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Tuesday, May 10, 2016

MY RESPONSE TO MR T LAKSHMINARAYANAN


Mr T LAKSHMINARAYANAN

What is to be done is by extending the principle of 100% DR
neutralisation to the earlier two groups of Pensioners covered by Rule
1 and 2. If this is done, Rule 1 Pensioners (600 pts) will receive DR
at 0.67% on Full pension from 1-8-97 and those covered by Rule 2 @
0.35% on full pension from same date. In this method, the total DR
payable on 1-8-97, which was zero in LIC method, will be substantial
0n 1-8-97 and the cumulative arrears due as on date will be much
higher.


My view:

I do not agree.If it is to be done in this manner, then the DA should be paid to in-service employees during the period upto 31/71997 in the same manner and arrears will have to be paid now for the pre-August 1997 period.

As there was no 100% DR neutralization before 1/8/1997 even for in-service employees, the only way discrimination can be removed will be by having an identical DA/DR formula for all pre-August 1997 in-service employees & retirees.This way the pre-August 197 DR anomaly will be removed.



Mr T.L.

The thinking in certain quarters that Rule 3A can be interpreted to
include pension upgradation also is far-fetched in my view.


My view:

By a careful reading of para 27 of the Supreme Court Order dt 31/3/2016 and para 3A of Appendix IV,I don’t see any way other than upgrading pension for pre-August 1997 retirees as at 1/8/1997 notionally (duly interpolating in the fitment chart for the existing average emoluments and converting the same into revised pension).Para 3A cannot be applied to pre-August 1997 retirees without weighted upgradation as at 1/8/1997 notionally.


Mr T L

Also, the view held by a few that the existing DR formula under Rule 1
& 2 is discriminatory is not correct.


My View:

The DR formulae are truly discriminatory as the rate of DR for retirees is only 50% of the rate applied for in-service employees even though Basic Pension is already 50% of the average emoluments. It is not so from 1/8/1997.





Mr T L

The total DR paid to such pensioners is exactly half of the DA
received while in service.


My view:

No it is one-fourth of what was received while in service because the rate is halved on half the salary.


Mr T L

So, instead of wasting our time and energy in these matters we should try our best to get full justice to pre-August 97 pensioners.


My view:

All energy has to be harnessed to remedy the situation stated above. There is no question of wastage.


Mr T L

Upgradation is an issue common to all groups of pensioners and the
same should not be mixed with the removal of DR discrimination to
pre-August 97 pensioners, which is of paramount importance.


My view:

There is no question of mixing but blending.Removal of DR anomaly,100% DR Neutralisation for pre-August 1997 retirees and upgradation for all pensioners have to be fought for with equal force.
Greetings.

C H Mahadevan