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Monday, September 14, 2015

Respose to Mr.Sudhakaran's query in Chat-n-Chat column


Mr Sudhakaran’s query:

Mr. Mahadevan  says  'pension is 50% of the average emoluments drawn by employee during the last 10 months while in service. Then where is the question of updation?

My answer:

Yes, that is the Basic Pension fixed on retirement. The pension so fixed has to continue till the date of next wage revision  after which revision has to take place with upgradation as  per the principle laid down in the D S Nakra case by the Supreme Court .

The  formula for initial fixation of pension on retirement  need not be an obstacle for upgradation.Are not salaries revised even though appointment letters mention the scale of pay at the time of recruitment? The pension fixation formula does not have to  make the pension static forever.

Greetings.

C H Mahadevan