15 Sep Latest News

Overview on Superannuation Benefits

Details

Published Date

Retirement Policies/ Pension are there to support retired social life of employees. Retired Govt employees were given with Statutory Govt Penisions, whereas in PSU’s the same objective achieved by its own Pension policies. In BSNL, Erstwhile Govt- Turned CPSU the employees absorbed into BSNL in 2003-04 were very well protected by rule 37-A, extending Govt Pension, whereas the same rule was to ensure BSNL’s directly recruited employees with its own pension policies. In 2003-2010 eras BSNL was reaping huge profits; still Pension Policies weren’t extended for DR Employees keeping their future in dark violating the pension rule.

In 2nd PRC, which was due on 01-01-2007, the ceiling of Super Annuation Benefits- SAB – for BR’s was fixed not less than 30% of Basic+ DA giving certain parity with those holding Govt Statutory Pensions. In the initial stage the BR’s were extended BSNL’s EPF contribution of only 12% of Basic-6500%, which after our struggles were enhanced to 12% of Basic +DA. 

In effect BSNL employees were given with 12% contribution on Basic +DA, Gratuity-4%, Post-Retirement Medical Benefits-PRMB-2%: towards the costs of medical expenses that may be incurred by an employee if he’s to live after retirement; should BSNL exists and still holds the same medical policies. The same is claimed by retired employees who absorbed from DoT to BSNL. 

Later the gross the injustice to BR’s came into light, when AIGETOA, and members across India mulled over the contribution by different PSUs towards SAB Contribution, found that, BSNL’s contribution fall short of 30% of Basic + DA by 12%. Various campaigns across India were conducted by the association to create awareness about the same among the stake holders.

AIGETOA strongly questioned this injustice and requested for SAB contribution in totality, sister association too raised voice for the same. Later management tried to recalculate the entire contribution and adjudged there was PRMB-3.2% , gratuity-4.8% contribution apart from 12% for EPF, but still it’s an hypothetical figure as there are no separate fund maintained for PRMB or its not contributed separately.

Now after our repeated struggles, 3% of SAB contribution is agreed by management. It’s only effective from 05th May 2016, not from the joining date of BSNL recttd employees, which leads to a loss of 7 to 15years of contribution. It stands such a way that many executives seems lost their legitimate due for so many years. 

With various efforts by AIGETOA on forefront we are going to realize 3% due within 1-2 months and additional 2% within a span of 6months; by this even though on paper the contribution will come to 25% still in short of 5%.

AIGETOA is totally committed to fight till entire justified dues are given for BSNL recttd employees.

With Present set of data available, the scheme works the following ways.

•Fund Management is given with LIC.

•Contribution Flow: Contribution -> Trust (5 meber-Management+2 member Employees ) ->LIC Fund Manager->LIC

•Eligibility-15 years of Service is mandatory (Which is likely to be revised)

•2/3rd of Amount could be commuted; the rest is kept for Pension Portion.

•Employees may have optional contribution.