PENSION UNDER DPE GUIDELINES _ BY CAPT NARAYAN SINGH RAYHORE
DPE GUIDELINES FOR OWN PENSION SCHEME OF CPSE (ONGC)
1. DPE OM No.2 (70)/08-DPE (WC) dated 26th November 2008: -
“Para 12: Long Term Incentives, introduction of cost to the customer (CTC) concept in CPSEs, Pay of Executives on deputation / transfer to CPSEs, Pay of Government officers on deputation to CPSEs and Superannuation Benefits will be as per Annex.-IV.”
1.1. Para V of Annex.-IV:
“Superannuation Benefits: CPSEs would be allowed 30 of Basic Pay as Superannuation benefits, which may include Contributory Provident Fund (CPF), Gratuity, Pension and Post-Superannuation Medical Benefits. The CPSEs should make their own schemes to manage these funds or operate through Insurance companies on fixed contribution basis. The amount of Pension, Gratuity and Post-Retirement Benefit will be decided based on the returns from the schemes to be operated. The Pension and Medical benefits can be extended to those executives, who superannuate from the CPSE and have put in minimum of 15 years of service in the CPSE, prior to superannuation.”
2. DPE OM No. No.2 (70)/08-DPE (WC)/GL-VII/09 dated 2nd April, 2009:
“Para 2. The Government, after due consideration of the recommendations of the Committee of Ministers have decided further as follows:
(ii). Superannuation Benefit: The ceiling of 30% towards superannuation benefits would be calculated on Basic Pay plus DA instead of Basic Pay alone. Any superannuation benefit will be under a “defined contribution scheme” and not under a “defined pension scheme”. CPSE that do not have Superannuation scheme, may develop such scheme and obtain the approval of their Administrative Ministry. However, no other superannuation benefit can be granted out side this 30% ceiling. (para 12, Annex.-IV (v) of OM dated 26.11.2008 refers).”
3. DPE OM No.2 (81)/08-DPE (WC)/GL-IXI/2011 dated 20 July,2011:
“Para 2:
(i). Administrative Ministry/Department may consider creating a common corpus for the retired employees of the CPSEs, under their Administrative control. The purpose of the corpus would be to take care of medical and any other emergency needs of retired employees.
(ii). Each CPSE under their Administrative Ministry/Department, to contribute not more than 1.5% of its PBT for the above said corpus.
(iii). A Committee, headed by an independent Director, to be decided by Ministry/ Department may be formed by the respective Administrative Ministry/Department for implementation of said corpus.
(iv). Scheme based on individual CPSE as conveyed in OM dated 8.7.2009 to continue but basic conditions like not more than 1.5% PBT (whether Ministry/Department based and or individual “CPSE” based) and no budgetary support by Government would apply to the Ministry/Department based scheme proposed now. Therefore, there may be a situation, where a CPSE under a Ministry/Department may have a separate scheme for its employees, but at the same time contribute to common corpus for retired employees of other CPSEs under Administrative Ministry/Department. In such cases also the total contribution will not exceed 1.55 of PBT of a particular financial year. For individual CPSE based scheme, constitution of Committee will be that as already indicated in para 5(iii) of OM dated 8.2.2009.
(v). Purpose of the scheme (individual of common corpus under a Ministry/Department for its CPSEs) to be as per from 2(i) above. The scheme may be implemented preferably through approved Insurance companies. It is clarified that scheme should not become a defined benefit pensionery scheme.
(vi). Benefits under the Scheme may vary from year to year depending upon the contribution by CPSE(s) in a particular year as the contribution is in turn dependent on the profits, affordability and sustainability of the CPSE s) concerned.
(vii). Such Corpus will cover only those employees of CPSEs, who retired prior to 1.1.2007
Para 3. Administrative Ministries/Departments may suitably issue instructions to CPSEs under their administrative control for their information and necessary action.
This issues with the approval of Minister (HL & PE).”
3. Extract from Presentation made by Director, DPE in Workshop on 16.11.2011:
“Committee recommended upto 30 % of basic pay towards superannuation benefit after providing for PF and gratuity a buffer available for pension and/ or post retirement benefits. This was available only for those who superannuate after 15 years service in a CPSE.
Corpus from 1.5% PBT be created by CPSE for medical and any other emergency needs for retired executives and also those who were not adequately covered by a pension scheme.
Creation of Corpus was provided for benefit of those who had no support system like pension or medical benefit scheme. However, for those retiring after 1.1.2007, superannuation benefits upto 30% of basic pay + DA was provided which include CPF, Gratuity, Pension and Post Superannuation medical benefits.”
COMMENTS:
a) Since ONGC did not have its own contributory Pension Scheme, it could formulate an independent Pension Scheme. Corpus to be created from 1.5% PBT of Previous year (s). Superannuation benefits at 30% of Basic + DA included CPF, Gratuity and Medical benefit. Amount remaining as buffer from the Corpus could be used for Pension with approval of Ministry of P& NG. Incidentally, ONGC being a Maharatna Company, it is expected to make contribution to the Common Corpus under Ministry of P& NG, out of 1.5% PBT.
(a-i). This Pension Scheme being fully supported by ONGC’s own Contribution, other Schemes like PRBS & EPS-95 are not to be linked.
Monday, January 30, 2012
ONGC PRBS - Brief By Capt. Narayan Singh Rathore
PRBS -Brief By Capt. Narayan Singh Rathore
Friends, PRBS appeared going smooth but it was ailing inside. Funds were not received by PRBS Trust on regular basis. We all know that "Additional Cash Contribution" against Monetised value of surrendered facilities (Uniform related items and Canteen subsidy) was Main Source for funding the Scheme but funds remained with ONGC or they were not accounted for by Managing Trustee. Therefore, financial collapse occurred. Trustees did not review Addl. Cash Contr. in accordance with prevailing Price Index of Commodities. Actuarial recommendations were ignored in totality. Pay Revision-1992 witnessed 78% rise in Salary but Addl. Cash Contr. was being paid at escalation of 7.25% only. This was position in early 1996.
2. Background behind MOU of 3.2.1998:
(a). Govt. Notification of 16.11.1995 for Compulsory implementation of EPS-1995;
(b). Govt. Notification of 10.1.1996 for Pay Revision-1992, which Entailed Pension on Revised Salary w.e.f. 1.1.1992 and
(c). Circular No.PRBS-38 dated 17.1.1996 for enhanced deduction of Fixed % Contr. on revised salary w.e.f. 1.1.1992.
3. (a). ONGC requested Exemption from Implementation of compulsory EPS-1995, with consideration that its Own Pension Scheme-PRBS- was more advantaompulsory for all Executives. Similar exercise was carried out through another MOU with Unions to make PRBS compulsory "In-lieu" of EPS-1995.
3. (b). ONGC did not want to grant Pension on Revised salary w.e.f. 1.1.1992. Finalisation of Pension cases was kept pending from January 1996, awaiting some Legal Wrangle to crop up. An Actuarial Valuation Report dated 2.8.1996 was arranged for use in Writ Petition No.1718/1996 in Bombay H.C. in August 1996. Hon'ble Court issued Ad-interim Order of 5.11.1996 for negotiation between ONGC & ASTO in association with Petitioners & local ASTO (MRBC), to "Raise additional funds" to save the Scheme;
3. (c). ONGC intended to avoid implementation of Cir. PRBS-38 of 17.1.1996, as it could cause large amount of recoveries from Arrears of Pay and also enhanced fixed % contr. in times to come.
4. To achieve above objectives, Writ Petition was used convinient Platform: Finalisation of Recommendations to "raise" Additional funds was inordinately delayed so that Focus cd. be shifted from Main Object of Raising/generating additional funds to freestyle re-structuring of PRBS. To achieve such derogatory, unfair, disadvantageous, discriminatory & prejudicial feats, MOU was signed in "Good Faith" as if negotiations for 17-18 months were not sufficient to examine Data/Statistics pertaning to Assets & Liabilities of PRBS Trust, arising from 1.4.1990. It was unique method of ascertaining "Financial Viability" of the Fund.
5. Recommendations made in MOU of 3.2.1998 were not only contrary to Court Order of 5.11.1996 but ensured "Un-viability" of Fund. Introduction of Notional Salary reduced existing Fixed % Contr. by 40 to 60 Percent and it also nullified Cir. No.PRBS-38 for enhanced recovery on Revised Salary w.e.f. 1.1.1992 & all future Pay Revisions.
6. Notional salary being nearly 40 to 60% of Actual salary, Pension benefit was also reduced to that extent.
7. Managing Trustee mis-used this opportunity to introduce some clauses which provided enormous scope for manipulations, mis-interpretations and discriminations. Para 5.1, 31.2 & 32 of Rules-1991 were totally rendered ineffective. PRBS was mutilated & demolished. MOU of 3.2.1998 was implemented under Cir. PRBS-40 of 18.6.1998 without approval of Comp. Authy.
8. Most dangerous consequence of MOU of 3.2.1998 was Managing Trustee assuming Absolute Power to Revise the PRBS in any manner, with no restrictions whatsoever. Conversion of existig "Pension Defined Scheme" into "Defined Corpus" is burning example. ONGC PRBS Trust did not purchase Annuity of Entitlement but remitted some Corpus to LIC. Pension of retired ONGCians was Fixed by LIC during January 1996 to March 2007. Another MOU of 9.4.2007 was manipulated to secretly Re.convert "Defined Corpus" into "Pension Defined Scheme" w.e.f. 1.4.2007. PRBS Trust of our beloved Maharatna considered such acts of violations as Legal & Legitimate, Just & Fair.
9. hope this clears the Clouds ?? Any specific question is most welcome.
Friends, PRBS appeared going smooth but it was ailing inside. Funds were not received by PRBS Trust on regular basis. We all know that "Additional Cash Contribution" against Monetised value of surrendered facilities (Uniform related items and Canteen subsidy) was Main Source for funding the Scheme but funds remained with ONGC or they were not accounted for by Managing Trustee. Therefore, financial collapse occurred. Trustees did not review Addl. Cash Contr. in accordance with prevailing Price Index of Commodities. Actuarial recommendations were ignored in totality. Pay Revision-1992 witnessed 78% rise in Salary but Addl. Cash Contr. was being paid at escalation of 7.25% only. This was position in early 1996.
2. Background behind MOU of 3.2.1998:
(a). Govt. Notification of 16.11.1995 for Compulsory implementation of EPS-1995;
(b). Govt. Notification of 10.1.1996 for Pay Revision-1992, which Entailed Pension on Revised Salary w.e.f. 1.1.1992 and
(c). Circular No.PRBS-38 dated 17.1.1996 for enhanced deduction of Fixed % Contr. on revised salary w.e.f. 1.1.1992.
3. (a). ONGC requested Exemption from Implementation of compulsory EPS-1995, with consideration that its Own Pension Scheme-PRBS- was more advantaompulsory for all Executives. Similar exercise was carried out through another MOU with Unions to make PRBS compulsory "In-lieu" of EPS-1995.
3. (b). ONGC did not want to grant Pension on Revised salary w.e.f. 1.1.1992. Finalisation of Pension cases was kept pending from January 1996, awaiting some Legal Wrangle to crop up. An Actuarial Valuation Report dated 2.8.1996 was arranged for use in Writ Petition No.1718/1996 in Bombay H.C. in August 1996. Hon'ble Court issued Ad-interim Order of 5.11.1996 for negotiation between ONGC & ASTO in association with Petitioners & local ASTO (MRBC), to "Raise additional funds" to save the Scheme;
3. (c). ONGC intended to avoid implementation of Cir. PRBS-38 of 17.1.1996, as it could cause large amount of recoveries from Arrears of Pay and also enhanced fixed % contr. in times to come.
4. To achieve above objectives, Writ Petition was used convinient Platform: Finalisation of Recommendations to "raise" Additional funds was inordinately delayed so that Focus cd. be shifted from Main Object of Raising/generating additional funds to freestyle re-structuring of PRBS. To achieve such derogatory, unfair, disadvantageous, discriminatory & prejudicial feats, MOU was signed in "Good Faith" as if negotiations for 17-18 months were not sufficient to examine Data/Statistics pertaning to Assets & Liabilities of PRBS Trust, arising from 1.4.1990. It was unique method of ascertaining "Financial Viability" of the Fund.
5. Recommendations made in MOU of 3.2.1998 were not only contrary to Court Order of 5.11.1996 but ensured "Un-viability" of Fund. Introduction of Notional Salary reduced existing Fixed % Contr. by 40 to 60 Percent and it also nullified Cir. No.PRBS-38 for enhanced recovery on Revised Salary w.e.f. 1.1.1992 & all future Pay Revisions.
6. Notional salary being nearly 40 to 60% of Actual salary, Pension benefit was also reduced to that extent.
7. Managing Trustee mis-used this opportunity to introduce some clauses which provided enormous scope for manipulations, mis-interpretations and discriminations. Para 5.1, 31.2 & 32 of Rules-1991 were totally rendered ineffective. PRBS was mutilated & demolished. MOU of 3.2.1998 was implemented under Cir. PRBS-40 of 18.6.1998 without approval of Comp. Authy.
8. Most dangerous consequence of MOU of 3.2.1998 was Managing Trustee assuming Absolute Power to Revise the PRBS in any manner, with no restrictions whatsoever. Conversion of existig "Pension Defined Scheme" into "Defined Corpus" is burning example. ONGC PRBS Trust did not purchase Annuity of Entitlement but remitted some Corpus to LIC. Pension of retired ONGCians was Fixed by LIC during January 1996 to March 2007. Another MOU of 9.4.2007 was manipulated to secretly Re.convert "Defined Corpus" into "Pension Defined Scheme" w.e.f. 1.4.2007. PRBS Trust of our beloved Maharatna considered such acts of violations as Legal & Legitimate, Just & Fair.
9. hope this clears the Clouds ?? Any specific question is most welcome.
Creation of Corpus for retired employees of CPSEs - Letter of DPE dt. 20.7.2011
Creation of Corpus for retired employees of CPSEs - Letter of DPE dt. 20.7.2011
By Badrinath Vasandi
Mathre Rangarajan Dear Nirmal Kumar Ji - I could not find DPE OM dt 29 dec 2010 on DPE web site. But DPE OM dt 20 July 2011 is interesting:
No. 2(81)/08-DPE(WC)GL-IXl/201
1
Government of India '
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan
Block No. 14, CGO Complex, Lodhi Road, New Delhi-110003
Dated:20 July, 2011
OFFICE MEMORANDUM
Sub: Creation of Corpus for retired employees of CPSEs
The undersigned is directed to refer to O.M. of even number dated
8.07.2009 on the subject mentioned above providing Board of Directors of each CPSE to frame a suitable scheme keeping in view the guidelines contained in the aforesaid OM., based on their need and affordability and submit proposal to the Administrative Ministry/Department for approval. Subsequent to issue of O.M. dated 08.07.2009, a number of representations have been received in this Department, requesting for modifications in the Scheme. Government has accordingly reviewed the efficacy of the scheme as conveyed in O.M. of even number dated 08.07.2009.
2. In view of the above, the following has been decided:-
i) Administrative Ministry/Department may consider creating a common corpus for the retired employees of the CPSEs, under their Administrative control. The purpose of the corpus would be to take care of medical and any 'other emergency needs of retired employees.
ii) Each CPSE under the Administrative Ministry/ Department, to contribute not more than 1.5% of its PBT for the above said corpus.
iii) A Committee, headed by an Independent Director, to be decided by Ministry/Department may be formed by the respective administrative Ministry/ Department for implementation of said corpus.
iv) Scheme based on individual CPSE as conveyed in Oi.M. dated 08.07.2009 to continue but basic conditions like not more than! 1.5% PBT (whether Ministry/Department based and/or individual "CPSE"based) and no budgetary support by Government would apply to the Ministry/Department based scheme proposed now. Therefore, there may be a situation, where a CPSE under a Ministry/Department may have a separate scheme for its retired employees, but at the same time contribute to common corpus for retired employees of other CPSE(s) under Administrative Ministry/Department. In such cases also the total contribution will not exceed 1.5% of PBT of a particular financial year. For individual CPSE based scheme, constitution of Committee will be that as already indicated in para 5(iii) of O.M. dated 08.02.2009.
v) Purpose of the scheme (Individual or Common corpus under a Ministry/ Department for its CPSEs) to be as per from 2(i) above. The scheme may be implemented preferably through approved Insurance Companies. It is clarified that scheme should not become a defined benefit pensionary scheme.
vi) The benefits under the Scheme may vary from year to year depending upon the contribution by CPSE(s") in a particular year as the contribution is in turn dependent on the Profits, affordability and sustainabililty of the CPSE(s) concerned.
vii) The issue of 'emergency needs' may be decided based on the principles of fairness, transparency, functional requirement, affordability sectoral similarities and sustainability of the common corpus, etc., with the prior approval of the aforesaid Committee.
viii) Such corpus will cover only those employees of CPSEs, who retired prior to 01.01.2007.
