DEAR ALL,
A)What
a day 27/4/17 it has been. Never perhaps in legal cases , one should
lay too much emphasis on outcome, as with evergreen memories of
continued long hearing pales away as a whiff of thin air .Nobody takes
for granted but yet if
judgement is strewn with halfhearted attempts to resolve, it ended only
in no solution but keeping away many pensioners still in doldrums,
which cannot be the ideal getup for a a Judicial High Court out to set
quality precedents rather than whittling them down , making many aged
pensioners still cry in anguish for fullest form of justice with equity
& equality .as guiding principles. So, constitution &
Fundamental Rights also as beacon light fades away unless FULL text of
judgement gives yet some ray of hope
ALL in all, a tragic outcome , a disappointing DHC Order, a low profile judgement, Article
14 also not interpreted properly as Discrimination will exist
,Anamolies will continue & so EVEN law points DHC has not correctly
addressed . Endless
litigation has become a norm, activists have to die only because of
inebriated verdicts not upto the mark viewing totality
B)Now we have to work out our plan & strategy for SC as DHC Verdict became a damp squib & so
Sr Counsel also ,in what manner NEW LINE of Thinking can be injected
has to be seen . It is desirable to go through LIC WS & LIC
Rejoinder to Hyderabad Assn.Who knows Hon Judges ,on the basis of these 2
, which will figure in SC hearing also ,might have totally deviated
from their normal behaviour & body language, interjections,
repartees, which all went to prove good tidings are awaiting pensioners,
but a BOMBSHELL No PU at all, even on the basis of law, violation of
Fundamental Rights,a SHOCK !!
Battle shifts to SC &
more creative right brain thinking needed. Pensioners allergic to legal
fund donation ,though now more funds will become necessary will have to
support to establish a cardinal principle . If Khandelwal committee
recommendations that a jumbo solution for all is not feasible, but
profit yielding orgns can have a definite say looks to be a realistic
solution. LIC comes in that category whereas Govt will give value-added
pension at ages 80 onwards, 20%, 30, 40, 50 & 100 % at age 100 Bapre
,whither we pensioners , nothing to cry but everything to criticise the
functioning of Judiciary
C) OUR ARGUMENTS & SUBMISSIONS in SC : (can be refined,modified, changed, no problem)
1) All suggestions, expressions of interpretation, lacunae in
DHC, more anamolies, lower 4 cadres even in DR pre 8/97 pensioners, as
like a SCHOOL HEADMASTER ,Hon Justice Sanjiv Khanna , who never cared
for Correct 40 % IR, suddenly became a Mathematician & Statistician,
wanting to help lower rungs of cadres, but ALL 4 Asst, HGA, DO, AAO
get 0,0, 0 & 0 in Groups 1 & 3 cadres Asst,HGA, DO in Group 2,
get 0,0 & 0.so sad. as he has stipulated cut off BPension from
Appendix IV formula of restrictive slab percentages, Rs 2130 for pre
-1993 pensioners 0.17 % to0.29% & Rs 3850 for Group 2, 0.17% to
0.23% .
2)How partial & piecemeal, the DHC order is on treatment of
Pre-8/1997 pensioners is visible & comes out openly . DHC Bench has
not FULLY addressed themselves to redress the grave anamoly, loss of DR
& utter discrimination
Like a School
Headmaster, Hon Justice has elaborated Article 21. & if we get
somewhat ok pension, how can Article 21 be invoked. Standard of living
to determine, many variables will be there & cannot be accurately
calculated. Pension coverage in our Country is minuscule ,DHC says
& so lot of progress has to take place.DHC
observes Article 14 applies to part of pension which can be called as
deficient & Nakara analysed in earlier SC rulings does not permit
Migration to new scales of pay for Same cadre etc
3)To recapitulate & confirm HOW Hon DHC has itself made violations of FUNDAMENTAL PRINCIPLES OF LAW, EQUITY, EQUALITY, NO DISCRIMINATION, NO ANAMOLIES, NO ARBITRARINESS amongst PENSIONERS & in their own ORDERS or PRESCRIPTIONS
DIFFERENCE/LOSS in DR PER SLAB in Rs for ALL CADRES, ASST to ED as at 1/8/2007 & after wage settlement 1/8/2012 in relation to 1/8/87—31/7/92 Scales
CADRE
|
1/8/2007
|
1/8/2012
|
Assistant
|
5.0385
|
9.291
|
HGA
|
7.562
|
12.9145
|
Development Officer/DO
|
9.4795
|
15.368
|
AAO
|
11.3105
|
17.9685
|
AO
|
12.4685
|
19.5265
|
ADM
|
15.6275
|
23.6855
|
DM
|
18.1025
|
26.9105
|
SDM
|
21.4775
|
31.3505
|
ZM
|
25.175
|
36.2275
|
ED
|
29.2475
|
41.61
|
4)Rules which provide for differential treatment amongst the SAME CLASS of employees) ,now after DHC verdict dt 27/4/2017, DHC is introducing ,by segregating ALL pre-8/1997 pensioners ,who form ONE SINGLE HOMOGENEOUS CLASS) are violative of Articles 14, 16 and 21 of the Constitution and are not enforceable. While in the instant case the retired employees are being treated unequally in as much several classes have come up amongst the one class of retired employees (pensioners), this mini-classification itself,after DHC Orders is violative of Articles 14, 16. No law permits creation of different classes amongst one class.
