By Shri R B Kishore
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Dear
All,
It
is time we all satisfy Delhi HC requirements in full as also Sr Counsels needs
& suggestions to be carried through to come out unscathed & in good
spirits with flying colours for victory in a singular judgement.Hectic preparations, final useful & compelling data
to drive home pensioners thesis,grand finishing touches, ideas & logic to
be unassailable to convince the Delhi HC Bench to know & appreciate the
extent of malady & as a corollary to grant prayers pleaded for in full
measure , in tune with the spirit of the sacred Constitution & to fulfil to
hearts content the letter & spirit of Pension Rules 1995 & directions
by Hon SC Bench in their orders dt 31/3/2016 & Delhi HC order dt 12/7/2016.
We give A) i)enough support & adequate proofs &
evidence, how LIC can bear the total outlay, sprinkling with choicest
indices
, also
ii) the
flashes of latest developments whereby Pensioners in their life & living
are going backwards & backwards, while all classes of Employees in LIC &
Govt,
thanx to 7th Pay Commission are faring so well & enjoying handsome
benefits
iii)a)When in the wage
Charter,1/8/2007—31/7/2012, LIC grants apart from Basic Pay, DA,HRA,CCA etc
etc,if Transport Allowance (TA)Rs275 or 800 pm is granted ,Fixed Personal
Allowance Rs 315-1700pm ,Cash Medical Benefit (CMB)Rs4000 &8000/12000pa, one can very well imagine
the huge outlay for the entire Class I, II, III,IV on these additional
benefits alone.
b)Wage settlement
1/8/2012—31/7/2017 gave another boost ,TA Rs460pm to Class I Rs1330pm,CMB
,Rs6650pa for Class 3 &4,Class 2 Rs8310pa,Class 1,Rs13,300pa upto BPay
Rs60,430 & Rs19,940 above Rs 60,430.Further, Meals Coupon ranging from Rs100 for RC,120 for
Asst, to RS 315 per day for ED. Not over,Preventive Health Check up right from Age 40
,every quinquennium, 4 age groups, once, twice, thrice,yearly at55-60 yrs
Rs 3000 per checkup,Rs4000, Rs5000 for Class 1. Please notice the vacuum
as far as aged Pensioners are concerned , CMB & Preventive Health
check up are VERY RELEVANT & ESSENTIAL ,more for PENSIONERSfor pensioners
but NOT CONFERRED on pensioners.
iv)Look at the fabulous Commuted Value of Pension,Bottom to Top,Sweeper to ED. How much
damage to all earlier Pensioners’ Groups as we go along. Why then
this miserly, lackadaisical treatment meted out to diminishing tribe of
pensioners ,who brought name,fame & reputation to the Institution.
Similar such outlay can well go to augment pensioners welfare
a)Commuted
Portion,Commuted Value(CV)
(1/8/2007 wage settlement)
CADRE
|
BASIC
PAY
|
BASIC Pension
|
BP
after Commutation
|
DA
|
TOTAL
PEN
|
COMMUTED PORTION
|
COMMUTATION VALUE
|
ZM(S)
|
59850
|
29925
|
19950.00
|
25406.33
|
45356.33
|
9975
|
1174257
|
ZM(O)
|
53610
|
26805
|
17870.00
|
22757.45
|
40627.45
|
8935
|
1051829
|
SDM
|
47960
|
23980
|
15986.67
|
20359.02
|
36345.69
|
7993
|
940936
|
DM
|
42860
|
21430
|
14286.67
|
18194.07
|
32480.74
|
7143
|
840874
|
ADM
|
41660
|
20830
|
13886.67
|
17684.67
|
31571.34
|
6943
|
817330
|
AO
|
39010
|
19505
|
13003.33
|
16559.745
|
29563.08
|
6501
|
765298
|
AAO
|
35370
|
17685
|
11790.00
|
15014.57
|
26804.57
|
5895
|
693960
|
HGA
|
31330
|
15665
|
10443.33
|
13299.59
|
23742.92
|
5221
|
614617
|
ASST.
|
26930
|
13465
|
8976.67
|
11431.79
|
20408.45
|
4488
|
528328
|
RC
|
19045
|
9522.50
|
6348.33
|
8084.60
|
14432.94
|
3174
|
373644
|
PEON
|
14415
|
7207.50
|
4805.00
|
6119.17
|
10924.17
|
2402
|
282764
|
SWEEPER
|
13330
|
6665
|
4443.33
|
5658.59
|
10101.92
|
2221
|
261457
|
b)Basic Pension +DR ranges, for Group VI, 1/8/2012 to 31/7/2017, from
Rs16,636 for Asst to Rs 84,459 for ED.
