LIC Pension Matters

REGULAR PENSION (A)

Main Chapters covered are IV, V and VI of the LIC Pension Rules, 1995. Also reference may be had to Appendix II, III & IV. The sum and substance of these Rules under these Chapters and Appendixes are as given below :

1. The Pension rules were made applicable from 01-11-1993.

2. Option was given to those Retired after 01-01-1986. They can choose to be covered by the

   Pension rules, subject to certain conditions. However, NO pension arrears are payable from 01-

   01-1986 to 31-10-1993.

3. The Pension granted is Index Linked (Base 1960=100).

4. Dearness Relief payable are set forth in Appendix IV.

5. The employee who has rendered a minimum of 10 years of Service in the Corporation is

   eligible for the Pension.

1. The period of Probation, if followed by confirmation in the same or other Cadre, qualifies for

   counting of total service.

2. A pensioners is entitled to 50% of the Last 10 months average Salary, if he has put in 33 years

   of Service.

3. If the service is less than 33 years then the Pension will be proportionate one.

4. If an employee takes VRS, then service of not more than 5 years is to be added, so as not to

   exceed the date of normal retirement, for computation of Pension.

5. An employee at the time of retirement or after retirement can Commute a portion of the Pension

   not exceeding 1/3rd of the Pension. For Commutation Factors refer Chapter VIII rule 41.

6. Only regular Pensioner can commute his/her Pension. Family Pensioner cannot Commute, except where the employee was in service as on 1st Nov, 1993 and died after retirement but

   before the date of Notification of these rules.

7. Even after Commutation D R is paid on Full Pension (Pension before Commutation).

8. To work out the quantum of Pension payable, last 10 months average Salary is taken into

   consideration.

9. For all classes of employees, the Salary includes Basic Pay and Fixed Personal Allowance.

10. For Additional Pension the following Allowances to the extent of 90% is taken into account :

    i) Cashier Allowance; ii) Allowance payable to Internal Audit Assistants; iii) Graduation Allowance payable to Assistants and Stenographers, One year or Two years after reaching the Maximum of the Scale (CO circular PER/ER/ZD/831/ASP/95 dtd. 05-07-1995).

11. NO D R IS PAYABLE ON ADDITIONAL PENSION.

12. If the service has a broken period, then if it is more than 6 months then it shall be treated as one

    year and if it is less than 6 months, then it shall be ignored.

    FAMILY PENSION (B)

Chapter VII of the LIC Pension Rules, 1995 deals with Family Pension (Rule 39 & 40 and Appendix V). These provisions are applicable to All classes of employees. In a nutshell they are as follows :

1. Family Pension is payable to Widow / Widower till death or remarriage whichever is earlier.

2. D R at appropriate is also payable on Basic Family Pension.

3. Family Pension is payable to Sons till they attain Age 21 (age 25 if he is a Student) or he starts

   earning, whichever is earlier.

4. Family Pension is payable to Unmarried / Widowed / Divorced and dependent Daughters till

they get married / remarried or she goes out of the dependency criteria whichever is earlier.

(dependency criteria from 01-04-2020 is one whose monthly income is not more than

Rs.10530/-**). (for CY 2019-20 it was Rs.9810/-)

5. Family Pension payable to the family of a deceased employee / pensioner who dies while in

   service or before attaining age 65 – family pension payable will be 50% of the last pay drawn or double the normal family pension rate which ever is less, for 7 years or till the employee / pensioner would have attained age 65 which ever is earlier. After that normal family pension at the rates mentioned in the above charts is payable.

6. Family Pension payable to Son / Daughter, is handicapped (mentally / physically) so that he / she cannot earn livelihood, then FP is payable for life to them.

7. If the Pensioner has no widow / widower, son / daughter OR the Widow remarries and he has Parents (who were fully dependent on him/her, (income not more than Rs.10530/-**), then FP is payable to Mother till her death and then to Father till his death (vide Amendment to Pension rules, 1995 by G.S.R. No.830(E) dtd. 08-10-2010.). However NO ENHANCED PENSION IS PAYABLE TO PARENTS as per Rule 39(3) of LIC Pension Regulations, 1995.

8. * The additional Family Pension shown in the above chart is payable to those employees retired as Cashier or Internal Audit Assistants or Graduation Allowance paid to Assistants and Stenographers 1 yr or 2 yrs after reaching Max. of the Scale.(as per CO Circular PER /ER/ ZD/831/ASP/95 dtd. 05-07-1995).

9. On additional Family Pension NO DR IS PAYABLE.

10. This is only a gist of Family Pension, for details refer to LIC of India Pension Rules, 1995.

11. ** The income criteria for dependency will be reviewed from 1st April, every year.

12. As per Delhi HC judgement dated 27-04-2017, the Minimum Pension has to be paid

according to the Min.Pen. Declared from time to time with DR applicable as per that settlement, if it is beneficial to the Pensioner.

Family Pension Payable based on Date of Retirement (All Classes)

1. Class 3 & 4 employees retired prior to 01-08-1992 and Class 1 & 2 Officers retired prior to 01- 04-1993. (CPI : 600).

Last Basic Pay+FPI drawn	Amount of monthly Normal Family Pension	Minimum Pension / Family Pension.
Rs.1500/-	30% of Pay shall be Basic FP + *30% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.375/- pm.
Rs.1501/- to Rs.3000/-.	20% of Pay shall be Basic FP + *20% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.450/- pm.
Rs.3001/- & above.	15% of Pay shall be Basic FP + *15% of allowances taken for PF but not taken for DA shall be additional FP.	Min: Rs.600/- Max: Rs.1250/- pm.
2. Class 3 & 4 employees retired on or after 01-08-1992 and Class 1 & 2 Officers retired on or after 01-04-1993. (CPI : 1148).
Up to Rs.2870/-	30% of Pay shall be Basic FP + *30% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.720/- pm.
Rs.2871 to Rs.5740/-.	20% of Pay shall be Basic FP + *20% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.860/- pm.
Rs.5741 & above.	15% of Pay shall be Basic FP + *15% of allowances taken for PF but not taken for DA shall be additional FP.	Min : Rs.1150/- Max : Rs.2400/- pm.

