100% neutralization in DR etc.

There was 17 slabs increase in DA to serving employees for the quarter August, 2014 to October 2014. They get 100 % Neutralisation ( Nn ) in DA.

There was 17 slabs increase in Dearness Relief to pensioners for the half year August 2014 to
January 2015. All of us know LIC pensioners retired on or after 1 st Aug. 1997 get 100 % Nn in DR. 100 % DA / DR is on basic pay/ basic pension

Those retired prior to 1 st August 1997 get DR on tapering ( gradually reducing percentage ) basis. Those retired upto " ( A) Rs.1250 and (B ) Rs.2400 " basic pension get 100 % Nn in DR and others get on reducing percentage basis as under :

DR for August 2014 to January 2015

( A ) To those retired prior to 01-08-1992 #

Basic Pension (BP)

(i) Upto. Rs.1250. 832.14 per cent .i.e. 100% Nn in DR upto Rs.1250
(ii) Rs.1251 to Rs.2000. Rs.10401.75 + 683.1 % of BP in excess of Rs.1250
(iii) Rs.2001 to Rs.2130. Rs.15525.00 + 409.86 % of BP in excess of Rs.2000
(iv) Above Rs.2130. Rs.16057.81 + 211.14 % of BP in excess of Rs.2130

( B ) To those retired between 01-08-1992 to 31-07-1997 #

Basic Pension (BP)

(i) Upto Rs.2400. 386.75 per cent i.e. 100 % Nn in DR. upto Rs.2400
(ii) Rs.2401 to Rs.3850. 9282 + 320.45 % of BP in excess of Rs.2400
(iii) Rs.3851 to Rs.4100. 13928.52 + 187.85 % of BP in excess of Rs.3850
(iv) Above Rs.4100. 14398.41 + 99.45 % of BP in excess of Rs.4100

Difference in DR with 100 % and tapering basis ( Aug 2014 to Jan. 2015 ) at the maximum of
pay scales of few categories are indicated below. Anyone can work out the difference in DR
that he / she would get based based on the above.

PLEASE NOTE THAT THE DIFFERENCE IN DR AND TOTAL PENSION ONLY WITH CENT
PERCENT DR NEUTRALISATION IS VERY LESS COMPARED TO THE TOTAL PENSION A
PENSIONER GETS WITH UPDATION OF PENSION ALONG WITH REVISION OF PAY
SCALES OF WORKING EMPLOYEES. 

FOR DETAILS, PLEASE SEE SHRI C.H. MAHADEVAN'S CHART POSTED IN LICPC IN JULY 2014.

For example: 

( i ) AAO retired before 01-08-1992, with Basic Pension of Rs.2130/- got a total
pension of Rs.18818/- for the month of Aug.2014. It is with DR Tapering basis. With 100 %
Nn in DR he would have drawn Rs.19855/-, a meagre increase of Rs.1667/-. AAO should get
Rs.32379/-with updation of pension ( 100% DR shall be automatic with updation ).

( ii ) AO retired at maximum in Aug. 1992 pay scale, draws a total pension of Rs.19267/- with.
DR on tapering basis. With 100 % DR , the total pension works out to Rs.21831/-.A sum of
Rs.2564/-. AO 's total pension of Aug. 2014 at maximum of the grade is Rs.34184/-.

ALL NEED TO ACKNOWLEDGE WITH GRATITUDE THE EFFORTS OF SHRI K M L
ASTHANAJI FOR GETTING NOTHING LESS THAN UPDATING OF PENSION
RETROSPECTIVELY AND 100% NEUTRALISATION IN DR TO PRE FIRST AUGUST 1997
RETIREES 

Courtesy: CHM & RHS.

SN (a 1992 pensioner)