5) a) Look at the MULTIPLE INJURIES inflicted.by DHC Orders. Bottom lower rung 4 & 3 cadres ZERO or NIL,
b)100 % DR neutralisation which is real equality to remove DISCRIMINATION thrown to winds by JUSTICE-MAKERS Hon Judges,
What
a pity , due to a somersault by DHC, poor pensioners have to pay a
heavy price, to protect their dignity, to wrest initiative,not to
abandon the course ,not to withdraw, & to INSTAL A MODICUM OF TRUTH
& JUSTICE,which the DISPENSERS OF JUSTICE, even after taking so much
time, to write the Judgement as virtually on last but one day , DHC
,27April only, the ORDER was released. In
this process,SELECTIVELY, we have to marshall CORE & CRITICAL
arguments ,with insuperable LOGIC & REASON to convince SC,the
RELEVANCE how our MAIN POINTS were missed or wrongly construed or even
ignored.
c)Discrimination
to end at any cost as it plays havoc,duly supported by valid case laws
,& Simple Tables & Charts for illustration,(DR per Slab Chart ) A Chart of DR per slab for pensioners losing heavily continued DR difference for many years now clearly proves the increasing DR per slab difference over various CPIndex(IW)2001 of 600,1148,1740,2328,2994,4078,the
last two representing wage settlement of 1/8/2007 and 1/8/2012
unmistakably proving the phenomenal Loss of DR silently suffered by
Pensioners of different Groups I,II,III,IV,V,VI
For the time being, the chart shown above can be looked into.
d)instead of addressing to ALL SIMILAR HOMOGENEOUS Pre-8/1997 group ,15, 500 app as per Our & even LIC numbers app,
only Gr 1, 1396 & Gr 2 , 2903 coming under purview ie a mere 4299,
how can one this, as it goes against the grain of REMEDY which indeed
is the HALLMARK of TRUE JUSTICE< removing the THORN of DISCRIMINATION
& not PERPETRATING it.
e)So partial solutions, taking economic criteria for Article 21 ,Hon Judge has blundered resulting
in greater INEQUITY & pre & post labels have not coalesced
or merged, indicating Discrimination continues & PETITIONERS
PRAYERS not FULLY ADDRESSED, even on DR .
LATEST DR per Slab upto &
inclusive of wage revision 1/8/2012 of Respective Cadres only to be
operative for pre-8.1997 in full,can SOLVE our Problems & grant our
PRAYERS in FULL for DR.
f)Other
Lacuna ,terrible, is ,he has CUT OFF ,for arrears, ENTIRE PERIOD to
establish equality as per our reasoning, 1/8/92--31/7/1997 & also
1/8/97 to 30/11/1998 as he has given Effective date from 1st original
KMLAsthana WP 6676/1998 (18/12/1998) ie a bitter long 76 months swallowed, not allowed ,gone with the wind.
In effect only 18/12/1998 to 30/4/2017 , 18 yrs 5 months we get for arrears.
g)There are HC & SC judgements emphasizing that “
this dichotomy or discrimination neither appeals to reason, nor can
the State be permitted to take shelter of financial constraint etc “ .
Even if SC normally does not attach much store & importance to
Capacity to pay, as SC has said in many verdicts & even admonished
Govt & Instns pretending to protect themselves under the garb of no
adequate resource or financial position.