3. Employees / Officers retired on or after 01-08-1997.(CPI : 1740).
Up to Rs.4360/-.	30% of Pay shall be Basic FP + *30% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.1100/- pm.
Rs.4361/- to 8700/-.	20% of Pay shall be Basic FP + *20% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.1310/- pm.
Rs.8701 & above.	15% of Pay shall be Basic FP + *15% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.1740/- pm.
For Rs.8701 to Rs.11670/- FP will be worked out on CPI 1148 & on CPI 1740 and which ever is beneficial will be sanctioned. (As per CO cir.dtd.13-10-2001 & Per/ER/A/G/345/MMS dtd 10/12/2001) (OS manual as on 31st March, 2012 page 181).
4. Employees / Officers retired on or after 01-08-2002.(CPI : 2328).
Up to Rs,5840/-.	30% of Pay shall be Basic FP + *30% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.1480/- pm.
Rs.5841/o to Rs.11640/-.	20% of Pay shall be Basic FP + *20% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.1760/- pm
Rs.11641/- and above.	15% of Pay shall be Basic FP + *15% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.2330/- pm.
5. Employees / Officers retired on or after 01-08-2007.(CPI : 2944).
Up to Rs.7390/-.	30% of Pay shall be Basic FP + *30% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.1880/- pm.
Rs.7391 to Rs.14720/-.	20% of Pay shall be Basic FP + *20% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.2230/- pm.
Rs.14721/- & above.	15% of Pay shall be Basic FP + *15% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.2950/- pm.
6. Employees / Officers retired on or after 01-08-2012.(CPI : 4708).
Up to Rs.11820/-	30% of Pay shall be Basic FP + *30% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.3010/- pm.
Rs.11821/- to Rs.23540/-.	20% of Pay shall be Basic FP + *20% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.3570/- pm.
Rs.23541/- and above.	15% of Pay shall be Basic FP + *15% of allowances taken for PF but not taken for DA shall be additional FP.	Rs.4720/- pm.
7. Employees / Officers retired on or after 01-08-2017. (CPI : 6352).

COMPARATIVE SAMPLE CALCULATION CHARTS (FOR ALL CLASSES) BOTH REGULAR PENSION & FAMILY PENSION

While working out the Sample Examples of Calculation of Regular Pension as well as Family Pension the following presumptions are made :

1. Maximum of the Scale, including Stagnation Increments, where ever applicable are taken into account.

2. Fixed Personal Allowance is not taken in to Account.

3. Additional Pension, where ever payable, has not been calculated.

4. In all cases Regular Basic Pension (A), it is presumed that all are eligible for 50% pension.

5. Average of last 10 months salary (BP) is presumed to be same.

6. Dearness Relief applicable from Aug, 2020 to Jan, 2021 is taken for calculation purpose.

7. For those who have not put in Minimum of 33 years of Service, only Regular Basic Pension (A)

   is calculated proportionately. It will not have any effect on Family Pension(B).

PENSION TO REGULAR PENSIONER(A) FAMILY PENSIONER (B)

Retired up to 31-07-1992 (Class 3 & 4); 31-03-1993 (Class 1 & 2) GROUP 1 D R SLABS (Aug, 2020 to Jan, 2021) :1735 DR rates : Up to 1250/---0.67%; next 750/- --0.55%; next 130/----0.33% & above 2130/- --0.23%.
Sl No	Calculation of Regular Pension	Calculation of Family Pension
1	Cadre :ED; Av of Last 10 Mths BP :7,000/- Regular Basic Pension : Rs.3,500-00 DR payable/Slab :Rs.16-08 ; DR : 1735 x 16-08 = Rs.27,898-80 Total :3,500+27,898.80=Rs.31,398-80.	Basic F P : 15% of 7000-00 = Rs.1,050-00 DR payable:7.035/slab ; DR: 1735 x 7.035 = 12,205-73 Total F P:1,050+12,205-73 = Rs.13,255-73.
2	Cadre : Dev. Officer; Av. Basic Pay :3,880/- Regular Basic Pension :Rs.1,940-00 DR payable / Slab :Rs.12-17 ; D R :1735 x 12.17 = Rs.21,114-95 TOTAL :1940+21,114-95 = Rs.23,054-95.	Basic F P :15% of 3880-00 = Rs.582/- Min. Pension payable is Rs.600-00 DR payable/Slab : Rs.4-02 ; D R:1735 x 4-02 = Rs.6,974-70 Total FP:600+6974-70 = Rs.7,574-70.
3	Cadre : HGA; Av. Basic Pay :Rs.3,700-00 Pension :Rs.1,850-00; D R:Rs.11-675 / Slab D R:1735 x 11-675 = Rs.20,256-13 TOTAL :1730+20256-13 = Rs.22,106-13.	Basic F P:15% of 3700-00 = Rs.555-00 Min. Pension payable = Rs.600-00 DR:Rs.4-02/Slab;DR:1735x4-02=Rs.6,974-70 TOTAL F P:600+6974-70 = Rs.7,574-70.
4	Cadre : Driver; Av. Basic Pay :Rs.1,960-00 Regular Basic Pension:Rs.980-00 DR payable/Slab :Rs.6-566; DR :1735 x 6-566 = Rs.11,392-01 TOTAL :980+11,392-01 = Rs.12,372-01.	Basic F P : 20% of 1960-00= Rs.392/- Min, Pension Payable =Rs.450-00 DR payable/Slab = Rs.3-015; DR :1735 x 3-015 = Rs.5,231-03 Total F P:450+5,231-03 = Rs.5,681-03
Retired between 01-08-1992 to 31-07-1997 (Class 3 & 4) GROUP 2 01-04-1993 to 31-07-1997 (Class 1 & 2) D R Slabs :1598. DR rates: Upto 2400/---0.35%; Next 1450/---0.29% & above 3850/---0.23%. DR Slabs:1582.
1	Cadre:ZM(O); Av B P: 12,650-00	Basic F P : 15% of 12650-00 = Rs.1,898-00

