The Great Betrayal

Mr.DGK's write-up on the attitude of the in-service employees' unions regarding our demand for pension updation is excellent. It needs reading and rereading. His arguments are irrefutable. There cannot be a second opinion about that.

I add the following to supplement his arguments.

In the MOU reached in 1/94 between LIC/GOI and the in-service employees' unions for introduction of pension scheme in LIC there is reference to the formula for payment of DR to pensioners. The relevant clause states that the DR formula applicable to pensioners will be in line with that  followed in LIC. This can only mean that the DA/DR formula for employees/pensioners shall be one and the same.

But when the pension rules were notified this understanding was not adhered to but a tapering DR formula was Incorporated in the rules to the detriment of the pensioners. None of the in-service unions ever raised their voice against it exceptr.KMLAsthana of Jaipur VP of All India Retired Insurance Employees Federation.(It will be of interest to note that the FM at that time was none other than Mr.MMS the world renowned

economist). Because of the silence of the in-service unions we the pensioners are suffering and have lost several lacs of rupees so far. That is why I call their silence as great betrayal.

Now let me analyse the MOU DR clause in detail.

It would have showered (1) more DR to the pensioners including DR

on 100 PC neutralisation basis to all pre 8/97 retirees and (2) would have led to automatic updation of pension. Advantage 1 is obvious.

Let me explain advantage 2.

Had the MOU DR clause been retained in the pension rules all pensioners retired from 1-1-86 to 

31-7-17 would be entitled to DR  at the present rate of .08 PC per slab.

Since this rate is linked to CPI 6352

points it should be applied on basic

pension updated to CPI 6352 and not on the existing BP. This leads to automatic updation every 5 years. Thus there is inbuilt provision for 

automatic pension updation in the DR clause of the MOU. Long back I discussed this matter with some leaders. I was told that a MOU does not have the force of law and after notification of the pension rules it has lost its relevance. May be. But none can deny that LIC/GOI commited breach of trust. Now everything is lost.

The time has now come for us to retaliate against those associations which betrayed us.

I call upon those pensioners who agree with my view to quit these associations en masse and join and strengthen All India Retired Insurance Employees Federation which alone has been fighting for our cause in the courts since 1988.

Thanks.

SR Srinivasan

Former President

Retired Insurance Employees Assn

Thanjavur.

(Affiliated to AIRIEF)

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