ANOMALY IN PENSION REVISION FOLLOWED
BY LIC FOR PRE-AUGUST 1992 RETIREES
I give below an illustration of an anomaly
that has been observed in the method followed
by LIC for calculation of revised pension as
at 1/8/1997 while depositing the amounts in
Chandigarh HC Registry in respect of
pensioners who retired prior to 1/8/1992:
On account of the two stage merger of
DR adopted for revision of pension, the revised pension works out to less than
what would have resulted if only one stage merger was done on 1/8/1997.This is
another offshoot of failure to provide weightage while revising the pension
notionally on 1/8/1992 and revising regular pension on 1/8/1997.This anomaly
does not arise for pensioners drawing less than
Rs 1250 of basic pension. Such pensioners may be few and far between.
This clearly demonstrates that while rationalizing
DR, adequate weightage also needs to be provided for upgrading pension.
Otherwise anomalies will be perpetual.
I am sure that such anomalies will definitely
attract the critical attention of the High Courts & Supreme Court.
Greetings.
C H Mahadevan