Proposed SAIL Pension Scheme
Coverage :
Non-executives (including Trainees recruited for eventual employment) on rolls of the Company on or after 01/01/2012.
Contract Appointees & employees on deputation to SAIL – not covered.
Eligibility for benefits :
Minimum 15 years of service and superannuate from the Company.
In case of death/PTD/Medical invalidation, minimum service condition shall be waived off.
Scheme :
Effective date :
Contributions with effect from 1st January, 2012.
Employees retired in the intervening period will also eligible for Pension.
Trust Managed :
Contributions – direct deposit to SESBF Trust.
Funds to be self-managed or through a Fund Manager – decision of the Trust.
Annuity Provider(s) to be decided by the Trust.
Contributions to the Fund :
Company contributions (6% of Basic Pay plus D.A. w.e.f. 01/01/2012).
Voluntary contributions by the individual (@2% of Basic Pay plus D.A. to continue, option of contributing voluntarily available to increase monetary benefit from the Scheme).
Annuities :
Employees exiting before completing 15 years will be eligible only for own contribution and interest.
On superannuation / separation – individual to purchase annuity from various annuity options from a prescribed Annuity Provider(s).
Fund Management (through existing SESBF Trust) :
Existing SESBF accumulations in individual accounts to be merged with Pension Account.
Management of funds ‘in-house’ or partly / fully through IRDA approved Fund Manager – decision of the Trustees.
Annuity Provider(s) to be decided by the Trust.
No need for acquiring a fresh income tax exemption.
Benefits – both Employers & Employee contribution :
Cases of death / PTD / Medical invalidation.
Resignation to other CPSE having similar scheme.
Cases of Voluntary Retirement – as per the prevailing scheme at that time.
Deputation from other CPSE (provided employee joins back).
Cases of employees maintaining lien with SAIL.
Contribution for lien period not payable.
Contribution re-starts from date of re-joining.
Service period not accounted for.
Benefits – Employee contribution only :
Resignation / Transfer to other CPSE / Organization.
Compulsory retirement, removal or dismissal because of disciplinary proceedings as per CDA Rules / Standing Orders.
Cases of employees maintaining lien with SAIL but superannuating from the borrowing Organization.
Nominations :
In absence of Nomination, nomination(s) made by the employee under P.F. to be considered.
Process Road Map :
Go ahead from Union and SEFI representatives.
Decision of the SESBF Trust.
SAIL Board.
Approval from Administrative Ministry.
Implementation.
Availing Annuity :
On superannuation / separation – individual to purchase annuity from various annuity options from a prescribed Annuity Provider(s).
Commutation not allowed.
Annuity Providers :
Life Insurance Corporation off India.
SBI Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd.
Bajaj Allianz Life Insurance Co. Ltd.
Reliance Life Insurance Co. Ltd.
Star Union Dai-ichi Life Insurance Co. Ltd.
*GSCA RATES
(Revised annuity options & rates w.e.f. 01/08/2012)
Type of Annuities GSCA Monthly Annuity at Age 60 yearsPurchase Price / Basic Rate / 2.5 lakhs / 5 lakhs / 7.5 lakhs / 10 lakhs
Annuity for life / 91.2 / 1960.42 / 3945.83 / 5937.50 / 7925.00
Annuity for life with return of Capital (ROC) / 69.3 / 1504.17 / 3033.33 / 4568.75 / 6100.00
Annuity for 5 years certain & life thereafter / 90.4 / 1943.75 / 3912.50 / 5887.50 / 7858.33
Annuity for 10 years certain & life thereafter / 88.6 / 1906.25 / 3837.50 / 5775.00 / 7708.33
Annuity for 15 years certain & life thereafter / 86.2 / 1856.25 / 3737.50 / 5625.00 / 7508.33
Annuity for 20 years certain & life thereafter / 83.2 / 1793.75 / 3612.50 / 5437.50 / 7258.33
Annuity for life increasing at a simple rate of 3% p.a. / 74 / 1602.08 / 3229.17 / 4862.50 / 6491.67
Annuity for life with 50% to spouse / 84.6 / 1822.92 / 3670.83 / 5525.00 / 7375.00
Annuity for life with 100% to spouse / 78.8 / 1702.08 / 3429.17 / 5162.50 / 6891.67
Annuity for life with 100% to spouse with ROC / 68.7 / 1491.67 / 3008.33 / 4531.25 / 6050.00
* GSCA =GROUP SUPERANNUATION CASH ACCUMULATION