Estimated outlay on account payment of IR to all pre-August 1997 retirees

Based on the illustrative chart prepared by LIC in August 2003,I happened to work out  the Interim Relief amount as at 31/7/2015 for each cadre at the maximum of scale  and also the  corresponding outlay required for LIC if it decides  to pay all pre August 1997 retirees.

I attach  the two tables   containing the calculated figures.

The  outlay has been  estimated  for 21762 pre-August 1997 retirees  who were in existence as at 1/8/2003.

But as at 20/2/2009,only 16498 retirees in the category.There is a reduction of pensioners by 5264 which indicates the mortality  in the five years  upto 2009.We don't know  how many are  continuing their life journey as on date. 

As per the methodology followed by LIC, the total outlay even for the  higher number of 21762 pensioners, the outlay works out to only Rs 22.2 crores.LIC could have gracefully paid this tentative amount to all eligible pensioners even without the exercise of withdrawal of the amounts from the HCs.Perhaps it is destined that pensioners dhould get justice only from the hands of the Supreme court.

But the sad part of this dispensation   that has come to light is  that Class IV retirees-especially those retired after 1/8/1992 but before 1/8/1997  will get a raw deal, viz  recovery of pension> I am sure that the Apex Court will  render justice to them and in that process to all retirees.

Greetings.

C H Mahadevan

<ESTIMATED OUTLAY ON IR AS PER LIC.docx>

https://docs.google.com/document/d/1UGJRuxXLSPmL0mmm_1hd3oloJvokVVE9I9diCs4lXvI/edit?usp=sharing