DEAR ALL LIC PENSIONERS,
Further to my post on the flawed calculation being adopted by LIC based on their interpretation of the Board Resolution,I happened to work out a sample illustration for an officer who retired on 31/7/1997 to arrive at the gross revised pension as at 1/8/2015 under two scenarios.
Further to my post on the flawed calculation being adopted by LIC based on their interpretation of the Board Resolution,I happened to work out a sample illustration for an officer who retired on 31/7/1997 to arrive at the gross revised pension as at 1/8/2015 under two scenarios.
The calculations are given below:
1.Existing Pension
Basic Pension : 4700
Existing DR Per slab: 13.57
Total existing DR as at 1/8/2015: 13.57x 1187=16107.59
Total existing Gross pension : 20807.59= 20808[1]
Scenario 1
Method followed by LIC while depositing amounts in the two High Court Registries.
Existing Basic Pension : 4700
DR as at 1/8/1997 : 13.57x148=2008.36
Basic Pension +DR as at 1/8/1997 =6708
Revised Basic Pension from 1/8/1997 = 6708
Revised DR per slab from 1/8/1997 =15.4284
Total revised DR as at 1/8/2015 = 15.4284x1039 =16030.1076
Total revised gross pension as at 1/8/2015 = 22738[2]
Scenario 2
If only DR is neutralized as done for in service employees without revising the basic pension as at 1/8/1997;
Existing Basic Pension = 4700
DR per slab if in service DR formula is applied =4700x0.0035 =16.45
Total DR as at 1/8/2015 =19526.15
Total gross pension as at 1/8/2015(even if basic pension is not revised on 1/8/1997)=24226.15 =24226[3]
Thus
,although the method adopted by LIC may boast of "upgrading pension" as
on 1/8/1997, in real terms the pre-August 1997 retirees stand to lose
if pension is revised as per LIC's method.They would be better off with a
mere equitable DR neutralisation on par with in service employees.
In
the present example, the officer is subjected to a loss of Rs 1488 p.m
as at 1/8/2015.The cumulative loss from the date of retirement till
date will run into at least a few lacs of rupees[Rs 338152* see below] even if full arrears
are paid on the basis of the method followed by LIC.
Is
it not now crystal clear that the so called interim relief received by
the " fortunate" few is in reality an interim deception?
Greetings.
C H Mahadevan
*PS
Difference in DR per slab=16.45-13.57= 2.88
Total no. of slabs from 01.08.1997 to 31.01.2016=117414
Total Loss=Rs 2.88*117414= Rs 338152
R K SAHNI