DHC
disallowed arrears of 100% neutralisation , Rs9,62,449 for 6yrs 4
mths, & allows ,as per its Limited coverage, for the rest of the
period 18 yrs, 5 mths Rs 2,69,430 This is for Group 1 pensioners.
DHC disallowed similarly arrears of Rs10,56,558 & allowed Rs 5,62,818 as per Sri RKSahni chart ,for Group 2.
Total Outlay for Both Groups ,as per DHC, for LIC is Rs 10,38,76,169 + Rs 42,73,84,316 =Rs 53,12,60,485 is Rs 53.13 crores.
*The increase in Revised Gross Pension Per month in Group 1 is : AO Rs223, ADM Rs 671, DM Rs 935m SDM Rs 1449, ZM Rs 1963 & ED Rs 2349
Increase in Revised Gross Pension for Group 2 pensioners is AAO Rs 475, AO Rs 891, ADM Rs 1777, DM Rs 2229, SDM Rs 3133, ZM Rs 4218 & ED Rs 5439
h)i)No
attempt should be made to truncate Fundamental Rights of Equity &
Equality all-embracing scope and meaning for, to do so would be to
violate its activist magnitude. Equality is a dynamic concept with many
aspects and dimensions and it cannot be imprisoned within traditional
and doctrinaire limits..... Article 14 strikes at arbitrariness in State action and ensures fairness and equality of treatment. The principle of reasonableness, which legally as well as philosophically, is an essential element of equality or non-arbitrariness pervades Article 14 like a brooding omnipresence."
ii)While examining the case under Article 14, the approach is not: “either take it or leave it” : The
approach is Removal of Arbitrariness and if that can be brought
about by severing the mischievous portion, the Court ought to remove the
discriminatory part, retaining the Beneficial Portion.
iii) Hon’ble Supreme Court of India interpreted Article 14 of the Constitution of India, as not only promising & providing for Equality before the Law and Equal Protection of Laws, but also as something that opposes all acts, deeds by Central /State Government and their Undertakings which are irrational or unreasonable, or unfair or arbitrary. Article14 is certainly attracted where equals are treated differently, without any reasonable basis. The thrust of Article 14 is that the citizen is entitled to equality before law and equal protection of law.
i)Hon Judge has forgotten or ignored MOU between LIC & Unions dt 10/1/1994 on SAME DR for Employees as for Pensioners .
j) Even if PU in the real sense is not allowed NOW, for DR ,one has to take as it EXISTS after wage agreement of 1/8/2012 onwards, &
I
feel strongly ,all these must figure with greater force including law
points must reestablish credibility of legal system to pin faith &
trust in SC.
In short,DR must be stretched to CURRENT FIGURES , as throughout DAMAGE or LOSS will have to be borne otherwise, by aged Elders & pensioners.
There
is nothing like remove PARTIAL Discrimination.It has to be removed in
toto to act in conformity with Constitution & Law ,so sacred, we are
now scared !!
When indications were pensioners will win &, life will be smooth & stress-free hereafter, DHC willed otherwise & erred in many ways.for which we have to wage another continued, vigorous ,assertive legal battle.Straight
acceptance & keeping mum, this is our destiny,forget PU ,is a
defeatist attitude & doors are open,for Final fight to last.We must
regain confidence & courage & not go on ruminating or chanting
wounds only but valour to multiply, to regain initiative to remove Aberrations & Inconsistencies in DHC 90 page Judgement & Orders
Here it is , so LOVEABLE, INTENTIONS of EMPATHY, mind & mood of Petitioners taken into account,
“TRUST SHALL NOT BE BETRAYED”
(7th Central Pay Commission has quoted in para – 1.29 of ” Foreword )” ,
a)the following observations of the Supreme Court in the case of Bhupendranath Hazarika and another Vs State of Assam and others (reported in 2013 (2) Sec 516).
“It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair………. A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness ; then only the concept of good governance can be concretized. We say no more.”
EVERY word of this SC Beautiful & Wonderful Advice & even MOTTO for Courts ,DHC has VIOLATED.
