This document describes the POWERGRID Employees Defined Contribution Superannuation Benefit (Pension) Scheme and Post Retirement Medical Benefit Scheme. It provides details on: - Background and applicability of the pension scheme which was restructured from defined benefit to defined contribution in 2004. - Contribution rates for members at 3% of basic pay plus DA and corporation contribution within 30% of salary after discounts. - Benefits including annuity purchase at superannuation or death. Resignation benefits depend on joining another CPSE scheme. - Administration by trustees and individual pension accounts. - Post Retirement Medical Benefit Scheme eligibility, coverage, and benefits including one-time

1. POWERGRID Employees Defined
Contribution Superannuation
Benefit (Pension) Scheme
&
Post Retirement Medical Benefit
Scheme

2. POWERGRID Pension Scheme
Post Retirement Medical Benefit Scheme

3. POWERGRID Employees Defined
Contribution Superannuation
Benefit (Pension) Scheme

4. Background
Applicability & Beneficiary
Contribution
Administration of the Scheme
Benefit
General
Accounts
Pension Payment

5. Background
 “POWERGRID Self Contributory Supperannuation
Benefit (Pension) Scheme” (A Defined benefit
scheme) was in operation w.e.f. 01.04.1995.
 Restructured from ‘Defined Benefit’ to ‘Defined
Contribution’ w.e.f. 01.10.2004.
 Modified w.e.f. 01.01.2007 as “POWERGRID
Employees Defined Contribution Supperannuation
Benefit (Pension) Scheme”

6. Contributions
(i) Members Contribution: 3% of Basic Pay (including
stagnation increments) plus Dearness Allowance. A
member may also contribute any additional amount as
voluntary contribution to the superannuation fund.
(ii) Corporation’s Contribution: Contribution made by the
Corporation within a ceiling of 30% of employee’s
salary after discounting for PF, Gratuity, PRMB (Post
Retirement Medical Benefit) and any other retirement
benefit, to the Superannuation Fund

7. ADMINISTRATION OF THE SCHEME
The number of Trustees shall be 11 (Eleven)
including the Chairman
- 5 Nominees of the Management
- 4 Nominees of Workmen
- 1 Nominee from the Supervisory Category
- 1 Nominee from the Executive Category

8. Benefits
In case of superannuation:
 Employee who superannuates from the company and
has completed 15 years of service in POWERGRID
(including services in other CPSE).
 The total accumulated amount to the credit of the
employee will be used for purchase of pension annuity
from approved pension provider.
 Employee can commute upto 1/3rd of their cost of
annuity.

9. Benefits (Contd…)
In case of Death / Total Permanent
Disablement:
The total accumulated amount to the credit of
the employee will be used for purchase of
pension annuity, irrespective of the eligibility
criteria of completion of 15 years and payment
of commutation as per rules.

10. Benefits (Contd…)
In case of Resignation :
(i) Resigns from service and joins another CPSE
where similar scheme exists:
The entire amount of corporation’s contribution and
member’s contribution along with interest accrued
thereon shall be transferred to such CPSE, provided the
CPSE agrees to accept the fund transfer and the
request for transfer through proper channel.

11. Benefits (Contd…)
(ii) Resigns from service & joins another CPSE where
similar scheme does not exist or joins any organization
which is not a CPSE
 The member will get the accumulated amount available in
his/her account under the head “Member’s Contribution”
only along with accrued interest as on the date of his
resignation.
 The “Corporation’s contribution” from 01.01.2007 on the
member’s account will be transferred to the “Forfeiture
account” (being maintained in POWERGRID) which will be
adjusted in the subsequent corporation’s contribution

12. General
Joining from other CPSE
Employees joining POWERGRID from other CPSE
having similar pension scheme shall have the
option of transferring their corpus to
POWERGRID’s Pension fund.

13. General
EMPLOYEES ON DEPUTATION
The employee shall make the contribution as per
the notified percentage of his salary laid down
from time to time along with additional amount if
any, to the fund and employer’s contribution will
be made by the borrowing organization (or
alternatively by the employee himself).

