C.H.MAHADEVAN RETD.ED WRITES TO CHAIRMAN FOR IMMEDIATE AMENDMENTS REQUIRED TO BE MADE IN PENSION RULES.

25/7/2019

To

Chairman,

LIC of India,

Central Office,

Mumbai

Dear Sir,

Re: Amendments required to be made in LIC of India (Employees) Pension Rules 1995 as a result of Delhi High Court judgment dated 27/4/2017

The Corporation, I am sure, is aware that as a result of the Delhi High Court judgment dated 27/4/2017, the DR formulae as included in para 1 and para 2 of Appendix IV in the LIC Pension Rules 1995 have become archaic, considering that the Corporation has not challenged the judgment and had also implemented the judgment by revising the Dearness Relief of pensioners from 26/1/2007 and payment of arrears.

AMENDMENT OF APPENDIX IV

As a result, it was expected that the Pension Rules would be amended by a Notification in the Gazette and I am not aware whether the process has been initiated for the same. If it is so well and good. Otherwise, I feel it will be appropriate for the Corporations to take the needed steps to get the relevant Rules amended. In this context, I attach comparative charts prepared by me indicating the existing DR formula and the required amendment in Appendix IV.

I suggest that before notifying the amendment, a review may be undertaken by the Corporation on two aspects:

1. The date of the first writ petition was the one filed in CWP 6676 of 1998 at Jaipur Bench of Rajasthan High Court on 18/12/1998 whereas the Corporation has taken the effective date as 29/1/2007 for the purpose of implementing the judgment. In that event further arrears will be payable to eligible pensioners from 18/12/1998 to 28/1/2007 along with interest as ordered by the Delhi High Court;
2. While implementing the judgment in respect of para 1 pensioners, while the Delhi High Court had ordered applying the DR rate of 0.29% for basic pension slab of 2131-3850, the Corporation has applied the rate of only 0.23% in violation of the High Court direction. If the High Court directions are correctly followed, the DR applicable to the pensioners falling in the basic pension slab will increase and further arrears will be payable to them based on the correct DR as ordered by the High Court.

MINIMUM PENSION UPGRADATION

The other amendment to be made to the Pension Rules is to give effect to the direction of the High Court for allowing upgradation of minimum pension at the time of every wage revision. As a result of the direction, Rule 36 of the LIC Pension Rules 1995 will have to be suitably amended as also the Appendix V relating to family pensioners specifying minimum pension corresponding to different periods of retirement and different slabs of last pay drawn during each period of retirement.

While effecting amendments in respect of minimum pension, it will be also worthwhile to review as to whether the revision in minimum pension has been effected for all eligible family pensioners as per the judgment and take suitable steps to revise minimum pension and pay arrears with interest to all those who have been left out. This I am writing as I received information from a few family pensioners that there was no revision of minimum pension done for them as per the High Court judgment and no arrears were paid. I had taken up such cases with a few Divisions also.

I am sure the Corporation will initiate suitable steps on the above suggestions.

Thanking You,

Yours faithfully,

C H Mahadevan

Executive Director (LIC)(Retd)

(From Columbus (Oh)USA)

Encl: Comparative Chart of DR Rates before & after DHC judgment