--------------------------------------------------------------------
D) Turning our attention to the Larger & VITAL issue of Pension Upgradation,
6)a)DHC wants pensioners to live with anamolies, definition of PU honoured in umpteen HCs & Apex SC looks to have been thrown overboard
i) Basic Pension unchanged & static right from 1/11/ 1993 ,a long long 23 yrs !! is unthinkable & unjust; it will be a travesty of justice, building up, perplexing anamolies, glaring discrepancies & unbridgeable paradoxes,
7/8 cadres below, RC &Asst getting more pension than pre-8/1997 ZM & ED & so,
has to be redressed,by LIC& UOI
Will they ever do ? Now, we are tossed from Court to Courts , HC to
SC,back to DHC & now SC, that too in Sr Citizens & Pension
case,which this GOVT wants to SC/HC to complete with a deadline of 2
Years !!
ii)Basic criteria is grant of similar pension for all those with same length of service for the same cadre & that is violated. It is an anachronism that LIC pensioners still continue in pre-1995 IV Pay Commission mode whereas 7th PC has been implemented & arrears paid.
iii)We are living in a Welfare State, a Socialist pattern of society, in an Egalitarian economy,& so, when
Pension is treated as a Deferred wage, Property Right,also as a Human Right, inviolable,
--so, all the more necessary to worship concepts of Equity & Equality enshrined in our Constitution. Such discrimination must be put an end to.
iv)Hon Justice DIPAK MISRA & Hon Sapre thundered, as recent as 1/7/2015 in WP 11239/2015 “ The question is whether inherent, apparent, or latent discrimination is permissible. in our view, the short answer is that, it cannot ever be permissible ’ . -------The principle of law, as decided by the Hon Apex Court
,is plain & simple; that a Senior Officer cannot get pension less
than his Junior. If that be ,the effect of pay fixation then the pension would have to be stepped up to avoid such hostile discrimination. so said Hon Dipak Misra & Hon Sapre in the case of Rajasthan Govt Teachers & University staff.
b)i)If
Nakara was 1983, & minute & restrictive interpretation of
subsequent cases,LIC quoted & DHC seems to agree in to to,& so
with some reasoning rejects PU concept ,
Courts
will have to take cognisance of MANY other case laws, even of recent
origin ,LITIGANTS, more so Service & Financial Institutions
Pensioners should not be asked to pay Penalty.MOST
important, the environment, the question of SIMILARITY of
Circumstances, India as a Welfare State with Directive Principles of
State Policy, Sr Citizens concerns & pension matters to be given due
recognition & grievances resolved,with empathy & respect to
Fundamental Rights & certainly to remove Discrimination &
Anamolies ,which is the CRITICAL issue to be addressed. On
the other, DHC started to mention only 0.5% is covered under Social
security & so,he went on to find out ,how much to spend, what is
cost of living etc & there too pinpricked lower cades, though noble
intention mentioned that they have to be protected.How much Hon Judge
Khanna was impressed by Restrictive Appendix IV formula,he went on to
create another Restrictive Appendix IVA formula ,denying any DR
improvement to Asst, HGA,& DO
ii)But then CJI
Hon R.M. Lodha in a similar 5-Judge Bench,like NAKARA 5-Judge Bench
presided over by hon Chandrachud, noted existence of anamolies &
remedied by dismissing UOI Writs, Appeals, SLP, Curative petitions
& said NO to 15/9/2012 effective date for OROP,demanded by Govt
but stuck to same PCommission Effective date 1/1/2006 .
iii)Latest
,Govt Orders bonanza of Rs 5000 cr to Govt pensioners allows fitment
for PU to New scales as per 7th PC & even betters 2.57
multiplication factor
THEN
How PM MODI allows Rs 5000cr per annum with a high jump from 6th PC to
7th PC & a substantial rise in pension, DHC is aware , we submitted,
I do not know if u had included, valueadded rise at ages 80,85,90, 95
& 100 arise of 20, 30, 40, 50, 100 % in pension. We cannot dream of
it, it looks, What is the point in telling that Govt realised balooning
of outlay & so brought NPS wef 2004
But
that is for new entrants, & so existing pensioners will get 2.57
weightage fitment bettered now by the Govt Committee & PU concept
in force.SAME ANALOGY is needed in our case & not outright rejection
of PU. now just 35,000 post 8/97 pensioners .We are not at any rate
islands of prosperity . Govt FP is higher than LIC RP.
