4. Purpose
The scheme is designed to meet
the Post retirement needs of the
employees and needs of the family in case of death
and of an employee in service.
PRBS
5. Scheme covers regular employees
having a continuous minimum
service of 15 years in ONGC except
in case of death/
Permanent total disablement
Eligibility
Introduced
w.e.f.
01/04/1990 for
executives
on optional
basis
Compulsory
for all
Executives
(new entrants)
joining after
01/04/1990
Compulsory
for all regular
employees
w.e.f.
16/11/1995
Extended to
Unionized
Category
w.e.f.
16/11/1995
Scheme
revised w.e.f
01.01.2007
Scheme covers all regular
employees
without requirement of minimum
service of 15 years
Scheme
revised w.e.f
01.01.2017
6. All expenses towards
administration of the fund are
borne by ONGC.
PRBS
Management
Managed by
the Board of
Trustees of
PRBS Trust
Pension disbursed
through IRDA
approved insurers
viz- LIC,SBI life,
HDFC Life Pru &
ICICI Prudential
Define
Contribution
Pension
Scheme(DCPS)
7. ❖13 members
❖7 members are nominated by CMD ONGC
❖Three Trustees are nominated by CWC, ASTO
❖Three members are nominated by Recognized Union by
rotation
❖Director (Finance), ONGC is the Chairman of the Trust
Board of Trustees
9. • Defined contribution (DC) nature of the scheme w.e.f. 01.01.2007 as per DPE
guidelines, Post 1.1.2007; the pension scheme is based on defined
contribution principles with no guarantee of any assured pensionable
benefit.
• The pre-revised Defined Benefit scheme has cease to operate as on
31.12.2006 and post 1.1.2007, the modified scheme is operating under the
Defined Contribution Scheme, whereby individual accounts have been
maintained.
• Actual pension amount post 01.01.2007 to be market determined through
purchase of annuity from Insurance Company (LIC, SBI Life, ICICI Prudential
& HDFC Standard Life).
The Scheme explained
9
10. • After conversion of the Scheme, the scheme is funded out of the 30%
component of Basic Pay plus D.A. allowed as superannuation benefits (after
reckoning of 15% towards CPF, Gratuity, & Post retirement medical benefit) and
3% of Basic plus DA as employee contribution.
• The scheme also allows voluntary contribution from the employees, which
reflects as higher pension; as Annuity is being purchased against individual
accounts.
• The Scheme has declared a return of 8.50% on the contributions from
01.01.2007 to 31.03.2014, 9.64% for FY 2014-15, 10.09% for FY 2015-16, 9.134%
for 2016-17, 8.399% for FY 2017-18 & 8.469% for FY 2018-19.
The Scheme explained…contd
10
11. Rate of Contribution
Employee’s Contribution @3% of Basic & DA
Employer’s Contribution @15% of Basic & DA
Additional /Cash Contribution Rs.12,449.95 for the
FY 2020-21
Voluntary Contribution As contributed
13. • Employees’ own contribution along with accrued interest shall
be refundable to the employee subject to applicable tax.
• Employer’s contribution is not paid.
• In case an employee resigns and joins another CPSE, then total
corpus (Employer & Employee’s contribution) is transferred to
the other CPSE.
Withdrawal Benefits in case of Resignation
14. Calculation of Corpus
a Employee Contribution 3% of BP + DA
b Employer Contribution 15% of BP+DA
c Additional contribution Presently Rs.12,449.95
d Voluntary contribution Optional
e Trust Income 8.469% of (a+b+c+d)(rate is based on
ROI for FY 2018-19 )
f Total Corpus (a+b+c+d+e)
15. Annuity Options
Type of Annuity Option Available Narration/Description ROC
A. Annuity for life with return of capital
(ROC) on Death
The annuitant / beneficiary will receive pension
till he/she is alive. On his/her death, the
nominee will receive the purchase price of
annuity/capital money.
YES
B. Annuity for life (without ROC) The annuitant / beneficiary will receive pension
till he/she is alive, no return of capital. NO
C. Annuity for life guaranteed for 5 years In these four options, the annuitant /
beneficiary will receive pension till he/she is
alive. If he/she dies before the guaranteed
period, the nominee will receive pension only
up to the guaranteed period
NO
D.Annuity for life guaranteed for 10
years
E.Annuity for life guaranteed for 15 years
F. Annuity for life guaranteed for 20
years
G. Annuity for Joint Life Last Survivor
Pension with 100% reversion to the
spouse
The annuitant will receive pension till he/she is
alive and on his death the spouse gets the
equivalent pension.