14. General
EMPLOYEE KEEPING LIEN ON THE SERVICE
OF POWERGRID
POWERGRID Executives and Functional Directors
appointed to senior and top level posts through Govt.
order or presidential order in other PSU/Govt.
Deptt./Authority/Board keeping lien on the fund, may
be permitted to continue as the member of the scheme
provided that the laid down contributions in respect of
such Executive/Functional Director is contributed to the
fund.

15. Accounts
Each member has an individual pension account and an
unique pension Account Number.
The amount contributed by each employee is credited
to the existing individual pension account under the
head “Member’s contribution”
The contribution made by the Corporation is credited to
the existing individual pension account under the head
“Corporation’s contribution”.

16. Pension Payments on DC principle
 The benefit under this scheme will be the total
accumulated amount on account of employees
contribution and Corporation’s contribution only
 Pension annuity will be purchased out of the
accumulated amount in the individual pension
account.
 Quantum of pension will be determined based on
prevailing rate of annuity.

17. Critical Issue :
Apportion of enhanced amount of gratuity
 Pay revision of executive was implemented as per DPE
guidelines for executives dated 26.11.2008 implemented in
October 2009 and for non-Executive in October 2010.
 Whether Gratuity liability due to increase in ceiling from ₹
3.5 Lakhs to ₹ 10.0 Lakhs pertaining to the services
rendered before 01.01.2007 to be considered or excluded
for working out the Corporation’s contribution on Pension
within 30% of Superannuation benefit?

18. Critical Issue :
Provision of DPE
guidelines
Proposed provision of
Pension Scheme
DPE guidelines provide for
superannuation benefits to
employees who
superannuate from the
CPSE and have put in 15
years of service as on the
date of superannuation.
This benefit can be
extended to those
employees who resigns from
the CPSE and put in a
minimum of 15 years of
service.

19. Post Retirement Medical Benefit Scheme

20. Commencement:
The Policy was adopted in POWERGRID since its
inception.
Eligibility:
 Employee who superannuate from the company or
separated on medical ground
 Completed minimum period of 10 years of
continuous service in Central Govt./State Govt./PSU.
 Minimum 3 years of service in POWERGRID
Commencement and Eligibility:

21.  Board level appointees, on completion of their tenure
or on separation on medical ground
 POWERGRID Executives and Functional Directors,
appointed to senior posts in other PSU/Govt.
Dept/Authority/Board/ etc. through Govt./ Presidential
orders on their retirement or on attainment of age of
superannuation or on completion of tenure of
appointment or on separation on medical ground.
 Provided they exercise their option for coverage under
the POWERGRID Scheme.
Eligibility (Contd….)

22. Coverage: Employee and Spouse
Benefits:
(i) Indoor treatment: Reimbursement of
medical expenses incurred on indoor
treatment
(ii) Outdoor treatment: As in case of regular
employees, subject to annual ceiling of
maximum of pay scale of a serving employee
of equivalent status/rank
Coverage & Benefits

23. One time contribution as follows:
Executives : ₹ 7200/-
Supervisor : ₹ 6000/-
Workmen : ₹ 5000/-
Contribution:

24. Amount disbursed in previous years
Year Amount (in ₹ Cr.)
2007-08 5.42
2008-09 13.27
2009-10 8.72
2010-11 29.07
2011-12 4.97
Post Retirement Medical Benefit : Given below

26. Gratuity liability due to change in ceiling from 3.5 to 10
lakhs should not be part of 30% of superannuation
benefit, the reasons are :
Gratuity as per revised ceiling is for the period of
service rendered for earlier years
30% superannuation benefit is calculated on the
revised pay w.e.f 01-01-2007 and accrual of gratuity
is 15 days for each completed year of service so the
gratuity contribution should not exceed in any case for
15 days of salary for each year

27. If an employee retired on 31-Jan-2007 , he will get the
Gratuity of 10 Lakhs by contributing a small amount
whereas other employee who is retiring on 31-03-
2011 has to borne a huge amount to get Rs.10 lakhs
of Gratuity (Not at par with the employee retired on
31-Jan-2007)
The employee who joins the company in Jan 2007
has to borne the burden of gratuity liability for the
period which is not pertaining to him
How an employee can contribute beyond the limit of
30% of salary on account of single head i.e. Gratuity
only (Due to increase in ceiling) and which is also not
sufficient to meet the liability of Gratuity in a single
year.