iv) Hon
SC Judges themselves categorically mentioned & pronounced that well
laid down principles by SC in many cases cannot be simply negated &
if so same cases will crop up again & again, ruining litigants life
& pinpricks for all including institutions
Hon'ble Mr.Justice V.Gopala Gowda pronounced the judgment of the SC Bench comprising His Lordship and Hon'bleMr.Justice C.Nagappan,
” When
this Court decides questions of law, its decisions are, under Art. 141,
binding on all courts within the territory of India, and so, it
must be the constant endeavour and concern of this Court to introduce
and maintain an element of certainty and continuity in the
interpretation of law in the country. Frequent
exercise by this Court of its power to review its earlier decisions on
the ground that the view pressed before it later appears to the Court to
be more reasonable, may
incidentally tend to make law uncertain and introduce confusion which
must be consistently avoided. -SIGNIFICANT & at appropriate
moments during Hearing,our Sr Counsel must reiterate this golden truth
& pragmatism of SC observations & drive home the end result of
Victory in Pensioners favour.
These are all very relevant for hearing in SC
c) i)Comparison
of Govt pension scheme ,from Consolidated Fund & ours Pension Fund,
as it is being valued by an Actuary, LIC shd have been given preference
for PU,as voluminous data we provided & outlay is just Rs 181 cr
per annum. Wage revision ,LIC
offers bonanza of rise, apart from several allowances to employees ,if
that cannot hurt LIC finances & so Policyholders bonus, how can PU
affect PH at all. Full record of data for many years we provided.
ii) *The rising Pension bill of CGovt will hit Rs1.12 lakh crores in 2017-18 almost touching CG Salary bill of 2016-17 of Rs1.16 lakh crores with 7th Pay Commission impact.
**If 10% DR RISE for GOVT EMPLOYEES cost Rs 10.869 cr , IMAGINE the COST OF PENSION UPGRADATION for them.,with Pay as You go basis & eating into the national finances of the country.
***Latest ,Finance Secretary Sri Ashok Lavasa Committee to finalise 7th PC scheme of Allowances to Govt servants submitted
its Report out of 196 allowances, 52 being abolished,36 subsumed, HRA
likely to be increased in a range of 8--24% , Estimated Cost to
Exchequer is Rs 29,300 cr !!
****However, as per the case examples given by the 7th CPC itself, a Secretary to the Government of India retiring on 31 August, 1992 was in receipt of a basic pension of ₹4,000 per month. The basic pension after implementation of the V and VI CPC got revised to ₹13,000 and ₹40,000 respectively. With the benefit of dearness relief this pensioner is on date entitled to a total payout in terms of pension and dearness relief of Rs87,600.
*****Further, as a pensioner who is over 80 years of age, he is entitled to an additional pension equivalent to 20 percent of basic pension. In effect the pensioner is in receipt of a total payout of ₹105,120 per month as on date.
In comparison we are drawing LESS THAN one third of that pension now . !!
iii))when
so many cases SC has indicated unambiguously that they will not agree
to Organisations plea of lack of resources as long as Rights are in
jeopardy & equity, equality will be the guiding principles. If
so, why DHC falls a prey to UOI & LIC arguments presumably,rather
than powerful submissions made eloquently by Petitioners that outlay is
measly & above all it will be a closed cadre & so no perpetual
problem for eternity
In fact during AIIPA Sr Counsel presentation,
when he said app Rs140cr pa Hon Khanna interjected, even if it is more
it is ok, as we AIRIEF gave detailed Charts indicating Rs 181 cr pa only
At
another point , same Counsel Hon Judge had pity perhaps & said LIC
shd have taken as Corporate Social Responsibility for pensioners.
iv)Anyway,
even 18 years of longest cases in recorded legal history,DHC wants to
drain out Elders & pensioners energy, & full BALANCE,SACRED
SYMBOL of Courts, if not there, verdict suffers from infirmities &
toes original MOF line of thinking.
whereas clearly
giving example of DIRECTOR, the Govt granting Rs 5000cr said very
positively just retired Director gets much less than new Director &
so 6th PC Director will be fitted in 7th PC Director scales which is
what we precisely wanted .
