CALCULATION OF 40% IR

DEAR ALL LIC PENSIONERS,
I RELEASE HERE UNDER THE CORRESPONDENCE  EXCHANGED BETWEEN ME & SHRI
C H MAHADEVAN ON THE ABOVE SUBJECT FOR YOUR INFORMATION AND FOR THE
FEDERATIONS / ASSOCIATIONS OF LIC PENSIONERS TO TAKE IMMEDIATE PRO-ACTIVE ACTION BY WRITING TO LIC AS SUGGESTED BY SHRI MAHADEVAN.
WITH GREETINGS,
R K SAHNI

"1.

Dear Shri Mahadevan,

I attach an excel file containing two calculations

1.Pre-8/92[4/93] retiree

 &

2. post 7/92[3/93] retiree.

First calculation was already checked by you.

Kindly check the second one.

With regards,

R K Sahni

2.

Your calculation is correct as per the method followed by LIC, but it will not be as per SC judgment directing application of para 3A, which will be three times the figure..

C H Mahadevan

3.

DO YOU MEAN RE-FIXING OF BASIC PENSION ON 01.08.1997, 01.08.2002, 01.08.2007 & LASTLY ON .01.08.2012?

HAVE YOU DONE ANY SUCH EXERCISE AND DO WE INSURE THAT LIC FOLLOWS THIS PROCEDURE RATHER THAN

AS THEY  HAVE DONE WHILE MAKING DEPOSIT IN JAIPUR & P & H HC?

with regards,

R K SAHNI

4.

What I mean to say is that for the limited purpose of paying interim relief at 40%,LIC will have to revise the basic pension on 1/8/1997 for pre-August 1997 retirees so as to make para 3A of Appendix IV applicable to them. To do so LIC will have to bring them on par with pensioners who retired or died after 1/8/1997 but before 1/8/2002.This requires that pre-August 1997 retirees should be provided a notional revision of salary as per wage revision on 1/8/1997 and their pension should be revised accordingly. This is what I make out from para 27 of the SC judgment. In other words, for the limited purpose of payment of IR,LIC should effect one time upgradation of pension with weightage on 1/8/1997.

Revisions on 1/8/2002  onwards do not arise as para 3A applies only for retirees of the period from 1/8/1997  to 31/7/2002.

We need to legally ensure that LIC follows the directions  of  SC as above. We may expect them to adopt the same practice followed by them for depositing in courts unless legally questioned by the Supreme Court or the Delhi HC when they file the affidavit.

Kind regards.

C H Mahadevan

5.

Thus LIC has six weeks time till 19.05.2016 to pay 40% IR. LIC will credit the amount on the last day and inform the Delhi High Court. They may not spell out the method adopted in calculating the 40% IR as ordered by the SC.

The Delhi High Court may not question LIC on this as there are no specific instructions from the SC in their Order.

As usual LIC will not give any detailed calculation. 

We may have to be extra careful in this regard.

With kind regards,

Rksahni

6.

That is why Associations/Federations have to be pro-active and write to LIC   demanding that,

1) the  correct calculations be made  as per para 27 of the Supreme Court judgment;

2) calculation sheets are provided  to every pensioner who is paid IR,

as early as possible, so that LIC will  be aware that it is on notice. Associations/Federations may have to take legal help if necessary.

Kind regards.

C H Mahadevan"