3. Administrative Ministries/Departments may suitably issue instructions to the CPSEs under their administrative control for their information and necessary action.
This issues with the approval of Minister (HL&PE).
sd/-
(P. J. Michael)
Under Secretary
"**"******
To: All Administrative Ministries/Departments
Copy to:
1. Chief Executive of CPSEs.
Tel: 24360823
>«**<*
2. Financial Advisors in the Administrative Ministries/Departments.
3. Comptroller &, Auditor General of India (Commercial Aijjdit Wing), 9 Deen
Dayal Uadhayay Marg, New Delhi.
4. NIC - with the request to upload this O.M. on to the DPE website.
5. All officers of DPE.
TWO THINGS TO BE NOTED 1. THIS CORPUS IS APPLICALBLE FOR RETIREES PRIOR TO 1-1-2007 and 2. scheme should not become a defined benefit pensionary scheme. So where will this fund be used?
13 hours ago · · 1 person
Badrinath Vasandi Mr. Mathre Rangarajan...from the above should we not take:
1) this 30% for pension is applicable w.e.f. 1.1.7 and not for those who retired prior to that>
2) from letter dt. 20.7.11, should we not take that it is not for retirees of ONGC.....even for those who have retired prior to 1.1.7
3) some where i have read that they will keep this fund under the Administrative Ministry and use for emergency medical needs like Insurance company...through this fund retired employees of sick and loss making PSUs would also be covered..
28 minutes ago ·
Badrinath Vasandi Mr. Nirmal Kumar Srivastava...still we are entitled for profit sharing out of 1.5%?
26 minutes ago ·
Write a comment...
By Badrinath Vasandi
Mathre Rangarajan Dear Nirmal Kumar Ji - I could not find DPE OM dt 29 dec 2010 on DPE web site. But DPE OM dt 20 July 2011 is interesting:
No. 2(81)/08-DPE(WC)GL-IXl/201
1
Government of India '
Ministry of Heavy Industries & Public Enterprises
Department of Public Enterprises
Public Enterprises Bhawan
Block No. 14, CGO Complex, Lodhi Road, New Delhi-110003
Dated:20 July, 2011
OFFICE MEMORANDUM
Sub: Creation of Corpus for retired employees of CPSEs
The undersigned is directed to refer to O.M. of even number dated
8.07.2009 on the subject mentioned above providing Board of Directors of each CPSE to frame a suitable scheme keeping in view the guidelines contained in the aforesaid OM., based on their need and affordability and submit proposal to the Administrative Ministry/Department for approval. Subsequent to issue of O.M. dated 08.07.2009, a number of representations have been received in this Department, requesting for modifications in the Scheme. Government has accordingly reviewed the efficacy of the scheme as conveyed in O.M. of even number dated 08.07.2009.
2. In view of the above, the following has been decided:-
i) Administrative Ministry/Department may consider creating a common corpus for the retired employees of the CPSEs, under their Administrative control. The purpose of the corpus would be to take care of medical and any 'other emergency needs of retired employees.
ii) Each CPSE under the Administrative Ministry/ Department, to contribute not more than 1.5% of its PBT for the above said corpus.
iii) A Committee, headed by an Independent Director, to be decided by Ministry/Department may be formed by the respective administrative Ministry/ Department for implementation of said corpus.
iv) Scheme based on individual CPSE as conveyed in Oi.M. dated 08.07.2009 to continue but basic conditions like not more than! 1.5% PBT (whether Ministry/Department based and/or individual "CPSE"based) and no budgetary support by Government would apply to the Ministry/Department based scheme proposed now. Therefore, there may be a situation, where a CPSE under a Ministry/Department may have a separate scheme for its retired employees, but at the same time contribute to common corpus for retired employees of other CPSE(s) under Administrative Ministry/Department. In such cases also the total contribution will not exceed 1.5% of PBT of a particular financial year. For individual CPSE based scheme, constitution of Committee will be that as already indicated in para 5(iii) of O.M. dated 08.02.2009.
v) Purpose of the scheme (Individual or Common corpus under a Ministry/ Department for its CPSEs) to be as per from 2(i) above. The scheme may be implemented preferably through approved Insurance Companies. It is clarified that scheme should not become a defined benefit pensionary scheme.
vi) The benefits under the Scheme may vary from year to year depending upon the contribution by CPSE(s") in a particular year as the contribution is in turn dependent on the Profits, affordability and sustainabililty of the CPSE(s) concerned.
vii) The issue of 'emergency needs' may be decided based on the principles of fairness, transparency, functional requirement, affordability sectoral similarities and sustainability of the common corpus, etc., with the prior approval of the aforesaid Committee.
viii) Such corpus will cover only those employees of CPSEs, who retired prior to 01.01.2007.
3. Administrative Ministries/Departments may suitably issue instructions to the CPSEs under their administrative control for their information and necessary action.
This issues with the approval of Minister (HL&PE).
sd/-
(P. J. Michael)
Under Secretary
"**"******
To: All Administrative Ministries/Departments
Copy to:
1. Chief Executive of CPSEs.
Tel: 24360823
>«**<*
2. Financial Advisors in the Administrative Ministries/Departments.
3. Comptroller &, Auditor General of India (Commercial Aijjdit Wing), 9 Deen
Dayal Uadhayay Marg, New Delhi.
4. NIC - with the request to upload this O.M. on to the DPE website.
5. All officers of DPE.
TWO THINGS TO BE NOTED 1. THIS CORPUS IS APPLICALBLE FOR RETIREES PRIOR TO 1-1-2007 and 2. scheme should not become a defined benefit pensionary scheme. So where will this fund be used?
13 hours ago · · 1 person
Badrinath Vasandi Mr. Mathre Rangarajan...from the above should we not take:
1) this 30% for pension is applicable w.e.f. 1.1.7 and not for those who retired prior to that>
2) from letter dt. 20.7.11, should we not take that it is not for retirees of ONGC.....even for those who have retired prior to 1.1.7
3) some where i have read that they will keep this fund under the Administrative Ministry and use for emergency medical needs like Insurance company...through this fund retired employees of sick and loss making PSUs would also be covered..
28 minutes ago ·
Badrinath Vasandi Mr. Nirmal Kumar Srivastava...still we are entitled for profit sharing out of 1.5%?
26 minutes ago ·
Write a comment...
State Has Constitutional Oboigation To Bear Medical Expenses Of Employees Including Retirees
STATE HAS A CONSTITUTIONAL OBLIGATION TO BEAR THE MEDICAL
EXPENSES OF EMPLOYEES WHILE IN SERVICE AND ALSO AFTER THEY
ARE RETIRED - WHETHER A MEMBER OF CGHS OR NOT
DELHI H C GRANTS REIMBURSEMENT WITH 18% INTEREST
1. By the present petition filed under Article 226 of the Constitution of India, the
petitioner seeks directions to direct the respondents for reimbursement of the medical
expenses incurred by the petitioner.
2. The issue is no more res Integra as in the case of S K Sharma (supra), this Court
clearly held that the petitioner after getting retired cannot be denied the benefit of the
medical reimbursement simply because of the fact that he did not opt for the said
scheme.
3. In this case also the claim of the employee was rejected on the ground that he
was not covered under the CGHS Rule not being a part of the scheme but still a retired
Central Government employee residing in non-CGHS area can make a CGHS card for
himself and his dependent family members from the nearest centre where CGHS is
functional.
4. Further placing reliance on some authoritative pronouncements of the Apex Court,
this Court in the above case took a view that the petitioner cannot be discriminated
against, merely because he is not a member of the CGHS scheme as he was staying in
a non-CGHS area.
5. In this cIt is a settled legal position that the Government employee during his life
time or after his retirement is entitled to get the benefit of the medical facilities and no
fetters can be placed on his rights on the pretext that he has not opted to become a
member of the scheme or had paid the requisite subscription after having undergone the
operation or any other medical treatment.
6. Under Article 21 of the Constitution of India, the State has a constitutional
obligation to bear the medical expenses of Government employees while in service and
also after they are retired.
7. Clearly in the present case by taking a very inhuman approach, these officials
have denied the grant of medical reimbursement to the W P (C) No 889/2007 petitioner
forcing him to approach this Court.
8. The respondents did not bother even after the judgment of this Court was brought
to their notice and copy of the same was placed by the petitioner along with the present
petition.
9. The respondents are directed to pay the said medical claim of the petitioner along
with 18% interest from the date of submission of his bill. The said payment shall be made
by the respondent within one month from the date of this order. Additional costs of Rs.
10,000/- is also imposed on the respondents for causing delay in making the said
payment to the petitioner.
[Kishan Chand vs Govt of NCT of Delhi & Ors - Delhi High Court - WP(C) No 889 /2007
EXPENSES OF EMPLOYEES WHILE IN SERVICE AND ALSO AFTER THEY
ARE RETIRED - WHETHER A MEMBER OF CGHS OR NOT
DELHI H C GRANTS REIMBURSEMENT WITH 18% INTEREST
1. By the present petition filed under Article 226 of the Constitution of India, the
petitioner seeks directions to direct the respondents for reimbursement of the medical
expenses incurred by the petitioner.
2. The issue is no more res Integra as in the case of S K Sharma (supra), this Court
clearly held that the petitioner after getting retired cannot be denied the benefit of the
medical reimbursement simply because of the fact that he did not opt for the said
scheme.
3. In this case also the claim of the employee was rejected on the ground that he
was not covered under the CGHS Rule not being a part of the scheme but still a retired
Central Government employee residing in non-CGHS area can make a CGHS card for
himself and his dependent family members from the nearest centre where CGHS is
functional.
4. Further placing reliance on some authoritative pronouncements of the Apex Court,
this Court in the above case took a view that the petitioner cannot be discriminated
against, merely because he is not a member of the CGHS scheme as he was staying in
a non-CGHS area.
5. In this cIt is a settled legal position that the Government employee during his life
time or after his retirement is entitled to get the benefit of the medical facilities and no
fetters can be placed on his rights on the pretext that he has not opted to become a
member of the scheme or had paid the requisite subscription after having undergone the
operation or any other medical treatment.
6. Under Article 21 of the Constitution of India, the State has a constitutional
obligation to bear the medical expenses of Government employees while in service and
also after they are retired.
7. Clearly in the present case by taking a very inhuman approach, these officials
have denied the grant of medical reimbursement to the W P (C) No 889/2007 petitioner
forcing him to approach this Court.
8. The respondents did not bother even after the judgment of this Court was brought
to their notice and copy of the same was placed by the petitioner along with the present
petition.
9. The respondents are directed to pay the said medical claim of the petitioner along
with 18% interest from the date of submission of his bill. The said payment shall be made
by the respondent within one month from the date of this order. Additional costs of Rs.
10,000/- is also imposed on the respondents for causing delay in making the said
payment to the petitioner.
[Kishan Chand vs Govt of NCT of Delhi & Ors - Delhi High Court - WP(C) No 889 /2007
Implementation of EPS 1995
Sub : Implementation of EPS 1995 – Pensionary Benefits to EPF Members who had not opted for EFPS 1971 Scheme – Reg
By Badrinath Vasandi
ension under EPS-1995 : Reproduced below is an important letter for reference as our number of cases are yet lying undecided. In terms of para -4 (A) it seems that the employees of EPF 1952 who had not opted for EFPS 1971 w.e.f. 1.3.1971 onward and upto 15.1..1995 but retired on or after 1.4.1993 can opt toEPS 1995 Scheme by remitting the required contribution for the period together with interest @ 8.5% PA tro become member of EPS 1995 w.e.f. 16.11.1995, as contemplated under para 17 (3) of EPS 1995
________________________________________________________________________
080 – 22230059 e-mail : rpfcbglr@vsnl.net
Tel/Fax : 080-22273991 EPF Organisation
(Ministry of Labour, Govt. of India), Karnataka Region
“Bhavishyanidhi Bhavan”, # 13, Raja Rammohan Roy Road,
P.B. No. 2584, Bangalore – 560 025.
No. KN/PF/Pen-I/164/2007. Dated : 22nd March 2007
To,
The Convener Cum Gen. Secretary,
All India Non-Pensioned Cum Senior
Citizens Retirees’ Association,
466, 5th ‘B’ Main, 5th Cross,
2nd Block, H.R.B.R. Layout,
Kalyan Nagar, Bangalore – 43.
Sir,
Sub : Implementation of EPS 1995 – Pensionary Benefits to EPF Members who had not opted for EFPS 1971 Scheme – Reg.
******
Please refer to your letter dated 9-2-07
2. Employees’ Provident Fund Miscellaneous Provisions Act, 1952 has been amended through an ordinance (13 of 1995) to institute Employees’ Pension Scheme for the Provident Fund subscribers. The ordinance has been replaced by the Employees’ Provident Fund and Miscellaneous Provisions (Amendment) Act, 1996 (25th of 1996 dated 16-8-1996) by the Parliament
3. The Scheme has come into effect from 16-11-95. However, the commencement of this Scheme is from 1-4-93 in respect of certain category of employees.
4. Clarification on the points raised by you are as follows:
A. The Employees’ of EPF 1952 who had not opted for EFPS 1971 w.e.f. 1-3-1971 onwards and upto 15-11-1995 but retired earlier to 1-4-1993 cannot opt tp EPS 1995 Scheme by remitting the required contributions for the period together with interest @ 8.5% PA to become members of EPS 1995 w.e.f. 16-11-1995, as contemplated under Para 17 (3) of EPS 1995.
B. Please note that immediately after the Gazette Notification of the Scheme, there was vide spread media coverage of the Implementation of the new Scheme in the Newspapers and other Medias. We have also organized a series of Seminars all over the country to enlighten the employers as well as employees. Besides that our Officers have been addressing the trade gatherings, industry association etc., regarding the salient features of the Scheme as and when they request. However, no individual instructions were issued to Public Sector Undertakings and Private Sectors to whom Employees’ Provident Fund 1952 Scheme applies, as it is not possible to individually addresses all employees as and when there is any change in the legal Provisions.
C. The amendment of the Employees’ Provident Fund & Miscellaneous Provisions Act, the formulation of Employees’ Pension Scheme, 1995, ncluding the eligibility criteria laid down therein, date of commencement of the Scheme etc., are all done with parliamentary approval as per the normal process of legislation. As such as per the existing legal Provisions, the benefit of Employees’ Pension Scheme 1995 cannot be extended to all retired employees of Employees’ Provident Fund 1952.
Yours faithfully,
Sd/-
(K. Narayana)
Regional PF COMMISSIONER (P)
Regional Office, Bangalore.
By Badrinath Vasandi
ension under EPS-1995 : Reproduced below is an important letter for reference as our number of cases are yet lying undecided. In terms of para -4 (A) it seems that the employees of EPF 1952 who had not opted for EFPS 1971 w.e.f. 1.3.1971 onward and upto 15.1..1995 but retired on or after 1.4.1993 can opt toEPS 1995 Scheme by remitting the required contribution for the period together with interest @ 8.5% PA tro become member of EPS 1995 w.e.f. 16.11.1995, as contemplated under para 17 (3) of EPS 1995
________________________________________________________________________
080 – 22230059 e-mail : rpfcbglr@vsnl.net
Tel/Fax : 080-22273991 EPF Organisation
(Ministry of Labour, Govt. of India), Karnataka Region
“Bhavishyanidhi Bhavan”, # 13, Raja Rammohan Roy Road,
P.B. No. 2584, Bangalore – 560 025.
No. KN/PF/Pen-I/164/2007. Dated : 22nd March 2007
To,
The Convener Cum Gen. Secretary,
All India Non-Pensioned Cum Senior
Citizens Retirees’ Association,
466, 5th ‘B’ Main, 5th Cross,
2nd Block, H.R.B.R. Layout,
Kalyan Nagar, Bangalore – 43.
Sir,
Sub : Implementation of EPS 1995 – Pensionary Benefits to EPF Members who had not opted for EFPS 1971 Scheme – Reg.
******
Please refer to your letter dated 9-2-07
2. Employees’ Provident Fund Miscellaneous Provisions Act, 1952 has been amended through an ordinance (13 of 1995) to institute Employees’ Pension Scheme for the Provident Fund subscribers. The ordinance has been replaced by the Employees’ Provident Fund and Miscellaneous Provisions (Amendment) Act, 1996 (25th of 1996 dated 16-8-1996) by the Parliament
3. The Scheme has come into effect from 16-11-95. However, the commencement of this Scheme is from 1-4-93 in respect of certain category of employees.
4. Clarification on the points raised by you are as follows:
A. The Employees’ of EPF 1952 who had not opted for EFPS 1971 w.e.f. 1-3-1971 onwards and upto 15-11-1995 but retired earlier to 1-4-1993 cannot opt tp EPS 1995 Scheme by remitting the required contributions for the period together with interest @ 8.5% PA to become members of EPS 1995 w.e.f. 16-11-1995, as contemplated under Para 17 (3) of EPS 1995.
