Implications of possible 100% DR neutralisation for pre-August 1997 Class I retirees

Based on the report of a MOU signed between IBA and UFBU on 28th July 2023, I tried to replicate the proposal for 100% DR neutralisation for pre-August 1997 retiree Class I Officers  and the tabular data and charts prepared therefor are attached.  All the calculations are only notional till a decision approved by the Government of India and implemented by LIC is in place.However we can have an idea of likely increase in DR and the gross pension as at 31/7/2023 from these tables and charts.  Broadly summarising the likely picture, as at July 2023, the likely increase for Group 1 Class I Retirees( retired before 1/4/1993), the increase in DR and Gross pension ranges from Rs  2719 to  Rs  14932 for AAO to Executive Director  respectively.The similar increase for Group 2 Class I retirees of the period 1/4/1993 to 31/7/1997  will range from Rs 2561 to Rs 8784.The percentages of increase over the existing DR and gross pension will range from 10.4%  to 45.8% and 9.6% to 41.4  respectively  for Group 1 retirees and  from 10% to 23.4% and 8.6% to 19.7%  respectively for Group 2 retirees   from AAO to ED respectively.  The higher increase for Group 1 retirees compared to Group 2 retirees is obviously on account of the fact that LIC has faultily implemented the Delhi High Court judgment dated 27/4/2017.Quantum wise , Group 1 retirees whose basic pension was more than 2130   got a raw deal because LIC applied a DR rate of 0.23%  instead of 0.29% taking advantage of a typographical error in the judgment although the rate of 0.29% was corroborated in another paragraph.This faulty implementation has caused a huge recurring  loss in DR for these retirees from 29/1/2007 till date. Quantum wise there is no faulty implementation in respect of Group 2 retirees.Of course, the common area of faulty implementation is that the effective date of  implementation has been faultily done from 29/1/2007 instead of 18/12/1998 which was the date of the first Writ Petition filed on the anomaly by Mr K M L Asthana.  The effect of the quantum-wise faulty implementation is that Group 1 retirees drawing more than 2130 as basic pension will get a higher increase in DR and consequent gross monthly pension. Adding insult to injury,if the increase is prospective, the huge past losses will not be made good. Group 2 retirees will not suffer from past losses as they got the right  DR as per the DHC judgment.The only recurring loss for them will be the arrears from 18/12/1998 as also shared by the Group 1 retirees due to faulty  effective date  of implementation.  Intra -cadre wise, higher the cadre , higher the quantum of increase and higher the percentage of increase.  We,  from ,  the retired LIC Class I Officers' Association, Hyderabad, have on 30th ultimo  have already addressed a letter to LIC Chairperson requesting to initiate the process of 100% DR neutralisation.We have also emphasized the need to compensate the legal heirs of eligible deceased retirees eligible for 100% DR neutralisation,   Let us hope for some positive developments to take place considering that DHC has granted DR increase with retrospective effect.  C H Mahadevan  

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