	Pension : Rs.6,325-00; DR/slab :Rs.18.2975 DR:1598 x 18.2975 = Rs.29,239-41 TOTAL :6325+29,239-41 = Rs.35,564-41	DR payable:6.643/slab; DR :1598 x 6.643 = Rs.10,615-51 TOTAL FP:1898+10,615-51=Rs.12,513-51.
2	Cadre : D O; Av. Basic Pay :Rs.7,520-00 Regular Basic Pension : Rs.3,760-00 DR payable/slab =Rs.12-344 DR : 1598 x 12-344 = Rs.19,725-71 TOTAL :3760+19725-71 = Rs.23,485-71.	Basic F P: 15% of 7520/- = Rs.1,128-00 Min Pension payable = Rs.1,150-00 D R payable/slab =Rs.4-025; D R:1598 x 4-025 = Rs.6,431-95 Total F P:1150+6431-95 = Rs.7,581-95.
3	Cadre: Suptd; Av B P: Rs.7,390-00 Pension :Rs.3,695-00; DR/slab :Rs.12-1555 DR :1598 x 12-1555 = Rs.19,424-49 TOTAL :3695+19,424-49 = Rs.23,119-49.	Basic F P: 15% of 7390-00 = Rs.1,109-00 Min. Pension payable =Rs.1150-00 DR:4.025/slab; DR:1598x4-025=Rs.6,431-95. TOTAL F P:1150+6431-95 = Rs.7,581-95.
4	Cadre : Peon ; Av. B P : Rs.3,420-00 Regular Basic Pension : Rs.1710-00 D R payable/Slab =Rs.5-985 DR:1598 x 5-985 = Rs.9,564-03 TOTAL :1710+9564-03=Rs.11,274-03.	Basic F P: 20% of 3420-00=Rs.684-00 Min Pension Payable =Rs.860-00 D R payable/Slab = Rs.3-01 D R:1598 x 3-01 =Rs.4,809-98 Total F P =860+4809-98= Rs5669-98.
Retired between 01-08-1997 to 31-07-2002. GROUP 3 D R rate : 0.23% per slab; D R Slabs : 1450.
1	Cadre : SDM ; Av B P : Rs.19,000/- Pension :Rs.9,500-00; DR/Slab = Rs.21-85. DR :1450 x 21-85 = Rs.31,682-50 TOTAL : 9500+31682-50 = Rs.41,182-50.	Basic F P: 15% of 19000-00 = Rs.2,850-00 DR payable :6-555/slab; DR :1450 x 6-555 = Rs.9,504-75 TOTAL F P:2850+9504-75 = Rs.12,354-75.
2	Cadre : DO; Av. Basic Pay=Rs.13,020-00 Regular Basic Pension =Rs.6,510-00 D R /Slab=Rs.14-973; DR=1450x14-973 = Rs.21,710-85 TOTAL :6510+21710-85=Rs.28,220-85.	Basic F P: 15% of 13020 = Rs.1,953-00 D R payable/Slab = Rs.4-4919 D R= 1450 x 4-4919 = Rs.6,513-26 Total F P = 1953+6513-26 = Rs.8,466-26.
3	Cadre : S H; Av. Basic Pay =Rs.11,915-00 Regular Basic Pension = Rs.5,958-00 DR/Slab = Rs.13-7034; D R: 1450 x 13-7034 = Rs.19,869-93 TOTAL :5958+19869-93=Rs.25,827-93.	Basic F P :15% of 11915-00 = Rs.1788-00 D R payable / slab = Rs.4-1124 D R = 1450 x 4-1124 = Rs.5,962-98 Total F P :1788+5962-98 = Rs.7,750-98
4	Cadre:Sweeper; Av. Basic Pay=Rs.5595-00 Regular Basic Pension = Rs.2798-00 D R payable/Slab = Rs.6-4354 D R=1450 x 6-4354 = Rs.9,331-33 TOTAL :2798+9331-33=Rs.12,129-33.	Basic F P: 20% of 5595-00=Rs.1,119-00 Min Pension Payable = Rs.1,310-00 D R payable / slab = Rs.3-013 D R=1450 x 3-013 = Rs.4,368-85 Total F P:1310+4368-85 = Rs.5,678-85.
Retired between 01-08-2002 to 31-07-2007 GROOUP 4 D R rate : 0.18% ; D R Slabs :1303.
1	Cadre : DM; Av B P :Rs.26,580-00 Pension :Rs.13,290-00; DR :23-922/slab. DR :1303 x 23-922 = Rs.31,170-37 TOTAL:13290+31170-37 = Rs.44,460-37.	Basic F P:15% of 26,580-00 = Rs.3987-00 DR payable:Rs.7.1766/Slab; DR:1303 x 7.1766 = Rs.9,351-11 TOTAL F P:3987+9351-11=Rs.13,338-11.

