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Sunday, 21 May 2017

My Response to Sh. G.Krishna Prasad

The Federation of Retired LIC Class I Officers' Association,by  not clubbing the issue of upgradation of pension  while filing the Writ Petition in 2007 had -in my opinion- committed  a fatal blunder for three reasons as follows:
1)100% DR neutralisation was possible only from 1/8/1997 and the Board Resolution  dt 24/11/2001 had rightly recognised this reality and decided to upgrade the pension for pre-August 1997 retirees. from that date.
But the methodology adopted by LIC while interpreting the Board Resolution  while sending the illustrative chart to the MoF and the calculations made  subsequently following the Jaipur Judgment were faulty  in the following manner:
(i)   The rate of DR  which was anomalous  was not rectified;
(ii)  Without such rectification  the faulty  DR was  calculated  upto 1/8/1997  for merger with Basic Pension  at AICPI 1740 points 
(iii)  Such merged amount  was taken without adding the weightage of 11.25%  as revised pension.
In other words LIC resorted to a   distorted interpretation of the LIC Board Resolution to give an one-time upgradation  in a half-hearted manner  to determine  the  revised pension of an inadequate amount.from 1/8/1997.
2)  When such an approach for pre-August 1997 retirees was adopted by LIC, how could they logically not adopt the same approach of merging DR with Basic Pension for subsequent generations of pensioners on the immediate next wage revision dates ?
3)  Also such an approach cannot stop with one  effective date of wage revision but has to be followed for all subsequent wage revision dates.
In other words, although the DR anomaly was confined to only  pre-August 1997 retirees, the process followed by LIC cannot be  divorced  from the process of upgradation of pension for all generation of pensioners.
So it is not correct to say that  the setback in DHC was on account of clubbing the issue  of full  DR neutralisation  with that of  upgradation. The Board Resolution - if correctly understood -in fact means that the issue of DR neutralisation cannot be handled in isolation  without handling upgradation of pension.
The adverse verdict in DHC is not because of lack of merits, but because of the view taken by the Bench on its own consideration and has no constitutional finality..Its validity has to be adjudicated in the Supreme Court as stated in the SC order dated 31/3/2016 .
Greetings.
C H Mahadevan

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