Even for SBI, Special
Committee under DFS agreed in principle shifting of Basic Pay to New
scales of Same cadre, SBI pension has different attributes however,as 3
benefits they enjoy.
d) i)CORRECT OUTLAY which
is Rs 180.84 cr per annum,worked out methodically for All Groups of
Pensioners & Family pensioners,46,676 RP & FP,almost numbers
tallying with LIC figures 47,000
*not even the Tail of the latest Wage Agreement, 1/8/2012 to 31/7/2017,which eclipses all earlier wage charters, acknowledged by ALL IN-SERVICE EMPLOYEE UNIONS,
*a fraction of TOTAL PREMIUM INCOME, or
*still less of TOTAL INCOME, including investment income etc,,
*a fraction of Midday Meals Coupon for all Employees ,costing Rs543cr
Pension Bill is only 5.4 % of total Wage Bill. asserting that in no way this hurts the coffers of the Corporation.
e)Interpreting Sri RKSahnis existing Charts show very acceptable & moderate rise in pension for both RP & FP. When
one works out from PER ANNUM outlay ,story is a sordid tale of tears & woe for Pensioners as can be seen from figures for
Regular Pensioners Rs 3098.82 cr/19yrs/32,902= Rs 49,571.45pa ie a pittance of Rs 4130.95 pm per pensioner RP.
For Family pensioners, the less said ,the better.As Rs337.15cr/19/13,374=Rs 13268.08pa ,ie woefully inadequate paltry Rs1105.67pm per FP
This goes to prove & confirm, that after all,nothing huge is there, moderate rise is necessary & for a sterling institution,which witnessed dedicated services during critical period of formation,foundation, superstructure strengthened ,to pass on the batons to youngsters deservedly
7)Every 5 year wage revision does not affect adversely pension fitment,as it results in moderate rise only as Basic Pension is 50 % of Basic Pay .To enable visualise effect of PU by Hon Bench,Sri RKSahni provided for All cadres , increase in pension with every wage revision for retirees as on 31/7/1987 as under; Few cadres I highlight
1/8/92,1/8/97,1/8/2002,1/8/2007, & 1/8/2012
Asst 027 339 772, 1739, 2446
HGA 111 597 972, 2336, 3235
DM 652, 1272, 1491, 4271 , 5194 --4 steps above
ED 1410,2485, 1763, 6656, 7310----3 steps above
8 )Subsequent fitments to the next group,after wage revision, will consume a moderate Outlay only.
SriRKSahni
retabulated our existing Outlay Chart Groupwise,Cadrewise ,Classwise to
extract useful information.Earlier Writeup itself, I mentioned
categorically,that WE ACHIEVE Pension Upgradation following the Outlay
chart,which was calculated on that Principle only& that Actuarial
calculations& gloomy picture portrayed by LIC,exaggerated as they
are, & now ,unfortunately seems to have been accepted by DHC
denying Pension Upgradation.Sr Counsel also then felt happy with the Outlay chart.Then where lies the hitch or Invisible hand !
a)It
is found ,e.g. for GroupIV to Group V to Group
VI(1/8/2012-31/7/2017),GT Outlay for all cadres is Rs777.16cr(7617 RP)
down to Rs371.47cr(5877RP) to still lower Outlay Rs92.61cr(4950RP),for
168 months in IV Group,108 & 48 months in V & VI Group clearly
& unmistakably proving Our Contention that After Upgradation is
granted,Subsequent Pension Outlays will be moderate & CANNOT cast
any heavy burden at all toLIC
b)For Family Pensioners too,Still Miniscule Outlay,ie
for
same Groups IV,V,VI,Outlay is smaller,Rs31.17cr(1489FP),down to
Rs6.13cr(553FP)&Rs 3.41cr(1102FP)for all cadres& classes.
SO,This Submission also shd acquire Prominence to rebut that LIC will be doomed as claimed by LIC & now, we have to rebut DHC orders lacuna ,how DHC missed the wood for the tree.
How
sad, when we thought our so-called enemies are LIC & UOI trying to
se Pensioners do not win, LIC cannot granr PU< we now ,have to
segergate
Just
as Every wage revision throws substantial rise in Employee Outlay&
Mgt Expenses,analyzing 3 Year LIC performance,LIC , by ALL STANDARDS is
a STELLAR institution.
