DPEs letter on creation of a corpus by contributing 1% to 1.5%

F. No. 2(81)/08-DPE-(WC)
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan
Block No.14, CGO Complex, Lodi Road
New Delhi, the 13 January, 2009.

OFFICE MEMORANDUM

Subject: - Recommendation of 2nd PRC (Pay Revision Committee) on
creation of a corpus by contributing 1% to 1.5% of PBT (Profit
Before Tax) by CPSEs to take care of medical and any other
emergency needs of retired executives and those who are not
adequately covered by the pension scheme; examination
thereof.
Government, while considering the recommendations of the
2nd PRC, which was constituted for recommending revision of pay and
allowances for executives and non-unionised supervisors of CPSEs w.e.f.
01.01.2007 decided, inter alia to examine the recommendation of the 2nd
PRC on the subject mentioned above separately. The relevant extracts as
given in para 6.2.5 (c) of the report of 2nd PRC are as under:-
“The committee recommends that CPSEs may create a corpus
by contributing 1% to 1.5% of PBT to create a fund in order
to take care of medical and any other emergency needs of
retired executives and also those who are not adequately
covered by the pension scheme.”
2. The Ministries/Departments concerned with the CPSEs are
requested to furnish their considered views about the feasibility and the
methodology of operationalising the recommendation by 12.02.2009.
(Rajendra Kumar)
Deputy Secretary to the Government of India
Tel. 24360624
Administrative Ministries/Departments of the Government of India
(Secretary by name as per List)