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Sunday, September 13, 2015

Sri MSM's post re. arrears paid to one Pensioner‏

Dear Sri Gangadaran,

In the post published to-day, Mr Murty has stated that the 20% interim relief paid to one AO Pensioner is much less than the amount payable. He has given a figure of arrears payable for the period prior to 1-8-97. I do not know how this was done.

Probably the calculation was done on the premise that the DR Formula appearing in Appendix IV of Pension Rules is incorrect and that the calculations are to be done  using the same formula used for calculating DA for employees in service. 

I differ from this view. It is known fact that as Pension is 50% of Pay , the DR also will be 50% of DA.. If DA/DR is paid as a percentage of Pay/Pension there is no scope for confusion.

As in LIC DA/DR is paid on slab rate basis and no. of slabs increase/ decrease allowed is uniform to both employees and pensioners, probably, to bring about 50% effect, the peterring slab limits were halved. As per the existing formule, one can find that the slab rate for DR is just half of the slab rate for DA. and the total DR received will be half of DA.

Thanks,
T Lakshminarayanan