2	Cadre : DO; Av. Basic Pay :Rs.20,180-00 Regular Basic Pension :Rs.10,090-00 D R payable / Slab = Rs.18-162 D R : 1303 x 18-162 = Rs.23,665-09 TOTAL:10090+23665-09 = Rs.33,755-09.	Basic F P: 15% of 20180-00=Rs.3,027-00 D R payable / slab = Rs.5-4486 D R:1303 x 5-4486 = Rs.7,099-53 Total F P:3027+7099-53=Rs.10,126-53.
3	Cadre : Steno ; Av. Basic Pay=Rs.18,510-00 Regular Basic Pension : Rs.9,255-00 D R payable / slab =Rs.16-659 DR:1303 x 16-659 = Rs.21,706-68 TOTAL : 9255+21706-68=Rs.30,961-68.	Basic F P : 15% of 18510-00 = Rs.2,777-00 D R payable / Slab = Rs.4.9986 D R: 1303 x 4-9986 = Rs.6,513-18 Total F P:2777+6513-18 = Rs.9,290-18.
4	Cadre : Driver; Av. Basic Pay :Rs.10,605-00 Regular Basic Pension : Rs.5,303-00 D R payable / Slab = Rs.9-5454 D R: 1303 x 9-5454 = Rs.12,437-66 TOAL :5303+12437-66 = Rs.17,740-66.	Basic F P: 20% of 10605-00 = Rs.2121-00 D R payable / slab = Rs.3-8178 D R: 1303 x 3-8178 = Rs.4,974-59 Total F P=2121+4974-59 = Rs.7,095-59.
Retired between 01-08-2007 to 31-07-2012 GROUP 5 D R rate :0.15% ; D R Slabs :1149.
1	Cadre : ADM ; Av B P:Rs.41,660-00 Pension :Rs.20,830-00; DR:Rs.31-245 /Slab DR :1149 x 31-245 = Rs.35,900-51 TOTAL :20830+35900-51 = Rs.56,730-51.	Basic F P;15% of 41,660-00 = Rs.6,249-00 DR payable : 9-3735 / Slab DR :1149 x 9-3735 = Rs.10,770-15 TOTAL F P:6249+10770-15 = Rs.17,019-15.
2	Cadre : DO : Av. Basic Pay = Rs.32,225-00 Regular Basic Pension : Rs.16,113-00 D R payable / Slab = Rs.24-1695 D R: 1149 x 24-1695 = Rs.27,770-76 TOTAL:16113+27770-76=Rs.43,883-76.	Basic F P:15% of 32225-00 = Rs.4,834-00 DR payable/ Slab = Rs.7-251 D R: 1149 x 7.251 = Rs.8,331-40 Total F P:4834+8331-40 = Rs.13,165-40.
3	Cadre : Asst ; Av. Basic Pay = Rs.26,930-00 Regular Basic Pension : Rs.13,465-00 D R payable / Slab = Rs.20-1975 D R: 1149 x 20-1975 = Rs.23,206-93 TOTAL:13465+23206-93 = Rs.36.671-93.	Basic F P: 15% of 26930-00 = Rs.4040-00 D R payable / Slab = Rs.6-06 D R : 1149 x 6-06 = Rs.6962-94 Total F P:4040+6962-94 = Rs.11,002-94.
4	Cadre : Peon ; Av. Basic Pay = Rs.14,415-00 Regular Basic Pension : Rs.7,208-00 D R payable / Slab = Rs.10-812 D R: 1149 x 10-812 = Rs.12,422-99 TOTAL: 7208+12422-99 = Rs.19,630-99.	Basic F P: 20% of 14415-00 = Rs.2,883-00 D R payable / Slab = Rs.4-3245 D R: 1149 x 4-3245 = Rs.4,968-85 Total F P:2883+4968-85 = Rs.7,851-85.
Retired between 01-08-2012 to 31-07-2017 GROUP 6 D R rate : 0.10% ; D R Slabs : 708.
1	Cadre : AO ; Av. B P:Rs.74,530-00 Pension : Rs.37,265-00; DR:Rs.37-265/Slab DR:708 x 37-265 = Rs.26,383-62 TOTAL :37265+26383-62=Rs.63,648-62.	Basic F P:15% of 74530-00 = Rs.11,180-00 DR payable:Rs.11-18 / Slab DR:708 x 11-18 = Rs.7,915-44 TOTAL F P:11180+7915-44=Rs.19,095-44.
2	Cadre : AAO ; Av. Basic Pay :Rs.67,550-00 Regular Basic Pension : Rs.33,775-00	Basic F P : 15% of 67550-00 = Rs.10,133-00 D R payable/slab = Rs.10-133

D R payable / Slab = Rs.33-775 D R: 708 x 10-133 = Rs.7.174-16
D R: 708 x 33-775 = Rs.23,912-70 Total F P:10133+7174-16 = Rs.17,307-16. TOTAL:33775+23912-70 = Rs.57,687-70.

3	Cadre : D O; Av. Basic Pay = Rs.61,515-00 Regular Basic Pension : Rs.30,758-00 D R payable / Slab = Rs.30-758 D R : 708 x 30-758 = Rs.21,776-66 TOTAL :30758+21776-66 = Rs.52,534-66.	Basic F P : 15% of 61515-00 = Rs.9228-00 D R payable / Slab = Rs.9-228 D R : 708 x 9-228 = Rs.6,533-42 Total F P:9228+6533-42 = Rs.15,761-42.
4	Cadre: R C; Av. Basic Pay:Rs.36,190-00 Basic Pension : Rs.18,095-00; D R/ Slab = Rs.18-095 D R : 708 x 18-095 = Rs.12,811-26 TOTAL :18095+12811-26 = Rs.30,906-26.	Basic F P: 15% of 36190-00 = Rs.5429-00 D R payable / Slab = Rs.5-429 D R : 708 x 5-429 = Rs.3,843-73 Total F P:5429+3843-73 = Rs.9,272-73.

HOW TO ARRIVE AT NEW DA RATE AFTER WAGE REVISION

We have seen that when Wage Revision takes place the DA rate invariably goes down. Let us see herebelow how the DA rates are worked out is explained based on the CPI merger.

The formula is (CPI merged Last/CPI to be merged) x existing DA rate = New DA rate.

The DA rate in 1987 agreement was tapering, with Maximum at 0.67%.

1. (600/1148) x 0.67 = 0.35017, DA given was 0.35% per slab in 1992 settlement.

2. (1148/1740) x 0.35 =0.23091, DA given was 0.23% per slab in 1997 settlement.

