New Pension schemes for people to understand

1. NEW PENSION SCHEME (NPS)
Presentation by BPCL

2. DPE GUIDELINES ON SUPERANNUATION
(RETIREMENT )BENEFIT
DPE guidelines dated 26.11.2008 & 2.4.2009 relating to pay
revision of Board level & below Board Executives provide for:
 CPSEs allowed to provide for 30% of Basic + DA as
Superannuation benefits, which would include Contributory
P.F., Gratuity, Pension & Post Superannuation Medical
Benefits.
 The pension benefit to be under a ‘Defined Contribution
Scheme’ (DCS).
 CPSEs to make their own schemes to manage this Fund or
operate through Insurance Companies on fixed contribution
basis

3.  The Superannuation benefits to be based on the contributions
+ returns thereon.
 The Pension and Medical benefits to be extended to
Executives who superannuate from the CPSE and have put in
a minimum of 15 yrs. service in the CPSE prior to
superannuation.
 No other superannuation benefit can be granted outside the
ceiling of 30% of Basic + DA.
DPE GUIDELINES ON SUPERANNUATION
(RETIREMENT )BENEFIT

4. INTRODUCTION OF NEW PENSION SCHEME (NPS)
 Effective 1.1.2007, New Pension Scheme will be operated as a ‘Defined
Contribution Scheme’ in line with DPE guidelines & all employees on roll
as on date will be covered. All new employees would become members of
only NPS.
 An account for each employee will be opened from 1.1.2007 or from the
date of joining the services of the Corporation.
 Company’s contribution to NPS will come out of 30% of BP + DA after
adjusting contributions made against PF ,Gratuity ,PRMB. All the outgo
except for PF will depend on actuarial valuation and only residual portion
will go to NPS as contribution towards Pension benefit.
 Acturial valuation will determine percentage of Gratuity/PRMB forming part
of 30% BP +DA. Balance contribution after adjusting 12% on account PF
will go to NPS .
 The contribution percentage to NPS works out to approximately 12.5%
( indicative) for the period 1.1.2007 to 31.3.2011. Final percentage will
emerge after signing of LTS, when the revised salaries will be known.

5. INTRODUCTION OF NEW PENSION SCHEME (NPS)
 NPS is managed by the existing Superannuation Trust.
 Employees would be permitted to voluntarily contribute to NPS.
 The Trust would make investment of the funds with the Service
Providers like LIC/SBI Life/HDFC Life / ICICI Prudential , etc.
Contd…

6. BENEFIT UNDER NEW PENSION SCHEME (NPS)
 Employees retired with 15 years of service or more are eligible for
Pension under NPS. Immediate past service with CPSE will be
considered provided NPS contribution is transferred to BPCL.
Service with Govt not to be considered.
 In respect of Death in service and Permanent Total Disablement the
pension based on the accumulations is paid irrespective of no of
years of service immediately in the following month of happening
such event ( As per the clarificatiopn issued by DPE to MMTC dt.
30.8.11)
 In r/o Resigned cases, contribution under NPS is transferable to
other CPSEs provided they have similar NPS and the application is
routed through proper channel. However, the accumulations will be
transferred to other CPSE only at NDR of the employee. If
employee joins any other company other than CPSE, only
employees own contribution will be returned alongwith interest.

7. BENEFITS UNDER NPS
 Staff to choose from one of the following 4 options :
I Guaranteed for 15 years or lifetime of member, whichever is
later
II Lifetime of member with return of capital
III Joint lifetime of member and spouse (not available in KR )
IV Joint lifetime of member and spouse with return of capital
(not available in KR )
 1/3rd of Pension payable can be commuted . Commuted amount
not taxable
 ROC and monthly benefit received is taxable

8. BENEFIT UNDER NEW PENSION SCHEME (NPS)
 In case of employees who separate arising out of disciplinary
proceedings, no company’s contribution is returned. However,
own contribuition alongwith interest will be returned
Contd…

9. Seek clarification on
 whether 14.5 years and above service can be treated as 15 years
service
 Whether 15 years clause can be waived off if opt for PFRDA
scheme.
 If no, whether DPE would facilitate introduction of NPS scheme thru
PFRDA considering 15 years service clause for eligibilty of
pension
Contd…

10. POST RETIREMENT MEDICAL
BENEFIT SCHEME( PRMBS)

11.  The PRMBS costs is met out of the portion earmarked for this purpose
under 30% of the retirement benefits, as per the extant Government
guidelines on the subject
Preamble

12.  Employees retired/ demised on or after 24.1.1976 are covered under
the Scheme.
 Employees resigned with 25 years of service are also eligible
 Benefit varies depending on the cadre.
 For Officers again the benefit varies based on the Job group
 Currently 2530 separated Officers and 5962 workmen are covered
under the scheme
Applicability

13. Schemes & Coverage
 One time contribution on joining PRMBS
Management –Rs. 25,000
Workmen - Rs.10,000
 Domiciliary treatement limits for block of 2 years are as under and the
rates are as applicable to regular employees:
Management – Rs. 80,000
Workmen - Rs.36,000
 Hospitaliation expenses are at actuals based on the rates applicable at
the time of retirement

14. General:
 The medical reimbursements of eligible dependent parents,
for all cadres of separated employees, is restricted to 90% of
the amount which is reimbursable, for both domiciliary and
Hospitalisation expenses.
 Any changes to the scheme on the above principle for the
serving employees are made applicable to separated
employees as well.
 The cost of PRMBS benefit works out to approx. 3% of BP
+SI and is accounted under 30% of BP+DA Superannuation
Benefit