How the pre- August 1997 retirees are taken for a ride

     DEAR ALL LIC PENSIONERS, 

Further to my post on the above subject,I give below  the  calculations for another Scenario no 3,viz when the process of  DR merger (without removal of the pre-August 1997 DR anomaly) with basic pension is repeated on 1/8/2002 & 1/8/2007,according to which the gross pension will be still less than when  basic pension is revised on 1/8/1997 by the method followed by LIC.

Scenario no 3

After revising the basic pension on 1/8/1997 as per the method adopted by LIC,the same process of merger of DR with basic pension is repeated on 1/8/2002 & 1/8/2007 as well;

Original basic pension : 4700

Revised basic pension as at 1/8/1997= 6708

DR per slab from 1/8/1997 =6708x 0.0023 =15.4284

Total DR as at 1/8/2002=15.4284x 147=2267.9748

Revised Basic Pension as at 1/8/2002 =6708+2268=8976

DR per slab from 1/8/2002 =8976x0.0018 =16.1568

Total DR as at 1/8/2007=16.1568x 154 =2488.1472

Revised Basic Pension on 1/8/2007=8976+2488 =11464

DR per slab as at 1/8/2007= 11464x 0.0015 =17.196

No of DR slabs as at 1/8/2015 =738

Total DR as at 1/8/2015 =17.196x 738=12690.648

Total gross pension as at 1/8/2015 =11464+12691=24155

This is still less than the gross pension of Rs 24226 that will be available as at 1/8/2015 without upgradation if only the pre-August 1997 DR anomaly is removed.

Ultimately it boils down to the fact that justice for pre-August 1997 retirees is possible only if the Pre-August 1997 DR anomaly is removed from the date of retirement or 1/11/1993 ,whichever is later.Any other remedy will only perpetuate anomalies.

Now the pensioners who are parties  in the Civil Appeals have to explore how effectively the anomalies are driven home before the apex court.

Of course, the stress on upgradation for all pensioners has to  continue to guide our legal struggle without any let up.

Greetings.

C H Mahadevan