Dear Mr Sarkar
I read your above circular.I am glad that your LSG has decided on four points arising out of the Validation Clause of the amendment to the Finance Act 2025 to be placed before our Senior Counsel .
I feel that while briefing our counsel, we need to remember two things.
First, the amendment seeks to bring retrospective effect to the provisions from 1972. It is important to note that the CCS Pension Rules 1972 stand repealed by the CCS Pension Rules 2021 notified on 20/12/2021.This amendment cannot have effect on the 1972 Rules which had no existence as on the date of the amendment in 2025.
Secondly ,as the intention of the Government seems to be to deny arrears by avoiding retrospective effect,even in our case, considering the strong grounds,if SC allows our prayers, LIC may come up with the plea for prospective effect due to huge financial burden that it may entail. Our Pension Rule 5(3) stipulates that the Pension Fund should be kept adequate at all times so that LIC is able to meet its pension obligations at all times.If SC allows our prayers for pension from eligible dates, then the arrears will have to be paid right from 1/8/1997 for pre-August 1997 retirees/ family pensioners and from subsequent immediate effective date of wage revision for subsequent groups of retirees/ family pensioners till the current dates.
The plea of huge financial burden cannot be a ground for denial of arrears as LIC has defaulted in making timely contributions to the Pension Fund as per Rule 5(3) of LIC Pension Rules 1995.
Also I remember that Supreme Court has held pension as property under Article 300 A of the Constitution. By denial of arrears of pension , LIC may deprive the pensioners their right to property which includes past entitlements.
These points also need to be communicated to our legal counsel.
C H Mahadevan
