Re: our pension case

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 On Sat, Jul 18, 2015 at 11:50 PM, Ram Prasad <rambhag123@yahoo.com> wrote: Dear shri Mahadevan,:                                                                    Re:  Our pension case.  Thanks for your reply. With regard to the 'ripple effect', I thought all are well aware of what the intention of the Govt. is and since my main idea was to attack that theory by which the Govt. wanted to mislead the Court of such a claim, that may be made in other organisations as well. In order to be precise, I said, the cost in such a case in respect of us will be less. The LIC while considering the new neutralisation method would have the future liability as a result of the revision w.e.f 1997.Therefore the additional liability for the retirees upto that date will be small and decreasing and the ripple is in the tea cup only. Further the LIC itself had admitted the additional expenses are manageable. The ambiguity could have been avoided. A.S.Ramanathan.        ----------------------------------------------------------------- R. Ram Prasad You can reach me on: +91-958-1717-000