Dear All,
In order to have an idea of the extent of aggravation caused by non removal of DR anomaly for pre-August 1997 retirees and non-upgradation of pension for all pre August 2007 retirees, I undertook a study of the increase in pension from 1/8/2007 to 1/2/2015 across the various periods of retirement in terms of absolute percentage increase and compounded annual percentage increase for various cadres of retirees from Assistant to Executive Director.
The magnitude of anomalies can easily be recognised.
The findings are attached.
With greetings,
C H Mahadevan
TREND OF ANOMALIES
1) The DR anomaly prior to 1/8/1997 is proved by the fact that the compounded annual increase for the pre- August 1997 retirees is the lowest and is even lower than the increase for pre April 1993 Class I retirees/pre-August 1992 Class III retirees.
2) Higher the cadre, lower the increase for retirement period upto 31/7/1997 because of absence of 100% DR neutralisation.
3) Earlier the period of retirement, the lower the rate of increase. This is due to the disparity in pension arising out of lack of up gradation of pension.
4) The hardest hit in this process are the Executive Directors retired between 1/4/1993 to 31/7/1997 with the lowest compounded annual increase in pension from 1/8/2007 to 1/2/2015 at 8.1% besides the general decline in the rate of increase for the retirees of the period 1/4/1993 to 31/7/1997(1/8/1992 to 31/7/1997 in case of Class III retirees).
5) The biggest beneficiaries are the post July 2007 retirees who have got the highest compounded annual increase of 10.1% over the seven and a half year period upto 1/2/2015.
6) With a minimum expected increase of 15% in wage revision for in-service employees from 1/8/2012 on the lines of the 10th Bipartite Settlement signed on 25 th May 2015, the anomalies in pension will get further aggravated to the detriment of existing pensioners.
REMEDY
The remedy is nothing short of upgradation of pension with every wage revision from 1/8/1997 besides removing the DR anomaly created prior to 1/8/1997.Let us hope that the Supreme Court will be convinced into recognising these glaring anomalies and ordering LIC/GOI to act in the interest of pensioners.