B. Please note that immediately after the Gazette Notification of the Scheme, there was vide spread media coverage of the Implementation of the new Scheme in the Newspapers and other Medias. We have also organized a series of Seminars all over the country to enlighten the employers as well as employees. Besides that our Officers have been addressing the trade gatherings, industry association etc., regarding the salient features of the Scheme as and when they request. However, no individual instructions were issued to Public Sector Undertakings and Private Sectors to whom Employees’ Provident Fund 1952 Scheme applies, as it is not possible to individually addresses all employees as and when there is any change in the legal Provisions.
C. The amendment of the Employees’ Provident Fund & Miscellaneous Provisions Act, the formulation of Employees’ Pension Scheme, 1995, ncluding the eligibility criteria laid down therein, date of commencement of the Scheme etc., are all done with parliamentary approval as per the normal process of legislation. As such as per the existing legal Provisions, the benefit of Employees’ Pension Scheme 1995 cannot be extended to all retired employees of Employees’ Provident Fund 1952.
Yours faithfully,
Sd/-
(K. Narayana)
Regional PF COMMISSIONER (P)
Regional Office, Bangalore.
Payment of difference of Gratuity to pre-1996 Central Government Pensioners - clarification regarding
Payment of difference of Gratuity to pre-1996 Central Government Pensioners - clarification regarding.
By Badrinath Vasandi
No. 38/42/2005-P&PW (F)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners' Welfare
3rd Floor, Loknayak Bhawan
New Delhi-110003
Dated 17th February 2005
OFFICE MEMORANDUM
Subject: Payment of difference of Gratuity to pre-1996 Central
Government Pensioners - clarification regarding.
The undersigned is directed to say that a number of representations have been
received seeking confirmation whether in pursuance of Supreme Court
=Judgement, vide this Department's OM No. 45/86/97-P&PW (A) Pt. I dated
04.12.2004; pre-1996 pensioners have been made eligible for receiving
additional gratuity. They have asked the concerned pensioners to apply to their
perspective Departments by furnishing details of PPO number, date of
retirement, rank details etc. It also contains a portion of the OM purported to
have been issued by this department but does not indicate the name of Officer
under whose signature it has been issued.
2.In view of the above, the factual position in the matter is as under:
(i)This Department has not issued any OM on 4.12.2004 granting additional
gratuity to pre-1996 pensioners as there is no such Supreme Court judgement
in that respect; and
(ii) The extracts of OM reproduced by them purported to have been issued
on =.12.2004 is in fact a portion of this Department's OM dated 4.12.2001
bringing out certain modifications to OM dated27.10.1997. In that OM, the
Government consequent upon acceptance of =he 5thPay Commission
recommendations, inter-alia, prescribed that 100% of DA be added to the=ay
and on this the retirement/death gratuity be calculated. This was made
effective from 1.1.1996. It did not change any provisions regarding percentage
on DA for those who retired before 1.1.1996. Vide OM dated 4.12.2001 the
Government clarified that the addition to DA for calculation of gratuity would be
applicable for calculation of all types of gratuities like death/ retirement/
service gratuity. In this OM also there is no change in other provisions of OM
dated 27.10.1997 including the cut-off date of1.1.1996. This was further
clarified vide para (ii) of OM dated 18.2.2003. Hence, prior to =.1.1996, only
basic pay was reckoned as emoluments for computation of gratuity. =t has not
been agreed to extend the benefits to retirees prior to 1.1.1996 as =or grant of
any benefit, prescription of a cut-off-date is essential keeping in view various
constraints including financial constraints.
( M.P. Singh )
Director (PP)
2
Tel. 24624802
To
1. 'persmin.nic.in' - website of the Ministry of Personnel, PG & Pensions
2. All Ministries/Departments of Government of India
3. Copy to F&AG
4. Controller General of Accounts
5. Controller of General of Defence Accounts
6. As per standard Mailing list.
By Badrinath Vasandi
No. 38/42/2005-P&PW (F)
Government of India
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners' Welfare
3rd Floor, Loknayak Bhawan
New Delhi-110003
Dated 17th February 2005
OFFICE MEMORANDUM
Subject: Payment of difference of Gratuity to pre-1996 Central
Government Pensioners - clarification regarding.
The undersigned is directed to say that a number of representations have been
received seeking confirmation whether in pursuance of Supreme Court
=Judgement, vide this Department's OM No. 45/86/97-P&PW (A) Pt. I dated
04.12.2004; pre-1996 pensioners have been made eligible for receiving
additional gratuity. They have asked the concerned pensioners to apply to their
perspective Departments by furnishing details of PPO number, date of
retirement, rank details etc. It also contains a portion of the OM purported to
have been issued by this department but does not indicate the name of Officer
under whose signature it has been issued.
2.In view of the above, the factual position in the matter is as under:
(i)This Department has not issued any OM on 4.12.2004 granting additional
gratuity to pre-1996 pensioners as there is no such Supreme Court judgement
in that respect; and
(ii) The extracts of OM reproduced by them purported to have been issued
on =.12.2004 is in fact a portion of this Department's OM dated 4.12.2001
bringing out certain modifications to OM dated27.10.1997. In that OM, the
Government consequent upon acceptance of =he 5thPay Commission
recommendations, inter-alia, prescribed that 100% of DA be added to the=ay
and on this the retirement/death gratuity be calculated. This was made
effective from 1.1.1996. It did not change any provisions regarding percentage
on DA for those who retired before 1.1.1996. Vide OM dated 4.12.2001 the
Government clarified that the addition to DA for calculation of gratuity would be
applicable for calculation of all types of gratuities like death/ retirement/
service gratuity. In this OM also there is no change in other provisions of OM
dated 27.10.1997 including the cut-off date of1.1.1996. This was further
clarified vide para (ii) of OM dated 18.2.2003. Hence, prior to =.1.1996, only
basic pay was reckoned as emoluments for computation of gratuity. =t has not
been agreed to extend the benefits to retirees prior to 1.1.1996 as =or grant of
any benefit, prescription of a cut-off-date is essential keeping in view various
constraints including financial constraints.
( M.P. Singh )
Director (PP)
2
Tel. 24624802
To
1. 'persmin.nic.in' - website of the Ministry of Personnel, PG & Pensions
2. All Ministries/Departments of Government of India
3. Copy to F&AG
4. Controller General of Accounts
5. Controller of General of Defence Accounts
6. As per standard Mailing list.
Workshop: Medical and Emergency Needs of Retired Employees of CPSEs Creation of Corpus By Badrinath Vasandi in EX-ONGCIANS
Workshop: Medical and Emergency Needs of Retired Employees of CPSEs Creation of Corpus By Badrinath Vasandi in EX-ONGCIANS
Venue & Date: 16th November, 2010 at SCOPE Complex, New Delhi.
National Institute of Personnel Management and Management & Leadership Development Centre organized a one day workshop on “Medical and Emergency Needs of Retired Employees of CPSEs - Creation of Corpus”.
Objectives of the Workshop
Dr. Jauhari lal, President MLDC and Former Director(HR), ONGC & Oil India Ltd. brought out briefly the objectives of the workshop as follows:
Understand the provisions and implications of the DPE guidelines issued vide their Office Memorandum No.2 (81)/08-DPE (WC)-GL-XVI/ 2009 dated 8 July 2009.
Sharing of information by PSUs on the status of implementing the above guidelines.
Options available to PSUs for medical facilities to retired employees.
Understanding “Emergency Needs” of retired employees as stipulated in the guidelines.
Formation of a model Scheme for creation of corpus.
Strategy for honoring the DPE guidelines.
Workshop Speakers
Dr. Nitish Sen Gupta, Chairman, BRPSE, Government of India.
Dr. U.D. Choubey, Director General, SCOPE & Former CMD, GAIL.
Shri Rajendra Kumar, Director, DPE, Government of India.
Shri K.Ramachandran Pillai, CMD, National Textile Corporation Ltd.
Dr. A.K. Balyan, MD, Petronet LNG and Former Director (HR), ONGC.
Shri R.S.Butola, MD, ONGC Videsh Ltd.
Shri G.L.Tandon, Former CMD, Coal India Ltd & Neyveli Lignite Corporation Ltd.
Shri B.K.Bakshi, Former CMD, Indian Oil Corporation Ltd.
Shri R.Srinivasana, Former Member (Per), ONGC.
Shri R.P. Singh, Director (Per), IFFCO.
Shri Neeraj Jain, IFFCO Tokyo Gen. Insurance Company.
Dr. Jauhari Lal, President, MLDC & Former Director (HR), ONGC & OIL.
Ms. Jatinder Peters, Vice Chairperson, NIPM (Delhi Chapter) & GM, ONGC.
The following presentations were made:
Shri M.B.Aparajit, Chief Manager, CIL.
Shri S.K.Singh, EA to Director (HR), OIL.
Ms. S. Swaminathan, Sr. Manager (HR), BHEL.
Shri A.K.Shah, GM (HR), ONGC.
Shri S.C.Mahato, Sr. Manager, GAIL.
60 executives from 18 organizations attended the workshop which included 10 retired executives from CPSEs. S/Sh. A.S.Soni, Former Director (Offshore), ONGC and Shri Ashok Anand, Former Director (Per), Oil India Ltd also attended it. The workshop was divided into 4 sessions i.e. 2 sessions before lunch and 2 sessions in the afternoon.
Welfare Steps for Retired Employees of CPSEs
Shri Rajendra Kumar, Director, DPE made a presentation on “Welfare Steps for Retired Employees of CPSEs”. In his presentation he brought out the following points:-
2nd pay revision committee met retired CPSEs executives including the All India Non-Pensioned Cum Senior Citizens Retirees’ Association, Bangalore.
The committee observed that while a few CPSEs provided post retirement medical benefit, most of the retired executives had no access to medical benefits.
Committee recommended up to 30% of basic pay towards superannuation benefit after providing for PF and gratuity a buffer available for pension and/or post retirement medical benefits. This was available only for those who superannuated after 15 years of service in a CPSE.
Corpus from 1 to 1.5% of PBT be created by CPSEs for medical and any other emergency needs for retired executives and also those who were not adequately covered by a pension scheme.
He further pointed out that the recommendations of the committee were circulated and suggestions were sought regarding feasibility and methodology of operationalising them. However DPE could receive only two responses without any specific comments. Subsequently these guidelines were issued. Creation of corpus was provided for benefit of those who had no support system like pension or medical benefit scheme. However for those retiring after 01.01.07, superannuation benefits up to 30% of basic pay + DA was provided which included CPF, Gratuity, Pension and Post Superannuation medical benefits. He further stated that CPSEs should make their own schemes to manage the fund or to operate through insurance companies.
With regard to OM dated 8th July, 2009, Shri Rajendra Kumar clarified that the schemes were to be formulated only where need was felt to take care of medical and any other emergency needs for those not covered by the pension scheme and / or post superannuation medical benefit scheme. Guidelines provided that not more than 1.5% of the PBT of previous year and even may be less
Depending on requirement to be earmarked for creating the corpus. Guidelines further provided for constituting a committee of Directors for deciding on distribution of funds and identifying areas of medical and emergency needs. However, there would be no budgetary support from the Government. The CPSEs would submit their proposals of the scheme to their respective Ministry/Department for approval. Sh.Rajendra Kumar mentioned that as per his knowledge, no CPSE had framed any scheme. However, some CPSEs had started framing the scheme to replace / supplement the existing scheme and they were considering paying a monthly amount to meet medical and emergency needs. He further clarified that the intention should not be to exhaust the funds but to provide for a reasonable support for medical or emergency requirements and the contribution might be flexible depending upon the CPSEs PBT.
Formation of Public Sector undertakings and its concept
Dr.U.D. Choubey DG, SCOPE and former CMD, GAIL in his special address traced the history of formation of Public Sector undertakings and its concept. These were created basically to modernize the process of industrialization of Indian economy in its various facets and also to reach the remotest and the most backward areas of the country for development. These were called as “Commanding heights and Modern temples of India”. The PSUs had made major contribution in the socio-economic development of the Country. PSUs at one time had 24 lakh employees which reduced to 15 lakh at present. It is because of their contribution, PSUs were now christened as Mini-Ratna, Nav-Ratna and Maha-Ratna companies. At present companies were contributing about Rs.100,000 crores as net profit every year and also contribute to Government every year as dividend. Because of profitability, about Rs.90,000 crores had been realized by the Government by way of disinvestment of PSUs.
Dr Choubey added that in view of the commitment and contribution made by the employees of CPSEs in the formative years, these companies were now the pride of the Nation. Therefore, social security of retired employees was not only an obligation but responsibility of the concerned PSU and also the Government. He suggested that the corpus at the national level could be created by contributing 0.1% every year of the net profit of PSUs. This could take care of the medical needs of the retired employees of CPSUs which were unable to meet their medical expenses because of their financial constraints. He recalled that a number of PSUs including GAIL had formulated medical schemes which were at par with the serving employees. DPE should come out with such a mandatory provision. He assured that the SCOPE would carry forward this issue with the higher Government level for equality and justice.
Last Session
During the course of subsequent discussions / interactions with the panel speakers and the participants, the following points were highlighted:
Retired employees are not to be viewed as wasted asset but as reserve and reservoir of valuable talent and experience on call at any time by the Govt or the CPSUs
It was unfair to employ differential concepts between the status of retired Govt employees and the CPSU retired employees.
The Supreme Court of India has held in number of decisions that CPSUs fall within the inclusive definition of ‘State’.
The Supreme Court has also held that the power of the Govt in the grant of any benefit should be structured by rational, relevant and non-discriminatory norms
Retirement benefits in whatever form are deferred wage in consideration of past service rendered sacrificing the prime of youth for the sake of the Govt (CPSU) and the benefit should be such that the retired employee is able to lead a dignified life maintaining, as far as possible, the standard of living he was used to during his service life.
The Apex Court has held that classification of retired employees for the purpose of retirement benefits should comply with article 14 of the Constitution.
Insistence on a minimum of 15 years of service in a CPSU is further discriminatory in as much as employees move from Govt. to CPSU or from one CPSU to another only to serve the larger interests of the Govt. and by the selection process of the Govt.
The DPE guidelines provide for the retired employees of only profit making companies. There are no guidelines for those employees of PSUs which do not have PBT.
The employees, per se, cannot be held responsible for the losses. There were many external reasons beyond their control.
Nevertheless Financial position of many of such companies is fast improving by way of “Turn around” strategies and measures.
The DPE guidelines are vague on the term “any emergency needs”.
Emergency needs may differ from person to person and place to place. Companies like SAIL, Coal India Ltd., BHEL having a large number of retired employees settled all over India will find it impossible to access the emergency needs of an individual. No company can create an establishment for this purpose. Moreover, this will lead to subjectivity.
The guidelines are not mandatory in nature and implementation is left to the discretion of the PSU management. The provision that the scheme may be set up where a need is felt is subjective in nature and is vulnerable to grossly discriminatory interpretations.
That no PSU has set up any scheme, demonstrates that either there is too much “vagueness” in the guidelines or there is sheer apathy in the PSU management or both.
This issue has to be seen in a larger perspective. This is an important issue of “social security” for which both the government and the concerned CPSUs have congruent responsibility.
Social security scheme particularly the medical scheme and the financial assistance after retirement are motivational for retention of talents in the core disciplines and core sectors in this era of competitive environment. There are enough examples of European, Canadian and American companies for ensuring “social security” of its retired employees.
Banking industry is very considerate to its retired employees and has given the second option to its retired employees to join the pension scheme.
A large majority of employees who retired 5,10 or 15 years back received meager superannuation benefits by way of CPF, gratuity etc. and their financial position is miserable in the absence of any financial help from their own organization or Government.
Guidelines talk about meeting ‘emergency needs’ which presumably are to meet the basic physical need of at least two square meals a day, clothing and toiletries for two persons and reasonable living accommodation and social needs for a decent living.
Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusions and 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.
The CPSUs could be divided into 3 categories for the above purpose :
Maharatna, Navaratna and Miniratna companies which have annual PBT from which 1-1.5% could be earmarked towards the corpus.
Other profit making PSUs
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.
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.
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.
Associates
Venue & Date: 16th November, 2010 at SCOPE Complex, New Delhi.
National Institute of Personnel Management and Management & Leadership Development Centre organized a one day workshop on “Medical and Emergency Needs of Retired Employees of CPSEs - Creation of Corpus”.
Objectives of the Workshop
Dr. Jauhari lal, President MLDC and Former Director(HR), ONGC & Oil India Ltd. brought out briefly the objectives of the workshop as follows:
Understand the provisions and implications of the DPE guidelines issued vide their Office Memorandum No.2 (81)/08-DPE (WC)-GL-XVI/ 2009 dated 8 July 2009.
Sharing of information by PSUs on the status of implementing the above guidelines.
Options available to PSUs for medical facilities to retired employees.
