Document Fragment View

Matching Fragments

38. The DPE's O.M. dated 02.04.2009 in para 2 (ii) also provides as follows:

"2(ii) Superannuation Benefit: The ceiling of 30% towards superannuation benefits would be calculated on Basic Pay plus DA instead of Basic Pay alone. Any superannuation benefit will be under a "defined contribution scheme" and not under a "defined benefit scheme". CPSEs that do not have superannuation scheme, may develop such scheme and obtain the approval of their Administrative Ministry. However, no other superannuation benefit can be granted outside this 30% ceiling, (para 12, Annex (V(v) of O.M. dated 26.11.2008 refers)"

39. Pursuant to the Presidential Directive, IOCL was bound to contribute upto 30% of Basic Pay and Dearness Allowance towards superannuation benefits, comprising of Provident Fund contribution, Gratuity, Post- Superannuation Medical Benefits and a defined contribution pension scheme (annuity based) and accordingly, it formulated the SBFS-2, which was "defined contribution scheme" as opposed to "defined benefit scheme", as earlier floated by its employees. IOCL decided to contribute to this new Pension Scheme each year the balance funds available out of the said 30% limit after accounting for employer's contribution towards Provident Fund, liability for payment of gratuity and the cost for providing Post Retirement Medical Benefits to its employees.

41. Board of Directors of IOCL accordingly, approved and resolved in the meeting held on 10.02.2011, for creation of the new defined contribution scheme w.e.f. 01.01.2007 i.e. SBFS-2, to which IOCL would contribute approximately 14.62% of the Basic Pay and Dearness Allowances, payable to each employee or such other sum as may be available in any year within the 30% ceiling permitted. Pursuant thereto, a Deed of Variation was executed on 18.05.2011 by IOCL and the Trustees of the Trust, with a view to incorporate the changes and provide maximum benefits available under the existing SBF Fund and Scheme of its employees and to introduce the new defined contribution scheme to provide additional superannuation recurring benefits/pension to its employees retiring on and after 01.01.2007.

54. According to IOCL, bound by the Presidential Directive issued by way of DPE O.Ms. dated 26.11.2008 and 02.04.2009, it introduced the SBFS-2 which was a 'Defined Contribution Scheme' as opposed to 'Defined Benefit Scheme' existing then. Under SBFS-2, IOCL decided to contribute an amount equivalent to 14.62% for providing annuity based pension to employees on rolls as on 01.01.2007. The salient features were as follows:-