Please click below for the Tables.
TWO
ILLUSTRATIONS TO PROVE HOW LIC’S
METHOD OF CALCULATIONS TO REVESE
PRE-AUGUST 1997 RETIREES STILL RESULTS IN LOSS TO THE PENSIONERS
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Pensioner A : Cadre ADM
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Period of Retirement : 1/8/1987 to 31/7/1992
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Existing Basic Pension
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2525
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Existing DR slab
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13.6005
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No of DR slabs as at 1/8/2015
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1324
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Total existing DR as at 1/8/2015
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18007
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Total Existing Pension as at 1/8/2015
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20532
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LIC's Calculations for revision of Pension as at 1/8/1997
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Existing Basic Pension
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2525
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Existing DR as at
1/8/1992
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1863
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Notional Revised Pension as at 1/8/1992
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4388
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DR slab on revised
Notional Basic Pension
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13.289442
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Revised DR as at 1/8/1997
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1967
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Revised Basic Pension as at 1/8/1997
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6355
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Revised DR per slab
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14.6165
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No. of DR slabs as at 1/8/2015
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1039
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Total DR as at 1/8/2015
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15187
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Total Gross Pension as at
1/8/2015
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21542
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REVISED PENSION CA:CULATIONS IF ONLY DR ANOMALY IS REMOVED
WITHOUT MERGER OF DR AND UPGRADATION
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Existing Basic Pension
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2525
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Revised DR slab( based on
in-service formula)
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16.8875
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No of DR slabs as at 1/8/2015
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1324
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Total Revised DR as at
1/8/2015
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22359
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Total Revised Pension as
at 1/8/2015
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24884
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( This is more than what
is worked out by LIC by the merger method without weightage)
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Loss on account of DR anomaly
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4352
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Loss on account of the faulty method of LIC
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3342
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(even after revision of Basic Pension by LIC on 1/8/1997).This
means that the pension increases only by Rs 1010 instead of by Rs 4352 as at
August 2015
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PENSIONER B :Cadre ADM
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Date of Retirement : 1/4/1993 to 31/7/1997
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Existing Basic Pension
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4975
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Existing DR Slab
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13.8175
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No of Slabs as at 1/8/2015
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1187
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Total existing DR as at 1/8/2015
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16401
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Total existing gross pension as at 1/8/2015
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21376
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LIC's Caculations for revision of Pension as at 1/8/1997
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Existing Basic Pension
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4975
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DR as at 1/8/1997
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2045
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Revised Basic Pension as at 1/8/1997
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7020
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DR slab on revised Basic Pension
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16.145977
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No of revised DR slabs as
at 1/8/2015
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1039
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Revised DR as at 1/8/2015
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16776
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Total Gross Revised Pension as at 1/8/2015
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23796
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REVISED PENSION CALCULATIONS IF ONLY DR ANOMALY IS REMOVED
WITHOUT MERGER OF DR AND UPGRADATION
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Existing Basic Pension
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4975
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Revised DR slab( based on
in-service formula)
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17.3075
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No of DR slabs as at 1/8/2015
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1187
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Total Revised DR as at
1/8/2015
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20544
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Total Revised Pension as
at 1/8/2015
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25519
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( This is more than what
is worked out by LIC by the merger method without weightage)
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Loss on account of DR anomaly
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4143
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Loss on account of the faulty method of LIC
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1723
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(Even after revision of Basic Pension by LIC on 1/8/1997). This
means that the gross pension increases only by Rs 2420 instead of by Rs 4143 as at
August 2015
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NOTE
1. It has also to be noted that in the method adopted by LIC,the
basic pension is revised only from 1/8/1997 without merger of the
correct DR(free from anomaly) , whereas, as per the method adopted for removing
the DR anomaly, the DR slab will undergo a change right from 1/11/1993 or the
date of retirement whichever is later before further calculations for
revision.
2. Different calculations will have to be
made for the Class I Officers who retired between 1/8/1992 and 31/3/1993 who are in the
category of Mr M C Jain in whose case
Supreme Court has dismissed the SLP filed by LIC against the Jaipur HC Bench
judgment ordering revision of salary from 1/8/1992 and revision of pension from
1/11/1993.But LIC has to be persuaded to
implement the MC Jain case judgment in the right manner not only in his
case, but also for all similarly placed
pensioners. This may require intense lobbying or vigorous legal struggle by
affected pensioners/Associations.