No
undue Exaggeration or negative thoughts need be there,as Performance
has been CONSISTENT,even against odds,over 60 years & beyond now
At lower levels,Numbers more & pension rise moderate, & at higher levels, numbers less & pension rise decent
c) Hon Dipak Misra refers to LIC letter dt 31/12/2001 in his Orders dt 31/3/2016. SIGNIFICANCE & MEANING of the SECRET LETTER dt 31/12/2001 from LIC to Sri AJIT SHARAN,then JS,MOF ..This letter forcefully stressed
the ‘need to rationalize the DR structure available to different
groups of pensioners in order to reduce the administrative
inconvenience & also to see that different generations of pensioners are protected by merging the pension to a suitable index.’—,a,so successive pension revisions at CPIndex 600,1148, 1740, 2328,2994 & 4708 .IT has a vital bearing on CONTINUED Pension Upgradation .
9) a)i)Most important,*when financial performance of LIC is strong & unassailable, when profitability has gone up,
*when Surplus is swelling,when Life FUND,after taking into account ALL expenses of management is growing steadily,
*when
Assets show a sturdy rise year after year,when every 5 years Employees
,after hectic negotiations,secure the best deal of wage rise &
other benefits & allowances,
*this Outlay
per annum for LIC is easily affordable & so Pensioners who are in
IVPC mode,(1/11/1993)Basic Pension static & unaltered for 23 years,
in the right legal spirit of removal of discrimination & resolve
anamolies with the remedy of Pension Upgradation,
ii)LIC is a standing example of solvency, stability, public image, growth unparalleled, still after 16
years of hectic competition a MARKET LEADER, claim settlements last
year was greater than ALL Private Cos First year premium income--,all
INDICES so satisfactory,
Expense Ratio an important determinant ,within limits.
iii) POLICY PAYMENTS in crores
2015-16 2014-15 2013-14
1 Maturity 88390 83372 85162
2 Death 12159 11030 10289
3 Annuities 5570 5060 4417
4 Surrenders37326 46564 59652
-------------------------------------------------------------
Rs1,43,445cr Rs1,46,026 cr Rs 1,59,520cr
iv)Policy payments Rs 1,46,026 cr in 2014-15, which outwits Premium Income of ALL private insurance companies put together,many would not have known,REMARKABLE indeed
Peoples Money for peoples Welfare, befitting LIC Motto, tremendous fillip to Govt 5-Year Plans.
LIC indeed an undeclared NavRatna & an Economic Tajmahal
v)i)For FY 2014—15, LIC TPI (Total Premium Income )stood atRs 2,39,483 cr ,Total Income Rs4,07,546 cr
Total Expenses of Management,2013-14, Rs34,447 cr,showing a rise of 9.4%
LIC paid advance IT of Rs5119 cr as against Rs4324cr for FY 2012-13
Service tax paid is Rs4022cr ,provisional ,as against Rs3683cr for FY2012-13
vi)SURPLUS : Last 14 yrs alone, LIC paid to Govt crossed Rs 10,000 cr ,a Kamadhenu indeed, & all on a mere Rs5cr given by Govt on 1/9/1956.Surplus rose fromRs32,685cr to 36,060cr to a Spectacular 49,939cr in2015-16
So too,5per cent GOI Dividend from Rs1634cr to 1803 cr to a whopping Rs 2497cr in 2015-16 FY.
vii) Staggering Assets of Rs17,69,192cr & Total Life Fund Rs 16,07,025cr as at 31/3/2014. For 2014-15,Total Assets Rs20,31,116cr .Total Life Fund Rs 18,24,195 cr
LIC Total Investments in FY2014 –15 was Rs12,86,770 cr. LIC Investments in Social Sector stood atRs2,26,806 cr in 2014—15. LF for 2015-16 Rs20,57,625cr
viii)OER came down from 17 % in 2013-14, to 15.7 % in 2014-15 ,& 14.3% in 2015-16
ix) a)Important: Veteran Actuary Sri RRamakrishnan in one of his lucid Articles, mentions,that for
the last 10/11 years, the Corporation has been systematically building
up its Solvency Reserve by transferring a part of the surplus emerging
in each annual valuation. By now, the Solvency Reserve should be about
Rs. 65,000 crores (i.e. 650 billion Rupees) & more. Since this
Reserve is being built up entirely from the policyholders’ share of
surplus, the Reserve is being maintained in the Policyholders’ fund.
