Saturday, April 09, 2016
IR CALCULATION BY LIC HAS TO BE DIFFERENT?
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.
C H Mahadevan