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Saturday, October 03, 2015

Estimated outlay on account payment of IR to all pre-August 1997 retirees


Based on the illustrative chart prepared by LIC in August 2003,I happened to work out  the Interim Relief amount as at 31/7/2015 for each cadre at the maximum of scale  and also the  corresponding outlay required for LIC if it decides  to pay all pre August 1997 retirees.

I attach  the two tables  containing the calculated figures.

The  outlay has been  estimated  for 21762 pre-August 1997 retirees  who were in existence as at 1/8/2003.

But as at 20/2/2009,only 16498 retirees in the category.There is a reduction of pensioners by 5264 which indicates the mortality  in the five years  upto 2009. We don't know  how many are  continuing their life journey as on date. 

As per the methodology followed by LIC, the total outlay even for the higher number of 21762 pensioners, the outlay works out to only Rs 22.2 crores.LIC could have gracefully paid this tentative amount to all eligible pensioners even without the exercise of withdrawal of the amounts from the HCs.Perhaps it is destined that pensioners should get justice only from the hands of the Supreme court.

But the sad part of this dispensation   that has come to light is  that Class IV retirees-especially those retired after 1/8/1992 but before 1/8/1997  will get a raw deal, viz  recovery of pension. I am sure that the Apex Court will  render justice to them and in that process to all retirees.

Greetings.
C H Mahadevan

Please click below


ESTIMATED OUTLAY ON INTERIM RELIEF PAYABLE TO ALL PRE-AUGUST 1997 RETIREES
INTERIM RELIEF PAYABLE AS PER SC ORDER DT 7/5/2015 FOR RETIREES FROM 1/1/1986 TO 31/7/1992( FOR CLASS I OFFICERS RETIRED UPTO 31/3/1993 IGNORING M C JAIN JUDGMENT)
(AS PER THE METHOD FOLLOWED BY LIC)
CADRE
No of Pensioners
Basic Pension
Interim Relief Payable as per LIC Calculations  as at 31/7/2015
Total outlay
ED
23
3500
33340
766820
ZM
24
3275
28884
693216
SDM
73
2975
22915
1672795
DM
128
2675
16867
2158976
ADM
579
2525
13922
8060838
AO
625
2260
8659
5411875
AAO
485
2130
6038
2928430
HGA
1016
1850
847
860552
ASSISTANT
2744
1610
607
1665608
DO
1211
1940
1016
1230376
RC
335
1000
70
23450
DRIVER
42
905
35
1470
PEON
601
755
9
5409
SWEEPER
59
725
-44
-2596
TOTAL
7945
25477219



INTERIM RELIEF PAYABLE AS PER SC ORDER DT 7/5/2015 FOR RETIREES FROM 1/8/1992 TO 31/7/1997( FOR CLASS I OFFICERS RETIRED AFTER 1/4/1993 IGNORING M C JAIN JUDGMENT)
(AS PER THE METHOD FOLLOWED BY LIC)
CADRE
No of Pensioners
Basic Pension
Interim Relief Payable per capita  as per LIC Calculations  as at 31/7/2015
Total outlay
ED
53
7000
90625
4803125
ZM
36
6325
72575
2612700
SDM
147
5725
56531
8310057
DM
478
5225
43135
20618530
ADM
1534
4975
36476
55954184
AO
1614
4485
23400
37767600
AAO
1070
4255
17223
18428610
HGA
3295
3695
7529
24808055
ASSISTANT
3202
3210
4601
14732402
DO
1192
3760
7932
9454944
RC
379
2235
-280
-106120
DRIVER
59
1995
-301
-17759
PEON
670
1710
-213
-142710
SWEEPER
88
1610
-215
-18920
TOTAL
13817
197204698
GRAND TOTAL
222681917
CLASS- WISE BREAK-UP OF  OUTLAY INTERIM RELIEF PAYABLE ACCORDING TO LIC
For pre-August 1992 retirees
For subsequent Retirees(1/8/1992 to 31/7/1997)
Total
Class-wise % of amount
Class I
21692950
148494806
170187756
76.4
Class II
1230376
9454944
10685320
4.8
Class III
2549610
39434337
41983947
18.9
Class IV
4283
-179389
-175106
-0.1
Total
25477219
197204698
222681917
100.0
Note:
1) The total outlay works out to Rs 22.27 cr towards interim relief according to LIC's interpretation of the "due amount" for a total of 21762 retirees.
2) The above calculations have been made  taking the  no. of  retirees as at 1/8/2003
3) The IR has been calculated on maximum of scale.
4) The outlay for Class IV is negative to the extent of over - Rs 1.75 lacs, which means recovery from post August 1992-cum- pre-Aug 1997 Class IV retirees.