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Saturday, October 03, 2015

Upgradation or downgradation ?


Shri CH Mahadevan in his post has brought to light the fact that all pensioners who retired in the cadres of sub-staff and RC will face reduction in their total pension as at 1-8-97 in the method followed by LIC. Not only that, for others also the total pension already drawn is treated as new Basic Pension as at 1-8-97 with no increase.

This anomaly can be remedied by first removing the discrimination in DR formula arisen on 1-8-97 by Govt. Notification on 22-6-2000 liberalising the DR formula prospectively from 1-8-97. This not only violates Article 14 of the Constitution but also violates case law established by Supreme Court in DS Nakhara case etc. 


Action should first be taken to extend the effects of the said Notification to the earlier two categories of Pensioners {600 points & 1148 points} by bringing amendments to App.IV of the Pension Rules to be effective from 1-8-97, making DR rate at 0.67%^ and 0.35% respectively on full Basic Pension.

If action is taken on the above lines, the question of reduction in total pension to any will not arise. On the contrary, all pensioners {other than those who already had the benefit of 100% neutralisation ie.,CL.IV & RC} will get substantial increase in DR on 1-8-97. It may be noted that as per LIC method the DR on 1-8-97 is NIL with no increase in total Pension.

T. LAKSHMINARAYANAN.