This cannot be called Solvency Capital and has to be called Solvency
Reserve. It has also to be mentioned that the yearly increase in
Solvency Reserve is greater than the Shareholder’s (i.e. Government's
share of surplus)
b
)In the case of LIC of India, the Solvency Reserve is being held in the
Policyholder’s fund and, in the case of private insurers, it is being
held in the Shareholders’ fund. When held in the Shareholders’ Fund, it
can be called a Free Reserve and, as mentioned in Sec.31, Free Reserves
count for Solvency Margin purposes. In
fact, every commercial undertaking systematically builds up Free
Reserves, out of the profits. What then is special in the case of
insurance companies? Whereas, in the case of insurance companies, the
quantum of Reserves to be built up has been prescribed in the Insurance
Regulations, it is purely a management decision in the case of other
commercial undertakings.
c )During
the early years of a life insurance company, the Share Capital will be
the dominating factor in the demonstration of Solvency Margin.
Gradually, the importance of Share Capital will decline and, after about
10 years, the reserve created by holding back a part of the valuation
surplus will become a more dominating factor. The
only function of the Share Capital will then be to bestow on the
Shareholders the “Right to Participate” in the ever increasing Profits.
d) LIC
of India has today reached a stage where its Solvency Reserve is
manifold times the Share Capital. Its share capital is just Rupees One
Billion ( recently, it was raised from 50 million to One billion). Its
Solvency Reserve is about Rupees Six Hundredand
Fifty Billion. The excess of Market Value of its assets over the Book
Value may be nearing Rupees One Trillion. (I do not know the exact
figure---RR).
e) This
financial strength should not be allowed to remain idle. Appropriate
steps have to be taken to make effective use of this strength to sharpen
the competitive edge of the Corporation..
10)i)MOFinance stance to stall improvements & observing that such
grant of pension updation will lead to repercussions in PSBanks &
elsewhere, is nothing but a concocted bogey by CGovt . The Kerala HC ,in the case of Manmohan C & Others vs Kerala StateWareHousing Corporation (WP9),No12768 /2006 asserted, ‘such a statement is unfounded, & is nothing but meekness with no constitutional or legal foundation.’
ii) The Hon’ble Kerala High Court made a striking observation, …”the status of the Corporation(KSWC)
as a jurist person, as a body corporate with a common seal and its
existence would be scuttled and subservient to the dictates of the
Government, as if the Corporation is a department in the Government. This is plainly impermissible.”
11)Recently.Govt
approved doubling of the wages of SC & HC & other lower Court
Judges. Judicial Services ,like Govt servants automatically get PU. Can
we ask them not to .Different yardsticks for decision, brings in element
of dominance of MOF/UOI
Hon Dipak Misra will hear our cases ,with this Singular Judgement of DHC Bench.Will
he realise Petitioners of this Unique financial Institution ,which has
earned universal approbation & unqualified & exemplary praise
from FMs & PM & all others also in India & elsewhere, DHC
judgement has brought them from frying pan to fire,they are endeavouring
to extricate themselves from this miserly verdict, with wrong masala ?
He will occupy the dignified post of Chief Justice of India from August 2017.Our cases have to be completed in July ,Reopens 3rd July.Impossible, so another reshuffle
His
29 page orders dt 31/3/2016 with Specific reference of issues &
boundaries prescribed, appears to have been ignored & Hon Khanna
overstepped & released such a pessimistic Judgement .
12)We
have to quote MLA. MPs even if they serve one term of 5 yrs get Full
pension , whereas 33 yrs continues for us & already Govts,
railways, defence, RBI have transited to 20 yrs ofservice for
eligibility of full pension
Hon
Courts /SC cannot be MUTE spectators of such GROSS deviation &
variation in practices & benefits & a Service & financial
Instn helping GOI for all 5 year plans & other contingencies ,
euphemistically called as ATMs for govt. True in practice but when
employees & pensioners question comes, no GRACE is exhibited
Lastly, we have to go through Hon Justice Dipak Misras Orders
dt 31/3/2016 again, the 90 Page DHC Judgement 2nd & 3rd time too
,LIC WS, LIC Rejoinder to LIC Retired Officers Assn ,Hyderabad Assn
&work out strategy & issues to refute or repudiate with pucca
logic & reason , accurate data & amplify our Twin Issues demand
with cogent statistics & appeal & many other law points in this
situation when we are driven to a corner to reassert with courage &
conviction & make lasting impression on SCBench.
Greetings & warm regards to all,
R.B.KISHORE,
VP, AIRIEF,
Las Vegas, 30/4/2017
930pm
No comments:
Post a Comment