c)CV of Pension ranges for Asst/HGA in Group II Rs1,25,960 & Rs 1,44,913 respectively & same cadre Asst/HGA
in GROUP VI, latest one,Rs10,07,683 & Rs11,72,001 respectively
So too, for ZM/ED, CV ranges from Rs2,48,154 & 2,74,641 in Group II & Same cadres get, in Group VI. Rs21,674,60
& Rs 24,38,687 respectively
v)THIS IS NOT A REVELATION
but A TRITE FACT. ASSISTANT
gets a GRATUITY of Rs 10 LACS.( 7th Pay Commission bonanza Rs 20 lacs) . ASSISTANT gets a GROSS SALARY—BASIC +DA
of Rs52,327.ASST RETIRED on 30/9/2013
gets PF of Rs 7.52 LACS of LIC CONTRIBUTION ALONE.ASST
gets PENSION OF Rs 21,447 .
vi)a)RETIREMENT
BENEFITS ( Commutation
Value, Gratuity & PL Encashment alone )from ASST to ED is nowadays colossal. Pittance of Retirement
benefits comprising Commuted value of Pension, Gratuity & PL Encashment eg. Group II
Pensioners(1/8/92-31/7/97) ranges from Rs3,94,450 for Asst to Rs7,72,985 for ED as against ,
Rs 13,63,381 for Asst to Rs31,38,057 for ED,for
Group V,(1/8/2007—31/7/2012)
indicating such a colossal
difference of Rs9,68,931 to Rs23,65,072 for Asst to ED between
Group II & Group V Pensioners.
b)For newly created Group VI (1/8/2012—31/7/2017),Asst will get
Rs25,93,629 & ranges to Rs 62,75,933 for ED. WHITHER PENSIONERS OF
ALL YESTER YEARS !!
DELHI HC Bench &
later SC Bench MUST RESOLVE ,THROUGH PENSION UPGRADATION APPROVAL.
as the CLARION CALL FOR
SAME gets LOUDER & LOUDER, MORE DEEPLY WE FURROW DETAILS SO RELEVANT
.IN A HOLISTIC MANNER ,just
TO RECOUP A SLENDER PORTION ONLY. PENSIONERS HAVE GENUINE ASPIRATIONS ,BUT NOT AVARACIOUS .
Where is the question of investing,for Earlier Groups of Pensioners, when they
were leading hand to mouth existence,& Today Employees can Save & Save
& also Invest & Invest !!
vii)Further,Basic
Pension & DR at Asst level for Group II pensioners is Rs 15,088pm
& ranges to Rs 24,282 pm for ED, & Rs 20,882 pm for Asst to Rs59,371 for ED,for Group V, indicating yet again, the magnitude of
difference/deficit of Rs 5794pm for Asst
to Rs35,089pm for ED.
WHITHER EQUITY & JUSTICE, SC BENCH MUST ENSURE THE CITADELS OF
JUSTICE,so SACRED & SACROSANCT , should not be allowed to fall. What more graphic picture is required, presented by these painstaking preparations &
calculations, to impress the Hon SC Bench on
20/1/2016 with true but poignant picture of
grotesque anamolies & handicaps, of the dire
need to redress the mounting loss of pension
consecutively for years & decades since Retirement, ONLY through pension
revision with every wage revision.
viii) vi)It
must be pointed out that substantial Retirement Benefits present day
pensioners get such as Gratuity Rs 10 lacs,
Encashment of PL,CV OF
PENSION, GSLI, Decent PF accumulations etc whereas,
---many daily disabilities & expenses
on all items,high inflation, &
--- especially medical
Domiciliary outlay,including Consultation,Special Reports, medicines etc
pretty high for Pensioners,
ix)a) No perquisites, no LTC, no Domiciliary medical benefit lumpsum
being granted to pensioners, no PLLI (Productivity Linked Lumpsum
Incentive) 1- 6% on fulfillment of criteria as for employees, poorest Retirement
benefits, no scope for saving & so for
investment,& many other disadvantages & disabilities are silently
suffered by Pensioners, which Hon HC/SC Bench must take note of, in an impartial
assessment of the none-too-happy position of pensioners & enable them
to have uplift,atleast now,with proper Effective dates
b)Just to juxtapose, Retired Central Government employees will now get a minimum pension of Rs 9,000, up 157.14 per cent from the
current Rs 3,500, following the implementation of the
7th Pay Commission's recommendations.
