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Sunday, 28 August 2016

RP & FP FROM 01.08.1997 to 31.07.2016

Dear Mr Sahni,
The outlay of Rs 3435.96 cr arrived at by you for all the eligible pensioner on upgradation as at 31/7/2016 seems reasonable.
I had roughly estimated it at abot Rs 3500 cr which is very close to your estimate. Because of the DR anomaly of dual formulae for DA of in-service employees and DR of retirees prior to 1/8/1997 compared to post 1/8/1997 retirees, pre August 1997 retirees have also suffered loss of difference in DR from 1/11/1993 or the date of retirement, whichever is later upto 31/7/1997.
Can you estimate the same from your data for the pre August 1997 retirees?
With the Supreme Court order for payment of 40% IR as per para 3A,this becomes significant.
All the pensioners who retired after 1/8/1997 and qualified for application of para 3A have enjoyed the benefit of higher DA upto 31/7/1997 before the wage revision from 1/8/1997.
Also such dual DA/DR formula for employees/retirees is no longer there from 1/8/1997.
Kindly see whether you can estimate that outlay also.
My view is that this difference may be miniscule as a percentage of the total arrears.
Nevertheless that is the rightful due of pre-Aug 1997 retirees.
Kind regards.
C H Mahadevan

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