A brief history of the Pension case in the Supreme Court of India

 A brief history of the Pension case in the Supreme Court of India

During 1981, Government of India (GOI) amended section 48 of LIC of India Act 1956 and thereby took over the powers to make rules in respect of terms and conditions of service of employees of LIC retrospectively from 20th June 1979. As such LIC of India (Staff) regulations 1960 also became the rule enacted by the GOI.

Thereafter, LIC used to hold information sharing sessions with all the unions of employees and any conclusion or suggestion arrived out of such sessions being communicated to the GOI. Government would or not accede to their view points and may frame rules according to what they decide.

During the late eighties the demand for Pension became a major agenda of all employees unions in LIC.  Some of the unions wanted pension as third benefit in addition to Gratuity, Contributory Provident Fund (CPF). But one or two unions preferred pension even as a second benefit in lieu of CPF. There was some information sharing sessions during 1993, and it was agreed for Index linked Pension and family pension in lieu of CPF. GOI has framed and notified LIC of India (employees) Pension rules 1995 on 28.06.1995. Thus LIC pension rules became effective from 1st November 1993 for the employees retired on or after 1st January 1986. For those retired prior up to 1st January 1980 an ex-gratia amount was announced.

When the Pension Rules were notified, majority of the employees, who opted for the same were thinking that they would be getting pension just like the Central Government Employees because LIC Pension rules were in the same lines of Central Civil service Employees pension Rules; rule 56 of LIC pension rules specifically states that, “Matters relating to pension and other benefits in respect of which no express provision has been made in these rules, shall be governed by the corresponding provision contained in the Central Civil Services Pension Rules, 1972 / or the Central Civil Services (Commutation of Pension) Rules, 1981 applicable for Central government employees.” 

Thus employees and retired employees, who opted for pension were happy to get the Commutation benefit, which was almost, or nearer to their Provident fund contributions and were feeling that, in reality, they get three benefits, Gratuity, Commutation and Pension. But this happiness could not sustain for a long period. When the next and next wage revisions for the in service employees were made, employees retired after subsequent wage revisions were getting more pension than the pensioners of the same category, retired earlier to them. When it was so happened that an employee of a lower cadre was getting higher pension than the one retired earlier from the higher cadre, everyone felt the heat and started demanding pension revision.

At that time pension revision was made available to the CCS employees as per the recommendation of the 5th Pay commission headed by honorable Justice S.Ratnavelpandiyan and from 1996 Central Government employees were allowed pension revision. LIC retirees also wanted the pension updation/revision as per the Central Government Employees. But while the Basic pension was updated for those pensioners retired prior to 1St August 1997 – the dearness allowance (DA) paid/payable up to the Consumer Price Index 600 points was merged with the Basic Salary and Basic pension was arrived accordingly- not updated to those retired afterwards.   

Shri.R.B.Kishore, our Patron and guide was talking to all those officials of LIC and the members of the Board and saw to that a resolution was passed by the Board of LIC during 2001. The said board resolution proposed to merge the DA/DR paid/payable up to 1740 points (Consumer Price Index at which wage revision was made to in service employees at that time) with the basic Salary/Pension and revise the basic pension accordingly. But the said resolution is kept under the cold storage of GOI.

This was the situation when legal remedy was thought by the leadership of AIRIEF. During 2006, a legal committee was formed by AIRIEF to analyze the legalities for pension revision. In the mean time Shri.K.M.L. Asthana from Jaipur had filed a Writ petition in the Jaipur Bench of High Court of Rajasthan at Jaipur on the same issues. EC of AIRIEF decided to support the case, financially, instead of filing a fresh suit to avoid time consumption. 

During the same period, Mediclaim scheme was proposed for employees and all the unions wanted it to be cost free -the whole premium shall be paid by LIC. But one union wanted the introduction of the scheme first and it was of their opinion that premium part can be negotiated afterwards. But that chance of “afterwards” never came to retired employees of LIC while the in service employees were enjoying. Since negotiations did not yield any positive results, AIRIEF, through their General Secretary Shri. G.T.Parik took up the case to the Honorable High Court of Ahmedabad, where LIC filed their decision to share the Mediclaim Premium of the retired employees at the rate of 75:25 by LIC and retired employees during 2010.

During 2010, Honorable Jaipur Bench of Rajasthan Court gave the verdict in favour of Shri.Ashthana. But LIC went on appeal to a review and again to a bench against the judgment. The appeal was rejected by the High Court again. LIC went to Supreme Court.  In the mean time there were few more cases in different high courts on similar grounds. In the case of Shri.M.C.Jain benefit of revision was given only to the Petitioner and not for all similarly affected pensioners.  

So, AIRIEF has decided in the legal committee meeting held at Bhopal in June 2015 to implead the case and fight directly on behalf of all the members of AIRIEF so that the benefit of judgment shall be passed on to all members. Thus during 2016, AIRIEF has become a party for the case at the Supreme Court of India. 

On 31st March 2016, honorable justice Deebak Misra passed an order to pay 40% of the DR arrears to the entire affected pensioner and thereby a sum of Rs.29.21 crores was paid to the pensioners of the said category. 

Considering the issues, all similar cases, including the appeal of LIC at the Supreme Court, were remanded to Delhi High Court. On 27.04.2017, Delhi High Court gave their judgment denying Pension revision; but with regard to DR anomaly they gave a different formula on the basis of which the affected Pensioners received interim relief of Rs.52.37 crores of rupees from LIC. 

Against the Judgment of DHC, AIRIEF filed the Special Leave Petition (SLP) before the honorable Supreme Court of India, during 2018. After several adjournments from 2018, incurring more thsn a crore of rupees as legal expenses, the said SLP was converted as civil appeal during February 2024. Finally the case was heard on 18th September 2025 and the hearing will continue on 24th September and afterwards, if required. 

This is the brief history of Pension Revision Case, being heard at the Supreme Court of India now.

So far we have spent more than 1.5 Crores rules on the legal fight and are continuing the fight till we succeed. The pensioner fraternity particularly those retired prior to 1St August 1997 received more than more than 80 crores of rupees. We never demanded any levy from any beneficiary.

Only on the general call for legal fund is mobilized; it is up to the beneficiaries to contribute their might. 

An Association which did not bother about the pity of the pensioners up to 2016, joined as a party only at Delhi High Court that too due to the fear, that if AIRIEF wins the case they could not claim the victory and collect levy from the beneficiaries. AIRIEF is not an intervener in the Court of law; AIRIEF is the main petitioner who fought for the SLP to get converted as civil appeal. But, AIRIEF will be intervening at all the times, all the areas, when and where an injustice is done to the class of pensioners, irrespective of their caste, religion, class and political affiliation. Ignore their comments.

 

We are fighting mainly for all the senior pensioners who are receiving lesser pension; by the way they are getting some relief also as interim relief, one time ex gratia payment for aged 70+ and now the  refund of Mediclaim premium already paid by senior pensioners, aged 71 and above.

If they pay a portion of the refund, as they wish, as legal fund that will be more helpful to the organization at this time. 

Young Pensioners need not worry about who paid the legal fund and who did not; you think that this is a fight for yourself to a safe future benefits. Please continue to extend your support to RIEA / AIRIEF .

We will win and we have to win.

- Ramaiyamoorthy