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Sunday, January 10, 2016

THE FALLACY IN LIC's APPROACH

IN RESPECT OF PRE-AUGUST 1997 RETIREES


Further to my post in response to Mr VVLN Sastry's post, I attach a table of calculations to prove how the method adopted by LIC ostensibly for implementation of LIC Board Resolution dt 24/11/2001 is badly flawed.

For one thing, LIC has not recognised the fact that DR anomaly has to be removed right from 1/11/1993 or the date of retirement whichever is later.

Secondly LIC has adopted the method of one- time merger of a faulty DR with basic pension on 1/8/1997 without repeating the process on 1/8/2002 and 1/8/2007.

It is another matter that LIC has conveniently omitted providing 11.25% (average) weightage after merger of DR.

The table of calculations clearly demonstrate that the pre-August 1997 retirees -especially Assistants and above- would have been better off even if LIC had not adopted the method of merger of DR with Basic Pension if only the DR formula was followed for retirees on par with in-service employees as directed by the Single Judge Bench at Jaipur while allowing WP No 6676/1998.

In the light of the calculations, it is also clear that the 1200 retired Class I officers who have been paid some interim relief have perhaps been taken for a ride by LIC cleverly withholding the supporting calculations from them. May be they are satisfied with whatever they have got instead of not getting anything as happened in the case of more than 20000 other pre-August 1997 retirees/family pensioners.

Will these flaws be brought up before the Supreme Court on 20/1/2016 by the counsel of the petitioners?

When such mischief is taking place in respect of removal of DR anomaly, what can be expected from LIC on the issue of upgradation?

Only judiciary can save LIC pensioners.

Greetings.
C H Mahadevan

 Click below for the Tables.
EFFECT OF NON-REMOVAL OF DR ANOMALY ON LIC'S CALCULATIONS IN RESPECT OF PRE-AUGUST 1997 RETIREES

PRE-AUGUST 1992 RETIREES
CADRE Maximum Basic Pension Total Existing Gross Pension as at 1/8/2015 Total Gross Pension as per LIC's method of merger of DR & Basic Pension as on 1/8/1997 Total DR anomaly-
free pension
as at1/8/2015
(without upgradation)
Present
Mly Loss to the retiree
Mly Loss if Pension is revised based on LIC Calculations
ED
3500
23702
26159
32959
9257
6800
ZM
3275
22970
25094
31096
8126
6002
SDM
2975
21995
23673
28611
6616
4938
DM
2675
21020
22252
26126
5106
3874
ADM
2525
20532
21542
24884
4352
3342
AO
2260
19671
20271
22308
2637
2037
AAO
2130
19248
19591
21025
1777
1434
HGA
1850
17308
17434
18261
953
827
ASST
1610
15320
15395
15892
572
497
DO
1940
18053
18198
19149
1096
951
RC
1000
9871
9869
9871
0
2
DRIVER
905
8933
8931
8933
0
2
PEON
755
7452
7451
7452
0
1
SWEEPER
725
7156
7155
7156
0
1

RETIREES OF THE PERIOD 1/8/1992 TO  31/7/1997
CADRE
Maximum Basic Pension Total Existing Gross Pension as at 1/8/2015 Total Gross Pension as per LIC's method of merger of DR & Basic Pension as on 1/8/1997 Total DR anomaly-
free pension
as at 1/8/2015
(without upgradation)
Present Mly Loss to the retiree Mly Loss if Pension is revised based on LIC Calculations
ED
7000
25565
31574
34515
8950
2941
ZM
6325
24169
28981
31516
7347
2535
SDM
5725
22928
26677
28851
5923
2174
DM
5225
21893
24756
26630
4737
1874
ADM
4975
21376
23796
25519
4143
1723
AO
4485
20363
21913
23118
2755
1205
AAO
4255
19887
21030
21932
2045
902
HGA
3695
18124
18623
19046
922
423
ASST
3210
15969
16273
16546
577
273
DO
3760
18412
18938
19381
969
443
RC
2235
11520
11500
11520
0
20
DRIVER
1995
10283
10265
10283
0
18
PEON
1710
8814
8799
8814
0
15
SWEEPER
1610
8299
8284
8299
0
15