DEAR ALL LIC PENSIONERS
For a long time there has been a debate on whether the LIC's Board Resolution dated 24/11/2001 covers upgradation of pension.
For a long time there has been a debate on whether the LIC's Board Resolution dated 24/11/2001 covers upgradation of pension.
Looking
at the methodology adopted by LIC in its illustrative charts which are
in public domain,it is very clear that LIC has gone beyond the mere DR
neutralisation that was demanded by pre-August 1997 retirees.
If
it it had been the intent of the Resolution to provide for only 100%
DR neutralisation and not upgradation,all that the LIC was required to
do was to revise the DR slabs for pre- August 1992 & pre- August
1997 retirees on par with the rates applicable to in- service employees
and nothing beyond that.There was no need to revise the basic pension on
1/8/1997.
Instead ,the
methodology of LIC followed in their illustrative charts and presumably
their calculation of interim relief paid to about 1200 retirees did not
address the issue of DR anomaly,but on the hand LIC chose to merge the
anomalous DR as on 1/8/1997 with the Basic Pension and take that total
as the revised basic pension with DR rate applicable to retirees of the
period 1/8/1997 to 31/7/2002.In effect the methodology involves
revision of pension on 1/8/1997 on a wrong basis and it amounted to
partial,anomalous and one- time upgradation of pension.Even ignoring the
absence of weightage on 1/8/1997 while revising pension,it is
ridiculously glaring that LIC did not find it proper to follow the same
methodology on 1/8/2002 and 1/8/2007.This is where LIC is caught up in
its own web of anomalies that has made it shy away from providing the
calculations for the interim relief paid to some of the pre-August 1997
retirees.LIC's flawed methodology is responsible for family pensioners
of pre-August 1997 retirees not getting anything by way of interim
relief.
My personal view
is that the LIC Board Resolution provides for upgradation of pension
with weightage as done for in- service employees,besides removal of DR
anomaly upto 31/7/1997 for pre-August 1997 retirees.Once that is
accepted,the benefit of upgradation should logically be extended to
post- July 1997 retirees as well to avoid discrimination and consequent
violation of Article 14 of the Constitution.
If
in the circumstances, if the Class I Federation does not press for
upgradation of pension at least for pre-August 1997 retirees and their
family pensioners,it will be doing a grave disservice to to the
fraternity of such pensioners.
Greetings for a Happy New Year 2016.
C H Mahadevan