3. (1740/2328) x 0.23 =0.17191, DA given was 0.18% per slab in 2002 settlement.

4. (2328/2944) x 0.18 =0.14234, DA given was 0.15% per slab in 2007 settlement.

5. (2944/4708) x 0.15 =0.93798, DA given was 0,10% per slab in 2012 settlement.

6. Now in 2017 Wage Negotiations : (4708/6352) x 0.10 =0.07412.

   Hence Unions should demand 0.08% per slab DA.

7. IN 2002, 2007 AND 2012 SETTLEMENTS THE DA RATE WAS NEXT

   HIGHER 2 DECIMALS, WHICH IS A CONVENTION AND THIS TIME ALSO IT SHOULD BE 0.08% ALTHOUGH IN BANKS IT IS 0.07% [FOR BANKS : (4440/6352) x 0.10 = 0.06989, hence 0.07% is given].

DEARNESS RELIEF PAYABLE TO PENSIONERS

The LIC Pension Rules, 1995 allows Pension to the pension optees who retired after 01-01-1986. However, NO arrears were paid to those who had retired prior to 01-11-1993. This Pension is linked to Consumer Price Index for Industrial Workers'. The base is 1960=100. For every 4 points rise / fall in AICPI(IW) over and above is compensated as Dearness Relief. It is to be noted that for those Pensioners retired prior to 01-08-1997 (GROUP 1 GROUP 2), the D R is being paid on tapering basis, for all Pensioners. What it means is that the D R is not 100% neutralised to these Pensioners.

The D R as per the Wage Settlements of 1987 and 1992/93, the D R rates are as follows (as per Appendix IV of Pension Rules) :

DEARNESS RELIEF RATES

1987/88 Wage Settlement	1992/93 Wage Settlement
Basic Pension up to Rs.1250/---->0.67% For next Rs. 750/----->0.55% For next Rs. 130/----->0.33% Above Rs.2130/----->0.17%	Basic Pension up to Rs.2400/----->0.35% For next Rs.1450/----->0.29% For next Rs. 250/----->0.17% Above Rs.4100/----->0.09%
But Delhi High Court by its decision dtd.27-04-2017 altered the Rates :
Basic Pension up to Rs.1250/---->0.67% For next Rs. 750/----->0.55% For next Rs. 130/----->0.33% Above Rs.2130/----->0.23%	Basic Pension up to Rs.2400/----->0.35% For next Rs.1450/----->0.29% Above Rs.3850/------>0.23%

From 01-08-1997 all employees were given 100% D R Neutralisation.
But how to calculate D R payable rate for particular Pensioner is as follows :

GROUP 1	GROUP 2	GROUP 3 (0.23%)
Basic Pension is Rs.2,975-00 D R Rate is arrived at as follows: Rs.1250/--->0.67% ---> 8-375 Next Rs.750/-->0.55%--> 4-125 Next Rs.130/-->0.33%--> 0.429 >2130/- ------->0.23%--> 1-9435 (2950-2130) DR rate -->14-8725	Basic Pension is Rs.4,485-00 D R Rate is arrived at as follows: Rs,2400/---> 0.035%--> 8-40 Next 1450/-> 0.29%--> 4-205 Above 3850/-->0.23%-->1-4605 (4485-3850) ---------- DR rate --->14-0655	Basic Pension is Rs.8,125-00 D R Rate = 8125 x 0.0023 = Rs.18-6875
GROUP 4 (0.18%)	GROUP 5 (0.15%)	GROUP 6 (0,10%)
Basic Pension is Rs.9,813-00 D R Rate = 9813 x 0.0018 = Rs.17-6634	Basic Pension is Rs.8355-00 D R Rate = 8355 x 0.0015 = Rs.12-5325	Basic Pension is Rs.30,758-00 D R Rate = 30758 x 0.0010 = Rs.30-7580

For in-service employees Dearness Allowance is paid, where as for Pensioners Dearness Relief is paid. The D A payable to in-service employees is reviewed every Quarter, where as for Pensioners it is reviewed every Half Yearly viz. February depending on average CPI(IW) figures for Oct, Nov and Dec of the previous year and August depending on average CPI(IW) figures for April, May and June of that year. The labour bureau of Govt. of India declares the CPI(IW) figures for a month at the end of the next month.

The Dearness Relief payable to Pensioner / Family Pensioner depends on the date of retirement. At present there are SIX groups of Pensioners. The following chart shows how D R is calculated for these 6 groups.

1

GROUP 1: Retired up to 31-07-1992(Cl-3&4) / 31-03-1993(Cl-1&2) At CPI(IW) :600 points. Depends on Basic Pension before Commutation.

D R payable from 01-08-20

7540 – 600=6940/4

1735 slabs.

D R rates /slab
Up to 1250 =0.67% Next 750 =0.55% Next 130 =0.33% above 2130=0.17%

D R rates after DHC Judgement dtd.27-04-2017: Up to 1250 = 0.67%
Next 750 = 0.55%
Next 130 = 0.33%

Above 2130=0.23%

2	GROUP 2: Retired between 01-08-1992(Cl-3&4)/01-04-1993 to 31-07-1997	7540-1148=6392/4 1598 slabs.
	At CPI(IW) : 1148 points. On Basic Pension before Commutation. D R rates /slab: Up to 2400 = 0.35% Next 1450 = 0.29% Next 250 = 0.17% Above 4100 = 0.09% D R rates after DHC Judgement dtd.27-04-2017: Up to 2400 = 0.35% Next 1450 = 0.29% Above 3850 = 0.23%
3	GROUP 3: Retired between 01-08-1997 to 31-07-2002 At CPI(IW) : 1740 points. D R rate / slab : 0.23% of Basic Pension before Commutation.	7540-1740=5800/4 1450 slabs.
4	GROUP 4 : Retired between 01-08-2002 to 31-07-2007 At CPI (IW) : 2328 points. D R rate / slab : 0.18% of Basic Pension before Commutation.	7540-2328=5212/4 1303 slabs.
5	Group 5 : Retired between 01-08-2007 to 31-07-2012 At CPI(IW) : 2944 points. D R rate /slab : 0.15% of Basic Pension before Commutation.	7540-2944=4596/4 1149 slabs.
6	GROUP 6 : Retired between 01-08-2012 to 31-07-2017 At CPI(IW) : 4708 points. D R rate / slab : 0.10% of Basic Pension before Commutation.	7540-4708=2832/4 708 slabs.

