Date: Sun, Sep 2, 2018 at 8:28 AM
Subject: Error in implementation of Delhi High Court judgment
To: <ed_personnel@licindia.com>
Cc: <chairman@licindia.com>
2/9/2018
To
Executive Director (Personnel), FOR PERSONAL ATTENTION OF SHRI MUKESH GUPTA
ED(P)
LIC of India, Central Office,Mumbai
Dear Sir,
Re: Error in implementation of the judgment dated 27/4/2017 of the Delhi High Court-Error in DR revision
As per the reports received from Class I Officers retired before 31/3/1993 who got the Pension advice for August 2018 and also the credit to the bank account on 1/9/2018, it has been observed the revised DR has not been correctly calculated by LIC as per the above judgment of the Delhi High Court.
As per the judgment, for retirees of the period 1/1/1986 to 31/3/1993, the rate of DR will be increased from 0.17% to 0.29% wherever the Basic Pension is more than Rs 2130 and upto Rs 3850 and to 0.23% wherever the Basic Pension is above 3850.Virtually all the retired officers upto the cadre of Executive Directors will be in the Basic Pension range of less than 3850.But all the retired officers in the category have been provided increased DR only at the rate of 0.23% instead of 0.29% directed by the Delhi High Court. In other words, retired officers in this category have got only 50% of the increase in DR that they are entitled to get as per the judgment.
I quote below the relevant paragraphs of the above-cited judgment:
"79. For the identical reasons, the pensioners in paragraph 1 should not be given dearness relief at a rate lower than the pensioners in paragraph 2. The rate of dearness relief on amounts above Rs.2130/- till Rs.3850/- fixed in paragraph 1 at 0.17% of basic pension shall be enhanced to the rate of 0.29% as specified in clause (ii) of paragraph 2. However, for pension in excess of Rs.2130/*-, rate of 0.23% of basic pension as stated in paragraph 3(A) would apply, with effect from the applicable date.
(*This seems to have been erroneously written instead of Rs 3850 as otherwise the sentence will be in contradiction of the previous sentence. Also, this contradicts what has been stated in Para 107(iii) c), which is given below)
82. The aforesaid direction would largely benefit the retirees on the upper end i.e. whose basic pension in case of paragraph 1 exceeds Rs.2130 or in paragraph 2 when basic pension exceeds Rs.3850. This direction would not help the retirees at the lower end where the basic pension was/is less than Rs.2131 or Rs.3851. We would accept the said position, but this would not deter us from passing the order on the ground that the upper end pensioners covered by paragraphs 1 and 2 are entitled to and would get the said benefit.
107.(iii) c) Similarly, dearness relief @ 0.17% of basic pension in paragraph 1 shall stand enhanced to 0.29% for amounts between Rs.2130/- to Rs.3850/-, the rate stipulated in paragraph 2. ".
I am sure a number of Chairmen and Managing Directors retired prior to 1996 have also been adversely affected by this error in DR revision.
This error will also result in 50% loss in arrears payment which is yet to be made, to eligible pensioners in this category. This loss will be in addition to the loss being suffered by the pensioners on account of the period of payment of arrears not being reckoned from 18/12/1998.
Kindly review the matter and rectify the error and arrange to make payment of the correct pension to this category of pensioners on an urgent basis as all the pensioners in this category are octogenarians who need empathy from the Corporation when LIC celebrating completion 62 years of its successful existence.
Thanking you,
C H Mahadevan
Executive Director(LIC)(Retired)
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