1. D.R. ANOMALY FOR PRE-AUGUST 1997 PENSIONERS
The Dearness Relief rate per slab of pre-August 1997 pensioners was only 50% of that that was being applied to in-service employees , whereas the rate was kept in the same percentage per slab from 1/8/1997 onwards based on gross basic pension and basic pay respectively.
2. DISPARITIES IN PENSION
3. CLASS I & II PENSIONERS RETIRED BETWEEN 1/8/1992 & 31/3/1993
Class I & II Pensioners who retired between 1/8/1992 and 31/3/1993 were not only not given the benefit of fixation of revised salaries as at 1/8/1992, but also not provided the benefit of revised pension w.e.f 1/11/1993 . It is significant to note that based on a Supreme Court Order a few years ago , such pensioners were given the benefit of gratuity to which they were eligible based on the revised scales w.e.f 1/8/1992.This anomaly in pension was the subject matter of the writ petition in Rajasthan HC(Jaipur Bench) in the case M.C Jain vs LIC of India in which the Court held that the petitioner was entitled to revised pay scales as per the Notification dt 18/7/1996 and consequent benefits.
As a consequence of the above judgment, even the Class I & II Officers of LIC who retired from service after 1/4/1993 and who are still in service are entitled to receive the arrears of salary & DA for the period from 1/8/1992 to 31/3/1993 and also refixation of salary and pension based on successive wage revisions w.e f 1/8/1997,1/8/2002 & 1/8/2007 as the case may be.
4. D.R. ANOMALY EXISTING EVEN FOR POST JULY 1997 RETIREES
It is commonly believed that the anomaly on account of Dearness Relief is existing only in respect of pre-August 1997 retirees. But if it is examined in more detail, considering the percentage of DR slab fixed from 1/8/1997 ,1/8/2002 & 1/8/2007, it can be seen that thecompounded annual rate of increase in gross pension of pensioners has not kept pace with the compounded annual rate of increase salary of in service employees. Irrespective of non-revision of pension, the rates of increase would have been same if DR slabs had been fixed adequately for pensioners. This clearly indicates that the revision of pension also along with revision of salary on every wage revision is the only solution to remove the problem of such anomaly.
5. ANOMALOUS FIXATION ON RETIREMENTS WITHIN TEN MONTHS OF WAGE REVISION
There are also cases -- although small in number--where pensioners who retired within ten months of the effective date of wage revision were fixed pension based on the average emoluments drawn during the last ten months of service. This has resulted in many cases of pensioners drawing basic pension which is less than the minimum of the scale of pay in the revised scale which the employee was drawing before retirement. The best solution for removing this anomaly is to either take the last pay drawn at the time of retirement or adopt the procedure laid down in the IBA Circular dt 13/10/2010 issued to the Public Sector Banks adopting the principle of merger of DA up to the date of wage revision to arrive at the notional emoluments for the pre-revision period.
“Enclosure to Circular No.CIR/HR&IR/G2/2010-11/1502 dated October 13, 2010)
Computation of Average Emoluments for calculating pension of employees retired between 1.11.2007 to 31.7.2008 for the preceding 10 months of retirement
(Model Calculation for an officer employee retired on 31.3.2008 having 33 years
of qualifying service with Basic Pay of Rs.30,600/- as on the date of retirement)
(Rs)
1. For the period of service prior to 1.11.2007
(i.e. from 1.6.2007 to 31.10.2007 (5 months)
(a)
“Pay‟ as in Bipartite Settlement / Joint Note dated 2.6.2005
21660x5 = 108300.00
(b)
Dearness Allowance payable @0.18% for every slab of 4 points over and above the Index numbers 2288 points and up to 2836 points in All India CPI 1960=100
5341.35x5 = 26706.75
Total of (a) and (b) above = 135006.75. (A)
2.
For the service rendered on or after 1.11.2007
upto the date of retirement (5 months)
(a) Pay as in Bipartite Settlement/ Joint Note
dated 2.6.2005
30600x5 = 153000.00. (B)
Total of (A) and (B) =288006.75. (C)
3.
Average emoluments for the preceding
10 months of retirement = 288006.75 = 28800.00. (D)
4.
Basic Pension in terms of Regulation 35(2) of the Bank Employees‟ Pension Regulations
= 50% of 28800 x 33 =14400.00”
6. PENSION ENTITLEMENT FOR ELIGIBLE RESIGNEES
There are a number of employees—although may be very few in number-- of the Corporation who were in service on 1/1/1986 and resigned from the services of the Corporation after that date after putting in a service of 20 years. Such retirees have not been provided with pension as per LIC Pension Rules, 1995.In a recent judgment of the Supreme Court in the Civil Appeal No 6013 (Sheelkumar Jain vs The New India Assurance Co.Ltd) has ruled on 28/7/2011 that resigned employees were eligible for pension under their Pension Rules if they satisfied the eligibility conditions for receiving pension on the date of their resignation. There are some requests pending with the Corporation made by such resignees. They need to be legally provided with the pension benefit from the dates of their resignation as the LIC Pension Rules, 1995 are almost identical with those under the General Insurance (Employees') Pension Scheme, 1995.
7. FAMILY PENSION
The rate of family pension presently in vogue is woefully inadequate which is hardly 30% of the gross regular pension is. Such a low rate of pension deals another blow on the financial front to the family pensioner who is already compelled to face the trauma of death of the regular pensioner. The Reserve Bank of India has already vide their Administration Circular No 7 dt 12th December 2012 has already amended their Pension regulations ,1990 increasing the family pension to 30% of the Pay uniformly subject to a minimum of Rs 3500/- It is high time that LIC Pension Rules, 1995 were amended to effect such an increase in Family Pension for LIC family pensioners as well.