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Monday, 1 May 2017

Rationalisation of the DR formula in the DHC judgment

Dear Mr Sahni,
I refer to your  effort to prepare the  chart of arrears for the benefit of  the eligible pensioners  to receive benefits  available  as per the judgment.
I would like to share with you two  points of concern:
1.The DHC Bench has  enunciated a principle that the percentage of DR at any pension slab in the tapering DR  formula should not not be less than a higher percentage fixed in the subsequent wage revision.
But there is no mention in the judgment of increase of percentage to 0.35 for the slab 2001 to 2130 instead of 0.33  for pre-April 1993 retiree Class I Officers
2.Even though LIC has been given a long period  of 9 months to pay arrears, there is no express direction  to LIC to revise the monthly pensions immediately in the absence of which LIC  may take its own sweet time-may be nine months, if not more-before giving effect to the judgment considering that the  financial outgo is much more than the 40% IR paid earlier.
I  guess that LIC,although  engaging in internal processes to address the  issues arising from the judgment, may prefer to delay both providing increase in monthly pension and also payment of arrears for which it has  got full nine months at its disposal.
It will be interesting to know how  the various petitioners are going  to handle this situation besides filing a possible appeal in SC.
Kind regards.
CHM

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