D R changes (increase or fall) for every 4 points of CPI(IW) on 1960 = 100. At present 2001 series are published by Labour Bureau. To arrive at 1960 series multiply present figure with 4.63 and again with 4.93 viz. Av CPI is 330.33 is for Apr, May & Jun 2020. then 330.33X4.63x4.93 =7540.08.
The above chart shows DR payable from Aug, 2020 to Jan, 2021.

Since 2017 settlement is not yet there, as of now, for those retired after 01-08-2017 also DR at Group 6 is being paid.

MINIMUM PENSION & FAMILY PENSIONAS PER DHC JUDGEMENT

Paragraphs 83, 84 and 85 of the Judgement of Delhi High Court dated 27-04-2017 deals with Minimum Pension to be paid to a retiree, as specified by LIC of India as on 01-08-1987, 01-08-1992, 01-08-1997, 01-08-2002, 01-08-2007 and 01-08-2012. It says that the Minimum Basic Pension + DR on that being paid in the old scale if is less than the Minimum pension fixed in the subsequent settlement, then The Minimum Pension of such retiree should be enhanced to the New Minimum Pension and DR on that will be paid at the rate specified in the settlement.

Let us examine how this rule is applicable to the Minimum Pension being drawn by the retirees in the various settlements, from 1987 to 2012 in the following tabular format.

MIN. PENSION & F P SPECIFIED BY LIC IN VARIOUS SETTLEMENTS

30% Slab	01-08-1987	01-08-1992	01-08-1997	01-08-2002	01-08-2007	01-08-2012
AICPI(IW)	600	1148	1740	2328	2944	4708
MIN PEN	Rs.375/-	Rs.720/-	Rs.1100/-	Rs.1480/-	Rs.1880/-	Rs.3010/-
DR rate/slab	375 x 0.67% 2.5125	720 x 0.35% 2.52	1100x 0.23% 2.53	1480x0.18% 2.664	1880x0.15% 2.82	3010x0.10% 3.01
DR payable on 1st Aug of next settlement.	2.5125 x 137 =Rs.344-21	2.52 x 148 = Rs.372-96	2-53 x 147 = Rs.371-91	2.664 x 154 =Rs.410-26	2.82 x 441 = Rs.1243-62	To be worked out after 2017 settlement.
Total Pen	Rs.719-21	Rs.1092-96	Rs.1471-91	Rs.1890-26	Rs.3123-62
Hence Min BasicPension payable from next settlement.	Rs.720/- payable from Aug 92 to July, 97.	Rs.1100/- payable from Aug, 1997 to July, 2002.	Rs.1480/- payable from Aug, 2002 t0 July, 2007.

	MINIMUM FAMILY PENSION SPECIFIED BY LIC IN VARIOUS SETTLEMENTS
20% Slab	01-08-1987	01-08-1992	01-08-1997	01-08-2002	01-08-2007	01-08-2012
AICPI(IW)	600	1148	1740	2328	2944	4708
MIN PEN	Rs.450/-	Rs.860/-	Rs.1310/-	Rs.1760/-	Rs.2230/-	Rs.3570/-
DR rate/slab	450 x 0.67% 3.015	860 x 0.35% 3.01	1310x 0.23% 3.013	1760x0.18% 3.168	2230x0.15% 3.345	3570x0.10% 3.57
DR payable on 1st Aug of next settlement.	3.015 x 137 =Rs.413.06	3.01 x 148 = Rs.445.48	3.013 x 147 = Rs.442-91	3.168 x 154 =Rs.487.87	3.345 x 441 =Rs.1475.15	To be worked out after 2017 settlement.
Total Pen	Rs.863.06	Rs.1305.48	Rs.1752.91	Rs.2247.87	Rs.3705.15
Hence Min BasicPension		Rs.1310/- payable	Rs.1760/- payable

payable from next settlement.

from Aug, from Aug, 1997 to July, 2002 t0 July, 2002. 2007.

MINIMUM FAMILY PENSION SPECIFIED BY LIC IN VARIOUS SETTLEMENTS

15% Slab	01-08-1987	01-08-1992	01-08-1997	01-08-2002	01-08-2007	01-08-2012
AICPI(IW)	600	1148	1740	2328	2944	4708
MIN PEN	Rs.600/-	Rs.1150/-	Rs.1740/-	Rs.2330/-	Rs.2950/-	Rs.4720/-
DR rate/slab	600 x 0.67% 4.02	1150x0.35% 4.025	1740x 0.23% 4.002	2330 x0.18% 4.194	2950 x0.15% 4.425	4720x0.10% 4.72
DR payable on 1st Aug of next settlement.	4.02 x 137 =Rs.550.74	4.025 x 148 =Rs.595.70	4.002 x 147 = Rs.588.29	4.194x154 =Rs.645.88	4.425 x 441 =Rs.1951.43	To be worked out after 2017 settlement.
Total Pen	Rs.1150.74	Rs.1745.70	Rs.2328.29	Rs.2975.88	Rs.4901.43
Hence Min BasicPension payable from next settlement.			Rs.2330/- payable from Aug, 2002 to July, 2007.

