RULE 35 of LIC Pension Rules 1995

Referring to  the post of Shri Katara Satyanarayana, the position under   LIC Pension Rules 1995 is as follows:

Rule 35 reads,

 (1) In respect of employees who retired between the 1st day of January, 1986 but before the 31st day of July, 1987, basic pension and additional pension will be updated as per the formula given in Appendix-III.

 Rule  35,1 & Appendix III seems to have been inserted at the time of notification  of the Pension Rules in order to have one generation of pensioners retired before 1/8/1992(or 1/4/1993 in case of Class I officers) at the rate of DR  applicable under paragraph 1 of Appendix IV.

No doubt  the basic  pension was 'updated'  and not upgraded in the true sense for two reasons.:

1)The notional increase suggested in para 1 of Appendix III was only to determine the  applicable DR to be merged  ,which was again subject to a ceiling and revised basic pension was worked out  to take effect from 1/11/1993 after merger with average emoluments for the last 10 months of service.

2)There is no element of weightage in the process which is essential for any upgradation.

3)There was no adequate neutralisation of DR at the time of merger of the amount calculated as per paragraph 1 of Appendix III.

So, my view is that we better not take it as an example of upgradation on 1/8/1987.

Again ,Rule 56 of our Pension Rules reads as follows:

" Residuary provisions - Matters relating to pension and other benefits in respect of which no express provision has been made in these rules shall be governed by the corresponding provisions contained in the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services (Commutation of Pension) Rules, 1981 applicable for central government employees"..

The provisions in LIC pension rules are more pensioner-friendly in the sense  there is no need for prior permission of the GOI.The PS Bank pension Rule 56 makes it as a precondition.

Greetings.