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Sunday, May 08, 2016

AIIPA CIRCULAR NO.12/2016 DATED 7TH MAY 2016


Re: Letter to Shri S K Roy, Chairman, LIC of India.
We reproduce below our letter dated 6th Mayl 2016 addressed to Shri S K Roy, Chairman, LIC of India.
With greetings.
Comradely yours.
General Secretary

Date : 6th May 2016

Shri.S.K.Roy,
Chairman,
LIC of India,
Central Office,
Mumbai.

Dear Sir,

Grant of uniform rate Dearness Relief
to pre-1.8.1997 pensioners


All India Insurance Pensioners Association has been representing for long for Grant of Full Neutralisation on Dearness Relief for Pre-August 1997 Pensioners - in the analogy of LIC, Uniform Rate of Dearness Relief as per the Resolution of LIC Board of November 2001 - to fulfil the moral responsibility.

However, perceptions on how to arrive at the amount of Dearness Relief per slab have differed and our viewpoints have been spelt out in our earlier letter in the wake of the Judgement of Honble Supreme Court.

Even while LIC was persisting with its legal pre-occupation, AIIPA had demanded of LIC to get the issue settled and had even suggested issuance of Government Notification.

Now that the Rule Making Powers of the Government have been upheld by the Supreme Court and Rule 3(A) of Appendix IV of Pension Rules has come to the fore, we would like to share some of our thoughts.


While on Rule 3(A), we find three sets of Pensioners, based on their dates of retirement, get involved on determination of Basic Pension and Dearness Relief thereon.

The Rules prescribe Average Emoluments of last ten months of service and on this score, three sets of employees with last of ten months of service falling before August 1997, after April 1998 and between August 1997 and April 1998 come under focus.

Employees who received only Truncated Dearness Allowance while in service and Employees who drew Dearness Allowance with Full Neutralisation in the last ten months of service before Retirement got Dearness Relief akin to the Dearness Allowance while in service.

While employees who were paid Truncated Dearness Allowance in part and Dearness Allowance with Full Neutralisation in part during Average Emoluments period rightly got Dearness Relief with Full Neutralisation, denial of Full Neutralisation on Dearness Relief for those retired before August 1997 is against natural justice.

When LIC was in the process of payment of 20% Interim Relief, our demand was for full 100% and to all affected Pensioners.

When LIC is poised to release 40% under Rule 3 (A), our plea has been again Payment in Full.

The basis on which LICs Civil Appeals had been filed had been that LIC Board Resolution cannot be implemented unless it became a Rule under Section (48) of LIC Act.

On the direction of the Honble Supreme Court, LIC will be releasing 40%, though LIC Board Resolution has not got the statutory backing and our representation has been for Full Payment, if need be, causing issuance of Government Notification.

While the legal aspects will be agitated and adjudicated upon in the coming days, the fervent Appeal of the Organisation is the need for immediate solution that will add grace and fervour and instil forthwith a sense of satisfaction among the affected Pensioners and Families of those who could not enjoy these benefits during their life time.

Our Organisation hopes LIC will appreciate the sentiments, understand the logic, adapt itself the emerging situation and initiate immediate steps to soothe the hurt feelings of the entire LIC Pensioners community.
Thanking you,

Yours Sincerely,
(T.K.CHAKRABORTY)
General Secretary