A HIDDEN IMPLICATION
FOR POST JULY 1997 RETIREES FROM THE DHC JUDGMENT
ARE POST –JULY 1997
RETIREES ENTITLED FOR NON-RECOVERABLE 40% IR?
A subtle implication arises for
post-July 1997 retirees from the DHC judgment of 27/4/2017.
The judgment has ordered the
improvement of DR formulae for pre-August 1997 retirees and payment of arrears
from the date of the first Writ Petition to the eligible retirees within 9
months.
The judgment has also ordered that
the interim relief paid to the eligible pensioners as per the Supreme Court
order will not be recovered.
Thus the IR paid constitutes an
additional payment to the outside the legally entitled benefits as per the DHC
judgment.
If we go into the calculations made
by LIC for payment of IR for pre-August 1997 retirees, the 40% IR constitutes
payment of 40% of the amount due on
one-time up gradation to pre-August 1997 retirees without the 11.25% weightage by revising the basic pension by merger of DR.
In any case when the Court has
disallowed the prayer for upgradation, equity demands that the same principle
of payment of non-recoverable 40% IR should be adopted for post-July 1997
retirees based on one-time upgradation of pension on 1/8/2002, 1/8/2007 &
1/8/2012 as the case may be without weightage applied on respective wage
revisions.
Pensioner friends may consider
whether this point makes sense. I hasten to add
the post- July 1997 will not at all
grudge this additional benefit
being granted by the judgment to
pre-August 1997 retirees which thankfully
gives a ground for claiming similar benefits for the later generations
of retirees.
Greetings.
C H Mahadevan
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