The ceiling of gratuity has also
been enhanced from the existing Rs 10 lakh to Rs 20 lakh.
The Commission had also recommended
the ceiling on gratuity to
be raised by 25 per cent whenever Dearness Allowance rises by 50 per cent, a
proposal which has been accepted by the government.
There are about 58 lakh central
government pensioners.
The amount of pension
shall be subject to a minimum of Rs 9,000 and the maximum pension would be Rs 1,25,000--which is 50 per cent of the highest pay in
the government, an order issued by the Ministry
said.
The highest pay in the government is
Rs 2,50,000 with effect from January 1, 2016.
The maximum limit of retirement
gratuity and death gratuity shall be Rs 20 lakh, the order said. The ceiling on gratuity will increase by 25 per
cent whenever the dearness allowance rises by 50 per cent of the basic pay, it said.
B)Further, i)areas where LIC
will be able to save Outgo on various counts is also referred to succinctly.
In addition, it must be brought to the notice of Hon Bench,
ii)that
after all, this class of pensioners eligible for pension upgradation
will be a CLOSED CADRE & not eternally,
as NPS System got going from May 2010, which should inject a
smile on the faces of the Hon Delhi HC Bench.
After pension upgradation
is granted after wage revision,arguments favourable to us to be highlighted before SC
Bench,
i)subsequent fitments to the next group,after wage
revision, will consume a moderate outlay only.
ii)Deaths of employees during service & so
Family Pension only
iii)Deaths of
pensioners, increasing by leaps & bounds
iv)pensioners
not alive to secure Commuted Pension 15 yrs after retirement,a savings for LIC,
v)See
the rising numbers of Family Pensioners, 17 % to 36% to RP & in some Zones
,even 38/40%
vi)so
parity also tapers off,
vii)Hence
after 2-3 decades, there will be huge
balance in the Pension Fund, but the number of pensioners availing pension from
this fund will be diminishing sharply and finally will become zero.
viii) Consequently, the remaining balance of this fund will be
finally transferred to LIC’s capital.”
C)a)It will be more
appealing & pertinent to delve into the Total Outlay
aspect,which we can do with proper justification & a good degree of
transparency & openness.That will be making sense
with Hon HC Bench that we pensioners want to convey only the truth of the
matter & not in any way twist facts.
b)CORRECT OUTLAY which is
*not
even the Tail of the latest Jackpot Wage Agreement,
1/8/2012 to 31/7/2017,which eclipses all earlier wage charters, acknowledged by
ALL IN-SERVICE EMPLOYEE UNIONS,
*a fraction of TOTAL PREMIUM INCOME, or
*still less of TOTAL INCOME, including investment income etc,,
which PLETHORA OF DATA , will prove satisfactory for JUSTIFICATION
& REALISATION OF Hon HC/SC BENCH ,making it crystal clear &
*asserting that in no way this hurts the
coffers of the Corporation.
Total Outlay till 31/1/2015 for ALL cadres from 1/8/1997, comes
to Rs2334.14cr ,which works out to a mere & meagre Rs133.37 cr per annum
Commonsens suggest ,as we noticed too, the more the delays &
adjournments, every additional year , Outlay will go up certainly & so too
Outlay per annum
We must insist & plead with Delhi HC Bench to issue
directions to LIC to implement principled methodology,as normally they do
for employee wage revision by fitment in the New Scale of respective cadres
& adding Full Dr to pensioners, same as for pre-8/97 pensioners &Employees
removing utter discrimination
A convincing & binding clause must be added ":As LIC will have correct data of cadres etc,
THOSE NUMBERS can be substituted ,in our charts, & same correct methodology
should be adopted to be fair& correct .Such amounts only will be the final
total outlay without any distortion "
c)) For FY 2014—15,
LIC TPI (Total Premium Income )stood atRs
2,39,483 cr ,
Total Income Rs4,07,546 cr
The outlay on pension so far ,right from the commencement of
Pension Rules 1995 is a testimony to modest Outlay,which is indeed peanuts to
LIC
d)TOTAL PENSION PAYMENTS RIGHT from 1995-96 to 31/3/2011 for 16 long
years comes to Rs 3707.84 Cr only .
e) i)Total
number of pensioners stood at 38,200 in 2006-07,38434 in 2007-08
& 43,043 in 2010-11, & 49,058
in 2013-14.It is less than 2000 pensioners only per Year added All
India, app 250 per Zone.