NO
H Annuity for Joint Life Last Survivor
Pension with 100% reversion to the
spouse and with return of capital
The annuitant will receive pension till he/she is
alive and on his death the spouse gets the
equivalent pension and on the death of spouse
the nominee will receive the purchase price
YES
16. Indicative Returns on Net Corpus under different
Annuity Options/Insurers
Annuity Option/Insurer LIC
HDFC
Life
SBI Life
ICICI
pru
A. Annuity for life with ROC on Death
5.46% 6.20% 6.20% 5.99%
B. Annuity for Life (Without ROC) 7.88% 8.21% 8.65% 7.14%
C. Annuity for Life Guaranteed for 5 years
7.83% 7.97% 8.57% 7.11%
D. Annuity for Life Guaranteed for 10
years 7.70% 7.84% 8.42% 7.04%
E. Annuity for Life Guaranteed for 15
years 7.51% 7.67% 8.18% 6.94%
F. Annuity for Life Guaranteed for 20
years
7.27% 7.46% NA NA
G. Annuity for Joint Life Survivor Pension*
6.73% 6.92% 7.31% 6.38%
H. Annuity for Joint Life Survivor Pension
with ROC*
5.45% 6.15% 6.03% 5.99%
For employees retiring in June 2020
* Age Difference of 5 Years with spouse
17. Indicative Monthly pensions on Corpus of Rs.1 Lakh
under different Annuity Options/Insurers
Annuity Option/Insurer LIC (Rs.)
HDFC
Life (Rs.)
SBI LIFE
(Rs.)
ICICI Pru
(Rs.)
A. Annuity for life with ROC on Death 455 517 517 499
B. Annuity for Life (Without ROC)
657 684 721 595
C. Annuity for Life Guaranteed for 5
years 653 664 714 593
D. Annuity for Life Guaranteed for 10
years 642 653 702 587
E. Annuity for Life Guaranteed for 15
years 626 639 682 578
F. Annuity for Life Guaranteed for 20
years 606 622 - -
G. Annuity for Joint Life Survivor
Pension 561 577 609 532
H. Annuity for Joint Life Survivor
Pension with ROC 454 513 503 499
• For employees retiring in June 2020
18. Concerned Establishment
PRBS Section
Sends proposal/corpus amount
to insurer for purchase of
Annuities on 7th of the following
month
Insurer Releases
monthly pension
Pays 1/3rd commutation to
members/Beneficiary
Member/Beneficiary
Member/Beneficiary
⮚Processes & settles the claims, received
complete in all respect for final settlement during
the month on last day of the month.
⮚Submits claim applications
⮚Forwards application to PRBS Section
after certifying correctness and
completeness of information.
FLOW-CHART OF PRBS CLAIM SETTLEMENT
19. Investment Guidelines issued by Ministry of Finance
Category Percentage amount to
be invested
Government Securities including State
Development Loans(SDL)
Up to 55%
PSU Category-Corporate Debt Securities Up to 40%
Equity linked schemes of mutual funds Up to 15%
Treasury Bills (Money market instrument) Up to 5%
19
21. Rate of Contribution
Particulars
Existing PRBS
contribution
New PRBS New NPS
Employee’s
Contribution
@3% of Basic
& DA
@3% of Basic
& DA
NIL
Employer’s
Contribution
@15% of Basic
& DA
Any Amount
Upto 10% of
Basic & DA
Additional /Cash
Contribution
Rs.12,449.95 Any Amount Any Amount
Voluntary Contribution As contributed Any Amount NIL
22. Tax implication of NPS & PRBS
22
Particulars NPS PRBS
Tax Benefit to employees :
1
Employees
own
contribution
An additional tax benefit on
contribution of Rs. 50,000/-
by employee over and
above Rs 1,50,000/-
available under section
80C
Deduction is available
with an upper limit of Rs.
1,50,000 u/s 80 C which
includes other deduction
like CPF, Pension, LIC
etc.
Additional Tax benefit of Rs.15,600/- on Rs.50,000/-
considering tax rate of 31.2%
23. Other benefit of NPS & PRBS
23
Particulars NPS PRBS
1
Withdrawal of
Funds on
superannuation
60% of the pension fund is
allowed for withdrawal & is
exempt from tax.
Withdrawal of 33.33% of
the pension fund is
allowed as tax free
commutation.
2
Fund
Management
By Pension fund
Managers
Nominal charges
In-house by the Trust.
no fund management
charges.
3
Investment
exposure
Employees has option to
choose investment pattern
between debt and equity
As per Income tax Rules
4 Returns Returns are NAV based Actual realised returns
5
Purchase of
Annuity
Annuity can be purchased
upto 70 years of age.
