers to retire after completing the required number of years service. In GOI and RBI, twenty years service must be (is) sufficient for full pension. The pension updation comes automatically along with revision of pay scales and without asking for GOI pensioners; not yet to RBI pensioners.
A family friend was very happy when his daughter, employed in Central Government, got an alliance from an officer working in a reputed bank. His son-in-law retired in Scale V nine years back. He had not opted for pension. He had handsome superannuation including the bank's contribution, gratuity etc. to the tune of Rs.40.00 lakhs (slightly inflated figure). He had his beautiful bungalow (60x40 site) and Honda City. He could get married his children after retirement. He was left with Rs.20.00 lakhs. (inflated figure). He was one of the first persons to opt for pension when he got a chance to opt. Only agony, now left for him, is that his wife is drawing more pension than him! She retired in Scale 24 of GOI. 'Madam, aapakoto aur 8-10 hajaar jyaadaa milega das barah mahineke baad' her beloved husband laments!
Mr.A must have seen the Pension anomaly chart as on 01-02-2015 at the maximum of scales of various cadres - prepared by Shri C.H. Mahadevanji. If not, he may see for himself, the glaring disparity among the pensioners retired on different dates. I quote here just two cases : (i) HGA retired in 2007 scale gets Rs.27085/-. Those who retired in the previous scales draw pension of Rs.25021/-, Rs.18576/-, Rs.17747/- and Rs.15972/-. (ii) EDs retired in 1987 and 1992 scales get Rs.23229/- and Rs.25080/- as against Rs.61660 - more than double- drawn by ED retired in 2007 scale. No need to add that disparity will be much more pinching -in couple of months - when the revised pay scales are in place. A or B can imagine his or her position ten or fifteen years after his or her retirement with the ever increasing inflation.
Mr.A has made a small mistake in stating that GOI had no go but to grant OROP to Defence Personnel as Government (Civil servants) are already getting OROP. The Central - civil pensioners-are as on date not getting OROP. Both civil and defence pensioners have/ had been fighting for it. Considering the short duration of military etc. service of majority of defence personnels/ pensioners, as ruled by the Courts, the former finance minister, Shri P.Chidambaram, introduced OROP for defence personnel from 01-04-2014. The Civil pensioners demand is not yet resolved. They get on a fitment formula, as mentioned in one of the aforesaid paragraphs and is not insignificant. OROP is one of the demands that the 7 th CPC is reportedly to examine.
The number of serving (cf.LIC Annual Report) employees as on 31-03-2014 was 1.20 lakh including 0.26 lakh development officers. The salaries and other benefits to employees amounted to Rs.14705 crore as 31-03-2014 as against Rs.11895 crore as on 31-03-2013. The ratio of expenses towards salary and other benefits to employees to total premium income was 6.21% and 5.70% for the same period. It is self explanatory.
The present generation LIC employees have more task to perform, (they have PLLI - such rewards -never seems to have occurred to anybody a decade ago) and shoulder heavy burden in the most competitive world of life etc. insurance today. The present day employees, by and large, are better qualified and intelligent. They should be able to find out different areas and methods to generate more income. They may strive hard to collect more premium income in order to reduce the ratio of expenses towards salary and benefits to total premium income.
A has rightly stated that the Corporation has to provide for the Pension Fund. The Corporation shall cause an investigation to be made by an Actuary into the financial conditions of the Fund every year on 31 March and make such additional annual contribution to the Fund as may be required to secure payment of of the benefits under the Rules. It is also provided that the Trust shall, in the event of the benefits payable under the rules being revised downwards for any reason whatsoever..the benefits go to the Fund.
Some twenty- twenty five years before, the money was a scare commodity. The needs were fortunately less. It was difficult to give Rs.10,000/- fees per annum to children. Now, one to ten lakhs fees/ donations have become order of the day in a few recognised institutions. Hopefully, A or B do appreciate the hard truth. No emotional atyaachaar, at all.
Had the letter of Anonymous had appeared in the PC five/ six months back, a request letter could go to UFBU to settle for 12% hike to serving employees, may the balance of 3% be for pensioners' fund !
The suggestion made by Shri B. Ganga Raju in his write - up is worth considering.
The pensioners. despite the age not being on their side, will continue to fight court cases. There will be differing opinions. Loko bhinna ruchihi.
Probably, A has not yet reached the age of discretion. He need not fear that his future shall be bleak if the pensioners obtain from the Apex court whatever is rightfully due to them. There is also no need to panic about Rs.9700 crore mentioned by Shri Abhishek M Sighvi. He must have seen court dramas in some movies or serials. Some lawyers lie, some lawyers mislead.
The Hon. Judges will examine all the issues before delivering the final judgement.
A may peruse some postings in the PC during last one month on Rs. 9700 crore.
The amount of Rs. 9700 crore is not 'huge' for a mammoth organisation like LIC. The organisation has paid Rs.16681 crore as commission to Agents for the year ended 31-03-2014 and Rs.14768 crore for the previous year ended 31-03-2013. A may be a young lad or lass (Shri MSM) may in his thirties or.... He or she be worried more than necessary on his or her career.
Avoid or better not be judgemental or cast aspersions. He must be knowing, "Discretion is the better part of valour".
SN (1992 pensioner)