* CHRONICLE - PENSIONERS CONVERGE HERE, DISCUSS ISSUES OF THEIR CHOICE * CHRONICLE - WHERE EVEN THE CHAT COLUMN PRODUCES GREAT DISCUSSIONS * CHRONICLE - WHERE THE MUSIC IS RISING IN CRESCENDO !

Thursday, September 24, 2015

CH Mahadevan


HOW THE INTERIM RELIEF PAID BY LIC IS JUST A PITTANCE

 In the past  10 days I have been  in telephonic contact with a number of pensioners  to have an idea of their having received  the payment of interim relief  by LIC as per the Supreme Court orders dt 7/5/2015 and 7/9/2015 to the pre-August 1997 retiree officers.

Based on the information received from one ADM cadre retired officer who had retired in the maximum of scale on 31/1/1993, who had received a credit of an amount of Rs 17581/- to his Bank a/c, presumably towards his interim relief amount paid by LIC,I tried to work out his possible amounts of arrears under four different scenarios as  tabulated below. The retired officer also falls under the category of M C Jain who was given the relief (through a wrong amount) as a result of the Supreme Court dismissal of SLP against the judgment of the Jaipur Bench of Rajasthan High Court.I had factored the effect of the said judgment in two of the scenarios. The amounts worked out under the four  scenarios are  summarized in the following table:

ILLUSTRATION FOR AN M C JAIN CATEGORY RETIREE OFFICER
Basic pension:  Rs 2525 (Maximum)

Scenario
Methodology of calculation
Total arrears due upto 31/8/2015(Rs)
Interim relief due (Rs)
Interim relief received by the officer(Rs)
I
Faulty method adopted by LIC
·        Arrears calculated from 1/8/1997 by a simple merger of DR  upto 1/8/1997 with existing Basic Pension;
·        No removal of DR anomaly prior to 1/8/1997
·        No weightage on merger of DR with Basic Pension
·        No repetition of the process on 1/8/2002 & 1/8/2007
88998
17800
17581
II
·        Pre August 1997  DR anomaly removed;
·        Pension revised by merger of  revised DR with existing Basic Pension;
·        No weightage after merger
349738
69948
------do……………
III
·        LIC revises pension on 1/11/1993 based on M C Jain case judgment;
·        Removes pre-August 1997 DR anomaly
·        Revises pension  by merging  revised DR  on revised Basic Pension;
·        No weightage on merger
429245
85849
------do……………
IV
(Full scale  upgradation  as per Jaipur SJB Order dt 12/1/2010 reinforced by the Punjab & Haryana JC judgment)
·        LIC gives effect to M C Jain case judgment and revises pension from 1/11/1993;
·        Removes DR anomaly upto 31/7/1997;
·        Revises pension  on 1/8/1997,
1/8/2002 and 1/8/2007 with weightage
18, 82,607
3,76,521
------do……………

From the above it is clear that what LIC has paid as  interim relief is not only far less than the due amount in terms of the impugned  HC  judgment but it is also  not even 1% of the amount due as full arrears.

Even under the scenarios II & III which again will be faulty if adopted by LIC, the amount received by the retired officer would constitute 5% & 4% respectively. Under  all the scenarios II,III.IV the interim relief  received is far less than 20% and hence there is no compliance of the Supreme Court Order dt 7/5/2015 by the LIC. The arrears  due of Rs 18.8 lks  under the last scenario is the  cumulative loss sustained by the retiree-officer  from 1/11/1993 till August 2015.

Greetings.

C H Mahadevan