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Wednesday, November 18, 2015

PENSION MATTERS


Dear Editor,

This is with regard to the pension issue raised by Mr. Vijayaprasad and the replies given by SN Sir and Mahadevan Sir. This issue would have been there at the time of every wage revision. DA of the pre-revised period was included with the basic salary for calculating the average emoluments, to rectify the major anomaly.

While the calculation given by Mr. Prasad is correct, I give below the basic pension + DA of those in the same basic salary of Rs.39,260, but retired in the succeeding months from July 2012: (A comparative statement is also attached). CLICK HERE

July 12    Aug 12    Sep 12    Oct 12    Nov 12   Dec 12
32615     31718     32387     33057    33726    34339
Jan 13     Feb 13     Mar 13    Apr 13    May 13
37294     37949     38845     39207    39836
In respect of the officer retired in July 12, the basic pension is Rs.19,630 with DA Rs.12,985, i.e., Rs.32,615 whereas for the officer retiring in the very next month, it is Rs.31,718 with no DA. Pension for those retired in Aug 12 and Sep 12 are less, compared to the one retired in July 12. This is equally so at all stages in all cadres. 
There is a need to ensure that gross pension of those retired in Aug. 12 and Sept.12 is not less than what is eligible to a July 12 retiree, with the same basic.

At the same time Mr. Prasad may compare his position with the one who had retired in July 12. He can commute more than Rs.4,000 over the one who had retired in July 12 and get roughly Rs.5 lacs extra. He can be satisfied that by contributing just Rs.2,541 for one month he is getting this additional benefit.

Sudhakaran