Dear Sir,
Thanks for your Note on the implications of the dismissal of SLP- M C Jain case.
My position as as follows :
Date of retirement : 31-1-1993
Basic pay on retirement : 5050 Revised Basic pay on 1-8-1992 : 9950
Average 10 months basic salary preceding retirement :1-8-1992 to 1-1-1993 : 9950 x 6 = 59700
1-4-1992 - to 1-7-1992 : 5050 x 4 =2020 10 months
average : 59700+ 2020 / 10 = 7990 Pension at 50 % of 7990 = 3995
Before the court order Pension = 2525 I think myself as well as Jain may not be hit.
Kindly confirm whether I am correct. But as advised by you earlier I should not opt for commutation.
A PENSIONER
CLARIFICATION
By taking the lower pre-revised Basic Pay for April 1992 to July 1992,your Basic Pension is less than Basic Pension of 4995/-( being 50% of the average of the last 10 months' taken at the maximum of revised scale).This is an anomaly.
In Banks, this anomaly is not there as per 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.
The illustration given as per the said circular is reproduced below:
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 33/33 =14400.00.
This method has to be followed if there has to be no anomaly. In your case if they fix your basic pension as 3995/-,it will be only marginally above the minimum basic pension of 3680/- in the revised scale while you have been on the maximum of the scale for a long period.
LIC cannot afford to ignore this anomaly. As a consequence, they will also have to follow the same procedure for Class I retirees who retired during the periods of such overlap of pre-revised and post revised salaries post 1/8/1997,1/8/2002, & 1/8/2007 and also when future revisions take place unless they change the practice to taking the last drawn pay for the purpose of calculating basic pension.
Kind regards.
C H Mahadevan
(PUBLISHED FOR THE INFORMATION OF PENSIONERS WHO MAY BE SIMILARLY PLACED.)