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6. On the basis of the order passed by the Supreme Court, ONGC renewed the application for exemption on 16.01.2004. Again the Ministry of Labour, Government of India rejected the application of ONGC for exemption under EPS 1995. Since the Government has rejected the application for exemption under EPS 1995, ONGC implemented EPS 1995 w.e.f. 16.11.1995.

7. Modified PRBS and continuation of PRBS as Defined Pension Scheme and as additional welfare scheme:

A joint committee, consisting of four representatives of the Management, five representatives of ASTO and three representatives of recognized Unions were formed to decide on the references inter-alia to study PRBS and consider the recommendations of M/s. Mercer, Actuary. M/s. Mercer Actuary, Human Resources Consulting was appointed to recommend necessary changes for long term viability of the scheme. On 01.03.2007, Central Working Committee of ASTO passed a resolution stating that the modified PRBS is substantial and compulsory, as Defined Pension Model, and that it has decided to continue with the scheme as additional welfare scheme and that the scheme is compulsory for all the existing members w.e.f. 16.11.1995. In the meeting between management of ONGC and Central Working Committee of ASTO, on 01.03.2007, about 23 issues, including Item no.8, relating to review of PRBS and 5 additional issues, were considered.

8. Based on the discussions, Trustees of PRBS Trust passed unanimous resolution for amendment of PRBS, subject to the approval of Income Tax Department, more particularly in respect of of enhancement of contribution varying between 2% to 11% of the notional salary w.e.f. 01.04.2007. The MOU was executed between ONGC and ASTO in respect of modified PRBS making it as "Defined Pension Scheme", which is compulsory to all employees w.e.f. 16.11.1995. To mitigate the deficiency, Board of Directors of ONGC resolved to pay huge amounts out of the distributable profits. Pursuant to the resolution, management of ONGC transferred Rs. 320 crores to ONGC PRBS Trust to mitigate the deficiency in PRBS. PRBS Trust is said to have so far settled 17,107 claims of its members a sum of Rs. 128.16 crores.

19. In August 1998, ONGC applied for grant of exemption under para 39 of EPS 1995. To facilitate grant of exemption, after discussion with ASTO, amendments/modifications were effected in the then existing PRBS. The scheme was made compulsory for all executives w.e.f. 16.11.1995, to facilitate grant of exemption to ONGC from the EPS 1995.

20. Since all the petitioners are members of ASTO, the contention of the petitioners that deduction from their salary is in violation of Principles of Natural Justice is unsustainable. Equally, the contention that the petitioners have not signed MOU and the terms of MOU are not binding upon them is untenable. As per circular PRBS/40 dated 18.06.1998 amendments/modifications were effected in the existing scheme only after negotiations were held amongst concerned parties and in consultation with the actuary M/s. K.A. Pandit. Now presently, as per MOU dated 09.04.2007, PRBS has been extended as 'Defined Pension Scheme'. After various discussions, as per the MOU executed between ONGC and ASTO in respect of PRBS, making it as "Defined Pension Scheme" has been agreed to be continued as additional welfare scheme along with EPS 1995.

46. As noticed earlier, as per the terms of Agreement dated 28.05.2007, it was agreed that PRBS could be sustained as a Defined Pension Scheme. The following terms of Agreement would show that the modified scheme would ensure benefit to all the beneficiaries as per Defined Pension Scheme:

1. PRBS Benefits will be extended in terms of MOUs dated 03.02.1998 and 19.07.1998 as "Defined Pension Scheme". To this effect, the current Annuity Factor of 92.379 would be made dynamic to assure monthly pension restricted to a maximum of 50% of "Last drawn Notional Salary" to all the members.