Bhilai, Feb 11, 2019: The Union Ministry of Steel has given approval for implementation of the pension scheme for SAIL and RINL. Official communication in this regard was made on Monday. With the approval, Steel Ministry has imposed certain conditions also. SAIL and RINL have been directed to implement the pension scheme strictly in accordance with the conditions stipulated in Steel Ministry’s letter dated July 19, 2018 and DPE guidelines on the issues of pension.
The pension contribution is to be made according to the profit / loss during a financial year and to be met from profit generated during a financial year. Therefore, the funds required for operating the pension scheme should be met from the profits generated by the company taking into account the full financial year and not a part of the year. Hence, transfer of contribution to pension trust for fund management may be made only after the end of each financial year.
The Steel Ministry’s letter further states that the upper ceiling of pension contribution may not be more than 9% of Basic Pay + DA. A formula may be devised by CPSEs for calculation of rate of pension contribution and same may be reviewed annually by the Board depending upon the profit / loss of the company. The rate of contribution should not be fixed contribution and should depend upon the quantum of profits made by the company in a financial year, including during the year of loss. The Steel Ministry has further asked to select a Fund Manager and this selection of Fund Manager should be done in a transparent manner.
SEFI Chairman and BSP-OA President Narendra Kumar Banchor, BSP-OA General Secretary Shahid Ahmad, SEFI Nominee Ajay Kumar, Vice Presidents Parvinder Singh and Sunil Ksheersagar; Secretaries Shovan Ghosh and Remi Thomas; Vice President (Mines) Santosh Kumar Singh; SEFI General Secretary Bimal Bisi and other office bearers have expressed gratitude towards the Steel Ministry, SAIL management and RINL management. Banchor said that their three-year long struggle has turned successful.
It needs to be mentioned here that on July 19, 2018, the SAIL and RINL were instructed to prepare road map for implementation of Pension Scheme which has to be implemented for executives w.e.f. January 01, 20007 and for non-executives w.e.f. January 01, 2012. SAIL management forwarded the roadmap to Steel Ministry on November 26, 2018 thereafter the Steel Ministry has approved on February 11, 2019.