Steel ministry announces pension scheme for CPSEs; move to benefit about 1.5 lakh employees

The pension scheme is estimated to cost an additional financial burden of Rs 540 crore.

Press Trust of India July 17, 2018 19:33:35 IST
Steel ministry announces pension scheme for CPSEs; move to benefit about 1.5 lakh employees

New Delhi: The steel ministry has agreed to introduce a pension scheme for its CPSEs like SAIL and RINL, a move which will benefit about 96,000 serving and 56,000 retired employees.

The pension scheme is estimated to cost an additional financial burden of Rs 540 crore.

"Ministry of Steel has agreed to the proposal received from various CPSEs under its control to introduce the pension scheme with effect from 1st January 2007 in case of executives and 1st January 2012 in case of non-executives or from a subsequent date as decided by the company," the ministry said in a statement.

The agreement was reached after detailed consultation with representatives of employees unions and officers associations belonging to SAIL, RINL, MSTC, FSNL, MECON and KIOCL with Steel Minister Chaudhary Birender Singh.

Steel ministry announces pension scheme for CPSEs move to benefit about 15 lakh employees

Representational image. Thinkstock.

During the meeting with the minister, the representatives of employees unions and officers associations discussed various issues concerning them, including the introduction of pension scheme as part of the superannuation benefits, provident fund, gratuity and medical benefit.

"The minister informed that medical benefits have already been extended to employees of CPSEs under the Ministry of Steel. NMDC and MOIL have also introduced the pension scheme to its employees as per the Second Pay Revision Committee recommendations. He said that there has been a long-standing demand from the employees of other CPSEs for the introduction of the pension scheme," the statement said.

Singh said that the pension scheme will benefit over 94,000 serving and 56,000 retired employees of CPSEs under the Ministry of Steel and put an additional financial burden of Rs 45 crore per month.

The minister said the pension scheme will be subject to factors like affordability, capacity to pay and sustainability by the CPSEs.

The government budgetary support will not be provided to operate these schemes, the statement said.

"The rate of contribution will be decided by the respective boards of CPSEs each year depending upon the profit made and employee cost to the company subject to an upper ceiling of 30 percent (Basic Pay plus DA) of superannuation benefits," it said.

The actual details of the pension scheme and road map of implementation will be worked out by the management of each CPSEs, the statement said.

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