details of national pension scheme of india

details of national pension scheme of india

1. NEW PENSION SCHEME ( NPS)
Presentation by BPCL

2. DPE GUIDELINES ON SUPERANNUATION
(RETIREMENT )BENEFIT
DPEguidelines dated 26.11.2008 & 2.4.2009 relating to pay
revision of Board level & below Board Executives provide for:
CPSEsallowedtoprovidefor30%ofBasic+DAas
Superannuationbenefits,whichwouldincludeContributory
P.F.,Gratuity,Pension&PostSuperannuationMedical
Benefits.
Thepensionbenefittobeundera‘DefinedContribution
Scheme’(DCS).
CPSEstomaketheirownschemestomanagethisFundor
operatethroughInsuranceCompaniesonfixedcontribution
basis

3. TheSuperannuationbenefitstobebasedonthecontributions
+returnsthereon.
ThePensionandMedicalbenefitstobeextendedto
ExecutiveswhosuperannuatefromtheCPSEandhaveputin
aminimumof15yrs.serviceintheCPSEpriorto
superannuation.
Noothersuperannuationbenefitcanbegrantedoutsidethe
ceilingof30%ofBasic+DA.
DPE GUIDELINES ON SUPERANNUATION
(RETIREMENT )BENEFIT

4. INTRODUCTION OF NEW PENSION SCHEME (NPS)
Effective1.1.2007,NewPensionSchemewillbeoperatedasa‘Defined
ContributionScheme’inlinewithDPEguidelines&allemployeesonroll
asondatewillbecovered.Allnewemployeeswouldbecomemembersof
onlyNPS.
Anaccountforeachemployeewillbeopenedfrom1.1.2007orfromthe
dateofjoiningtheservicesoftheCorporation.
Company’scontributiontoNPSwillcomeoutof30%ofBP+DAafter
adjustingcontributionsmadeagainstPF,Gratuity,PRMB.Alltheoutgo
exceptforPFwilldependonactuarialvaluationandonlyresidualportion
willgotoNPSascontributiontowardsPensionbenefit.
ActurialvaluationwilldeterminepercentageofGratuity/PRMBformingpart
of30%BP+DA.Balancecontributionafteradjusting12%onaccountPF
willgotoNPS.
ThecontributionpercentagetoNPSworksouttoapproximately12.5%
(indicative)fortheperiod1.1.2007to31.3.2011.Finalpercentagewill
emergeaftersigningofLTS,whentherevisedsalarieswillbeknown.

5. INTRODUCTION OF NEW PENSION SCHEME (NPS)
NPSismanagedbytheexistingSuperannuationTrust.
EmployeeswouldbepermittedtovoluntarilycontributetoNPS.
TheTrustwouldmakeinvestmentofthefundswiththeService
ProviderslikeLIC/SBILife/HDFCLife/ICICIPrudential,etc.
Contd…

6. BENEFIT UNDER NEW PENSION SCHEME (NPS)
Employeesretiredwith15yearsofserviceormoreareeligiblefor
PensionunderNPS.ImmediatepastservicewithCPSEwillbe
consideredprovidedNPScontributionistransferredtoBPCL.
ServicewithGovtnottobeconsidered.
InrespectofDeathinserviceandPermanentTotalDisablementthe
pensionbasedontheaccumulationsispaidirrespectiveofnoof
yearsofserviceimmediatelyinthefollowingmonthofhappening
suchevent(AspertheclarificatiopnissuedbyDPEtoMMTCdt.
30.8.11)
Inr/oResignedcases,contributionunderNPSistransferableto
otherCPSEsprovidedtheyhavesimilarNPSandtheapplicationis
routedthroughproperchannel.However,theaccumulationswillbe
transferredtootherCPSEonlyatNDRoftheemployee.If
employeejoinsanyothercompanyotherthanCPSE,only
employeesowncontributionwillbereturnedalongwithinterest.

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 )
1/3
rd
of Pension payable can be commuted . Commuted amount
not taxable
ROC and monthly benefit received is taxable

8. BENEFIT UNDER NEW PENSION SCHEME (NPS)
Incaseofemployeeswhoseparatearisingoutofdisciplinary
proceedings,nocompany’scontributionisreturned.However,
own contribuitionalongwithinterestwillbereturned
Contd…

9. Seek clarification on
whether14.5yearsandaboveservicecanbetreatedas15years
service
Whether15yearsclausecanbewaivedoffifoptforPFRDA
scheme.
Ifno,whetherDPEwouldfacilitateintroductionofNPSschemethru
PFRDA considering15yearsserviceclauseforeligibiltyof
pension
Contd…

10. POST RETIREMENT MEDICAL
BENEFIT SCHEME( PRMBS)

11. ThePRMBScostsismetoutoftheportionearmarkedforthispurpose
under30%oftheretirementbenefits,aspertheextantGovernment
guidelinesonthesubject
Preamble

12. Employeesretired/demisedonorafter24.1.1976arecoveredunder
theScheme.
Employeesresignedwith25yearsofservicearealsoeligible
Benefitvariesdependingonthecadre.
ForOfficersagainthebenefitvariesbasedontheJobgroup
Currently2530separatedOfficersand5962workmenarecovered
underthescheme
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:
Themedicalreimbursementsofeligibledependentparents,
forallcadresofseparatedemployees,isrestrictedto90%of
theamountwhichisreimbursable,forbothdomiciliaryand
Hospitalisationexpenses.
Anychangestotheschemeontheaboveprincipleforthe
servingemployeesaremadeapplicabletoseparated
employeesaswell.
ThecostofPRMBSbenefitworksouttoapprox.3%ofBP
+SIandisaccountedunder30%ofBP+DASuperannuation
Benefit