PENSION PAYMENTS for ALL 45,476 PENSIONERS for 1 YEAR period
ending 31/3/2012 is only Rs585cr .This rose to Rs793 cr for 2013-14 ,but for
49,058 pensioners constituting 0.37 % of Total Premium Income & 0.21 % of Total
Income.
f)Pension Bill is only 5.4 % of total Wage Bill.
g) TOTAL OPERATING
EXPENSES & EMPLOYEES REMUNERATION & WELFARE EXPENSES :
TOTAL OPERATING EXPENSES-- --31/3/2011:
Rs16,980cr: Rs497Cr PENSION Payments 2.93% only. Ratio to ONLY total operating expenses also
low at 4.12%only
Total Expenses of Management,2013-14, Rs34,447 cr7Rs793 cr pension payments a
mere 2.3% of Total Mgt Expenses
h)Salary & other benefits to Employees
in LIC stood at Rs 11,895cr for 2012-13 & Rs14,705 cr for 2013-14. Pension
payments for 2012-13 is a mere 6.6% of Salary expenses & for 2013-14,it was
even lower at 5.4%.
D) No. of Employees :
31.03.2013 31.03.2014
31.03.2015 31.03.2016
116711 120388
117653 114773
Expenses
in Rs.crores :
11894.91
14705.11 14523
E)No. of PENSIONERS:
YEAR
|
No of Pensioners
|
Total Pension
Payments
|
INDICES
|
|
2006-07
|
38,200
|
From 1995-96 to
31/3/2011(16yrs)
|
Moderate Outlay only
|
|
2007-08
|
38,434
|
|||
2010-11
|
43,043
|
497
cr Rs3707.84cr(16yrs)
|
||
2011-12
|
45,476
|
585 cr
|
||
2013-14
|
49,058
|
793 cr
|
0.37%of TPI
0.21% of TI
|
2.3%ofTotal Mgt
Expenses
|
12,272
Family Pensioners to 30,731 Regular Pensioners as at 31/3/2011 to 14,485 FP to 34,457 RP as
at 31/3/2015 .43,003 TP to 48,942 as at 31/3/2015, A MERE 1125 pa
ADDITION to TP as against 1907 in EARLIER YEARS.
E)
i)Staggering Assets of Rs17,69,192cr & Total Life Fund Rs 16,07,025cr as at 31/3/2014.
For 2014-15,Total Assets Rs20,31,116cr .Total Life Fund Rs 18,24,195 cr
LIC Total
Investments in FY2014 –15 was Rs12,86,770 cr. LIC Investments in Social Sector stood at Rs2,26,806
cr in 2014—15,
ii) Policy payments Rs 1,46,026 cr in 2014-15, which outwits Premium Income
of ALL private
insurance companies put together
LIC
paid advance IT of Rs5119 cr as against Rs4324cr
for FY 2012-13
Service tax paid is Rs4022.4 cr ,provisional ,as against
Rs3682.6 cr for FY2012-13
iii) SURPLUS Last 16 yrs alone, LIC paid to Govt crossed Rs 10,000 cr ,a Kamadhenu indeed,
& all on a mere Rs5cr given by Govt on 1/9/1956. For FY 2014-
iv)Peoples Money for peoples Welfare, befitting LIC Motto, tremendous fillip to Govt 5-Year
Plans.
LIC is indeed an undeclared NavRatna & an
Economic Tajmahal
v)Not a pie will be needed from UOI/MOF, for
pension upgradation, LIC never goes with a begging bowl. UOI comes to LIC for help, pumping money to
stock market, stabilisng the same, & Now LIC is called upon to finance
Infrastructure, &a sizeable amount for NIIF, Infrastructure Fund of UOI
F)i) Our Sr Counsel has to make,retort
or correct LIC, UOI Sr Counsel submissions.Here
this revelation sends strong signals to
Powers that be, HC/SC will always go to the rescue of litigants in distress, that no institution or Govt can arrogate to itself ,by
assigning any flimsy reason ,rejecting sincere.modest, legitimate demands of
pensioners ,who have come a long way ,after tedious & tortuous legal
battle, to earn appreciation from HC Bench
to see to end of injustice & award justice to the deserved.That Primary Principle must be dinned into the ears of
the Hon Bench to earn their goodwill & empathy.
