Letter to Dr. Manmohan Singh for formaton of Corpus out of 1.5% of PBT for CPSEs retirees.

To,
Dr. Manmohan Singhji,
Honourable Prime Minister,
Govt. of India,
South Block,
New Delhi – 110 011.

Respected Sir,

Sub: Formation of a Central CORPUS FUND for CPSE’s Non – Pensioned Retirees / Senior
Citizens - Request for.

Ref: 1. Recommendations of 2nd Pay Revision Committee for CPSE’s Executives {Page – 130,
Para. No. 6.2.5 (C)}
2. Office – Memorandum No. 2(81) /08 – DPE (WC) – GL – XVI / 2009 dated 08.07.2009
3. National Workshop held at New Delhi on 16.11.2010, on “Medical & Emergency Needs of Retired Employees of CPSEs – Creation of CORPUS FUND”.

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We are the National level Association of Non – Pensioned Retires of Central / State Government Public / Private Sector Enterprises / Undertakings, founded in 2001.

2. Unfortunately, unlike the employees of Central / State Government Departments, we the employees retired from Public Sector Enterprises do not have any facilities of either Medical or Pension benefits, after retirement (even after working for 30 – 35 years in an Organisation and having served the nation for such long periods).

3. It is needles to mention that the employees of Govt. of India / Govts. of All States, Members of Legislative Assembly / Councils (MLAs and MLCs), Members of Parliment (MPs), Officials of Financial Banks etc., including the workers of Anganawadi Schools are getting the Pensions and Medical Benefits, after their retirements.





4. We believe, It is needless to emphasize the present day need of providing the SOCIAL SECURITY to the aged and retired employees of Public Sector Enterprises.

5. Vide the Office – Memorandum No. 2(81)/08-DPE(WC) – GL – XVI / 2009 dated 08.07.2009 (a copy enclosed), issued by the Director, Dept. of Public Enterprises, Govt. of India, New Delhi, the Para – 4 reads as follows:
“After careful consideration of the recommendation of 2nd PRC, it has now been decided that individual CPSEs may create a corpus by contributing not more than 1.5% of PBT, in order to take care of medical and any other emergency needs of those retired employees, who are not covered by the pension scheme and / or post superannuation medical benefit scheme”.

6. The Administratative Ministries / Departments had been advised to issue suitable instructions to the Managements of their CPSEs, to consider framing of SCHEME, with a view to take care of Medical and other emergency needs of those, retired from the respective PSEs. But, to our dismay. No PSE has so far come forward to form any Schemes of the CORPUS FUND.

7. But, we have been requesting the Govt. of India to kindly formulate a SINGLE CORPUS and NODAL AGENCY, on the lines of PFRDA, CAG, etc., but all our efforts have been in vain.
8. Of – late, we may bring to your kind attention that M/s National Institute of Personal Management (NIPM) and Management Leadership Development Centre had organized a National Workshop on “Medical and Emergency needs of Retired Employees of CPSEs Creation of CORPUS”, on 16.11.2010 at SCOPE Complex, New Delhi. All the Top officials of the Industry, had participated. A copy of the Proceedings is enclosed for your immediate reference. The Conclusions and Recommendations made by the workshop and forwarded to the Department of Public Enterprises / Other Ministries are reproduced below:

Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusion arid recommendations were drawn.
It was understood that these recommendations could, for the time being, be only within the confines of the DPE guidelines promulgated so far and the review of the guidelines within a larger frame of greater fairness and equity would have to be taken up separately.
1. The CPSUs could be divided into 3 categories for the above purpose :-
a) Maharatna, Navaratna and Miniratna companies which have annual
PBT from which 1-1.5% could be earmarked towards the corpus.
b) Other profit making PSUs
c) Loss making PSUs
THE RATNA GROUP
Provide medical assistance on par with serving employees of equivalent designations
Make an ex-gratia payment as near the 30% of the minimum of the current pay attached to the designation at which the employee had retired or its present equivalent to meet the other emergency needs of the employee. This payment calculated monthly may be paid every quarter. The surviving spouse to be eligible for half of this amount. Additionally DA to be paid at prevailing rates.
3) This payment will be made from the corpus created out of the 1-1.5% of the PBT. This may be decided based on the fund available in the corpus. The Scheme so formulated by the Company will be reviewed periodically to ensure its viability.
4) The Corpus to be managed by a Trust consisting of Director (Finance) as Chairman, Director (HR), another serving Director, two senior retired employees not lower than the level of General Manager. The Trust will ensure that sufficient contingent reserves are held at any given time.

THE NON RATNA GROUP
The Board to determine the percentage of PBT to be transferred to the Corpus
Provide, on priority, medical assistance on par with serving employees
Make ex-gratia payment to meet the minimum needs of the employee to live a life of dignity which will also bring a fair name to the PSU for its care and concern for the pioneers and foundation makers
The Corpus to be administered in the same manner as above.

THE LOSS MAKING GROUP
Same action as for the Non Ratna Group as above.
Sources for fund may be as follows:

DPE CORPUS
It is suggested that from out of the total dividends received by the Govt. from the PSUs, 1% should be set aside as a Special Reserve to fund the needs of the retired employees of the Loss Making Group and also the needs of the other groups in the unlikely event of extraordinary circumstances.
Similarly 1% of the amount realized by the Govt. by way of disinvestment of PSUs may be transferred to this Trust.
This Special Reserve should be administered jointly by the DPE and SCOPE.

9. In view of the above, we would once again urge and request your good offices to kindly direct the concerned officials of the Ministry of Heavy Industries and Public Enterprises, so as to implement the recommendations of 2nd PRC for CPSEs and the above mentioned Recommendations made by the Workshop held on 16.11.2010, for formulating / establishing a Central CORPUS / NODAL AGENCY and to provide the SOCIAL SECURITY to the Retirees of CPSEs, who are Senior Citizens of this Country.

Thanking you,
Your’s faithfully


(N. Ramprasad) (B.T.Srinivasa Gowda)
President General Secretary