Letter to EDP BY NOIP

NATIONAL ORGANISATION OF INSURANCE PENSIONERS

(Affiliated to Bharateeya Mazdoor Sangh)

BMS Office, Vishwakarma Bhavan, 185, Shaniwar Peth, Pune 411030. Tel.: 020-24454040

        President: S. L. Burman                                                                General Secretary: Ashok J. Joshi

                                                                                                                                                                Date: 11-11-2015

                To,

                The Executive director (Per),

                LIC of India, Central office, Yogakshema,

                MUMBAI

                Dear Sir,

                Re: Our letter dtd.04-11-2015 vis-à-vis Amendments to Pension Rules

                This has reference to our letter of 4^th November 2015 and also the discussions we had with the Chief (Per) on    04-11-2015. We insisted that the amendments regarding computation of pension, increased pension to those         aged 80 years and above, flat 30% family pension etc which have been granted in the VI Pay Commission, have                 to be included in the draft proposal to be sent for notification consequent upon wage revision.

                The biggest anomaly is the faulty way of computing pension for those who fall under the intervening period of                                 wage revision, i.e. those who retired between 31-08-2012 to 30-04-2013. We had a detailed talk with you on 06-   06-2015 regarding this anomaly. I have enclosed here with 3 such cases (representative cases) with detailed                 calculations for your personal intervention to undo the injustice meted out to thousands of such pensioners who                 retire in the intervening period of wage revision. VI Pay Commission did away with this anomaly for Central Govt                 pensioners by recommending taking 50% average basic pay of last 10 months or 50% of latest revised basic pay                   whichever is beneficial to the retiring employee. Only then this anomaly can be undone. We request you to                 include this amendment in the proposed amendments to the Pension Rules that are to be notified, along with                 other amendments requested by us in our letter in consonance with the recommendations of the VI Pay                 Commission.

                We expect a positive response from you in this regard,

                Thanking you,

               

                                                                                                                                                                                                                                                                                                                                                                                                                   

                                                                                                                                                                      Yours faithfully,

                                                                                                                                                     

                                                                                                                                                                     (General Secretary)

                Encl: As above

               

 Case No.I- V.D.Sudame, Retd SDM                       AICPI- 01-08-2007- 2944
Date of Retirement- 30-09-2012                                                                                     01-05-2012- 4548
Pre-revised Basic Pay + FPA- 47960+910                                                                       01-08-2012- 4708
Revised basic pay + FPA- 91270+1735                                                                            01-02-2013- 4976
Computation of Pension as per LIC’s present method                                               01-04-2014- 5500     
Revised basic for 2 months- (91270+1735) x 2=    186010                                          01-08-2015- 5896
Pre-revised basic for 8 months- (47960+910) X 8=390960
DR for 5, 6, 7/2012- (401 slabs x 71.94) = 28848x3=   86544
DR for 2, 3, 4/2012- (393x71.94) = 28272x3 = 84816
DR for 1/2012 & 12/2011- (374x71.94) = 26906x2= 53812
GT= 802142
Revised Basic= 802142/10= 80214
Revised Basic pension= 80214/2= 40107
Commutation= 13369
Revised basic pension after commutation= 26738
Pre-revised basic pay- (47960+910) = 48870
Pre-revised basic pension= 24435
Commutation= 8145
Pre-revised basic pension after commutation= 16290
Commutation arrears- (13369-8145) x 9.81x12= 614969
Pre-revised pension as on 01-10-2012
Basic pension after commutation = 16290
DR (441x36.6525) = 16164
Total pre-revised pension = 32454
Revised pension as on 01-10-2012
Basic pension after commutation= 26738
DR (0 slab) = 00
Total revised pension= 26738
Net loss in pension per month= (32454-26738) = 5716
Pre-revised pension as on 01-08-2015
Basic pension= 16290
DR - (738x36.6525) = 27050
Total pre-revised pension= 43340
Revised pension as on 01-08-2015
Basic pension= 26738
DR- (297x40.107) = 11912
Total revised pension= 38650
Net loss in pension per month with commutation= (43340-38650) = 4690
PS. That means even after 3 years of effective date of revision loss continues to be very huge and unimaginable
Pension without commutation as on 01-10-2012
Revised pension
Revised basic pension= 40107
DR= 00
Total revised pension without commutation- 40107
Pre-revised pension as on 01-10-2012
Basic pension= 24435
DR- (441x36.6525) = 16164
Total pre-revised pension without commutation= 40599
Net loss in pension without commutation= (40599-40107)= 492
PS- It can be observed that even without commutation there is net loss in pension after revision

