FOR ACADEMIC PURPOSES :Multiplying Factors :Expected Pension Revision in LIC on RBI pattern as on 01.08.2012

Calculation of Multiplying factors for LIC Pensioners :-

Based on a notional increase of 10% in pension plus DA as approved by DFS in the case of RBI on each of the wage revisions on 01.08.1992, 01.08.1997, 01.08.2002, 01.08.2007 & 01.08.2012.

(1)retired between:

01.01.1986 -31.07.1992:

1.1(1+.0067*137)=2.10969=2.11

(2)retired between:

01.08.1992-31.07.1997

1.1(1+0.0035*148)=1.6698=1.67

(3)retired between:

01.08.1997-31.07.2002

1.1(1+.0023*147)=1.47191=1.48

(4)retired between:

01.08.2002-31.07.2007

1.1(1+.0018*154)=1.40492=1.41

(5)retired between:

1.01.08.2007-31.07.2012

1.1(1+.0015*441)=1.82765=1.83

Cumulative factors

(1)retired between:

01.01.1986-31.07.1992/31.03.1993:

2.11*1.67*1.48*1.41*1.83=13.46

(2)retired between:

01.08.1992/01.04.1993-31.07.1997

=1.67*1.48*1.41*1.83=6.38

(3)retired between:

01.08.1997-31.07.2002

=1.48*1.41*1.83=3.82

(4)retired between:

01.08.2002-31.07.2007

=1.41*1.83=2.59

(5)retired between:

01.08.2007-31.07.2012

=1.83

R K Sahni