DEAR ALL,
The post of Mr N.Pradeep Kumar on a detailed analysis of Rule No 56 of LIC Pension Rules making LIC pensioners a blessed lot vis-à-vis the RBI & PSB pensioners no doubt has created a 'feel good' factor among
the pensioners’ fraternity of LIC.The conclusion that we can arrive at from the series of posts by Mr NPK is that we can consider ourselves potentially a blessed lot while RBI pensioners are presently a better blessed lot.
The sum and substance of what Mr NPK writes is, notwithstanding the powers with the Government of India under Sec 48 to make rules for pension for LIC employees, by virtue of the subordinate legislation in the form of LIC Pension Rules 1995 notified by the Government of India, Chairman of LIC can issue instructions to implement Rule 56 in terms of the powers vested in him under Rule 55 bringing LIC pensioners on par with the Central Government pensioners. There may not be a need for a separate notification for this purpose by the
Central Government. This line can no doubt be taken by the counsel for the three sets of pensioners while arguing under the Civil Appeals before the SC.
But in the later part of his analysis,Mr NPK goes on to advocate our need to pursue the OROP concept –the fitment of pension on par with the present revised scales of pay- which is different from the method presently adopted for revision of pension in case of Central Government employees. When Central Government scales are revised, the revised pension is fixed at the minimum of the scale corresponding to the pre-revised scale and grade pay. This does not amount to providing OROP benefit.
But a careful reading of the Jaipur Bench judgment and also the Chandigarh HC judgment will make it amply clear that upgradation of pension on OROP principle has been ordered. The OROP-based upgradation is definitely more advantageous than the Central Government method of upgradation of pension. As what is contested by LIC is only the High Courts’ judgments ordering OROP- based upgradation of pension, as a matter of legal strategy the pensioners’ counsel will do well to stick to arguments for upholding the two HC judgments with any additional directions which the Apex Court may think fit to issue. But, considering the blessing in the form of Rules 56 & 55 of the LIC Pension Rules 1995,the desirability of extending the threshold benefit of application of Central Government pension rules to LIC pensioners can reasonably be expected to find favour ith the Supreme Court even if it is (perhaps by a remote chance) not inclined to uphold the HC judgments as they stand .
In other words, at best LIC pensioners may stand to win upgradation of pension and at worst they may stand to gain upgradation of pension as applicable to Central government employees. I may sound unduly optimistic, but I have reason to be so.
Against this back drop,let us look forward to the SC hearing on 2/12/2015
Greetings.
C H Mahadevan
The post of Mr N.Pradeep Kumar on a detailed analysis of Rule No 56 of LIC Pension Rules making LIC pensioners a blessed lot vis-à-vis the RBI & PSB pensioners no doubt has created a 'feel good' factor among
the pensioners’ fraternity of LIC.The conclusion that we can arrive at from the series of posts by Mr NPK is that we can consider ourselves potentially a blessed lot while RBI pensioners are presently a better blessed lot.
The sum and substance of what Mr NPK writes is, notwithstanding the powers with the Government of India under Sec 48 to make rules for pension for LIC employees, by virtue of the subordinate legislation in the form of LIC Pension Rules 1995 notified by the Government of India, Chairman of LIC can issue instructions to implement Rule 56 in terms of the powers vested in him under Rule 55 bringing LIC pensioners on par with the Central Government pensioners. There may not be a need for a separate notification for this purpose by the
Central Government. This line can no doubt be taken by the counsel for the three sets of pensioners while arguing under the Civil Appeals before the SC.
But in the later part of his analysis,Mr NPK goes on to advocate our need to pursue the OROP concept –the fitment of pension on par with the present revised scales of pay- which is different from the method presently adopted for revision of pension in case of Central Government employees. When Central Government scales are revised, the revised pension is fixed at the minimum of the scale corresponding to the pre-revised scale and grade pay. This does not amount to providing OROP benefit.
But a careful reading of the Jaipur Bench judgment and also the Chandigarh HC judgment will make it amply clear that upgradation of pension on OROP principle has been ordered. The OROP-based upgradation is definitely more advantageous than the Central Government method of upgradation of pension. As what is contested by LIC is only the High Courts’ judgments ordering OROP- based upgradation of pension, as a matter of legal strategy the pensioners’ counsel will do well to stick to arguments for upholding the two HC judgments with any additional directions which the Apex Court may think fit to issue. But, considering the blessing in the form of Rules 56 & 55 of the LIC Pension Rules 1995,the desirability of extending the threshold benefit of application of Central Government pension rules to LIC pensioners can reasonably be expected to find favour ith the Supreme Court even if it is (perhaps by a remote chance) not inclined to uphold the HC judgments as they stand .
In other words, at best LIC pensioners may stand to win upgradation of pension and at worst they may stand to gain upgradation of pension as applicable to Central government employees. I may sound unduly optimistic, but I have reason to be so.
Against this back drop,let us look forward to the SC hearing on 2/12/2015
Greetings.
C H Mahadevan