MULTIPLICATION FACTORS IN LIC

First Pension upgradation was given to RBI Pensioners vide Ministry of Finance letter dated 5th March, 2019. This is popularly known as RBI pattern. A weightage of 10% increase was given after merger of Dearness Relief for that Wage Revision. The new D R payable is as per the latest Wage Revision (2012 Wage Revision). Very recently vide Circular No. 733 dated 20-08-2020 by NABARD, pending approval by Ministry of Finance, the Govt., allowed 60% Interim Relief to the NABARD pensioners. The formula is similar to that of RBI pensioners. There is a rumour that Pension Upgradation on RBI pattern is likely to be given to PSU Bank pensioners as well.

LIC pensioners are also likely to get the upgradation on the same pattern in near future. In any case it may come up during 2017 wage revision negotiations. Presuming that the Upgradation is given before the Notification of Wage Revision of 2017, the Multiplication Factors have been worked out as shown below. While working out these Factors, we have taken all multiplications to nearest 2 decimals. The Basic Pension before commutation is to be multiplied by the following factors to arrive at the new notional Basic Pension.

Sl No	Pensioner Group	Pensioner Retired between dates	Multiplication Factor
1	Group 1	Up to 31-07-1992 (Class III & IV) / 31-03-1993 (Class I & II).	13.37
2	Group 2	01-08-1992 to 31-07-1997 (Cl III & IV) / 01-04-1993 to 31-07-1997 (Cl I & II).	6.33
3	Group 3	01-08-1997 to 31-07-2002.	3.79
4	Group 4	01-08-2002 to 31-07-2007.	2.58
5	Group 5	01-08-2007 to 31-07-2012.	1.83

A Basic Pension of Rs.100/- will become :Group 1 = Rs.1337/- ; Group 2 = Rs.633/- ;
Group 3 = Rs.370/- ; Group 4 = Rs.258/- & Group 5=Rs.183/-.

Dearness Relief will be payable uniformly at the rate of 0.10% of new notional Basic Pension. D R slabs now is 708.

If updation is not given before Wage Revision Notification of 2017, then to bring the Notional Basic Pension to 2017 settlement the above Multiplying Factors are to be mutliplied again by 1.55 to arrive at 2017 scales.

Ex-GRATIA RELIEF TO PRE-01-01-1986 RETIREES

All are aware that LIC Pension Rules, 1995 were notified on 28-06-1995. They came in to force from 01-11-1993. However, those retired between 01-01-1986 to 31-10-1993 were given an opportunity to opt for Pension on certain conditions like refund of CC PF paid to them with nominal interest at 6% etc., But those retired up to 31-12-1985 were NOT eligible for Pension.

It is only in 1999 that the GOI approved a Scheme called as Ex-gratia Relief Scheme to those retired up to 31-12-1985. Central Office issued a circular to that effect vide Per/ER/ZD/919/ASP/99 dated 20- 05-1999. The salient features of the Scheme are as under :

1. The Scheme was made effective from 01-11-1997.

2. Those retirees who have put in minimum 20 years of continuous Service in LIC are eligible.

3. Provided they are not in receipt of any Pension either by Government / erstwhile Insurers.

4. Those who have Resigned / Dismissed / Terminated / Removed are NOT eligible.

5. Those retirees prior to 01-01-1986, who were alive on 01-11-1997 are eligible.

6. The Ex-gratia amount to such retirees is Rs.300/- pm, irrespective of the Cadre held by them

   before retirement.

7. This Ex-gratia amount is Index linked. That is they are eligible for Dearness Relief at 0.67%

   for every rise / fall of 4 points on AICPI(IW) base 1960=100.

8. The retirees have to make an application, in triplicate, to The Senior Divisional Manager of the

   Division where he worked Last / to Regional Manager(E & OS) of the Zone, for those worked

   in Zonal Office / Executive Director (E&OS) at Central Office, for those worked in C O.

9. In addition to the application they have to submit any proof that they were employees of the

   Corporation – appointment letter, retirement letter, PF settlement letter etc.

10. They have to submit periodical Certificate of Existence and Non Employment Certificate.

11. Those retirees who were alive on 01-11-1997, but expired subsequently, the arrears from 01-11-

    1997 to the date of death will be payable to the Legal Heirs.

The Central Office circular quoted above is of 7 pages with XI annexures attached to it. For any doubt please refer to the above Circular.

EX-GRATIA RELIEF TO SURVIVING SPOUSES OF PRE-1986 RETIREES / EMPLOYEES WHO DIED WHILE IN SERVICE PRIOR TO 01-01-1986.

It was only in 2007 that LIC came out with Administrative Instructions vide CO circular ref :Personnel / ER / ZD / 1108 / ASP / 2007 dated 13-07-2007 to implement the Scheme for Grant of Ex-gratia relief to Surviving Spouse of deceased pre-01-01-1986 retiree / deceased employees of the Corporation.

The Salient features of the Scheme are as below :

1. The Scheme came into force with immediate effect i.e. from 13-07-2007.

2. The scheme is applicable to surviving spouse of those deceased retirees who retired to prior to 01-01-1986, provided the employee had rendered atleast 20 years of continuous service and are not in receipt of any pensionary benefit from the Corporation / Companies or from other source.

3. This Scheme is also applicable to the surviving spouse of the deceased employee who died

   prior to 01-01-1986 while in servce, irrespective of the years of service rendered.

4. The payment is to be made to the surviving spouse who prefers claim for the payment. The payment is to be made from the date of such preferring. NO ARREARS IS

PAYABLE.

5. The payment is to be made on the basis of local certification.

6. The Ex-gratia admissible is at the rate of Rs.1,000/- pm (fixed) to the Surviving Spouse and

   DR is NOT admissible on the same.

7. The Ex-gratia is NOT admissible where the employee has Resigned / Dismissed / Removed

   from the Service.

8. The application to be made to S/DM of the Division / or RM(E&OS) in Zone / ED(E&OS) at

   CO depending upon the place of work of the deceased employee / retiree.

9. Documents pertaining to the deceased retiree / employee such as service or employment

   certificate, retirement order, PF settlement or any other superannuation dues.

10. Photograph of the applicant on the application form must be attested by Officers mentioned in

    the application form.

