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Cabinet approves introduction of Pension and Post-Retirement Medical Schemes as part of superannuation benefits for employees of Food Corporation of India

By   /  August 11, 2016  /  Comments Off on Cabinet approves introduction of Pension and Post-Retirement Medical Schemes as part of superannuation benefits for employees of Food Corporation of India

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New Delhi: It is good times for employees of Food Corporation of India as a long cherished dream of FCI employees has come true. The Union Cabinet chaired by the Prime Minister Mr Narendra Modi yesterday (10 August 2016) approved for introduction of Pension and Post-Retirement Medical Schemes as part of superannuation benefits for Employees of Food Corporation of India (FCI) as per guidelines of Department of Public Enterprises (DPE).

As per the press statement of the government of India, all employees including Category I, II, III and IV of the Corporation on the payroll as on 1.12.2008 or appointed thereafter are covered under the new pension scheme for employees of FCI. Further, all employees including Category I, II, III & IV employees of the Corporation including retired employees who are members of the current employee funded Medical Health Scheme for Retirees are covered under New Post-Retirement Medical Scheme.

Key Features of New Pension Scheme for Employees of FCI

Eligibility – Minimum service period of 15 years before superannuation except in case of death.

Effective date of implementation – 01.12.2008. (as per effective date of wage revised allowances).

Employer’s Contribution – 10% of Basic pay and DA per month in respect of all existing employees as on 01.12.2008 or appointed thereafter.

Employees’ Mandatory Contribution – 2% of basic pay + DA per month. Employees’ Voluntary Contribution – upto 25% of basic pay + DA per month.

Benefits – Pension (Annuity) on superannuation and Death Cover.

Key Features of New Post-Retirement Medical Scheme for employees of FCI

Eligibility – Minimum service period of 15 years before superannuation except in case of death.

Employer contribution – 3.83% of Basic + DA w.e.f. 01.04.2016.

Employee Contribution – Last drawn Basic pay and DA at the time of retirement / death during service (for spouse), subject to minimum of Rs.10,000.

Coverage – The Scheme would cover the medical expenses of retired member, his/her spouse and dependent disabled child at any hospital in India subject to the overall annual ceiling.

The statement also mentioned that the annual financial implication for both schemes combined would be around Rs. 134.4 crore at present level of salaries of the employees.

FCI was established in 1965 under the Food Corporations Act, 1964 for the purpose of procurement, storage, distribution and sale of foodgrains and other foodstuffs. Over the years it has played a pivotal role in achieving the objective of food security for the country. Given its strategic importance, size of operations and other parameters, FCI has been recognised as Schedule ‘A’ Central Public Sector Enterprises (CPSEs).

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