Dear Mr Kishore,
Referring to item 6 of
your mail, we are all aware the same Rule 35(1) has also been incorporated in
LIC Pension Rules.
It no doubt indicates
the principle of application of the principle of upgradation for retirees of
the period 1/1/1986 to 31/7/1987.
But it is very
dangerous to take the method spelt out therein as a model for upgradation
because when I worked out for two live cases for weightage required for notional
upgradation on 1/8/1992 before upgradation for actual weighted upgradation on
1/8/1997 in respect of two retirees between 1/1/1986 & 31/7/1987, I found
if the weightage had been adopted as was done in the case of in-service
employees as at 1/8/1992, the weightage
required would have been 15.96 % and 20.07% for them while in four
other cases of retirees between 1/8/1987 & 31/7/1992, the weightage
required ranged from 1.17% to 4.57%.
This is because while
applying Rule 35(1), LIC adopted a method of merger of DR with basic Pension in
some proportion, but no weightage was provided resulting only in a marginal
increase in basic pension..
So we should be circumspect
if LIC agrees to adopt that principle for upgradation by applying Rule 35(1).
Kind regards.
C H Mahadevan
