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Monday, April 18, 2016

MISPLACED AND MIXED PRIORITIES


Referring to Mr M V Venugopalan's post where he has analyzed the present legal scenario,I wish to respond on the point stated by him on 20% IR paid by LIC to selected pensioners vis-a-vis the 40% now ordered by SC.

I wish to make it clear based on my calculations that the 20 % paid by LIC was short of the entitled DR arrears as the method followed by LIC resulted in lesser monthly pension than justified on removal of DR anomaly even without merger of Basic pension and DR as at 1/8/1997.

The 40% IR mandated by SC in its 31/3/2016 order stands on a different footing.It requires LIC to revise the pension of pre-August 1997 retirees after revising their average emoluments on par with the fitment done for in-service employees as at 1/8/1997.In other words,there has to be an one-time upgradation of pension with weightage as at 1/8/1997 which carries with it much more than DR arrears.

Based on our experience with the LIC's faulty method of 100% DR neutralisation,God knows how IBA will provide an anomaly free pension for the pre- November 2002 retirees as ultimately MoF may advise them to follow the method followed by LIC.

Let us see how things turn out.
Greetings.
C H Mahadevan