Understanding “Emergency Needs” of retired employees as stipulated in the guidelines.
Formation of a model Scheme for creation of corpus.
Strategy for honoring the DPE guidelines.
Workshop Speakers
Dr. Nitish Sen Gupta, Chairman, BRPSE, Government of India.
Dr. U.D. Choubey, Director General, SCOPE & Former CMD, GAIL.
Shri Rajendra Kumar, Director, DPE, Government of India.
Shri K.Ramachandran Pillai, CMD, National Textile Corporation Ltd.
Dr. A.K. Balyan, MD, Petronet LNG and Former Director (HR), ONGC.
Shri R.S.Butola, MD, ONGC Videsh Ltd.
Shri G.L.Tandon, Former CMD, Coal India Ltd & Neyveli Lignite Corporation Ltd.
Shri B.K.Bakshi, Former CMD, Indian Oil Corporation Ltd.
Shri R.Srinivasana, Former Member (Per), ONGC.
Shri R.P. Singh, Director (Per), IFFCO.
Shri Neeraj Jain, IFFCO Tokyo Gen. Insurance Company.
Dr. Jauhari Lal, President, MLDC & Former Director (HR), ONGC & OIL.
Ms. Jatinder Peters, Vice Chairperson, NIPM (Delhi Chapter) & GM, ONGC.
The following presentations were made:
Shri M.B.Aparajit, Chief Manager, CIL.
Shri S.K.Singh, EA to Director (HR), OIL.
Ms. S. Swaminathan, Sr. Manager (HR), BHEL.
Shri A.K.Shah, GM (HR), ONGC.
Shri S.C.Mahato, Sr. Manager, GAIL.
60 executives from 18 organizations attended the workshop which included 10 retired executives from CPSEs. S/Sh. A.S.Soni, Former Director (Offshore), ONGC and Shri Ashok Anand, Former Director (Per), Oil India Ltd also attended it. The workshop was divided into 4 sessions i.e. 2 sessions before lunch and 2 sessions in the afternoon.
Welfare Steps for Retired Employees of CPSEs
Shri Rajendra Kumar, Director, DPE made a presentation on “Welfare Steps for Retired Employees of CPSEs”. In his presentation he brought out the following points:-
2nd pay revision committee met retired CPSEs executives including the All India Non-Pensioned Cum Senior Citizens Retirees’ Association, Bangalore.
The committee observed that while a few CPSEs provided post retirement medical benefit, most of the retired executives had no access to medical benefits.
Committee recommended up to 30% of basic pay towards superannuation benefit after providing for PF and gratuity a buffer available for pension and/or post retirement medical benefits. This was available only for those who superannuated after 15 years of service in a CPSE.
Corpus from 1 to 1.5% of PBT be created by CPSEs for medical and any other emergency needs for retired executives and also those who were not adequately covered by a pension scheme.
He further pointed out that the recommendations of the committee were circulated and suggestions were sought regarding feasibility and methodology of operationalising them. However DPE could receive only two responses without any specific comments. Subsequently these guidelines were issued. Creation of corpus was provided for benefit of those who had no support system like pension or medical benefit scheme. However for those retiring after 01.01.07, superannuation benefits up to 30% of basic pay + DA was provided which included CPF, Gratuity, Pension and Post Superannuation medical benefits. He further stated that CPSEs should make their own schemes to manage the fund or to operate through insurance companies.
With regard to OM dated 8th July, 2009, Shri Rajendra Kumar clarified that the schemes were to be formulated only where need was felt to take care of medical and any other emergency needs for those not covered by the pension scheme and / or post superannuation medical benefit scheme. Guidelines provided that not more than 1.5% of the PBT of previous year and even may be less
Depending on requirement to be earmarked for creating the corpus. Guidelines further provided for constituting a committee of Directors for deciding on distribution of funds and identifying areas of medical and emergency needs. However, there would be no budgetary support from the Government. The CPSEs would submit their proposals of the scheme to their respective Ministry/Department for approval. Sh.Rajendra Kumar mentioned that as per his knowledge, no CPSE had framed any scheme. However, some CPSEs had started framing the scheme to replace / supplement the existing scheme and they were considering paying a monthly amount to meet medical and emergency needs. He further clarified that the intention should not be to exhaust the funds but to provide for a reasonable support for medical or emergency requirements and the contribution might be flexible depending upon the CPSEs PBT.
Formation of Public Sector undertakings and its concept
Dr.U.D. Choubey DG, SCOPE and former CMD, GAIL in his special address traced the history of formation of Public Sector undertakings and its concept. These were created basically to modernize the process of industrialization of Indian economy in its various facets and also to reach the remotest and the most backward areas of the country for development. These were called as “Commanding heights and Modern temples of India”. The PSUs had made major contribution in the socio-economic development of the Country. PSUs at one time had 24 lakh employees which reduced to 15 lakh at present. It is because of their contribution, PSUs were now christened as Mini-Ratna, Nav-Ratna and Maha-Ratna companies. At present companies were contributing about Rs.100,000 crores as net profit every year and also contribute to Government every year as dividend. Because of profitability, about Rs.90,000 crores had been realized by the Government by way of disinvestment of PSUs.
Dr Choubey added that in view of the commitment and contribution made by the employees of CPSEs in the formative years, these companies were now the pride of the Nation. Therefore, social security of retired employees was not only an obligation but responsibility of the concerned PSU and also the Government. He suggested that the corpus at the national level could be created by contributing 0.1% every year of the net profit of PSUs. This could take care of the medical needs of the retired employees of CPSUs which were unable to meet their medical expenses because of their financial constraints. He recalled that a number of PSUs including GAIL had formulated medical schemes which were at par with the serving employees. DPE should come out with such a mandatory provision. He assured that the SCOPE would carry forward this issue with the higher Government level for equality and justice.
Last Session
During the course of subsequent discussions / interactions with the panel speakers and the participants, the following points were highlighted:
Retired employees are not to be viewed as wasted asset but as reserve and reservoir of valuable talent and experience on call at any time by the Govt or the CPSUs
It was unfair to employ differential concepts between the status of retired Govt employees and the CPSU retired employees.
The Supreme Court of India has held in number of decisions that CPSUs fall within the inclusive definition of ‘State’.
The Supreme Court has also held that the power of the Govt in the grant of any benefit should be structured by rational, relevant and non-discriminatory norms
Retirement benefits in whatever form are deferred wage in consideration of past service rendered sacrificing the prime of youth for the sake of the Govt (CPSU) and the benefit should be such that the retired employee is able to lead a dignified life maintaining, as far as possible, the standard of living he was used to during his service life.
The Apex Court has held that classification of retired employees for the purpose of retirement benefits should comply with article 14 of the Constitution.
Insistence on a minimum of 15 years of service in a CPSU is further discriminatory in as much as employees move from Govt. to CPSU or from one CPSU to another only to serve the larger interests of the Govt. and by the selection process of the Govt.
The DPE guidelines provide for the retired employees of only profit making companies. There are no guidelines for those employees of PSUs which do not have PBT.
The employees, per se, cannot be held responsible for the losses. There were many external reasons beyond their control.
Nevertheless Financial position of many of such companies is fast improving by way of “Turn around” strategies and measures.
The DPE guidelines are vague on the term “any emergency needs”.
Emergency needs may differ from person to person and place to place. Companies like SAIL, Coal India Ltd., BHEL having a large number of retired employees settled all over India will find it impossible to access the emergency needs of an individual. No company can create an establishment for this purpose. Moreover, this will lead to subjectivity.
The guidelines are not mandatory in nature and implementation is left to the discretion of the PSU management. The provision that the scheme may be set up where a need is felt is subjective in nature and is vulnerable to grossly discriminatory interpretations.
That no PSU has set up any scheme, demonstrates that either there is too much “vagueness” in the guidelines or there is sheer apathy in the PSU management or both.
This issue has to be seen in a larger perspective. This is an important issue of “social security” for which both the government and the concerned CPSUs have congruent responsibility.
Social security scheme particularly the medical scheme and the financial assistance after retirement are motivational for retention of talents in the core disciplines and core sectors in this era of competitive environment. There are enough examples of European, Canadian and American companies for ensuring “social security” of its retired employees.
Banking industry is very considerate to its retired employees and has given the second option to its retired employees to join the pension scheme.
A large majority of employees who retired 5,10 or 15 years back received meager superannuation benefits by way of CPF, gratuity etc. and their financial position is miserable in the absence of any financial help from their own organization or Government.
Guidelines talk about meeting ‘emergency needs’ which presumably are to meet the basic physical need of at least two square meals a day, clothing and toiletries for two persons and reasonable living accommodation and social needs for a decent living.
Conclusions and Recommendations
In the light of discussion, interaction and deliberations the following conclusions and 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.
The CPSUs could be divided into 3 categories for the above purpose :
Maharatna, Navaratna and Miniratna companies which have annual PBT from which 1-1.5% could be earmarked towards the corpus.
Other profit making PSUs
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.
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.
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.
Associates
ONGC Retired Officers’ conclave begins in Doon
ONGC Retired Officers’ conclave begins in Doon
ONGC venturing into power, petro-chemicals sector: Balyan
By our staff reporter
Dehradun, 12 Dec: A two-day conclave of ONGC Retired Officers was inaugurated in Doon, today. It was a house-full view at the Nehru Auditorium of the ONGC Academy with retired officers from across the country assembled for the first such conclave in the history of the ONGC Retired Officers’ Association. The conclave could become a reality due to the efforts of the newly elected President of ONGC Retired Officers’ Association, Dr KL Goyal, former Director, Institute of Management Development, now called ONGC Academy, and the executive body of the Association.
Director (HR), Dr AK Balyan was invited by the association to attend the conclave as the Chief Guest. Dr Balyan was accompanied by Sundar Lal, GGM-Chief, ER and Dr Tarun Chakraborti, GGM-HOI-ONGC Academy at the conclave.
Addressing the retired officers, Dr Balyan spoke about the excellent performance of ONGC in its core area of exploration and in terms of highest net profit earning. At the same time, he also expressed his concern over production targets. Dr Balyan spoke highly of the performance of ONGC Videsh in the last 4 to 5 years, making it the biggest investor abroad and also the number 2 company in terms of oil and gas production in India.
In its pursuit of becoming an integrated oil and gas company, ONGC is venturing into the power sector in Tripura and the petro-chemicals sector by establishing joint-ventures with the respective state governments, Dr Balyan said. He was of the opinion that through these joint ventures, ONGC would generate financial resources that would provide cover to the risks of its core activity of exploration.
Dr Balyan expressed the hope that in recognition of the excellent performance and strategic plans of the company, ONGC would soon acquire ‘Maharatna’ status from the Government of India.
Dr Balyan appreciated the idea of the conclave and complimented Dr Goyal and his team for holding it. He advised the retired officers to make suggestions and contribute through their expertise. He promised that their opinions would be duly considered by the management. Dr Balyan suggested the retired officers emulate the examples set by some former ONGCians, who are serving society through NGOs.
In his final remarks, Dr Balyan advised the ONGC Retired Officers’ Association to bring out a publication containing news items, articles and expert opinions by the domain experts among the retired officers. He assured financial support for the publication.
Earlier, Dr KL Goyal, President, ONGC Retired Officers’ Association, welcomed the Chief Guest, Dr Balyan and all the former ONGCians for attending the conclave in such large numbers. In his welcome address, Dr Goyal requested Director (HR) to look into the issues raised by the Association sympathetically.
Former Member (Exploration), SN Talukdar, along with the office-bearers of the association, were also present on the occasion.
MP Sharma, Secretary, ONGC Retired Officers’ Assoc
ONGC venturing into power, petro-chemicals sector: Balyan
By our staff reporter
Dehradun, 12 Dec: A two-day conclave of ONGC Retired Officers was inaugurated in Doon, today. It was a house-full view at the Nehru Auditorium of the ONGC Academy with retired officers from across the country assembled for the first such conclave in the history of the ONGC Retired Officers’ Association. The conclave could become a reality due to the efforts of the newly elected President of ONGC Retired Officers’ Association, Dr KL Goyal, former Director, Institute of Management Development, now called ONGC Academy, and the executive body of the Association.
Director (HR), Dr AK Balyan was invited by the association to attend the conclave as the Chief Guest. Dr Balyan was accompanied by Sundar Lal, GGM-Chief, ER and Dr Tarun Chakraborti, GGM-HOI-ONGC Academy at the conclave.
Addressing the retired officers, Dr Balyan spoke about the excellent performance of ONGC in its core area of exploration and in terms of highest net profit earning. At the same time, he also expressed his concern over production targets. Dr Balyan spoke highly of the performance of ONGC Videsh in the last 4 to 5 years, making it the biggest investor abroad and also the number 2 company in terms of oil and gas production in India.
In its pursuit of becoming an integrated oil and gas company, ONGC is venturing into the power sector in Tripura and the petro-chemicals sector by establishing joint-ventures with the respective state governments, Dr Balyan said. He was of the opinion that through these joint ventures, ONGC would generate financial resources that would provide cover to the risks of its core activity of exploration.
Dr Balyan expressed the hope that in recognition of the excellent performance and strategic plans of the company, ONGC would soon acquire ‘Maharatna’ status from the Government of India.
Dr Balyan appreciated the idea of the conclave and complimented Dr Goyal and his team for holding it. He advised the retired officers to make suggestions and contribute through their expertise. He promised that their opinions would be duly considered by the management. Dr Balyan suggested the retired officers emulate the examples set by some former ONGCians, who are serving society through NGOs.
In his final remarks, Dr Balyan advised the ONGC Retired Officers’ Association to bring out a publication containing news items, articles and expert opinions by the domain experts among the retired officers. He assured financial support for the publication.
Earlier, Dr KL Goyal, President, ONGC Retired Officers’ Association, welcomed the Chief Guest, Dr Balyan and all the former ONGCians for attending the conclave in such large numbers. In his welcome address, Dr Goyal requested Director (HR) to look into the issues raised by the Association sympathetically.
Former Member (Exploration), SN Talukdar, along with the office-bearers of the association, were also present on the occasion.
MP Sharma, Secretary, ONGC Retired Officers’ Assoc
Ex-Gracia Scheme of IOCL By Badrinth Vasandi
Ex Gratia Scheme of IOCL
By Badrinath Vasandi
Ex Gratia Scheme
Indian Oil announced on 19th December 2003 the Ex-gratia Scheme for retired employees effective 1st December 2003. The sailent features of the scheme are given below:
Ex employees who superannuated / voluntarily retired from IOC or died, before induction of the SBF Scheme after rendering a minimum of 15 years service would be covered.
In case of death of an ex-employee (who superannuated as above) his / her spouse will be paid the applicable ex gratia amount till his / her death.
Ex-employees drawing pension under SBF less than that proposed under the Ex Gratia Scheme (Pension amount under SBF would be what he would have received as standard pension had he not commuted 1/3rd of the annually) are eligible to draw the differential.
Full time Directors will be eligible subject to the above conditions.
Spouses of deceased eligible employees benefiting from FPS 1971 would get Ex Gratia payment without any adjustment on this account.
Ex-employees who’s spouses or dependents son / daughter have been employed in IOC on compassionate ground are not eligible to benefit under the scheme.
The ex-employee must not have been dismissed / terminated / removed or abandoned the services, or resigned / deemed to have resigned or separated from IOC on premature retirement.
For deputationist, the service reckoned in IOC would be from the date of absoption.
Payment of Ex-Gratia (per month)
Grade Amt Grade Amt Grade Amt
A 2000 D 3000 G 3800
B 2200 E 3200 H 4000
C 2400 F 3400 I 4200
General
All retirees who are eligible to benefit from the scheme should immediately get in touch with their Divisions / Regions / Refinery Units from where they retired to put in their claims.
Your association had always promised those officers who retired before 1987 and were not getting any pension that their cause would be vigorously pursued. We have achieved success in this.
Subsequent to the above, the following amendments / clarifications have been issued by IOC management.
For calculating service put in by an employee, service either with Government or a PSU immediately prior to joining service in IOC will be taken into consideration, as is the case under the Superannuation Benefit Fund Scheme.
The amount of pension being drawn by them for the service rendered in Government or any PSU prior to joining IOC will also be deducted while working our the ex-gratia amount admissible to such an ex-employee.
As 1st Class Magistrates are not available at all places, the declaration made in the affidavit sworn before Oath Commissioner / Notary Public will be accepted as proof of having rendered the requisite service in IOC. Further, the life certificate given by the Branch Manager of any Scheduled Bank will be accepted under the above scheme.
There are other issues pertaining to the Ex-Gratia Scheme which need a review, and have been taken up with the IOC management.
Upon review of the above provision, the following modifications have been approved for superannuation and death / permanent total disablement cases effective 1 July 2006.
In the case of superannuation, the ex-employee should have rendered a minimum service of 5 years prior to introduction of SBF Scheme in IOC instead of 15 years of service.
In the case of death / permanent total disablement, there would be no minimum service requirement.