11. The Ex-gratia receipient has to submit Existence Certificate every year on 1st August to receive

    the ex-gratia.

12. Advance receipt should be sent to the Office duly signed before 1st February and 1st August

    every year.

13. If any ot the aforesaid documents are NOT submitted, then the application is treated as

    incomplete and the applicant is NOT eligible for Ex-gratia.

14. THREE passport size and one Stamp size Photographs and TWO specimen signatures on Blank

    paper is required to be give.

15. This Ex-gratia Relief is payable only to the Surviving Spouse and not to any other member of

    the Family as defined in Family Pension provisions of Pension Rules, 1995.

This is only a Gist, for any doubt / clarification original CO circular no: PER/ER/ZD/1108/ASP/2007 dated 13-07-2007 should be referred, which is a 5 page circular with 7 annexures attached.

ADMINISTRATIVE PROCEDURE FOR PAYMENT OF EX-GRATIA RELIEF TO SPOUSE OF DECEASED PRE-01-01-1986 RETIREES.

The administrative instructions for payment of index linked Ex-gratia payment to pre 01-01-1986 retirees was laid down in CO circular ZD/919/ASP/99 dtd.20-05-1999. There after Administrative instructions for payment of Ex-gratia relief to Spouse of deceased pre 01-01-1986 retiree was issued vide CO circular ZD/1108/ASP/2007 dtd. 13-07-2007. It is stated in the said circular that Ex-gratia relief is payable from the date of preferring the claim by the spouse of deceased pre 01-01-1986 retiree. NO ARREARS IS PAYABLE.

However, by means of a CO circular :Per/ER-A/ZD/1146/ASP/2010 dated 24-02-2010 has reviewed this matter and the Ex-gratia relief to the Spouse of the pre 1986 retiree who died after 13-07- 2007, the Spouse is eligible for relief of Ex-gratia of Rs.1,000/- from the date of death of pre-1986 retiree.

The details of the Spouse of the pre-1986 retirees are to be collected by DO/ZO/CO as the case may be, and arrears of Ex-gratia may be paid in such cases.

This is only a gist and for any doubt or clarification the above quoted CO circular should be referred which is a Single page circular along with 1 annexure attached to it.

CASH MEDICAL BENEFIT TO PRE-1986 RETIREE / SPOUSE OF RETIREE.

By means of a CO Circular : CO/PER/ER-A/024/2013 dated 11-03-2013 the Competent Authority has decided to grant Cash Medical Benefit to the surviving pre-1986 retirees and the spouse of the deceased pre-1986 retiree who are covered under our earlier Schemes for them. The amount admissible as Cash Medical Benefit is :

1. For pre-1986 Retirees Rs.12,000/- per annum payable monthly.

2. For Spouses of deceased pre-1986 retirees Rs.6,000/- per annum payable monthly.

This came into effect from 23-01-2013 and payment under CMB will commence from Feb, 2013.

ENHANCEMENT OF EX-GRATIA TO PRE-1986 RETIREES AND THEIR SURVIVING SPOUSES.

CO Circular of 1999 quoted above gave index linked Ex-gratia of Rs.300/- pm with 0.67% Dearness Relief on that for every 4 points rise / fall above 600 AICPI index base being 1960=100.
Further CO Circular of 2007 an Ex-gratia Relief of Rs.1000/- pm (FIXED) is granted to Surviving Spouse of deceased pre-1986 Retiree / Spouse of deceased employee died before 01-01-1986 while in service.

The quantum of Ex-gratia now stands revised as per CO circular :CO/PER/ER-A/079/2014 dated 09-08-2014 as under :

Beneficiary	Ex-gratia Relief	Dearness Relief on Ex-gratia
Surviving pre-01-01-1986 Retirees.	Rs.350/- p m.	D R on Rs.350/- at the rate of 0.67% for every rise or fall of 4 points over 600 points in the Qly Av. Of AICPI (Base 1960=100).
Surviving Spouse of deceased pre-1-1-1986 Retiree/employee who died in service prior to 1- 1-1986.	Rs.175/- p m.	D R on Rs.175/- at the rate of 0.67% for every rise or fall of 4 points over 600 points in the Qly Av. Of AICPI (Base 1960=100).

This revision came in to effect from :21st July, 2014.

ENHANCEMENT IN CASH MEDICAL BENEFIT TO PRE-1986 RETIREES/SPOUSES

Central Office vide CO circular : CO/PER/ER-A/216/2019 dated 04-04-2019 has enhanced the Cash Medical Benefit payable to pre-1986 Retirees and to the Spouse of deceased pre-1986 retirees. The scale of Cash Medical Benefit wef March, 2019 is as follows:

1. For Pre-1986 Retirees Rs.24,000/- per annum payable monthly and

2. For Surviving Spouse of Pre-1986 retiree Rs.12,000/- per annum payable monthly.

For details the above referred CO circular may be referred.

HOW MUCH EX-GRATIA RELIEF IS PAYABLE NOW

For pre-1986 Retirees and the Spouse of deceased pre-1986 retiree the following amount is payable as Ex-gratia Relief for August, 2020 to January, 2021.

Pre-1986 Retiree	Surviving Spouse of deceased Pre-1986 retiree
Ex-gratia Amount--------> Rs. 350-00 D R on that ---------------> Rs.4,068-57 C M B ---------------------> Rs.2,000-00 ---------------- TOTAL --------------------> Rs.6,418-57	Ex-gratia ----------------------> Rs. 175-00 D R on that ------------------> Rs. 2.034-28 C M B ------------------------> Rs. 1,000-00 ----------------- TOTAL -----------------------> Rs. 3,209-28

There are very few pre-1986 retirees are surviving till date. The youngest is 91 years young.

VIJAYAPUR(KARNATAKA) COMPILED BY 14-08-2020 C T JOSHI

Mobile No: +91 9731955044 Mail id : joshi.chidambart@gmail.com