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Sunday, August 25, 2013

Updation of Pension, 100 % neutralization in dearness relief etc. in LIC, BANKS


Shri G N.Sridharan, the octogenarian leader of Officers’ Association of a great organisation of LIC, surely knows that GOI pensioners have been getting updation of pension along with revision of scales of pay since 1986. As per recommendations of V Central Pay Commission, the pension of pre and post 01-01-1996 pensioners/family pensioners was updated by GOI. 

Pension/family pension was fixed at 50% and 30 % respectively and on certain fitment norms in the revised V CPC pay scales relevant for the post held by the pensioner at the time of retirement/death. Dearness relief (D.R.) was granted with 100% neutralisation from 01-01-1996. All the the pensioners and family pensioners got arrears from 01-01-1996.

Pensioners / family pensioners of RBI started getting 100% D.R. neutralisation from Feb.2005.  However, the pre1997/98 pensioners of LIC and banks continue to get D.R. on tapering basis. They have been denied  100% D.R. neutralisation, which is unconstitutional, unjust in law, to say the least.

All pensioners and family pensioners who were alive on 01.01.1996 and died subsequently, his/her legal heirs were eligible to apply for/got arrears retrospectively from 01.01.1996 to till the date of death of pensioner/family pensioner.

Shri Sridharan  is  right that GOI has not given point to point updation of pension or One Rank One Pension but  all the pensioners’ organisations of GOI are ‘fighting’ for OROP. The military personnel have been recently given relief/enhancement (not that sizable)  in pension and family pension ’naming’ it OROP.

The retired employees of central government had pension windfall with GOI implementation of VI CPC recommendations in August 2008. All pensioners, including family pensioners received arrears from 01-01-2006. Those 80, 85, 90, 95 and 100 years old got/get 20, 30, 40, 50 and 100 per cent more in basic pension/family pension and admissible dearness relief. Updating of pension and family pension in LIC and banks should be along with revision of scales of pay of serving employees as is the position obtaining in central govt.


As stated in para.1 above, the family pensioners of central govt. get 30% of pay and grade pay. But, there is discrimination in respect of LIC and bank family pensioners. They get negligible family pension with ceiling almost based on IV CPC.

Recently, the family pensioners of RBI, who were getting pension on tapering basis, started getting family pension at 30% of basic pay of the late employee/ pensioner from 12-01-2013. Family pension in LIC and banks should also be revised to 30% of the updated/revised basic pay of late employee/pensioner from the date of his/her demise.

- A pensioner.