The ex-gratia benefit to ex-employee who are now covered under the modified eligibility criteria of minimum service will be extended w.e.f. 1st July 2006.
A list of representations received from the ex-employees or spouse of decreased employees, who may now become eligible under the modified provisions for payment of ex-gratia is enclosed for further action please. Divisions may intimate the details of the cases processed by 31.8.2006.
Ex-gratia Scheme for Ex-Employees
Submission of Life Certificate
As per the existing Ex-gratia Scheme, one of the general conditions for drawl of Ex-gratia is that the recipient is required to produce Life Certificate in the prescribed formal certified by Gazetted Officer or serving Sr. Manager or above of IOC to the concerned disbursing authority every year in the month of November.
Upon review, it has been decided that the retired employees may be allowed to submit the ‘Life Certificate’ on self-certification basis every year in the month of November in the prescribed proforma (Annexure-VA). In case of death of the retired employee, the spouse shall be required to submit the ‘Life Certificate’ as per the original provision for the first time as per Annexure-V and subsequently, the spouse may also submit the certificate as per Annexure-VA on self-certification basis every year.
The above may please be brought to the notice of all concerned.
Maximum Ceiling of Bed Entitlements
A Metro Cities
Nominated Hospitals Non-Nominated Hospitals
Category NR WR ER SR NR WR ER SR
Officers:
Gd. A 1530 1530 1530 1530 1155 1155 1155 1155
Gd. B & C 2065 2065 2065 1645 1565 1565 1565 1245
Gd. D to F* 3220 3220 3220 2475 2450 2450 2450 1855
*(limited to monetary ceiling *(limited to monetary ceiling or
Or actual AC single room actual AC single room charges,
Charges, whichever is Lower) whichever is lower)
Gd. G & Actual for AC Single Room Actual for AC Single Room
above
B. Other Than Metro Cities
Nominated Hospitals Non-Nominated Hospitals
Category NR WR ER SR NR WR ER SR
Officers:
Gd. A 920 920 920 920 690 690 690 690
Gd. B & C 1245 1245 1245 990 935 935 935 745
Gd. D to F* 1925 1925 1925 1490 1455 1455 1455 1110
*(limited to monetary ceiling *(limited to monetary ceiling or
Or actual AC single room actual AC single room charges,
Charges, whichever is Lower) whichever is lower)
Gd. G & Actual for AC Single Room Actual for AC Single Room
above
Revision of Ex-Gratia Amount to Ex-Employees
Corporation had introduced an Ex-gratia Scheme w.e.f. 1st Dec.2003 for the benefit of ex-employees, who retired prior to introduction of IOCL SBF Scheme i.e., 1st Nov. 1987 as conveyed vide IOM of even number dated 19.12.2003 and 11.07.2006. The ex-employees whose monthly benefit under the SBF Scheme was less than the benefit envisaged under Ex-gratia Scheme were also covered for payment of the differential amount.
Upon review, it has been decided to revise the Ex-gratia amount as under w.e.f. 01.08.2008.
Salary Grade Existing Ex-Gratia Revised Ex-Gratia
Ref./PL/R&D Mktg./IBP Amount (p.m.) (Rs.) Amount (p.m.) (Rs.)
A 2000 2800
B 2200 3100
C 2400 3400
D 3000 4200
E 3200 4500
F 3400 4800
G 3800 5300
H 4000 5600
I 4200 5900
Director 4200 6500
However, all other eligibility conditions for grant of Ex-gratia will remain unchanged
By Badrinath Vasandi
Ex Gratia Scheme
Indian Oil announced on 19th December 2003 the Ex-gratia Scheme for retired employees effective 1st December 2003. The sailent features of the scheme are given below:
Ex employees who superannuated / voluntarily retired from IOC or died, before induction of the SBF Scheme after rendering a minimum of 15 years service would be covered.
In case of death of an ex-employee (who superannuated as above) his / her spouse will be paid the applicable ex gratia amount till his / her death.
Ex-employees drawing pension under SBF less than that proposed under the Ex Gratia Scheme (Pension amount under SBF would be what he would have received as standard pension had he not commuted 1/3rd of the annually) are eligible to draw the differential.
Full time Directors will be eligible subject to the above conditions.
Spouses of deceased eligible employees benefiting from FPS 1971 would get Ex Gratia payment without any adjustment on this account.
Ex-employees who’s spouses or dependents son / daughter have been employed in IOC on compassionate ground are not eligible to benefit under the scheme.
The ex-employee must not have been dismissed / terminated / removed or abandoned the services, or resigned / deemed to have resigned or separated from IOC on premature retirement.
For deputationist, the service reckoned in IOC would be from the date of absoption.
Payment of Ex-Gratia (per month)
Grade Amt Grade Amt Grade Amt
A 2000 D 3000 G 3800
B 2200 E 3200 H 4000
C 2400 F 3400 I 4200
General
All retirees who are eligible to benefit from the scheme should immediately get in touch with their Divisions / Regions / Refinery Units from where they retired to put in their claims.
Your association had always promised those officers who retired before 1987 and were not getting any pension that their cause would be vigorously pursued. We have achieved success in this.
Subsequent to the above, the following amendments / clarifications have been issued by IOC management.
For calculating service put in by an employee, service either with Government or a PSU immediately prior to joining service in IOC will be taken into consideration, as is the case under the Superannuation Benefit Fund Scheme.
The amount of pension being drawn by them for the service rendered in Government or any PSU prior to joining IOC will also be deducted while working our the ex-gratia amount admissible to such an ex-employee.
As 1st Class Magistrates are not available at all places, the declaration made in the affidavit sworn before Oath Commissioner / Notary Public will be accepted as proof of having rendered the requisite service in IOC. Further, the life certificate given by the Branch Manager of any Scheduled Bank will be accepted under the above scheme.
There are other issues pertaining to the Ex-Gratia Scheme which need a review, and have been taken up with the IOC management.
Upon review of the above provision, the following modifications have been approved for superannuation and death / permanent total disablement cases effective 1 July 2006.
In the case of superannuation, the ex-employee should have rendered a minimum service of 5 years prior to introduction of SBF Scheme in IOC instead of 15 years of service.
In the case of death / permanent total disablement, there would be no minimum service requirement.
The ex-gratia benefit to ex-employee who are now covered under the modified eligibility criteria of minimum service will be extended w.e.f. 1st July 2006.
A list of representations received from the ex-employees or spouse of decreased employees, who may now become eligible under the modified provisions for payment of ex-gratia is enclosed for further action please. Divisions may intimate the details of the cases processed by 31.8.2006.
Ex-gratia Scheme for Ex-Employees
Submission of Life Certificate
As per the existing Ex-gratia Scheme, one of the general conditions for drawl of Ex-gratia is that the recipient is required to produce Life Certificate in the prescribed formal certified by Gazetted Officer or serving Sr. Manager or above of IOC to the concerned disbursing authority every year in the month of November.
Upon review, it has been decided that the retired employees may be allowed to submit the ‘Life Certificate’ on self-certification basis every year in the month of November in the prescribed proforma (Annexure-VA). In case of death of the retired employee, the spouse shall be required to submit the ‘Life Certificate’ as per the original provision for the first time as per Annexure-V and subsequently, the spouse may also submit the certificate as per Annexure-VA on self-certification basis every year.
The above may please be brought to the notice of all concerned.
Maximum Ceiling of Bed Entitlements
A Metro Cities
Nominated Hospitals Non-Nominated Hospitals
Category NR WR ER SR NR WR ER SR
Officers:
Gd. A 1530 1530 1530 1530 1155 1155 1155 1155
Gd. B & C 2065 2065 2065 1645 1565 1565 1565 1245
Gd. D to F* 3220 3220 3220 2475 2450 2450 2450 1855
*(limited to monetary ceiling *(limited to monetary ceiling or
Or actual AC single room actual AC single room charges,
Charges, whichever is Lower) whichever is lower)
Gd. G & Actual for AC Single Room Actual for AC Single Room
above
B. Other Than Metro Cities
Nominated Hospitals Non-Nominated Hospitals
Category NR WR ER SR NR WR ER SR
Officers:
Gd. A 920 920 920 920 690 690 690 690
Gd. B & C 1245 1245 1245 990 935 935 935 745
Gd. D to F* 1925 1925 1925 1490 1455 1455 1455 1110
*(limited to monetary ceiling *(limited to monetary ceiling or
Or actual AC single room actual AC single room charges,
Charges, whichever is Lower) whichever is lower)
Gd. G & Actual for AC Single Room Actual for AC Single Room
above
Revision of Ex-Gratia Amount to Ex-Employees
Corporation had introduced an Ex-gratia Scheme w.e.f. 1st Dec.2003 for the benefit of ex-employees, who retired prior to introduction of IOCL SBF Scheme i.e., 1st Nov. 1987 as conveyed vide IOM of even number dated 19.12.2003 and 11.07.2006. The ex-employees whose monthly benefit under the SBF Scheme was less than the benefit envisaged under Ex-gratia Scheme were also covered for payment of the differential amount.
Upon review, it has been decided to revise the Ex-gratia amount as under w.e.f. 01.08.2008.
Salary Grade Existing Ex-Gratia Revised Ex-Gratia
Ref./PL/R&D Mktg./IBP Amount (p.m.) (Rs.) Amount (p.m.) (Rs.)
A 2000 2800
B 2200 3100
C 2400 3400
D 3000 4200
E 3200 4500
F 3400 4800
G 3800 5300
H 4000 5600
I 4200 5900
Director 4200 6500
However, all other eligibility conditions for grant of Ex-gratia will remain unchanged
IOC Superannuation Benefit Fund scheme By Badrinath Vasandi
IOC Superannuation Benefit Fund scheme
By Badrinath Vasandi
Indian Oil Corporation Limited
Superannuation Benefit Fund scheme
I N D E X
1. Introduction
2. Applicability
3. Eligibility
4. Contributions
a. Corporation’s Contribution
b. Contributions by the employees.
c. Other Contributions
d. Deputed employees retaining lien
5. Contributions during period of leave/suspension
6. Transfer of Rehabilitation Grant
7. Refund of Contribution
8. Benefits
9. Annuity Option offered by LIC
10. Reckonable & Past Service
a. Transfer cases
b. Period included for the purpose of reckonable
service
11. Review of the Scheme
12. Administration of the Scheme
13. Description of forms for claiming benefit
Forms to be filled / Annexure A to H
14. Scheme for rehabilitation of the family of the
employee dying or suffering permanent total
disablement while in service.
15. Hypothetical illustration for calculation of
reckonable service and recurring benefit under
SBF Scheme
IOCL EMPLOYEES’ SUPERANNUATION BENEFIT FUND SCHEME
1.0 Introduction
1.1 A voluntary and contributory Superannuation Benefit Fund Scheme
has been introduced in the Corporation as a welfare measure for
providing social security. Specified benefits under the scheme accrue
to members on fulfillment of laid-down conditions, in the following
events:
i. Retirement on attaining the age of superannuation.
ii. Death/permanent total disablement.
iii. Separation, after rendering a prescribed minimum service.
(The benefit in such a case is payable after the notional age
of superannuation)
1.2 The scheme is being operated through a Trust. The Trustees
manage the funds and, upon a member’s qualifying under the
scheme, purchase annuity from the LIC to secure entitled recurring
benefit.
1.3 Corporation’s Contribution
The Contributory Scheme envisages only a token contribution of
Rs.100/- per annum by IOC. The scheme is based on voluntary
contributions by the employees with no monetary cost to the
Corporation except the above token yearly contribution. (However,
the Corporation has agreed to provide administrative support, such
as deductions from salary, etc., and also to provide advice and
guidance in operating the Fund)
1.4 The scheme was introduced with effect from November 1987 in
respect of officers of the Corporation, (including such officers of AOD
who had joined AOD on or after 14.10.1981 and such non-officer
promoted to the officers’ cadre on or after 14.10.1981). The scheme
for non-officers was introduced with effect from the under-mentioned
dates in accordance with the agreements signed with the recognised
Workers’ Union of respective Units/ Region/Offices:
Sl.No Unit/Office Date of
signing of
agreement
Effective
Date
REFINERIES DIVISION
1 Guwahati Refinery 16.12.87 01.12.87
2 Gujarat Refinery 26.12.87 01.12.87
3 Refineries HQ/Corporate
Office/R&D Centre
28.12.87 01.12.87
4 Calcutta Office 08.01.88 01.01.88
5 Mumbai Office 28.01.88* 01.01.88
6 Barauni Refinery 31.12.88 01.12.88
7 Haldia Refinery 29.09.89 01.09.89
8 Mathura Refinery 30.04.91 01.04.91
9 AOD 22.04.96 01.11.95
* Extended through an administrative order.
S.No. Unit/Office Date of
signing of
agreement
Effective
Date
PIPELINES DIVISION
1 GSPL/KAPL 16.12.87 01.12.87
2 Pipelines Hqrs 24.12.87 01.12.87
3 BKPL/MJPL 29.12.87 01.12.87
4 SMPL 05.07.89 01.07.89
5 HMRBPL 26.08.89 01.08.89
MARKETING DIVISION
1 Northern Region 23.11.87 01.11.87
2 Southern Region 23.11.87 01.11.87
3 Western Region & Marketing
Hqrs
12.04.90 01.04.90
4 Eastern Region 15.07.92 01.07.92
IOBL
1 Eastern Region - 01.04.89
2 Western Region - 01.05.90
2.0 Applicability
2.1 The Scheme applies prospectively to all officers and non-officers of
the Corporation (as mentioned at 1.4 above) in the regular scales of
pay in the Corporation, including the new entrants from the date of
the introduction of the scheme or from the date of joining, whichever
is later. However, the scheme is not applicable to the following :
Contract Appointees
Employees on deputation from other organisations to IOC.
Trainees and Apprentices (excepting those departmentally
selected from amongst employees on regular pay-roll.)
3.0 Eligibility
3.1 Minimum qualifying service for a member to become entitled for the
benefit under the scheme in the following events/contingencies is as
respectively mentioned against each:
Retirement on attaining
the age of
Members retiring with less than 5
years’ actual service after introduction
superannuation of the scheme are required to
contribute minimum for a period of 5
years, as detailed vide 4.2.1.2 below.
Death/Permanent total
Disablement
Benefit is admissible irrespective of
length of service.
Separation from service
(other than
superannuation)
15 years’ service which shall include
minimum of 5 years’ contribution.
Notes :
1. For the purposes of minimum qualifying service (but not for
calculating benefit), service either with Government or a PSU
immediately prior to service in IOC is taken into consideration.
2. In case of death/permanent total disablement, benefit is payable in
accordance with the Scheme of Rehabilitation given at Annexure
I.
3. In case of resignation, where laid down qualifying service has
been rendered, the benefit is payable after the notional age of
superannuation (Please also refer to 5.3.3.)
4.0 Contributions
4.1 Employer’s contribution from the Indian Oil Corporation to the
contributory Superannuation Benefit Fund is a token amount of
Rs.100/- per annum.
4.2 Contributions by the employees.
4.2.1 Direct contribution as percentage of salary
Contribution of the employees is to be calculated on the salary at the
rate (as given in 4.2.1.1. below) depending upon the age at the time
of an individual’s entry into the scheme. Rate fixed at the time of
entry will remain constant unless refixed by the Trustees.
4.2.1.1 Following rates of contribution calculated on Basic Pay + Dearness
Allowance+ Non-Practising Allowance (wherever applicable) are
payable in respect of the various age groups depending upon an
individual’s age at the time of the entry into the scheme:
Age Groups Rate of Contribution
38 years or less 2%
Above 38 years but less than 48 years 3%
48 years but less than 53 years 4%
53 years and above 5%
4.2.1.2 Employees having service of less than 5 years for superannuation
are required to contribute minimum for a period of 5 years. For this
purpose, contribution is to be made on a monthly basis during the
service period and balance calculated on last salary to be paid in
lumpsum at the time of superannuation (which at employee’s request
can be adjusted against terminal amounts otherwise payable to the
employee).
4.2.2 Other Contributions
Apart from the direct contribution depending upon the age at the time
of entry into the scheme as a percentage of the employee’s salary,
additional contributions are to be made by the member employees,
as may be determined based upon the advice of actuaries from time
to time. Such contributions shall be effected as deductions from the
salary of the employee every month or by such other mode as the
Trustees may decide upon in consultation with the Corporation.
At present, amounts equal to the entitlements in respect of the
following items are to be paid into the Superannuation Fund :
• Tea/coffee allowance, at the rates fixed from time to time.
• Washing Allowance, at the rates fixed from time to time.
• Uniforms (other than protective clothing).
• Benevolent Fund for Education and other welfare benefits
payable by the employee and Corporation respectively.
• Rehabilitation grant as previously admissible, vide 4.3 below.