28. Case 1: When Addl. Gratuity (due to increase in ceiling ) is not the part of 30%.
BASIC DA Total
Sup’an
benefit
@ 30% Less PF
Less
gratu.
Less
PRMB
Net for
Pension
% of
Pension
FY0607-3M 70.00 0.00 70.00 21.00 8.40 2.00 1.50 9.10 13.00%
FY0708-12M 300.00 9.00 309.00 92.70 37.08 11.00 5.00 39.62 12.82%
FY0809-12M 310.00 35.00 345.00 103.50 41.40 12.00 13.00 37.10 10.75%
FY0910-12 M 340.00 77.00 417.00 125.10 50.04 22.00 15.00 38.06 9.13%
FY1011-12 M 350.00 147.00 497.00 149.10 59.64 24.00 16.00 49.46 9.95%
FY1112- 12 M 360.00 170.00 530.00 159.00 63.60 25.00 18.00 52.40 9.89%
Total 1730.00 438.00 2168.00 650.40 260.16 96.00 68.50 225.74
Note : Addl. Gratuity of Rs.90 Crore not adjusted from 30% superannuation benefits

29. Case 2 : When Addl. Gratuity (due to increase in ceiling) is part of 30% and provided
in the Year 2006-07
BASIC DA Total
Superan
benefit
@ 30% Less PF
Less
gratu.
Less
PRMB
Net -
for
Pensn
% of
Pension
FY0607-3M 70.00 0.00 70.00 21.00 8.40 92.00 1.50 -80.90
-
115.57%
FY0708-12M 300.00 9.00 309.00 92.70 37.08 11.00 5.00 39.62 12.82%
FY0809-12M 310.00 35.00 345.00 103.50 41.40 12.00 13.00 37.10 10.75%
FY0910-12 M 340.00 77.00 417.00 125.10 50.04 22.00 15.00 38.06 9.13%
FY1011-12 M 350.00 147.00 497.00 149.10 59.64 24.00 16.00 49.46 9.95%
FY1112- 12 M 360.00 170.00 530.00 159.00 63.60 25.00 18.00 52.40 9.89%
Total 1730.00438.002168.00 650.40 260.16 186.00 68.50 135.74
Note : Addl. Gratuity provided in the Fin year 2006-07 Rs.90 Crore

30. Case 3 : When Addl. Gratuity (due to increase in ceiling) is part of 30% and provided in
the year of pay revision
BASIC DA Total
Sup’an
benefit
@ 30%
Less
PF
Less
gratu.
Less
PRMB
Net -
for
Pensn
% of
Pension
FY0607-3M 70.00 0.00 70.00 21.00 8.40 2.00 1.50 9.10 13.00%
FY0708-12M 300.00 9.00 309.00 92.70 37.08 11.00 5.00 39.62 12.82%
FY0809-12M 310.00 35.00 345.00 103.50 41.40 12.00 13.00 37.10 10.75%
FY0910-12 M 340.00 77.00 417.00 125.10 50.04 67.00 15.00 -6.94 -1.66%
FY1011-12 M 350.00 147.00 497.00 149.10 59.64 69.00 16.00 4.46 0.90%
FY1112- 12 M 360.00 170.00 530.00 159.00 63.60 25.00 18.00 52.40 9.89%
Total 1730.00 438.00 2168.00 650.40 260.16186.00 68.50 135.74
Note : Addl. Gratuity provided in the Fin year 2009-10 Rs. 45 Crore and in the Fin Year
2011-12 Rs.45 Crore

31. The account heading of the account (to be maintained
in POWERGRID) in which such amount of Corporation’s
contribution from 01.01.2007 on the member’s
account will be transferred to:
(i) If the employee resigns from the company joins
another CPSE not having a similar pension fund or
any organization not being a CPSE.
(ii) In case of Dismissal / removal from service of the
corporation and/or otherwise lost his lien on his
employment
Forfeiture Account