Annuity has to be
purchased immediately on
retirement
6
Annuity rates Annuity amount is exempt
from GST
GST @ 1.8% is
chargeable
24. NPS Charges
(to be borne by employee)
24
Intermediary Charge Head Service Charge
Method of
Deduction
POP
(UTI AMC)
Initial Subscriber Registration Nil
To be
Collected
upfront
Initial Contribution 0.01% of the contribution
Min: Rs. 20 & Max :
Rs.25,000
All Subsequent Contribution
All Non-Financial Transaction Nil
CRA
(NSDL)
Account Opening Charge Rs. 40
Through
cancellation
of units
Annual Maintenance Charges Rs. 95
Per Transaction(Financial/Non-Financial) Rs. 3.75
PF Investment Management (Per Annum) 0.01% of AUM Through
adjustment
in NAV
Custodian Asset maintenance (Per Annum) 0.0032% of AUM
NPS Trust Reimbursement of Expenses (per Annum) 0.005% of AUM
26. Extent of application and date of effect :
CPF regulation shall apply uniformly to all the units and other
establishments and institutions under the control of the Corporation
w.e.f. 30-06-1961 under the Employees’ Provident Fund Act, 1952.
Employees eligible to become members :
Every employee of the Corporation, Government servants on loan, on
foreign service terms, shall be entitled and required to become
member of the fund from the date of joining the Corporation.
The Oil and Natural Gas Corporation Employees
Contributory Provident Fund
27. Retention of membership :
A member of the fund shall continue to be member until the amount
standing to his credit in the fund is payable to him in terms of
regulation 33.
Compulsory contribution :
Each member shall contribute to the Fund every month a sum
equivalent to such percentage of his salary as is prescribed under the
scheme. (12% of Basic + DA)
Employer’s Matching Contribution :
The Corporation shall every month contribute in respect of each
member a sum equal to the member’s compulsory contribution under
Regulation 20. (12% of Basic + DA)
Eligibility and contribution
28. Optional Contribution :
A member’s monthly contribution shall be recovered as under
regulation 20, unless he intimates in writing an increased amount
inclusive of compulsory contribution which he opts to contribute.
This option can be exercised only once in each financial year.
Members Accounts
The account of each member shall be allotted a number which shall
be communicated to him. The account of each member shall show
the amount of his own contribution, withdrawals, refunds there
against, the employer’s contribution and the interest thereon for
the year. The account shall be maintained in whole rupees in the
manner prescribed by the Board from time to time.
29. FUNCTIONS OF ONGC ECPF
1. Final Payments
2. Investment
3. Accounts
4. Advances
5. Statements and reconciliation
30. Circumstances in which accumulation in the fund are payable to a
member
(i) On retirement from service after attaining the age of
superannuation.
(ii) On expiry of the period of his contract.
(iii) On termination of service in the case of mass or individual
retrenchment.
(iv) On retirement on account of permanent and total incapacity for
work due to bodily or mental infirmity or before migration from
India for permanent settlement abroad a member may be
permitted to withdraw the amount standing to his credit.
31. (i)Every employee shall on joining the Fund make a
Nomination in Requisite Form conferring on one or more
persons the right to receive the amount that may stand to his
credit in the Fund in the event of his death before the
amount has become payable or having become payable has
not been paid.
Provided that :-
a) If at the time of making the nomination, the employee has
a family, the nomination shall not be in favour of any person
or persons other than the members of his family. Any
nomination made by such employee in favour of person not
belonging to his family shall be invalid.
NOMINATION FACILITY
32. (i) A member may, at any time, modify a nomination by
sending a notice in writing to the Executive Officer Provided
that along with such notice he shall send a fresh nomination
in accordance with the provisions of these Regulations.
(ii) A nomination or its modification shall become effective,
to the extent it is valid, from the date of its receipt by the
Executive Officer or any other person authorised to receive
nominations on behalf of the Trust.
NOMINATION FACILITY
33. Family
“FAMILY” means:
(i) In the case of a male member, his wife, children, deceased son’s widow, deceased son’s children , his
parents:
Provided that if a member proves that his wife has ceased under the personal law governing him or
the customary law of the community to which the spouse belongs, to be entitled to maintenance, she
shall no longer be deemed to be the member of his family unless the member expressly intimates by
notice in writing to the Executive Officer that she shall continue to be so regarded:
(ii) In the case of female member, her husband and children, her dependent parents, her husband’s parents
and her deceased son’s widow and children
Provided that if a member by notice in writing to the Executive Officer expresses her desire to exclude
her husband and his dependant parents from the family, the husband and his dependant parents shall
cease to be part of the member’s family for the purpose of these regulations, unless the member
subsequently cancels in writing any such notice.
