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Tuesday, 9 August 2016

DELHI HC REQUIREMENTS & SR COUNSELS NEEDS & SUGGESTIONS -- COVERAGE FOR 100%DR & PENSION UPGRADATION

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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