On returning to headquarters after attending the General Council Meeting of our Federation held on 2nd inst, I happened to once again read your circular dt 30th October 2013.
While giving the gist of your noteworthy meeting with Shri R.K.Takru, Secretary (FS), MoF on 29/10/2013, you have mentioned that you raised two major issues of (1) DR Anomaly on account of denial of 100% neutralization to a section of pensioners and (2) upgradation of pension.
I would like to point out that DR anomaly has not arisen for pre-August 1997 retirees on account of denial of 100% DR neutralization, but on account of a different set of pension slabs fixed for calculation of DR slabs compared to that which was followed for in-service employees with the result that the pensioners were only getting 50% of DR that they would have been otherwise entitled to get .This anomaly has been clearly brought out in the Single judge Bench Order dt 12/1/20120 of Jaipur HC Bench. There was no 100% DR neutralisation even for in-service employees upto 31st July 1997.
100% DR neutralization can be done for pre-August 1997 retirees only on upgradation of pension on 1/8/1997 which is exactly what is recommended by the LIC Board in its resolution dated 24th November 2001 besides recommending a weightage of 11.25% which was adopted for in service employees. This is the point that I also stressed while speaking in the General Council meeting on 2nd inst.So, removal of DR anomaly and upgradation have to go hand in hand and that is exactly the decision of the LIC Board.
So we should have specifically emphasized before Secretary (FS) the immediate need for implementation of the LIC Board Resolution as ordered by the Jaipur HC Bench and corroborated by PB & H and Delhi High Courts in their respective orders, considering that Supreme Court has refused to stay all the three HC orders on the respective writ petitions.
Besides, a time has come for our Federation to approach the subject in an integrated manner demanding the LIC Management for considering revision of pension on every wage revision date from 1/8/1997 on a stage to stage basis and not merely upgradation of pension in chain on wage revision dates. Even upgradations in chain on every wage revision will provide far less benefits than stage to stage revision unless the weightage is done in a reasonably equitable manner. In my conversation with Mr R. Chandrasekaran, my batch mate, who was ED (P) when the Board Resolution was approved, I have gathered that the weightage of 11.25% referred to in the LIC Board Resolution was only an average and actual weights would vary according to the cadre and slabs of basic pension.
I have actually requested for a copy of the illustrative chart enclosed to the ED(P)s letter dt 11th August 2003 addressed to Mr G.C.Chaturvedi, Joint Secretary(Insurance & Banking) invoking RTI Act 2005. A scanned copy of the said letter is attached.
I thought I should share my above thoughts with you so that you may take them into account while taking up the matter with LIC Management, MoF and also in the courts of law.
Kind regards.