Explanation :
1. In either of the above two cases, if the child of the member or, as the case may be, the child of a
deceased son of a member has been adopted by another person and if under personal law of the
adopter, adoption is legally recognized, such a child shall be considered as excluded from the family of
the member.
2. Notwithstanding anything contained hereinabove for the advances from the Fund, family means any
of the following persons who are wholly dependant on the employee, namely:- the employee’s wife,
legitimate children, step-children, parents, sisters and minor brothers.
34. (i) All moneys received in the Fund account and not invested as
per Regulation 9 (a) (ii) shall be deposited by the Executive
Officer in the State Bank of India, or such other scheduled Banks
as may be approved by the Board. The deposits with the Bank
may, according to the requirements of the Fund from time to
time, be on current account, Savings Bank account, call
deposits, fix deposits or any other favourable terms offered by
approved Bank.
(ii) The amount of Provident Fund shall be invested as per
Pattern prescribed by the Government of India from time to
time.
Banking and Investment of the funds
35. Withdrawals from the fund :-
(a) 90% Withdrawal
An employee can withdraw 90% of his balance from the
Provident Fund when he has less than one year’s service left
before retirement.
36. (b) NON REFUNDABLE WITHDRAWAL
A non-refundable withdrawal may be granted to a member for the
following purposes
(A) HOUSING PURPOSES (after 5 years of service)
(i) Purchase of a dwelling site
(ii) Construction of a dwelling house.
(iii) Purchasing of a dwelling house/flat
(iv) Completing/renovating the house already commenced or
purchased
(v) Payment of loan previously raised expressly for purchase of a
dwelling house or dwelling site.
Eligible Amount= 36 months Basic+DA or 90% of own+75% of
employer contribution.
37. (b) NON REFUNDABLE WITHDRAWAL
(B) OTHER PURPOSES
(i) Withdrawal for illness (Eligible Amount= 6 months Basic+DA
or 50% of own contribution).
(ii) Withdrawal for marriage/ post matriculate education (After 7
years, Eligible Amount= 50% of own contribution).
(iii) Withdrawal for physically handicapped. (After 5 years,
Eligible Amount= 6 months Basic+DA or 50% of own
contribution).
38. 1. The board of Trustees consists of 11 members
2. Out of the above, 6 members who representatives of ONGC
Management.
3. Three Trustees represent HQ, ASTO.
4. One Trustee represents Employees recognised union at HQ.
5. One Trustee represents Recognised Union from Regional
Headquarters by rotation.
Constitution of Board of Trustees
39.
40. • ONGC CSS Scheme introduced w.e.f. 1st June 1998 in lieu of
i. Benevolent fund scheme.
ii.Group Insurance Scheme.
iii.Financial Assistance in lieu of gainful employment.
iv. Insurance for Travel by Air.
• Objective of CSS Scheme:
To provide
⮚ Support on Death/ permanent total disability :-financial support
to the beneficiaries in the event of death/PTD of a member
while in service.
⮚ Survival Benefit:-return of own contribution alongwith interest
@6% compounded annually thereon to member
Introduction and Objective of Scheme
41. ONGC COMPOSITE SOCIAL
SECURITY SCHEME
⮚All regular employees of ONGC including C&MD and full time
Directors as on 01.06.98.
⮚ Regular employees who joined or shall join thereafter.
⮚ Employees on Probation/ on lien/ deputation to other
organizations (deputation-out).
⮚ Members under suspension shall continue to be members of
the Scheme during the period of suspension.
42. ❖On Deputation/ Lien with ONGC from State/ Central Govt.,
State/ Central Govt. Undertaking, Joint Venture Companies
etc. (Deputation-in)
❖Tenure Base/ Term Based/ Casual/ Daily Rated/ Piece Rated/
Part Time/ Adhoc/ Contract Appointees/ Individuals
Appointed on contracts/ contingent Workers/ Apprentices
and Trainees, Consultant including seasonal works with field
parties etc.
❖Separated - Retired/Pensioner/deceased/ permanent disable.
ONGC COMPOSITE SOCIAL
SECURITY SCHEME
..Not Eligible
44. SUPPORT ON DEATH
• 25% of admissible support amount shall be paid to
parents if they alive.
• 75% of admissible support amount shall be paid to
nominees as per nomination record.
• 50% of support amount shall be paid immediately on
receipt of claim duly verified by location HR-ER.(Initial
payment)
• Remain 50% of support amount shall be paid in five
equal annual installments commencing from the date of
release of initial payment.
