Pension Scheme for CPSE Employees – 1.5 lakh employees to be benefited

Steel CPSE Employees New Pension Scheme – 1.5 lakh wage workers gets benefited

The detailed consultation has made the Ministry of Steel decide on the final agreement and bring a new Pension Scheme for the wage workers. As the name suggest, the CPSE Employees Pension Scheme is effective for executives and non-executives from January 1 (2007) and January 1 (2012) respectively. The consultation of officers associations and unions of the employees were included in the agreement. The scheme is operative for the ones who belong to the steel industry like FSNL, MSTC, RINL, SAIL, KIOCL and MECON. The Union Minister of Steel, Chaudhary Birender Singh has made the announcement on July 17th, 2018.

Highlights of CPSE Employees New Pension Scheme

• Beneficial for serving and retired employees – The Steel CPSE Employees Pension will be of immense benefits to the serving as well as retired employees of 94,000 and 56,000 respectively. The financial burden of Rs. 45 crore per month will also be improved.
• The Steel CPSE Employees Pension will subject to the factors such as the paying capacity, affordability and sustainability. In addition, this pension scheme will not come with the inclusion of any support from government budget.
• The CPSE’s boards will make a decision about the contribution per year. The decided amount will have a direct impact on the cost of the entire employee of CPSE as well as the profit too. In addition to this, it will have 30% upper ceiling of the total superannuation benefits.
• CPSE management will also be responsible for the framing, preparation and implementation of roadmap.
• With the discussion of the multiple problems, the new Pension Scheme is touted to be a part of the provident fund, medical benefits, superannuation benefits and gratuity.

Press Information Bureau
Government of India
Ministry of Steel

17-July-2018 15:51 IST

Ministry of Steel has agreed to the proposal received from various CPSEs under its control to introduce the pension scheme with effect from 1st January 2007 in case of executives and 1st January 2012 in case of non-executives or from a subsequent date as decided by the company. The agreement was reached after detailed consultation with representatives of employees unions and officers associations belonging to SAIL, RINL, MSTC, FSNL, MECON and KIOCL.This was announced by the Union Minister of Steel, Chaudhary Birender Singh in New Delhi today.

During the meeting with the Minister, the representatives of employees unions and officers associations discussed various issues concerning them, including the introduction of pension scheme as part of the superannuation benefits, provident fund, gratuity andmedical benefit. The Minister informed that medical benefits have already been extended to employees of CPSEs under the Ministry of Steel. NMDC and MOIL have also introduced the pension scheme to its employees as per the Second Pay Revision Committee recommendations. He said that there has been a long standing demand from the employees of other CPSEs for introduction of pension scheme.

Chaudhary Birender Singh said that the pension scheme will benefit over 94,000 serving and 56,000 retired employees of CPSEs under the Ministry of Steel and put an additional financial burden of Rs. 45 crore per month. He said that the pension scheme will be subject to factors like affordability, capacity to pay and sustainability by the CPSEs. Government budgetary support will not be provided to operate these schemes. The rate of contribution will be decided by the respective boards of CPSEs each year depending upon the profit made and employee cost to the company subject to upper ceiling of 30% (Basic Pay plus DA) of superannuation benefits. The actual details of the pension scheme and road map of implementation will be worked out by the management of each CPSEs.

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MM/ BLM

Source: PIB