As per para 27 of the SC judgment dt 31/3/2016, LIC will have to calculate IR by taking DR as per para 3A of Appendix IV. This means that pre-August 1997 retirees will have to be fixed at a Basic Pension as if their pay scales are revised on 1/8/1997. Otherwise how can para 3A be used which is applicable only for those who retired or died after 1/8/1997 (& before 1/8/2002) and who had got the benefit of wage revision on 1/8/1997?
We have to wait and see whether LIC will adopt this approach. If they don’t, It has to be considered whether SC can be approached and what will be the outcome. If SC directions are followed, there will have to be an one-time upgradation of pension with weightage on 1/8/1997 before calculating IR.