45.
46. Formation and Purpose
• The ONGC Gratuity Fund Trust was formed for availing Income
Tax benefits.
• The Trust was registered on 21st February 2002 at Dehradun.
• The object of the Fund is to provide moneys for payment of
gratuity to the employees of the Company in India in
accordance with the provisions of ONGC Death, Retirement and
Terminal Gratuity Rules 1995.
• The Fund shall be vested in the “Board of Trustees” under an
irrevocable Trust for the sole purpose of payment of gratuity to
the employees of the Company as provided in “Gratuity Rules”.
• The Company shall be the contributor to the fund.
• The management of the Fund shall be vested in the Board of
Trustees.
47. • Each and every employee of the Corporation is required to make
nomination as per Gratuity Rules of the Corporation
• In case, a member dies before filing his Certificate of Nomination
under Scheme, the Nomination submitted by him/her in ONGC, CPF
Trust and which was duly accepted by CPF Trust, shall in considered
“suo moto” for the purpose “of the Fund”
• The entitlement for Gratuity to the employees of the Corporation
will be determined & Governed by “ONGC Death, Retirement &
Terminal Gratuity Rules of 1995” of the Corporation as amended
from time to time
Nomination/Payment
48. ❖ Vested in the Board of Trustees.
❖ Board consist of five Trustees.
⮚Head of Administration in ONGC HQ
⮚Head of Finance & Accounts in GFT
⮚Remaining three Trustees are nominated by ONGC
Management
49. Calculation of Gratuity
❑Fifteen days wages for every completed year of service have to be
calculated on the basis of wages paid to an employee for the
month divided by twenty-six days and the quotient multiplied by
fifteen days
❑Calculation of Gratuity shall be made as under:-
❑Name A
❑Date of retirement
31.07.2017
❑Wages i.e. Pay, DA and PP Rs.
1,20,000/-
❑No. of completed years of service 36 years
❑Amount of Gratuity will be the least of the following:-
❑ 1,20,000X15X36/26 = Rs. 24,92,308/-
❑Rupees Twenty Lakhs Only
❑In the above case the amount of gratuity will be Rs.20,00,000/-
only.
50. • Claims for Gratuity will be received and processed by concerned
establishment of the Corporation under the “Gratuity Rules” and
the amount of Gratuity so determined by the Corporation shall be
paid by Personal Claim Section (PCS) of the Corporation to the
beneficiary
• On receipt of monthly payment advice from the Corporation,
Fund/Trust will reimburse the amount to the Corporation
Payment/ Reimbursement
51.
52. SAHAYOG TRUST
• ONGC Sahayog Scheme was introduced on 31st May 2004.
• It is a unique initiative of ONGC Management with an objective
to proved social security to the employee of ONGC and its
secondary work force.
• Purpose : To provide social security to needy employees
• Financial assistance is granted to dependants for:
⮚ Pursuing higher studies (Rs.2.50 Lakh)
⮚ Marriage of dependent daughter (Rs. 50,000/-)
⮚ Medical Treatment (Rs.5 Lakh)
53. SAHAYOG TRUST
The contribution is made by employees every quarter:
Level of employee Contribution (Rs)
Executives Rs.250 per Quarter
Staff level Rs.150 per Quarter
54. ❖ Documents required to be submitted along with the application
Towards grant for pursuing higher studies
⮚ Proof of admission in the institution
⮚ Detailed estimated expenditure for remaining studies
⮚ Copy of mark sheet of last examination passed
Towards grant for medical treatment
⮚ Copy of medical certificate from hospital
⮚ Proof of admission (if any)
⮚ Estimated cost of treatment given by the concerned hospital
Towards grant for marriage of female dependant
⮚ Proof of marriage to be solemnized
SAHAYOG TRUST
55. Medical Treatment
• Full financial support for medical treatment
• Full help for pre-op and post-op procedures
• The maximum financial grant for medical treatment is up to Rs.5.00
lakh in each case
• Focus to provide timely & full treatment
• In life saving conditions, money is directly transferred to the hospital
by obtaining special approval from the Chairman of the Trust
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56. Other Purposes
• May extend financial assistance for other purposes (viz.
Sustenance, Recuperation & Rehabilitation)to those employees &
also their next of kin who have no adequate means of support.
• The total amount of all kinds of financial grants in a single case
shall not exceed the ceilings prescribed hereunder:
Class III & IV Rs. 5.0 lakh
‘S’ level Rs. 6.0 lakh
Executives upto E-4 level Rs. 8.0 lakh
Executive of E-5 level & above Rs 10.0 lakh
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