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Monday, August 03, 2015

THE IMPLICATIONS AND USE OF RESIDUARY PROVISIONS


Rule 56 of LIC of India (Employees’) Pension Rules, 1995 reads as follows:

“Residuary provisions-

Matters relating to pension and other benefits in respect of which no express provision has been made in these rules shall be governed by the corresponding provisions contained in the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Commutation of Pension) Rules, 1981 applicable for central government  employees.”

Besides the other strong points in our favour of our upgradation, the above Rule can be cited very strongly to justify upgradation of pension with every wage revision. Upgradation of pension is a matter relating to pension in respect of which no express provision has been made in the Pension Rules, 1995.Express provisions can be in the form of either providing a benefit or excluding a benefit. As neither of such provisions has been made in the pension rules relating to upgradation of pension, the Central Government rules cited in the above Rule will have to be applied.

Originally, the above Central Government rules of 1972 did not provide for upgradation  of pension for its employees, but the Vth Pay Commission Recommendations provided for  upgradation of pension effective from 1/1/1996 and it was accepted by the Central Government  to the extent that pension of all pre 1.1.96 retires including pre-86 retires shall be consolidated as on 1.1.1996 as recommended, but the consolidated pension shall be brought on to the level of 50% of the minimum of the revised pay of the post held by the pensioner at the time of retirement.

LIC Pension Rules explicitly exclude the pre-1986 retirees from their purview.
But the benefit that arises from the Jaipur Single judge Bench Order provides for parity of pension on upgradation instead of revision to the level of 50% of the minimum of the revised pay of the post held by the pensioner at the time of retirement as provided for in the Central Government rules..

Whatever may be the final verdict of the Apex Court in the event of a favorable outcome, besides other strong grounds, the Rule 56 can be deployed successfully by our counsel in the 23rd September hearing to justify our case for upgradation of pension in tandem with wage revisions.

With greetings,

C H Mahadevan