4.2.3 Deputed employees retaining lien
Employees of the Corporation deputed to other organisations and
retaining their lien on posts of IOC may also be permitted to continue
as members of the Superannuation Benefit Fund, provided the
employee contributes the laid down percentage of his salary to the
Fund and the employer (or alternatively the employee himself) also
makes the specified lumpsum contribution.
4.2.4 Contributions during period of leave/suspension
Employees are required to make full contribution to the Fund for
periods of leave with or without pay or leave on half average pay or
sick-leave on half pay. For details please see on 6.5.(ii). Full
contribution is also to be recovered from subsistence allowance
payable to a suspended employee. However, no contribution is to be
made for a period of study leave without pay or special leave without
pay granted to a female employee for joining her husband, but such
period shall also not be taken into account for calculating reckonable
service.
4.3 Transfer of Rehabilitation Grant
With the introduction of SBF Scheme, the previous scheme of
offering employment to dependent of deceased employee or of
paying rehabilitation grant to spouse on death of an employee while
in service ceased to operate from the date of implementation of the
scheme. Depending upon the eligibility conditions for employment,
the rehabilitation grant w.e.f. 1997-98 onwards on the basis of last
pay drawn by the employee without any ceiling of minimum and
maximum is transferred to SBF account. Accordingly, the following
amount of rehabilitation grant as previously admissible is
surrendered by the Corporation to the Trust in case the female
spouse or dependent male spouse, as the case may be, exercises
Option R-1 or Option R-2 of the Rehabilitation scheme:
FOR OFFICERS :
Eligibility Condition Rehabilitation Grant to be
transferred to SBF Account
For female spouse of 35 years or
less who was eligible for
employment under the previous
scheme
30 months’ BP last drawn.
For female spouse of more than
35 years of age who would have
been ineligible for employment
25 months BP last drawn.
FOR NON-OFFICERS
Eligibility Condition Rehabilitation Grant to be
transferred to SBF Account
For female spouse who would
have been eligible for employment
30 months BP last drawn.
The above amount of rehabilitation grant will be transferred only
under Option R-1 and R-2 of the Rehabilitation Scheme.
Note :
1. No such surrender of rehabilitation grant is envisaged where
employment has been provided by the Corporation under Option
R-3.
2. Please also refer Annexure – 6.
4.4 Refund of Contribution
4.4.1 An employee resigning from the service of the Corporation without
completing 15 years of qualifying service shall be refunded his direct
contribution by way of percentage of salary with interest thereon. The
rate of interest will be reviewed on yearly basis. The rate would be
linked with the average yield on 10 year Govt. Securities (GSEC).
4.4.2 An employee who is dismissed/removed from service or who
abandons his job or loses lien on his appointment will be refunded
only his direct contribution as percentage of salary without interest.
5.0 Benefits
5.1 The maximum benefit payable under the scheme to the
superannuating employee is @40% of the last salary (as respectively
defined for individual’s contribution as percentage of salary) for the
guaranteed period of 15 years or upto death of the member,
whichever is later.
5.2.1 32 (full) years’ reckonable service should be completed by an
employee for drawing full benefit as in 5.1 above. For reckonable
service of less than 32 years, the benefit would be proportionately
less. A service of 9 months will be deemed as full year’s service; a
service of 3 months or more but less than 9 months will be deemed
as ½ year’s service; a service of less than 3 months will not be taken
into reckoning.
5.2.2 Salary freezing as on 1.1.2003 for service upto 31.12.2002:
Amount of Pension Benefit for the reckonable service upto
31.12.2002 will be calculated on the salary as on 1.1.2003, and
pension benefit for the reckonable service after 1.1.2003 will be
calculated on Actual salary as on the date of superannuation or by
escalating salary of 1.1.2003 @7% p.a. whichever is lower.
5.3.1 In case of death or permanent total disablement of an employee
while in service, it will be construed that the employee had rendered
full 32 years’ service for drawing full benefit.
5.3.2 In case of an employee in service, where the spouse predeceases or
dies subsequently before opting for any option under Rehabilitation
Scheme (annexed to this scheme), the son/daughter of the family is
entitled to the maximum pensionary benefit only i.e. 40% of the last
salary. The son/daughter cannot exercise any of the other two
options under Rehabilitation Scheme.
5.3.3 In case of resignation, after rendering minimum 15 years of service,
employee will be entitled to pro-rata benefit provided he makes
contribution for at least 5 years. The rate of annuity shall be 1/80th of
the salary on the date of resignation for every completed year of
reckonable service. The benefit shall be payable from the date on
which the resigning employee would have superannuated if the
employee is alive or from the date of death or permanent total
disablement if such a contingency takes place prior to the notional
date of superannuation.
5.4 Annuity Option offered by LIC
5.4.1 The superannuation/disabled employee or eligible dependent of
deceased employee, as the case may be, has the option to elect
anyone of the following recurring benefits offered by LIC within the
purchase price of standard annuity option (i.e. life-time with
guarantee for 15 years). Option once exercised shall be final and
binding.
Option Period for which benefit is payable
1. Life time of the member. After death of the member, no benefit
shall accrue to his beneficiaries.
2. Life-time of the member with guaranteed benefit for 5 years.
3. Life-time of the member with guaranteed benefit for 10 years.
4. Life-time of the member with guaranteed benefit for 15 years.
(Standard option)
5. Life-time of the member with refund of the principal annuity
amount to beneficiary at the time of death of the member.
6. Joint life-time of the member as well as his/her spouse.
7. Life-time of the member with guaranteed benefit for 20 years.
8. Joint life and last survivor pension with return of capital.
5.5 The member employee/eligible dependent has the option to
commute 1/3rd purchase price of annuity, which 1/3rd is payable by
the Trust outright and out of the balance purchase price, a reduced
recurring benefit shall be made available depending upon the option
exercised. 1/3rd Commutation amount of pension to be calculated at
the LIC current rates limited to the rates prevailing as on 31.10.2003
and the 2/3rd amount of will be calculated at the rates prevailing on
the date of purchasing annuity from LIC.
5.6 The recurring payment of superannuation benefit can be made on
monthly, quarterly, half-yearly or yearly basis depending upon the
member’s choice.
6.0 Reckonable & Past Service
6.1 Past service is not fully reckonable for pensionary benefit; it is
discounted. No member is required to contribute towards an eligible
past service rendered in the Corporation before the applicability of
the Scheme in his case. For calculating reckonable discounted
service, the following formula applies :
(1-d/100) x d = credit for past service. ‘d’ denotes past service before
introduction of Scheme.
Note :
(a) Discounted past service worked out as per the discounting
formula will be fully eligible in respect of officers in position in
November, 1987. Similar will be the case for non officers, where
the Unit/Office/Region concerned had joined the Scheme
effective Nov., 1987. Discounted eligible past service for nonofficers
of a Unit/Office/ Region joining the scheme after
November 1987 would be calculated by taking
Unit/Region/Office’s joining the Scheme minus the intervening
period (calculated to days) after 30th November, 1987 to the first
of the month in which the scheme became applicable to nonofficers
of the Unit/Region/Office.
(b) The training period of all departmentally selected
GETs/Management Trainees who were on regular rolls either
prior to November, 1987 or thereafter shall be counted for the
purpose of reckonable service under the scheme.
6.2 Reckonable service is worked out on the basis of the discounted
eligible past service (as explained vide 6.1) plus the actual service
the employee puts in after his entry into the scheme. (For illustration,
refer to Annexure 2)
6.3 For the purpose of reckonable service, past service of non-officer
employees promoted as officers after introduction of SBF Scheme
shall be calculated as under:
i) Where the scheme for non-officer employees was introduced in
November, 1987 itself:
The entire past service in IOC as non-officer employee will be
taken towards reckonable service, after applying the discounting
formula, for benefits under the scheme.
ii) Where the scheme for non-officer employees was introduced
after November, 1987:
The entire past service as non-officer employee minus the
intervening period (calculated to days after 30th November,1987
to the date of promotion as officer or first of the month in which
the scheme became applicable to non-officer employees of the
Unit, whichever is earlier) will be taken towards reckonable
service after applying the discounting formula, for benefits under
the scheme. ‘’
Note :
The above provision at (b)(ii) will also apply in respect of nonofficers
continuing to be non-officers where for non-officers the
scheme was introduced after Nov., 1987.
6.4 Transfer cases
6.4.1 Cases of non-officer employees transferred between
Units/Offices/Regions covered under SBF scheme and those not
covered under the same will be regulated as under:
i) Transfer from a non-covered Unit/Office/Region to
Unit/Office/Region covered under SBF Scheme :
Membership of the scheme will commence from the date of joining.
The service rendered in the non-covered Unit/Region/Office shall not
count towards reckonable service for calculating superannuation
benefit but would count for minimum qualifying period.
6.5 The following period are included for the purpose of reckonable
service:
I) Service rendered on deputation to other organisations. Provided
the employee remits individual contribution and the borrowing
organisation, the employer’s contribution as per laid-down scale;
alternatively, the employee may himself remit the employer’s
contribution also. Delay in remittance of such contribution is liable
to interest being charged from the member at 1% higher than the
borrowing rate for IOC apart from the Trustees taking further
action as deemed appropriate in a case.
ii) Period of leave as EL, SL, CL, Maternity Leave and Leave
Without Pay on medical grounds not exceeding 90 days.
iii) Period of suspension pending enquiry or as a measure of
punishment.
iv) Intervening period on reinstatement of dismissed employees with
full back wages, he shall be extended the benefit towards
discounted past service excluding the intervening period during
which he had remained out of employment.
v) Training period as Officer Trainee in respect of departmental
employees who were actually contributing to the scheme before
selection as Officer Trainees.
7.0 Review of the Scheme
Trustees may review the availability of funds annually or at such
other intervals as may be fixed by the Trustees to decide whether
any revision in the maximum entitlement and/or rate of the member’s
contribution under the scheme is warranted.
8. Administration of the Scheme
8.1 Finance Department, Refineries, Hqrs administers the Scheme, with
regard to purchase of annuities, investment of funds and
maintenance of accounts etc. Policy changes/interpretations are
issued by Corporate Office.
8.2 Applications in prescribed forms for grant of (I) recurring
superannuation benefit or (ii) for exercise of option R-1 under the
Rehabilitation Scheme vide Annexure 1 are to be addressed to
ED/GM of the Unit/Region/Office, who after due verification will
forward the same to Finance Department, Refineries, HQ for
purchase of annuity from the LIC. Application for other options under
the Rehabilitation Scheme will be forwarded with comments from the
Unit/Region to the Division’s HQ for decision.
9. Prescribed forms for claiming benefit
9.1 The following forms are currently prescribed for claiming
superannuation benefits:
1. Nomination
Form
(Annexure-3)
For nominating the person(s) in the event of
death while in service, for receiving the
superannuation benefit.
2. Claim Forms*
Forms ‘A’to‘D’
Forms ‘E’ to ‘I’
i) For availing the superannuation benefit upon
reaching the age of superannuation
.
ii) For availing the superannuation benefit upon
death/permanent total disablement of the
employee. Form ‘I’ pertains to the issue of
death/permanent total disablement certificate
to be used by Human Resource Department.
In case Option R-2 under the Rehabilitation
Scheme is exercised, these forms would be
required to be filled up two months before the
notional date of superannuation of deceased
employee.
(*Forms ‘A D’ and ‘E’ to ‘I’ are also available in
H.R./Finance Department at each
Unit/Region/Office)
3. Application
Forms for
employment of
dependent
son/daughter of
deceased
employee
(Annexure 4)
To be filled by eligible female spouse/dependent
male spouse seeking Option No. R-3 of the
Rehabilitation Scheme.
(The Unit/Region will send the proposal alongwith
the application form to Division’s HQ for
concerned Director’s approval.)
Note :
Upon death of a member when the eligible spouse elects Option R-1
or R-2 of the Rehabilitation Scheme, the following procedure for
transfer of rehabilitation grant to the SBF Trust has been laid down:
The detailed particulars of the deceased employee and the spouse in
the prescribed proforma may be sent to Division HQ on the basis of
which Division HQ would advise the amount towards the
rehabilitation grant, if any to be transferred to SBF Trust. The HR
Deptt. of Division HQ will intimate the Unit/Office/Region concerned
to send a credit note to SBF Trust for the Rehabilitation grant.
=+=+=+=+=+=+=+=
ANNEXURE -1
SCHEME FOR REHABILITATION OF THE FAMILY OF THE EMPLOYEE
DYING OR SUFFERING PERMANENT TOTAL DISABLEMENT WHILE IN
SERVICE
In case of death or permanent total disablement of an employee while in
service, the spouse may opt, within 6 months of the death of the employee,
for any one of the following three options (designated R-1, R-2 and R-3 or R-
3A) for the rehabilitation of the family. Option once exercised shall be final
and no change thereafter shall be permissible.
R-1 From the 1st of the month following the date of death of the employee, a
monthly recurring superannuation benefit calculated as of 32 years service,
irrespective of actual length of service at the time of the demise of the
employee, which is 40% of last salary shall be payable for guaranteed 15
years or life-time of the spouse, whichever is longer. If the spouse also
expires earlier than 15 years, then the benefit will be extended to the
nominee who will continue to get the same till the completion of total 15
years. For this purpose, the spouse will also give the name of the nominee
to the LIC.
R-2 I) From the 1st of the month following the death of the employee, full
salary (BP+DA) last drawn by the employee till the notional date on which
the employee would have retired on attaining the age of superannuation will
be paid by the Corporation to the eligible spouse (and in the event of
spouse’s death to dependent nominee(s), if any) provided the nominees
deposit:
a) The full PF accumulation (excluding VPF plus interest thereon).
b) The gratuity payment.
c) The amounts received towards:
-leave encashment
-by way of Group Insurance Scheme (under PF Scheme).
No interest shall be payable on the above deposits in addition to the
commitment towards payment of last salary. The above amounts held in
deposit shall revert to the nominees on the date on which the deceased
employee would have reached the age of superannuation.
ii) Thereafter, from the notional date of superannuation of the deceased
employee, the spouse would be entitled to superannuation benefit under the
SBF Scheme, which shall, if otherwise accruing under the SBF Scheme
based on the actual years of service, be payable for a guaranteed period of
15 years or life-time of the spouse, whichever is longer.
R-3 For employment of otherwise eligible, suitable, dependent and
unmarried son/daughter (which shall also include son/daughter legally
adopted prior to the death of the employee), the following provisions shall
apply:
a) A dependent son/daughter on possessing the prescribed qualification and
fulfilling the job specifications will be considered for employment provided
there is a regular induction level vacancy of a type, within three years of
the death/permanent disablement of the employee, for which a person of
his/her age, background, qualifications, attainments and physical fitness
would have been otherwise considered.
b) Employment of eligible son/daughter must be sought within 6 months of
the death or permanent disablement of the employee, and be sought in
the prescribed format (Annexure 4). Employment under the scheme will
be offered within a period of three years.
c) A son/daughter who is the candidate for employment must also meet the
prescribed medical fitness and other standards for employment. A
woman candidate shall be considered only against such a vacant post for
which she would have been ordinarily considered and/or for employment
against which there is no statutory prohibition.
d) After the expiry of three years, the claim for employment will lapse.
e) In case of employment of dependent child, the spouse in addition
(from the date of the death of the employee) shall be entitled to
the benefit, if any otherwise accruing, under the SBF Scheme
based on the actual years of service for a guaranteed period of 15
years or her life-time, whichever is longer.
Note:
1) The minimum qualification to be eligible under option R-3 shall be
Matric + ITI in the related trades or other higher induction level
qualification as per existing policy.
2) In case the dependent ward does not posses the induction level
qualification as stated above, he/she shall be provided an opportunity
to acquire such qualification by extending the existing normal waiting
period of three years to a maximum limit of seven years, based on
merit of each case to be approved by Divisional Headquarters.
3) During the waiting period and the while the dependent child is
studying to acquire the induction level qualification, the family of the
deceased employee may be allowed to retain a suitable corporation
quarter in the township, wherever provided, at normal rent, subject to
availability of quarter in township.
R- 3A (Alternate Option to Option R-3) – In the event the family of
deceased employee does not opt for employment of eligible dependent
son/daughter under option R-3 or do not acquire the requisite induction level
qualification within the permissible waiting period, the Corporation shall grant
an amount equivalent to 60 (Sixty) months Basic Pay plus DA as
rehabilitation grant in lieu of employment to mitigate the hardship of the
deceased employee family.
Note: 1. Option R-2 and R-3 shall not be admissible to the spouse
(female/male) who is already in employment in the Corporation.
2. The beneficiary will have the option to elect any one of the optional
recurring benefit offered by LIC within the purchase price of the standard
option.
3(a) Spouse opting for Option R-2 is required to deposit terminal benefits
with IOC, viz. PF, Gratuity, etc., upto the notional date of retirement.
b) The spouse under Option R-2 is required to deposit PF amount upon
its closure as is finally settled in favour of all nominees combined
together. (If the deceased employee had nominated more than one
beneficiary towards PF, Gratuity, etc., the nominees are required
either to give up their right and title to the said amounts in favour of
the spouse or the spouse would be required to deposit an amount
equal to the dues payable respectively towards PF, gratuity, etc. from
his/her sources.)
