FEDERATION OF RETIRED LIC CLASS I OFFICERS' ASSOCIATIONS
Ref. SKA/CO-07
Dt. 23-08-2023
SRI SIDDHARTH MOHANTY, CHAIRPERSON L. I. C OF INDIA, YOGAKSHEMA, JEEVAN BIMA MARG, MUMBAI- 400021
Reg 1. 100% D.A neutralisation to pre-1.8.97 pensioners,
2. Increase in Family Pension,
Dear Sir,
As the Nation is passing through the AMRIT KAAL, I take the opportunity to request you to kindly take due initiative, as Head of the prestigious financial organisation LIC of India, to mitigate the financial hardship of LIC Pensioners. We as an organisation of retired Class I officers, congratulate you on the spectacular performance of LIC in its 1st Quarter of the financial year 2023-24 by registering 14 times increase in profit from 683 crores to 9544 crores. It made our PM to praise LIC's performance in the House of the Parliament.
In the matter of 100% neutralisation of DA, an agreement has been reached between the IBA and the bank pensioners' organisations (Of course with the approval of the Govt.) to grant 100% neutralisation to pre-1.11.2002 pensioners. But unfortunately the same is denied to our similarly placed pensioners of pre-1.8.1997. We would not blame LIC solely for it, as a proposal duly passed by the LIC Board, in its meeting held on 24.11.2001, was sent to Finance Ministry (DFS) for approval, with the intention to remove the discrimination in payment of DA to Pre-1997 pensioners . The decade old silence on the part of the Finance Ministry on LIC Board's proposal, compelled pensioners to seek legal recourse, which resulted in to a Writ Petition no WP 184/ 2007 in Delhi HC. The various High Courts including that of Delhi High Court vide its order dated 30.01.2010 allowed our appeal.
But the LIC on the behest of Govt. preferred to file an SLP 17726/ 2013 in the Supreme Court against the judgement of Delhi High Court. The Supreme Court prima face agreeing with the discrimination in payment of DA to pre-1997 pensioners, granted 40% Interim Relief to the aforesaid group in two instalments, but for some technical lacuna referred back the case to Delhi High Court vide its order dt. 31.03.2016 to examine the constitutional validity of rule 3A of LIC Pension Rules. The Delhi High Court vide its order dated 11.11.2016 did accept the discrimination in the matter of DA
pattern under Rule 3A, but prescribed its own faulty new formula of DA slab wise for the pre-1997 pensioners. Against this Delhi High Court order, almost all the Pensioners' Organisations filed SLPs in Supreme Court in 2017 where it is pending for finality since then.
Our purpose of narrating the history of decade old litigation on the matter of 100% neutralization of DA is that if IBA and the Bank Organisations can settle the issue amicably outside the Court through a mutual understanding and agreement despite the matter being sub-judice (Not possible without the approval of Govt.), then why the same could not happen in LIC. We therefore feel, it is the opportune moment for LIC to take advantage of the positive environment created by good gesture of the Govt. As such we request you to approach the Finance Ministry (DFS) afresh to approve the Board Resolution dated 24.11. 2001, which is akin to Bank Agreement and put an end to the decade old DA problem. If need be, a fresh Resolution to this effect can be adopted in the Board meeting and sent to Finance Ministry for their approval.
As regards increase in Family Pension, pending with DFS for notification since almost last two years, we are sure you must have impressed upon the Finance Minister and the Authorities in DFS about the urgency of early Notification of it during your recent visit as sources revealed.
Though Like 100% DA neutralization, the matter of Updation of Pension is under Legal scrutiny in various Courts for LIC and Bank pensioners, yet the Govt. has already approved Updation of Pension to RBI retirees prior to 1.11.2017 ( last wage revisions in RBI). At the same time, the Govt. has formed a high level Committee for SBI pensioners and has asked the IBA also to look into the matter of updation of pension and submit their report to Govt. /Court. Surely it indicates that the Govt. seems to be principally convinced that updation of pension in some form has to be considered for PSU Bank pensioners.
We would therefore urge upon you to take the full advantage of the on-going favourable environment and initiate discussion with the DFS for a suitable formula for updation of Pension for LIC Pensioners too, akin to RBI formula or its better so that decades old litigation on Pension issues could come to an end with utmost relief to pensioners for a healthy survival.
We are sure that you would make no stone unturned to mitigate the financial hardship to the Family Pensioners and the Pensioners in general through Updation of Pension for a better living in future years.
With regards.
Yours Faithfully,
S. K. Awasthi
GENERAL SECRETARY
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