New Pension Scheme (NPS) : Presentation by BPCL

NEW PENSION SCHEME (NPS)
Presentation by BPCL
DPE GUIDELINES ON SUPERANNUATION
(RETIREMENT )BENEFIT
DPE guidelines dated 26.11.2008 & 2.4.2009 relating to pay

revision of Board level & below Board Executives provide for:
 CPSEs allowed to provide for 30% of Basic + DA as

Superannuation benefits, which would include Contributory
P.F., Gratuity, Pension & Post Superannuation Medical
Benefits.
 The pension benefit to be under a ‘Defined Contribution

Scheme’ (DCS).
 CPSEs to make their own schemes to manage this Fund or

operate through Insurance Companies on fixed contribution
basis
DPE GUIDELINES ON SUPERANNUATION
(RETIREMENT )BENEFIT
 The Superannuation benefits to be based on the contributions

+ returns thereon.
 The Pension and Medical benefits to be extended to

Executives who superannuate from the CPSE and have put in
a minimum of 15 yrs. service in the CPSE prior to
superannuation.
 No other superannuation benefit can be granted outside the

ceiling of 30% of Basic + DA.
INTRODUCTION OF NEW PENSION SCHEME (NPS)
 Effective 1.1.2007, New Pension Scheme will be operated as a ‘Defined

Contribution Scheme’ in line with DPE guidelines & all employees on roll
as on date will be covered. All new employees would become members of
only NPS.
 An account for each employee will be opened from 1.1.2007 or from the
date of joining the services of the Corporation.
 Company’s contribution to NPS will come out of 30% of BP + DA after
adjusting contributions made against PF ,Gratuity ,PRMB. All the outgo
except for PF will depend on actuarial valuation and only residual portion
will go to NPS as contribution towards Pension benefit.
 Acturial valuation will determine percentage of Gratuity/PRMB forming part

of 30% BP +DA. Balance contribution after adjusting 12% on account PF
will go to NPS .
 The contribution percentage to NPS works out to approximately 12.5%

( indicative) for the period 1.1.2007 to 31.3.2011. Final percentage will
emerge after signing of LTS, when the revised salaries will be known.
INTRODUCTION OF NEW PENSION SCHEME (NPS)
Contd…
 NPS is managed by the existing Superannuation Trust.
 Employees would be permitted to voluntarily contribute to NPS.
 The Trust would make investment of the funds with the Service
Providers like LIC/SBI Life/HDFC Life / ICICI Prudential , etc.
BENEFIT UNDER NEW PENSION SCHEME (NPS)
 Employees retired with 15 years of service or more are eligible for

Pension under NPS. Immediate past service with CPSE will be
considered provided NPS contribution is transferred to BPCL.
Service with Govt not to be considered.
 In respect of Death in service and Permanent Total Disablement the

pension based on the accumulations is paid irrespective of no of
years of service immediately in the following month of happening
such event ( As per the clarificatiopn issued by DPE to MMTC dt.
30.8.11)
 In r/o Resigned cases, contribution under NPS is transferable to

other CPSEs provided they have similar NPS and the application is
routed through proper channel. However, the accumulations will be
transferred to other CPSE only at NDR of the employee. If
employee joins any other company other than CPSE, only
employees own contribution will be returned alongwith interest.
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 )
 1/3rd of Pension payable can be commuted . Commuted amount

not taxable
 ROC and monthly benefit received is taxable

BENEFIT UNDER NEW PENSION SCHEME (NPS)
Contd…
 In case of employees who separate arising out of disciplinary

proceedings, no company’s contribution is returned. However,
own contribuition alongwith interest will be returned
Seek clarification on
Contd…
 whether 14.5 years and above service can be treated as 15 years

service
 Whether 15 years clause can be waived off if opt for PFRDA

scheme.
 If no, whether DPE would facilitate introduction of NPS scheme

thru PFRDA considering 15 years service clause for eligibilty of
pension
POST RETIREMENT MEDICAL
BENEFIT SCHEME( PRMBS)
Preamble

 The PRMBS costs is met out of the portion earmarked for this purpose under
30% of the retirement benefits, as per the extant Government guidelines on the
subject
Applicability

 Employees retired/ demised on or after 24.1.1976 are covered under the
Scheme.
 Employees resigned with 25 years of service are also eligible
 Benefit varies depending on the cadre.
 For Officers again the benefit varies based on the Job group
 Currently 2530 separated Officers and 5962 workmen are covered under the
scheme
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
General:

 The medical reimbursements of eligible dependent parents, for all

cadres of separated employees, is restricted to 90% of the amount
which is reimbursable, for both domiciliary and Hospitalisation
expenses.

 Any changes to the scheme on the above principle for the serving
employees are made applicable to separated employees as well.
 The cost of PRMBS benefit works out to approx. 3% of BP +SI and

is accounted under 30% of BP+DA Superannuation Benefit

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NEW PENSION SCHEME (NPS)

DPE guidelines dated 26.11.2008 & 2.4.2009 relating to pay

 CPSEs allowed to provide for 30% of Basic + DA as

 The pension benefit to be under a ‘Defined Contribution

 CPSEs to make their own schemes to manage this Fund or

 The Superannuation benefits to be based on the contributions

 The Pension and Medical benefits to be extended to

 No other superannuation benefit can be granted outside the

 Effective 1.1.2007, New Pension Scheme will be operated as a ‘Defined

 Acturial valuation will determine percentage of Gratuity/PRMB forming part

 The contribution percentage to NPS works out to approximately 12.5%

 NPS is managed by the existing Superannuation Trust.

 Employees would be permitted to voluntarily contribute to NPS.

 Employees retired with 15 years of service or more are eligible for

 In respect of Death in service and Permanent Total Disablement the

 In r/o Resigned cases, contribution under NPS is transferable to

 Staff to choose from one of the following 4 options :

I Guaranteed for 15 years or lifetime of member, whichever is

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

 1/3rd of Pension payable can be commuted . Commuted amount

 ROC and monthly benefit received is taxable

 In case of employees who separate arising out of disciplinary

 whether 14.5 years and above service can be treated as 15 years

 Whether 15 years clause can be waived off if opt for PFRDA

 If no, whether DPE would facilitate introduction of NPS scheme

 Employees resigned with 25 years of service are also eligible

 Benefit varies depending on the cadre.

 One time contribution on joining PRMBS

 Hospitaliation expenses are at actuals based on the rates applicable at

 The medical reimbursements of eligible dependent parents, for all

 The cost of PRMBS benefit works out to approx. 3% of BP +SI and

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