4. Outstanding HBA (including the amount, if any, adjusted from
gratuity) to the extent not covered by Mortgage Redemption Scheme
is to be cleared by the spouse. The spouse may be allowed, if a
request therefor is made, a period of 24 months to repay the
outstanding HBA (at the normal rate of interest). Other dues/loans
such a Conveyance Advance, Festival Advance, Furniture on hire,
etc., are also required to be cleared by the spouse. There is no
objection to adjustment of dues towards superannuation benefit fund
against the separation payments payable to an employee provided
he makes a specific request therefor in advance in writing.
5. The dependent spouse who has opted for Option R-3 of the scheme,
i.e., employment of son or daughter, cannot claim the benefit of Post-
Retirement Medical Attendance Facility. (Since the spouse is
expected to wait for employment of son/daughter for 3 years, the
facility of Post-Retirement Medical Attendance Facility may be
extended to the spouse for a maximum period of 3 years from the
date of death/permanent total disablement of the employee or till
employment of her son/daughter under Option R-3, whichever is
earlier, subject to the payment of lump sum contribution at the rates
prescribed by IOC from time to time. As soon as employment is
offered to the dependent child, the facility of PRMA shall cease to be
available to the spouse of the deceased employee.)
6. In case of an employee dying or suffering permanent total
disablement due to an injury arising out of and in the course of the
employment, besides the above provisions of the option of the
choice, Management may consider additional rehabilitation
measures on merit of each case and family circumstances.
7. No provision of this scheme will be deemed to constitute any claim,
right or entitlement on the part of anybody.
-----------------------
PENSION & ANNUITY CALCULATION SHEET
Indian Oil Corporation Limited Employees Superannuation Benefit Fund
Scope Complex, Core-2,7, Institutional Area, Lodhi Road, New Delhi-110 003. Fax; 011-24362751,Tel.No 24306223,24306389 Grams: 'OILREFIN'
1. Employee Number / Assessee No. 99999
2. Employee Name
3. Designation MGR
XXXXXXXXX
YYYYYYYYY
4. Beneficiary Name
5. Option Number / Mode of Payment 8
8. Age on Retirement/Death 60
12. Past Service 21.72
13. Discounted Past Service 17.00
16. Service after joining SABF 4.84
17. Total Reckonable Service 37.00
18. Entitlement of Benefit % 33.95
21. Annuity Amount 1826660.00
22. Amount Of Benefit per Month 2658.79
25. Total Price of Annuity 1217773.26
27. Purchase Price Annuity(25a+25b - 26) 1217772.89
30. Paid To LIC [25(a)+28(a)+29(a)]
20. Total Salary 43947.00
19. Last Pay Drawn - Basic 24970.00
- D A 18977.00
- Protected Pay 0.00
6. Date of Birth 11/10/1947
7. Date of Birth of Beneficiary 29/10/1949
9. Date of Joining IOCL 15/02/1966
14. Date of Retirement/Death 31/10/2007
15. Notional Date of Retirement 31/10/2007
11. Date of SABF Agreement 01/11/1987
28. Add Int. Paid to LIC for 0 - 3 1 days 0.00
29. Additional Annuity 0.00
1217773.00
15.18
6.05
11117.27
23290.00
0.00
9456.00
32746.00
26. Less 1/3 Commuted Pension 608887.00
(a)
/ Monthly
1 9691.00
2 9610.00
3 9438.00
4 9184.00
5 7449.00
6 8301.00
7 8880.00
8 7368.00
95.50
94.70
93.00
90.50
73.40
81.80
87.50
72.60
Amount of Pension under various options (30a-28a x Annuity Rate / 12000 )
(Years)
(Years)
(b)
(Years)
(Years)
(Max 40%)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
Pension
per month (Rs.)
Annuity
Rate/12000
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
:
:
:
:
:
:
:
:
:
:
:
:
23. Total Amount Of Benefit per Month(Rs.) 13776.06
24. Opted for 1/3 Commutation- Yes (Rs.) 9184.04 4592.02
:
:
Option Description of options
Life time of the member. After death of the member, no benefit shall accrue to his beneficiaries.
Life time of the member with guaranted benefit for 5 years.
Life time of the member with guaranted benefit for 10 years.
Life time of the member with guaranted benefit for 15 years.(Standard Option)
Life time of the member with return of capital to the beneficiary on death of the member.
Joint life time of the member as well as his/her spouse.
Life time of the member with guaranted benefit for 20 years.
Joint life and last survivor pension with Return of Capital.
[2/3 * 23(a)] [1/3 * 23(a)]
Accounts Officer
(S.No 10 - S.No 9)
(1 - d/100)*d Where 'd' denotes
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By Badrinath Vasandi
Indian Oil Corporation Limited
Superannuation Benefit Fund scheme
I N D E X
1. Introduction
2. Applicability
3. Eligibility
4. Contributions
a. Corporation’s Contribution
b. Contributions by the employees.
c. Other Contributions
d. Deputed employees retaining lien
5. Contributions during period of leave/suspension
6. Transfer of Rehabilitation Grant
7. Refund of Contribution
8. Benefits
9. Annuity Option offered by LIC
10. Reckonable & Past Service
a. Transfer cases
b. Period included for the purpose of reckonable
service
11. Review of the Scheme
12. Administration of the Scheme
13. Description of forms for claiming benefit
Forms to be filled / Annexure A to H
14. Scheme for rehabilitation of the family of the
employee dying or suffering permanent total
disablement while in service.
15. Hypothetical illustration for calculation of
reckonable service and recurring benefit under
SBF Scheme
IOCL EMPLOYEES’ SUPERANNUATION BENEFIT FUND SCHEME
1.0 Introduction
1.1 A voluntary and contributory Superannuation Benefit Fund Scheme
has been introduced in the Corporation as a welfare measure for
providing social security. Specified benefits under the scheme accrue
to members on fulfillment of laid-down conditions, in the following
events:
i. Retirement on attaining the age of superannuation.
ii. Death/permanent total disablement.
iii. Separation, after rendering a prescribed minimum service.
(The benefit in such a case is payable after the notional age
of superannuation)
1.2 The scheme is being operated through a Trust. The Trustees
manage the funds and, upon a member’s qualifying under the
scheme, purchase annuity from the LIC to secure entitled recurring
benefit.
1.3 Corporation’s Contribution
The Contributory Scheme envisages only a token contribution of
Rs.100/- per annum by IOC. The scheme is based on voluntary
contributions by the employees with no monetary cost to the
Corporation except the above token yearly contribution. (However,
the Corporation has agreed to provide administrative support, such
as deductions from salary, etc., and also to provide advice and
guidance in operating the Fund)
1.4 The scheme was introduced with effect from November 1987 in
respect of officers of the Corporation, (including such officers of AOD
who had joined AOD on or after 14.10.1981 and such non-officer
promoted to the officers’ cadre on or after 14.10.1981). The scheme
for non-officers was introduced with effect from the under-mentioned
dates in accordance with the agreements signed with the recognised
Workers’ Union of respective Units/ Region/Offices:
Sl.No Unit/Office Date of
signing of
agreement
Effective
Date
REFINERIES DIVISION
1 Guwahati Refinery 16.12.87 01.12.87
2 Gujarat Refinery 26.12.87 01.12.87
3 Refineries HQ/Corporate
Office/R&D Centre
28.12.87 01.12.87
4 Calcutta Office 08.01.88 01.01.88
5 Mumbai Office 28.01.88* 01.01.88
6 Barauni Refinery 31.12.88 01.12.88
7 Haldia Refinery 29.09.89 01.09.89
8 Mathura Refinery 30.04.91 01.04.91
9 AOD 22.04.96 01.11.95
* Extended through an administrative order.
S.No. Unit/Office Date of
signing of
agreement
Effective
Date
PIPELINES DIVISION
1 GSPL/KAPL 16.12.87 01.12.87
2 Pipelines Hqrs 24.12.87 01.12.87
3 BKPL/MJPL 29.12.87 01.12.87
4 SMPL 05.07.89 01.07.89
5 HMRBPL 26.08.89 01.08.89
MARKETING DIVISION
1 Northern Region 23.11.87 01.11.87
2 Southern Region 23.11.87 01.11.87
3 Western Region & Marketing
Hqrs
12.04.90 01.04.90
4 Eastern Region 15.07.92 01.07.92
IOBL
1 Eastern Region - 01.04.89
2 Western Region - 01.05.90
2.0 Applicability
2.1 The Scheme applies prospectively to all officers and non-officers of
the Corporation (as mentioned at 1.4 above) in the regular scales of
pay in the Corporation, including the new entrants from the date of
the introduction of the scheme or from the date of joining, whichever
is later. However, the scheme is not applicable to the following :
Contract Appointees
Employees on deputation from other organisations to IOC.
Trainees and Apprentices (excepting those departmentally
selected from amongst employees on regular pay-roll.)
3.0 Eligibility
3.1 Minimum qualifying service for a member to become entitled for the
benefit under the scheme in the following events/contingencies is as
respectively mentioned against each:
Retirement on attaining
the age of
Members retiring with less than 5
years’ actual service after introduction
superannuation of the scheme are required to
contribute minimum for a period of 5
years, as detailed vide 4.2.1.2 below.
Death/Permanent total
Disablement
Benefit is admissible irrespective of
length of service.
Separation from service
(other than
superannuation)
15 years’ service which shall include
minimum of 5 years’ contribution.
Notes :
1. For the purposes of minimum qualifying service (but not for
calculating benefit), service either with Government or a PSU
immediately prior to service in IOC is taken into consideration.
2. In case of death/permanent total disablement, benefit is payable in
accordance with the Scheme of Rehabilitation given at Annexure
I.
3. In case of resignation, where laid down qualifying service has
been rendered, the benefit is payable after the notional age of
superannuation (Please also refer to 5.3.3.)
4.0 Contributions
4.1 Employer’s contribution from the Indian Oil Corporation to the
contributory Superannuation Benefit Fund is a token amount of
Rs.100/- per annum.
4.2 Contributions by the employees.
4.2.1 Direct contribution as percentage of salary
Contribution of the employees is to be calculated on the salary at the
rate (as given in 4.2.1.1. below) depending upon the age at the time
of an individual’s entry into the scheme. Rate fixed at the time of
entry will remain constant unless refixed by the Trustees.
4.2.1.1 Following rates of contribution calculated on Basic Pay + Dearness
Allowance+ Non-Practising Allowance (wherever applicable) are
payable in respect of the various age groups depending upon an
individual’s age at the time of the entry into the scheme:
Age Groups Rate of Contribution
38 years or less 2%
Above 38 years but less than 48 years 3%
48 years but less than 53 years 4%
53 years and above 5%
4.2.1.2 Employees having service of less than 5 years for superannuation
are required to contribute minimum for a period of 5 years. For this
purpose, contribution is to be made on a monthly basis during the
service period and balance calculated on last salary to be paid in
lumpsum at the time of superannuation (which at employee’s request
can be adjusted against terminal amounts otherwise payable to the
employee).
4.2.2 Other Contributions
Apart from the direct contribution depending upon the age at the time
of entry into the scheme as a percentage of the employee’s salary,
additional contributions are to be made by the member employees,
as may be determined based upon the advice of actuaries from time
to time. Such contributions shall be effected as deductions from the
salary of the employee every month or by such other mode as the
Trustees may decide upon in consultation with the Corporation.
At present, amounts equal to the entitlements in respect of the
following items are to be paid into the Superannuation Fund :
• Tea/coffee allowance, at the rates fixed from time to time.
• Washing Allowance, at the rates fixed from time to time.
• Uniforms (other than protective clothing).
• Benevolent Fund for Education and other welfare benefits
payable by the employee and Corporation respectively.
• Rehabilitation grant as previously admissible, vide 4.3 below.
4.2.3 Deputed employees retaining lien
Employees of the Corporation deputed to other organisations and
retaining their lien on posts of IOC may also be permitted to continue
as members of the Superannuation Benefit Fund, provided the
employee contributes the laid down percentage of his salary to the
Fund and the employer (or alternatively the employee himself) also
makes the specified lumpsum contribution.
4.2.4 Contributions during period of leave/suspension
Employees are required to make full contribution to the Fund for
periods of leave with or without pay or leave on half average pay or
sick-leave on half pay. For details please see on 6.5.(ii). Full
contribution is also to be recovered from subsistence allowance
payable to a suspended employee. However, no contribution is to be
made for a period of study leave without pay or special leave without
pay granted to a female employee for joining her husband, but such
period shall also not be taken into account for calculating reckonable
service.
4.3 Transfer of Rehabilitation Grant
With the introduction of SBF Scheme, the previous scheme of
offering employment to dependent of deceased employee or of
paying rehabilitation grant to spouse on death of an employee while
in service ceased to operate from the date of implementation of the
scheme. Depending upon the eligibility conditions for employment,
the rehabilitation grant w.e.f. 1997-98 onwards on the basis of last
pay drawn by the employee without any ceiling of minimum and
maximum is transferred to SBF account. Accordingly, the following
amount of rehabilitation grant as previously admissible is
surrendered by the Corporation to the Trust in case the female
spouse or dependent male spouse, as the case may be, exercises
Option R-1 or Option R-2 of the Rehabilitation scheme:
FOR OFFICERS :
Eligibility Condition Rehabilitation Grant to be
transferred to SBF Account
For female spouse of 35 years or
less who was eligible for
employment under the previous
scheme
30 months’ BP last drawn.
For female spouse of more than
35 years of age who would have
been ineligible for employment
25 months BP last drawn.
FOR NON-OFFICERS
Eligibility Condition Rehabilitation Grant to be
transferred to SBF Account
For female spouse who would
have been eligible for employment
30 months BP last drawn.
The above amount of rehabilitation grant will be transferred only
under Option R-1 and R-2 of the Rehabilitation Scheme.
Note :
1. No such surrender of rehabilitation grant is envisaged where
employment has been provided by the Corporation under Option
R-3.
2. Please also refer Annexure – 6.
4.4 Refund of Contribution
4.4.1 An employee resigning from the service of the Corporation without
completing 15 years of qualifying service shall be refunded his direct
contribution by way of percentage of salary with interest thereon. The
rate of interest will be reviewed on yearly basis. The rate would be
linked with the average yield on 10 year Govt. Securities (GSEC).
4.4.2 An employee who is dismissed/removed from service or who
abandons his job or loses lien on his appointment will be refunded
only his direct contribution as percentage of salary without interest.
5.0 Benefits
5.1 The maximum benefit payable under the scheme to the
superannuating employee is @40% of the last salary (as respectively
defined for individual’s contribution as percentage of salary) for the
guaranteed period of 15 years or upto death of the member,
whichever is later.
5.2.1 32 (full) years’ reckonable service should be completed by an
employee for drawing full benefit as in 5.1 above. For reckonable
service of less than 32 years, the benefit would be proportionately
less. A service of 9 months will be deemed as full year’s service; a
service of 3 months or more but less than 9 months will be deemed
as ½ year’s service; a service of less than 3 months will not be taken
into reckoning.
5.2.2 Salary freezing as on 1.1.2003 for service upto 31.12.2002:
Amount of Pension Benefit for the reckonable service upto
31.12.2002 will be calculated on the salary as on 1.1.2003, and
pension benefit for the reckonable service after 1.1.2003 will be
calculated on Actual salary as on the date of superannuation or by
escalating salary of 1.1.2003 @7% p.a. whichever is lower.
5.3.1 In case of death or permanent total disablement of an employee
while in service, it will be construed that the employee had rendered
full 32 years’ service for drawing full benefit.
5.3.2 In case of an employee in service, where the spouse predeceases or
dies subsequently before opting for any option under Rehabilitation
Scheme (annexed to this scheme), the son/daughter of the family is
entitled to the maximum pensionary benefit only i.e. 40% of the last
salary. The son/daughter cannot exercise any of the other two
options under Rehabilitation Scheme.
5.3.3 In case of resignation, after rendering minimum 15 years of service,
employee will be entitled to pro-rata benefit provided he makes
contribution for at least 5 years. The rate of annuity shall be 1/80th of
the salary on the date of resignation for every completed year of
reckonable service. The benefit shall be payable from the date on
which the resigning employee would have superannuated if the
employee is alive or from the date of death or permanent total
disablement if such a contingency takes place prior to the notional
date of superannuation.
5.4 Annuity Option offered by LIC
5.4.1 The superannuation/disabled employee or eligible dependent of
deceased employee, as the case may be, has the option to elect
anyone of the following recurring benefits offered by LIC within the
purchase price of standard annuity option (i.e. life-time with
guarantee for 15 years). Option once exercised shall be final and
binding.
Option Period for which benefit is payable
1. Life time of the member. After death of the member, no benefit
shall accrue to his beneficiaries.
