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Sunday, September 27, 2015

INTERIM DISTRESS ?


ARE YOU A PRE- AUGUST 1997 RETIREE (CLASS I RETIRED ATER 1/4/1993 OR CLASS II, III&IV RETIRED AFTER 1/8/1992) WITH BASIC PENSION OF RS 2400/- OR LESS? THEN YOU HAVE TO PAY BACK TO LIC!

There was a serendipitous discovery today by me when I received some calculations of interim relief in Excel format from a senior retired officer of LIC who belongs to the pre-Aug 1997 retiree category.

When I went through his calculations in one of the four charts sent by him, I was shocked to notice, that according to the method followed by LIC ( as done for depositing amounts at Jaipur HC Registry) a pre-August 1997 retiree Class I Officer at Basic Pension 2400/-(may be in the cadre of AAO) draws a negative interim relief of Rs -339/- upto 31/7/2015.It means he has to pay back Rs 339/- to LIC!

Is it the reason that many pre-August 1997 retiree Class I Officers are yet to receive interim relief? Or perhaps there are not many retired AAOs with such low Basic Pension.It is a puzzle that only LIC can explain.

Is it an interim relief or interim distress?

But one thing is certain.the method followed by LIC is anomalous and LIC cannot satisfy the Supreme Court that it has complied with their order dt 7/5/2015 & The relevant  calculations are given in the following table.


A. Existing Pension DRAWN UPTO 31/7/2015
Existing Basic Pension
2400
DR per slab
8.4
No of months
216
Total amount of Basic Pension
518400
Total no of existing DR slabs
110292
Total DR
926453
Total Existing Gross Pension Received upto July 15
1444853
B.WHAT IS DUE AS AT 31/7/2015 ON 100% DR NEUTRALISATION
Revised Basic Pension on 1/8/1997
3643
DR per slab
8.3789
No. of months
216
Total no of slabs upto 31/7/2015
78324
Total DR upto 31/7/2015
656269
Total  Revised Basic Pension from 1/8/1997 to 31/7/2015
786888
Total Gross Pension from 1/8/1997 to 31/7/2015
1443157
Arrears due on 31/7/2015
-1696
Interim  relief
-339

Greetings.
C H Mahadevan