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Hindustan Aeronautics Limited

PRESENTATION ON. SUPERANNUATION BENEFITS. Hindustan Aeronautics Limited. 19 th Nov. 2012. BACKGROUND. Ceiling of 30% of Basic Pay + DA has been earmarked towards Superannuation benefits vide DPE OMs dated 26.11.08 & 2.4.09 Distribution between different Schemes proposed is as follows:.

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Hindustan Aeronautics Limited

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  1. PRESENTATION ON SUPERANNUATION BENEFITS Hindustan Aeronautics Limited 19th Nov. 2012

  2. BACKGROUND • Ceiling of 30% of Basic Pay + DA has been earmarked towards Superannuation benefits vide DPE OMs dated 26.11.08 & 2.4.09 • Distribution between different Schemes proposed is as follows:

  3. BACKGROUND • As per DPEOMs dated 8.7.09 & 20.7.11, CPSEs allowed to create corpus by contributing upto 1.5% of PBT, to take care of medical & emergency needs of retired employees not covered by Pension and/ or Post Superannuation Medical Benefit Scheme

  4. PROPOSED GROUP HEALTH INSURANCE SCHEME • For retired employees & spouses; both or the survivor, on a Family Floater basis • Sum Insured p.a. • Hospitalization - Rs. 4 Lakhs/ Family; OPD - Rs. 20,000/- / Family • Funding of the Scheme

  5. PROPOSED GROUP HEALTH INSURANCE SCHEME (Contd.) • Trust will be formed at Corporate level for management & investment of the Funds • Scheme will be administrated through a TPA nominated by the Insurance Company • HAL Board at its 343rd Meeting held on 17.1.12 approved the proposal • Pending with the Administrative Ministry for approval

  6. PROPOSAL FOR INTRODUCTION OF PENSION SCHEME FOR EXECUTIVES • Scheme under formulation & approval stage; Defined Contribution Plan • Coverage • Executives on the regular rolls of the Company, as on 1.1.07 & onwards • Company Contribution • Limited to 10% of Basic Pay + DA of the Executive

  7. PROPOSAL FOR INTRODUCTION OF PENSION SCHEME FOR EXECUTIVES • Member Contribution • @ 5% to 10% of running Basic Pay + DA p.m. from date of Notification of Scheme, ; Voluntary Contribution also permissible; • For the past period, one-time lumpsum payment, which will be fixed Grade-wise

  8. PROPOSAL FOR INTRODUCTION OF PENSION SCHEME FOR EXECUTIVES • Eligibility • Executives superannuated on or after 1.1.07, after completing minimum 15 years of service in the Company • Executives expired or whose services are terminated on grounds of continued ill health, on or after 1.1.07, with or without completion of 15 years service • Executives left/ will leave services on account of resignation, termination or dismissal / removal will not be eligible • For lateral entrants, past service rendered in other PSUs/ Government will be reckoned for determining the eligibility of minimum 15 years service

  9. PROPOSAL FOR INTRODUCTION OF PENSION SCHEME FOR EXECUTIVES • Pension Benefits • On superannuation, death etc., corpus in the individuals’ account will be utilised to purchase Annuity • Commutation of Pension upto 1/3rd of the Pension corpus amount • Choice of option to the beneficiary among the various Annuity Schemes

  10. PROPOSAL FOR INTRODUCTION OF PENSION SCHEME FOR EXECUTIVES • Pension Trust • Scheme will be operated through a duly constituted Trust • Fund Management • To be decided • Detailed Scheme will be evolved in consultation with the Fund Manager PENSION SCHEME FOR WORKMEN • Will be examined alongwith the 1.1.12 Wage Revision of Workmen

  11. End of Presentation

  12. PENSION & POST RETIREMENT MEDICAL - WORKMEN • OMs dtd. 26.11.08 & 2.4.09, which provide for 30% of Basic + DA towards Superannuation Benefits, are in respect of Officers • Clarification sought on applicability of OMs dated 26.11.08 & 2.4.09 to Workmen • DPE clarified : • OMs dated 26.11.08 & 2.4.09 provide Superannuation Benefits upto 30% of Basic Pay + DA • Subject to affordability and sustainability of the CPSE • Provisions in OMs dated 26.11.08 & 2.4.09 are for Executives & Non-unionised Supervisors • Wage Revision Guidelines for Workmen provide that Management can decide their revision based on negotiation with Trade Unions. However, it should not clash with that of Officers & Non-unionised Supervisors • HAL may decide on Superannuation Benefits in respect of Workmen, provided DPE Guidelines are strictly followed

  13. EXISTING POST RETIREMENT MEDICAL BENEFIT SCHEME • Coverage: • Employees Superannuated/ Voluntarily Retired/ Optionally Retired/ Medically terminated (both Officers & Workmen) • Benefits: • Free Consultation in HAL Hospitals • Free Pathological/ Radiological Tests, Investigations etc. (only in HAL Hospitals) • Medicines made available at ‘Hospital Purchase Rates’ • Operation Theatre charges, Ward Charges etc. @ 50% of the Schedule of Charges applicable for non-entitled patients • Limitations: • Treatment can be availed only from HAL Hospitals • Treatment only to the extent of facilities available in HAL Hospitals

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