2. Life-time of the member with guaranteed benefit for 5 years.
3. Life-time of the member with guaranteed benefit for 10 years.
4. Life-time of the member with guaranteed benefit for 15 years.
(Standard option)
5. Life-time of the member with refund of the principal annuity
amount to beneficiary at the time of death of the member.
6. Joint life-time of the member as well as his/her spouse.
7. Life-time of the member with guaranteed benefit for 20 years.
8. Joint life and last survivor pension with return of capital.
5.5 The member employee/eligible dependent has the option to
commute 1/3rd purchase price of annuity, which 1/3rd is payable by
the Trust outright and out of the balance purchase price, a reduced
recurring benefit shall be made available depending upon the option
exercised. 1/3rd Commutation amount of pension to be calculated at
the LIC current rates limited to the rates prevailing as on 31.10.2003
and the 2/3rd amount of will be calculated at the rates prevailing on
the date of purchasing annuity from LIC.
5.6 The recurring payment of superannuation benefit can be made on
monthly, quarterly, half-yearly or yearly basis depending upon the
member’s choice.
6.0 Reckonable & Past Service
6.1 Past service is not fully reckonable for pensionary benefit; it is
discounted. No member is required to contribute towards an eligible
past service rendered in the Corporation before the applicability of
the Scheme in his case. For calculating reckonable discounted
service, the following formula applies :
(1-d/100) x d = credit for past service. ‘d’ denotes past service before
introduction of Scheme.
Note :
(a) Discounted past service worked out as per the discounting
formula will be fully eligible in respect of officers in position in
November, 1987. Similar will be the case for non officers, where
the Unit/Office/Region concerned had joined the Scheme
effective Nov., 1987. Discounted eligible past service for nonofficers
of a Unit/Office/ Region joining the scheme after
November 1987 would be calculated by taking
Unit/Region/Office’s joining the Scheme minus the intervening
period (calculated to days) after 30th November, 1987 to the first
of the month in which the scheme became applicable to nonofficers
of the Unit/Region/Office.
(b) The training period of all departmentally selected
GETs/Management Trainees who were on regular rolls either
prior to November, 1987 or thereafter shall be counted for the
purpose of reckonable service under the scheme.
6.2 Reckonable service is worked out on the basis of the discounted
eligible past service (as explained vide 6.1) plus the actual service
the employee puts in after his entry into the scheme. (For illustration,
refer to Annexure 2)
6.3 For the purpose of reckonable service, past service of non-officer
employees promoted as officers after introduction of SBF Scheme
shall be calculated as under:
i) Where the scheme for non-officer employees was introduced in
November, 1987 itself:
The entire past service in IOC as non-officer employee will be
taken towards reckonable service, after applying the discounting
formula, for benefits under the scheme.
ii) Where the scheme for non-officer employees was introduced
after November, 1987:
The entire past service as non-officer employee minus the
intervening period (calculated to days after 30th November,1987
to the date of promotion as officer or first of the month in which
the scheme became applicable to non-officer employees of the
Unit, whichever is earlier) will be taken towards reckonable
service after applying the discounting formula, for benefits under
the scheme. ‘’
Note :
The above provision at (b)(ii) will also apply in respect of nonofficers
continuing to be non-officers where for non-officers the
scheme was introduced after Nov., 1987.
6.4 Transfer cases
6.4.1 Cases of non-officer employees transferred between
Units/Offices/Regions covered under SBF scheme and those not
covered under the same will be regulated as under:
i) Transfer from a non-covered Unit/Office/Region to
Unit/Office/Region covered under SBF Scheme :
Membership of the scheme will commence from the date of joining.
The service rendered in the non-covered Unit/Region/Office shall not
count towards reckonable service for calculating superannuation
benefit but would count for minimum qualifying period.
6.5 The following period are included for the purpose of reckonable
service:
I) Service rendered on deputation to other organisations. Provided
the employee remits individual contribution and the borrowing
organisation, the employer’s contribution as per laid-down scale;
alternatively, the employee may himself remit the employer’s
contribution also. Delay in remittance of such contribution is liable
to interest being charged from the member at 1% higher than the
borrowing rate for IOC apart from the Trustees taking further
action as deemed appropriate in a case.
ii) Period of leave as EL, SL, CL, Maternity Leave and Leave
Without Pay on medical grounds not exceeding 90 days.
iii) Period of suspension pending enquiry or as a measure of
punishment.
iv) Intervening period on reinstatement of dismissed employees with
full back wages, he shall be extended the benefit towards
discounted past service excluding the intervening period during
which he had remained out of employment.
v) Training period as Officer Trainee in respect of departmental
employees who were actually contributing to the scheme before
selection as Officer Trainees.
7.0 Review of the Scheme
Trustees may review the availability of funds annually or at such
other intervals as may be fixed by the Trustees to decide whether
any revision in the maximum entitlement and/or rate of the member’s
contribution under the scheme is warranted.
8. Administration of the Scheme
8.1 Finance Department, Refineries, Hqrs administers the Scheme, with
regard to purchase of annuities, investment of funds and
maintenance of accounts etc. Policy changes/interpretations are
issued by Corporate Office.
8.2 Applications in prescribed forms for grant of (I) recurring
superannuation benefit or (ii) for exercise of option R-1 under the
Rehabilitation Scheme vide Annexure 1 are to be addressed to
ED/GM of the Unit/Region/Office, who after due verification will
forward the same to Finance Department, Refineries, HQ for
purchase of annuity from the LIC. Application for other options under
the Rehabilitation Scheme will be forwarded with comments from the
Unit/Region to the Division’s HQ for decision.
9. Prescribed forms for claiming benefit
9.1 The following forms are currently prescribed for claiming
superannuation benefits:
1. Nomination
Form
(Annexure-3)
For nominating the person(s) in the event of
death while in service, for receiving the
superannuation benefit.
2. Claim Forms*
Forms ‘A’to‘D’
Forms ‘E’ to ‘I’
i) For availing the superannuation benefit upon
reaching the age of superannuation
.
ii) For availing the superannuation benefit upon
death/permanent total disablement of the
employee. Form ‘I’ pertains to the issue of
death/permanent total disablement certificate
to be used by Human Resource Department.
In case Option R-2 under the Rehabilitation
Scheme is exercised, these forms would be
required to be filled up two months before the
notional date of superannuation of deceased
employee.
(*Forms ‘A D’ and ‘E’ to ‘I’ are also available in
H.R./Finance Department at each
Unit/Region/Office)
3. Application
Forms for
employment of
dependent
son/daughter of
deceased
employee
(Annexure 4)
To be filled by eligible female spouse/dependent
male spouse seeking Option No. R-3 of the
Rehabilitation Scheme.
(The Unit/Region will send the proposal alongwith
the application form to Division’s HQ for
concerned Director’s approval.)
Note :
Upon death of a member when the eligible spouse elects Option R-1
or R-2 of the Rehabilitation Scheme, the following procedure for
transfer of rehabilitation grant to the SBF Trust has been laid down:
The detailed particulars of the deceased employee and the spouse in
the prescribed proforma may be sent to Division HQ on the basis of
which Division HQ would advise the amount towards the
rehabilitation grant, if any to be transferred to SBF Trust. The HR
Deptt. of Division HQ will intimate the Unit/Office/Region concerned
to send a credit note to SBF Trust for the Rehabilitation grant.
=+=+=+=+=+=+=+=
ANNEXURE -1
SCHEME FOR REHABILITATION OF THE FAMILY OF THE EMPLOYEE
DYING OR SUFFERING PERMANENT TOTAL DISABLEMENT WHILE IN
SERVICE
In case of death or permanent total disablement of an employee while in
service, the spouse may opt, within 6 months of the death of the employee,
for any one of the following three options (designated R-1, R-2 and R-3 or R-
3A) for the rehabilitation of the family. Option once exercised shall be final
and no change thereafter shall be permissible.
R-1 From the 1st of the month following the date of death of the employee, a
monthly recurring superannuation benefit calculated as of 32 years service,
irrespective of actual length of service at the time of the demise of the
employee, which is 40% of last salary shall be payable for guaranteed 15
years or life-time of the spouse, whichever is longer. If the spouse also
expires earlier than 15 years, then the benefit will be extended to the
nominee who will continue to get the same till the completion of total 15
years. For this purpose, the spouse will also give the name of the nominee
to the LIC.
R-2 I) From the 1st of the month following the death of the employee, full
salary (BP+DA) last drawn by the employee till the notional date on which
the employee would have retired on attaining the age of superannuation will
be paid by the Corporation to the eligible spouse (and in the event of
spouse’s death to dependent nominee(s), if any) provided the nominees
deposit:
a) The full PF accumulation (excluding VPF plus interest thereon).
b) The gratuity payment.
c) The amounts received towards:
-leave encashment
-by way of Group Insurance Scheme (under PF Scheme).
No interest shall be payable on the above deposits in addition to the
commitment towards payment of last salary. The above amounts held in
deposit shall revert to the nominees on the date on which the deceased
employee would have reached the age of superannuation.
ii) Thereafter, from the notional date of superannuation of the deceased
employee, the spouse would be entitled to superannuation benefit under the
SBF Scheme, which shall, if otherwise accruing under the SBF Scheme
based on the actual years of service, be payable for a guaranteed period of
15 years or life-time of the spouse, whichever is longer.
R-3 For employment of otherwise eligible, suitable, dependent and
unmarried son/daughter (which shall also include son/daughter legally
adopted prior to the death of the employee), the following provisions shall
apply:
a) A dependent son/daughter on possessing the prescribed qualification and
fulfilling the job specifications will be considered for employment provided
there is a regular induction level vacancy of a type, within three years of
the death/permanent disablement of the employee, for which a person of
his/her age, background, qualifications, attainments and physical fitness
would have been otherwise considered.
b) Employment of eligible son/daughter must be sought within 6 months of
the death or permanent disablement of the employee, and be sought in
the prescribed format (Annexure 4). Employment under the scheme will
be offered within a period of three years.
c) A son/daughter who is the candidate for employment must also meet the
prescribed medical fitness and other standards for employment. A
woman candidate shall be considered only against such a vacant post for
which she would have been ordinarily considered and/or for employment
against which there is no statutory prohibition.
d) After the expiry of three years, the claim for employment will lapse.
e) In case of employment of dependent child, the spouse in addition
(from the date of the death of the employee) shall be entitled to
the benefit, if any otherwise accruing, under the SBF Scheme
based on the actual years of service for a guaranteed period of 15
years or her life-time, whichever is longer.
Note:
1) The minimum qualification to be eligible under option R-3 shall be
Matric + ITI in the related trades or other higher induction level
qualification as per existing policy.
2) In case the dependent ward does not posses the induction level
qualification as stated above, he/she shall be provided an opportunity
to acquire such qualification by extending the existing normal waiting
period of three years to a maximum limit of seven years, based on
merit of each case to be approved by Divisional Headquarters.
3) During the waiting period and the while the dependent child is
studying to acquire the induction level qualification, the family of the
deceased employee may be allowed to retain a suitable corporation
quarter in the township, wherever provided, at normal rent, subject to
availability of quarter in township.
R- 3A (Alternate Option to Option R-3) – In the event the family of
deceased employee does not opt for employment of eligible dependent
son/daughter under option R-3 or do not acquire the requisite induction level
qualification within the permissible waiting period, the Corporation shall grant
an amount equivalent to 60 (Sixty) months Basic Pay plus DA as
rehabilitation grant in lieu of employment to mitigate the hardship of the
deceased employee family.
Note: 1. Option R-2 and R-3 shall not be admissible to the spouse
(female/male) who is already in employment in the Corporation.
2. The beneficiary will have the option to elect any one of the optional
recurring benefit offered by LIC within the purchase price of the standard
option.
3(a) Spouse opting for Option R-2 is required to deposit terminal benefits
with IOC, viz. PF, Gratuity, etc., upto the notional date of retirement.
b) The spouse under Option R-2 is required to deposit PF amount upon
its closure as is finally settled in favour of all nominees combined
together. (If the deceased employee had nominated more than one
beneficiary towards PF, Gratuity, etc., the nominees are required
either to give up their right and title to the said amounts in favour of
the spouse or the spouse would be required to deposit an amount
equal to the dues payable respectively towards PF, gratuity, etc. from
his/her sources.)
4. Outstanding HBA (including the amount, if any, adjusted from
gratuity) to the extent not covered by Mortgage Redemption Scheme
is to be cleared by the spouse. The spouse may be allowed, if a
request therefor is made, a period of 24 months to repay the
outstanding HBA (at the normal rate of interest). Other dues/loans
such a Conveyance Advance, Festival Advance, Furniture on hire,
etc., are also required to be cleared by the spouse. There is no
objection to adjustment of dues towards superannuation benefit fund
against the separation payments payable to an employee provided
he makes a specific request therefor in advance in writing.
5. The dependent spouse who has opted for Option R-3 of the scheme,
i.e., employment of son or daughter, cannot claim the benefit of Post-
Retirement Medical Attendance Facility. (Since the spouse is
expected to wait for employment of son/daughter for 3 years, the
facility of Post-Retirement Medical Attendance Facility may be
extended to the spouse for a maximum period of 3 years from the
date of death/permanent total disablement of the employee or till
employment of her son/daughter under Option R-3, whichever is
earlier, subject to the payment of lump sum contribution at the rates
prescribed by IOC from time to time. As soon as employment is
offered to the dependent child, the facility of PRMA shall cease to be
available to the spouse of the deceased employee.)
6. In case of an employee dying or suffering permanent total
disablement due to an injury arising out of and in the course of the
employment, besides the above provisions of the option of the
choice, Management may consider additional rehabilitation
measures on merit of each case and family circumstances.
7. No provision of this scheme will be deemed to constitute any claim,
right or entitlement on the part of anybody.
-----------------------
PENSION & ANNUITY CALCULATION SHEET
Indian Oil Corporation Limited Employees Superannuation Benefit Fund
Scope Complex, Core-2,7, Institutional Area, Lodhi Road, New Delhi-110 003. Fax; 011-24362751,Tel.No 24306223,24306389 Grams: 'OILREFIN'
1. Employee Number / Assessee No. 99999
2. Employee Name
3. Designation MGR
XXXXXXXXX
YYYYYYYYY
4. Beneficiary Name
5. Option Number / Mode of Payment 8
8. Age on Retirement/Death 60
12. Past Service 21.72
13. Discounted Past Service 17.00
16. Service after joining SABF 4.84
17. Total Reckonable Service 37.00
18. Entitlement of Benefit % 33.95
21. Annuity Amount 1826660.00
22. Amount Of Benefit per Month 2658.79
25. Total Price of Annuity 1217773.26
27. Purchase Price Annuity(25a+25b - 26) 1217772.89
30. Paid To LIC [25(a)+28(a)+29(a)]
20. Total Salary 43947.00
19. Last Pay Drawn - Basic 24970.00
- D A 18977.00
- Protected Pay 0.00
6. Date of Birth 11/10/1947
7. Date of Birth of Beneficiary 29/10/1949
9. Date of Joining IOCL 15/02/1966
14. Date of Retirement/Death 31/10/2007
15. Notional Date of Retirement 31/10/2007
11. Date of SABF Agreement 01/11/1987
28. Add Int. Paid to LIC for 0 - 3 1 days 0.00
29. Additional Annuity 0.00
1217773.00
15.18
6.05
11117.27
23290.00
0.00
9456.00
32746.00
26. Less 1/3 Commuted Pension 608887.00
(a)
/ Monthly
1 9691.00
2 9610.00
3 9438.00
4 9184.00
5 7449.00
6 8301.00
7 8880.00
8 7368.00
95.50
94.70
93.00
90.50
73.40
81.80
87.50
72.60
Amount of Pension under various options (30a-28a x Annuity Rate / 12000 )
(Years)
(Years)
(b)
(Years)
(Years)
(Max 40%)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
Pension
per month (Rs.)
Annuity
Rate/12000
(Rs.)
(Rs.)
(Rs.)
(Rs.)
(Rs.)
:
:
:
:
:
:
:
:
:
:
:
:
23. Total Amount Of Benefit per Month(Rs.) 13776.06
24. Opted for 1/3 Commutation- Yes (Rs.) 9184.04 4592.02
:
:
Option Description of options
Life time of the member. After death of the member, no benefit shall accrue to his beneficiaries.
Life time of the member with guaranted benefit for 5 years.
Life time of the member with guaranted benefit for 10 years.
Life time of the member with guaranted benefit for 15 years.(Standard Option)
Life time of the member with return of capital to the beneficiary on death of the member.
Joint life time of the member as well as his/her spouse.
Life time of the member with guaranted benefit for 20 years.
Joint life and last survivor pension with Return of Capital.
[2/3 * 23(a)] [1/3 * 23(a)]
Accounts Officer
(S.No 10 - S.No 9)
(1 - d/100)*d Where 'd' denotes
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