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Sunday, July 19, 2015



Dear Mr Ramanathan,

The additional liability estimated in 2001 by LIC was Rs6-8 lks p.a when the total o/s liability towards  pre-Aug 97 retirees estimated by them was about Rs 51.5 cr.At that time LIC did not take into account the effect of future wage revisions from 1/8/2002 onwards  and the Jaipur judgment was delivered only on 12/1/2010 also permitting upgradation.

Now in the changed scenario, in my view based on conservative rough calculations, the liability of LIC as on date factoring upgradation of pension also as at1/8/2007, the liability may well be at least Rs 3200 cr and the yearly annual additional outlay required may be at  least  Rs 250 to 300 cr p.a.When wage revision takes place w.e.f 1/8/2012, the total liability  may increase further and the annual required outlay may  still be  higher by about 15%.

I am open to correction  by any 
one who can give more authentic 
figures.

So the 'ripple effect'  may go on 
getting compounded as LIC goes on 
 denying the just dues to the 
pensioners until hopefully the 
Supreme Court orders them to pay 
to the eligible pensioners.

Kind regards.
C H Mahadevan