I congratulate you on the
comprehensive write-up prepared
by you for the benefit of the case
managers and the counsel in the
Civil Appeals in the SC.I am sure
the points made in the write-up
will be made good use of by them.
I have however some observations to make on one of the points you have made.
comprehensive write-up prepared
by you for the benefit of the case
managers and the counsel in the
Civil Appeals in the SC.I am sure
the points made in the write-up
will be made good use of by them.
I have however some observations to make on one of the points you have made.
You have stated, ” …Pleas of cost or the so called ‘ripple effect’ are irrelevant, for the simple reason that the benefit will accrue only to a few, who retired from the services of the LIC during the period 1-4-86 to 31-7-97”.
- In my view, considering that the Jaipur SJB Order dt 12/1/2010 has also allowed the WP no 654/2007 which has exclusively prayed for upgradation of pension, the so called ‘ripple effect’ relates not only in respect of DR anomaly removal and 100% DR neutralization for pre-August 1997 retirees, but also relates to upgradation of pension for post July 1997 retirees which by implication will extend to all future retirees as well except only those new recruits joining the LIC on or after 1/4/2010 from which date NPS applies. The liability cannot be a limited one, with all the eligible pensioners being 68 and above as at 31/7/2015 numbering not less than about 40000 including family pensioners.
- All the same the fact remains that the ‘ripple effect’ is irrelevant for the simple reason that the benefits payable if any adjudication are not discretionary benefits that LIC will be granting to the pensioners, but compensation for loss sustained by them for more than 17 years in case of pre-August 1997 retirees and for over 8 to 16 years in case of subsequent pre August 2007 retirees on account of discriminatory pension rules applied resulting in anomalies in pensions. Besides,the Chapter 3 of LIC Pension Rules 1995 clearly lays down that LIC shall keep adequate amounts in the pension fund to meet its pension liabilities from time to time.
- Also the CAs relate to a situations of anomalies within LIC caused by discriminatory Pension Rules 1995 and is internal to LIC.The ‘ripple effect’ referred to by the Central Government is a factor external to our LIC situation of pension anomalies galore and is unlinkable to our case.
I thought I should share my views as above after reading your write-up.
Kind regards.
C H Mahadevan