It is not correct to say that DHC has ordered 100% DR neutralisation.What DHC has provided by way of partial relief is a modified DR formula whereby the minimum rate of DR was changed to 0.23% of basic pension for basic pension slabs for Group 1 & Group 2 retirees wherever it was less.
This was however inconsistent with the methodology of revision of DR rate in tandem with the the increase in All India Consumer Price Index followed by the Government & LIC all these years for the various wage revisions.
What DHC perhaps overlooked was that the quantum of basic pension in the slabs for Group 1 were not comparable with that for Group 2 by treating them similarly for equalising the rates of DR at a minimum level.
All the same, the DR formula as it stands today has attained finality with LIC implementing the DHC judgment and the matter of 100% neutralisation of DR cannot be said to be sub judice.
What is sub judice is only the issue of upgradation of pension.The benefit arising from 100% neutralisation of DR will still be short of the benefits that will flow from pension upgradation.
Nothing prevents LIC from granting benefits higher than what was granted by the High Court once it is done through a Gazette Notification by the Central Government.
In any case, the change has to be approved by the LIC Board before the recommendations can be sent to the DFS for final approval by Government.
It is for the various Pensioners' Associations of LIC to take up the issue effectively with LIC Management to ensure that the matter is put up to the LIC Board at an early date for an enabling decision in the matter.
C H Mahadevan
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