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Tuesday, 24 May 2016

Where is DR anomaly?



Dear Mr Sahni,

I give my comments below on the points raised by you:
1. Do you want this anomaly to be removed by Stepping up or equating the DR slabs with those of DA slabs & for how much period ?
Do you not want Upgradation of pension wef from 01.08.1992/01.04.1993 ?
If yes , then this will automatically get removed with Upgradation from the above date.

1.Anomaly in DR is one thing which has been created and persisting for the past 22 years and has been a source of financial loss for the pre-August 1997 retirees, especially at the supervisory level and more acutely among retired Class I Officers. It needs to be removed especially keeping in mind the MOU signed between LIC and the unions/Associations on 14/1/1994. It is based on the principle that the cost of living cannot differ between serving employees and pensioners in relation to their Basic Salary/Basic Pension in terms of a percentage linked to them.
That is not to say that we should sacrifice upgradation of pension. That is an issue  of importance to all the pensioners-present and future.
 As regards the question of upgradation, should it not be done in the same manner as revision of salary for in-service employee? When salary is revised by merging existing DA with existing Basic Pay and providing weightage  based on negotiations with the unions, Pension being a deferred wage  has also to be correspondingly revised from those effective dates.
When we adopt the same principles for pensioners, now that it is clear that there is an anomaly in the DR formula for pre-August 1997 retirees,it is only proper that the DR anomaly is rectified  first  and the correct DR is applied for effecting upgradation.
For  those who retired  between 1/1/1986 and 31/7/1992,after rectifying the DR as applicable to in-service employees, the correct  DR should first be merged with Basic Pension and on the merged total weightage should be applied notionally on 1/8/1992 and the pension should be notionally  revised.Based on the notionally revised Basic Pension,the same process should be adopted  to upgrade the pension on 1/8/1997 with a 11.25% weightage( which is only an average).Such upgradation should be extended  in chain on 1/8/2002,1/8/2007 and 1/8/2012.Of course there is no DR anomaly  for post July 1997 retirees and hence correct DR will naturally get merged with every wage revision.The upgradation of pension for them  will only require due weightage as provided for –in-service employees.
In the scheme of things at present,there cannot be a fitment chart for pensioners as for in-service employees as there will be intermediate values.So while using fitment charts for basic pay by taking 50% of Basic Pay,upgraded Basic Pension will have to be arrived at by interpolation and sometimes by extrapolation due to the effect of FPA component.

How much DR amount is at stake for Asstt Rs 3483 to Rs 52979 for ED cadre?
.The impact of DR anomaly has been felt more by Class I Officers than Class III employees because of the structure of the tapering formula.Whatever may the percentage of pensioners affected,any anomaly  that exists has to be rectified.

2. In respect of those retirees of 01.08.1992/01.04.1993 to 31.07.1997 for whom we also want Upgradation of pension with effect from 01.08.1997, there will be DR anomaly for maximum 45 months and the maximum amount of DR would be ₹ 1786  for Astt. to ₹27710     for ED.
Is it worth for pursuing this anomaly at the cost of Upgradation?
2.I have already  explained the rationale  above for my approach.We need to have an integrated approach combining DR anomaly removal for pre-August 1997 retirees and upgradation for all pensioners.
3. Our main emphasis should be Upgradation for all the Groups both pre8/97 and post 8/97 with every wage revision.

I agree with you. But  we cannot ignore the  losses suffered by  pre-August 1997 retirees   for about 17 to 22 years with cumulative losses  many of whom have died and many of whose surviving spouses are still suffering.
But we at Hyderabad  Retired Class I Officers’ Association will  vigorously work for wholesale upgradation of pension  in our legal fight at Delhi HC.
Kind regards.
C H Mahadeva


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