Case No.II- N.T.Ghonge, Retd SDM                       AICPI- 01-08-2007- 2944
Date of Retirement- 31-03-2013                                                                                     01-05-2012- 4548
Pre-revised Basic Pay + FPA- 47960+910                                                                        01-08-20124708
Revised basic pay + FPA- 91270+1735                                                                            01-02-2013- 4976
Computation of Pension as per LIC’s present method                                               01-04-2014- 5500      
Revised basic for 8 months- (91270+1735) x8=   744040                                            01-08-2015- 5896
Pre-revised basic for 2 months- (47960+910) X 2= 97740
DR for 6, 7/2012- (401 slabs x 71.94) = 28848x2=57696
GT= 899476
Revised Basic= 899476/10= 89948
Revised Basic pension= 89948/2= 44974
Commutation= 14991
Revised basic pension after commutation= 29983
Pre-revised basic pay- (47960+910) = 48870
Pre-revised basic pension= 24435
Commutation= 8145
Pre-revised basic pension after commutation= 16290
Commutation arrears- (14991-8145) x 9.81x12= 805911
Pre-revised pension as on 01-04-2013
Basic pension after commutation = 16290
DR (508x36.6525) = 18619
Total pre-revised pension = 34909
Revised pension as on 01-04-2013
Basic pension after commutation= 29983
DR (67x44.974) =3013
Total revised pension= 32996
Net loss in pension per month= (34909-32996) = 1913
Pre-revised pension as on 01-08-2015
Basic pension= 16290
DR - (738x36.6525) = 27050
Total pre-revised pension= 43340
Revised pension as on 01-08-2015
Basic pension= 29883
DR- (297x44.974) = 13357
Total revised pension= 43240
Net loss in pension per month with commutation= (43393-43340) =100
PS. That means even after 3 years of effective date of revision loss continues
Pension without commutation as on 01-04-2013
Revised pension
Revised basic pension= 44974
DR- (67x44.974) = 3013

Total revised pension without commutation- 47987
Pre-revised pension as on 01-04-2013
Basic pension= 24435
DR- (441x36.6525) = 16164
Total pre-revised pension without commutation= 40599
Net gain in pension without commutation= (48046-40599) = 7388

Case No.III- Arjun Prasad Retd DM                       AICPI- 01-08-2007- 2944
Date of Retirement- 28-02-2013                                                                                     01-05-2012- 4548
Pre-revised Basic Pay + FPA- 42860+910                                                                        01-08-2012- 4708
Revised basic pay + FPA- 81540+1735                                                                            01-02-2013- 4976
Computation of Pension as per LIC’s present method                                               01-04-2014- 5500      
Revised basic for 7 months- (81540+1735) x 7=    582925                                          01-08-2015- 5896
Pre-revised basic for 3 months- (42860+910) X 3=131310
DR for 5, 6, 7/2012- (401 slabs x 64.29) = 25780x3=   77340
GT= 791575
Revised Basic= 791575/10= 79158
Revised Basic pension= 79158/2= 39579
Commutation= 13193
Revised basic pension after commutation= 26386
Pre-revised basic pay- (42860+910) = 43770
Pre-revised basic pension= 21885
Commutation= 7295
Pre-revised basic pension after commutation= 14590
Commutation arrears- (13193-7295) x 9.81x12= 694313
Pre-revised pension as on 01-03-2013
Basic pension after commutation =14590
DR (508x32.8275) = 16676
Total pre-revised pension = 31266
Revised pension as on 01-03-2013
Basic pension after commutation= 26386
DR (67x39.579) = 2652
Total revised pension with commutation= 29038
Net loss in pension per month with commutation= (31266-29098) = 2228
Pre-revised pension as on 01-08-2015
Basic pension= 14590
DR - (738x32.8275) = 24227
Total pre-revised pension= 38817
Revised pension as on 01-08-2015
Basic pension= 26386
DR- (297x39.579) = 11755
Total revised pension= 38141
Net loss in pension per month with commutation= (38817-38220) = 676
PS. That means even after 3 years of effective date of revision loss continues to be there
Pension without commutation as on 01-03-2013
Revised pension
Revised basic pension= 39579
DR (67x39.579) = 2652
Total revised pension without commutation- 42231
Pre-revised pension as on 01-03-2013
Basic pension= 21885
DR- (508x32.8275) = 16676
Total pre-revised pension without commutation= 38561
Net gain in pension without commutation= (42318-38561)= 3670