ii)There are HC & SC judgements
emphasizing that “ this dichotomy or discrimination neither appeals to
reason, nor can the State be permitted to take shelter of
financial constraint etc “ . Even if SC normally does not attach much
store & importance to Capacity to pay, as SC has said in many
verdicts & even admonished Govt & Instns pretending to
protect themselves under the garb of no adequate resource or financial
position ,not able to pay
iii) BASIC CRITERIA is grant of similar pension for all those with same length of service for
the same cadre & that is
violated. It is an anachronism
that LIC pensioners still continue in pre-1995 IV Pay Commission mode with Basic Pension Same,unchanged for 23 years from
1/11/1993 !
G)i)DIFFERENCE/LOSS in DR PER SLAB in Rs for ALL CADRES, ASST to ED as at 1/8/2007 & after wage
settlement 1/8/2012 in relation to 1/8/87—31/7/92 Scales
CADRE
|
1/8/2007
|
1/8/2012
|
Assistant
|
5.0385
|
9.291
|
HGA
|
7.562
|
12.9145
|
Development Officer/DO
|
9.4795
|
15.368
|
AAO
|
11.3105
|
17.9685
|
AO
|
12.4685
|
19.5265
|
ADM
|
15.6275
|
23.6855
|
DM
|
18.1025
|
26.9105
|
SDM
|
21.4775
|
31.3505
|
ZM
|
25.175
|
36.2275
|
ED
|
29.2475
|
41.61
|
ii)DR per Slab for Group
VI ranges Rs25.675 ,29.90 for Asst, HGA to Rs55.238 & 62.148 for ZM
& ED respectively .
iii)DR LOSS UPTO 31.07.2016 TO
LIC GROUP I & GROUP II PENSIONERS
DR LOSS upto 31/7/2016
ranges for GROUP I for Asst & HGA Rs39,338 &
Rs1,19,508 &
For GROUP
II(1/8/1992—31/7/1997) Rs 61,165 & Rs97,788 &
For GROUP I DR
LOSS for ZM & ED will be Rs 10,18,644 & Rs 11,6o,560 &
For GROUP II, Rs
7,79,030 & Rs 9,48,932 respectively
H)
i)Family Pensioners
getting NIL or Single/Double digit 40 % IR smacks of such rigidity of a preconceived notion of refusal by
LIC to accept concept of pension upgradation.They are not worried
even about pension degradation .When policy decisions
are taken so slow, no one damages the reputation but if sensible & critical
issues fall on deaf ears,that is insensitivity & can be termed as
unethical practice ,not giving due care & timely attention to pensioners
problems & demands.
ii)In fact,Family Pension formula itself is like a
sharp-edged weapon,where Appendix V,like DR Appendix IV is a Restrictive
formula to be again declared void.Central Govt, State Govt,Railways,
Defence,PSEs & RBI also get flat 30 % of Basic Pay.Ours is the lowest.we say that Govt FP is higher than LIC
Regular Pension.7th PC has
bettered 6th PC findings on Pension & retained value added rise
in pension after age 80,20% to 100% rise every 5 years ,fabulous indeed.
I)Wideranging logic & arguments & convincing data are
supplied with diligence & hard labour & perseverance to lead to
acceptance of the principle of Pension upgradation in toto & Full DR to
Pre8/1997 pensioners to join the mainstream.
Financial & Service
sectors are the real engines & accelerators of India ’s growth. Judges must bear all these & deliver fitting answers
to this perplexing anamolies & paradoxes unnecessarily being built, without
proper, intelligent, fair, transparent & equitable solution.
Lack of money power, lungpower, muscle power, political power must be addressed
& compensated ONLY by a Sane Judiciary by a
favourable decision as demands are modest, logical & coherent
& in total compliance with Constitutional principles, Fundamental Rights
& removal of discrimination right from that date when it arose.That will be
the testing ground& touchstone for sanctity of HCs/SC & let us
all pensioners pray fervently with Faith & travel to the other world of
pension upgradation which many are already enjoying & Financial &
Service sector waiting with bated breath for a positive & healthy Judgement
restoring cardinal principles of Equity & Equality.
R.B.KISHORE
8/8/2016
VP,AIRIEF
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