Steel Ministry to Launch CPSE Employees Pension Scheme for 1.5 lakh Wage Workers

Dated: July 18, 2018 | Updated On: July 18, 2018 | Category: Central Government | By Ministry of Steel
Beneficiary of Scheme: Employees |

Steel Ministry, Central government is going to launch a New Pension Scheme for Central Public Sector Enterprises. These CPSEs includes Steel Authority of India (SAIL) and Rashtriya Ispat Nigam Limited (RINL). CPSE Employees Pension Scheme is announced for various Steel Public Sector Undertakings (PSUs) and will benefit around 96,000 serving and 56,000 retired employees. This scheme is expected to cost an additional financial burden of Rs. 540 crore.

As per the notification, Ministry of Steel agrees to the proposal from various CPSEs under its control. Now the ministry will introduce pension scheme w.e.f 1st January 2007 for executives and from 1st January 2012 for non-executives or from any subsequent date suitable for the company.

Various representatives from employees unions and officers associations belonging to SAIL, RINL, MSTC, FSNL, MECON, KIOCL have participated in the consultation process with the Steel Minister Chaudhary Birender Singh. After the detailed consultation, Steel Ministry has made an agreement for this proposal.

Steel CPSE Employees Pension Scheme 2018

Steel Ministry has taken this decision after a long-standing demand from the employees of several CPSEs to introduce a new pension scheme. The important features and highlights of this CPSE Employees Pension Scheme 2018 are as follows:-

  • The announced Steel CPSE Employees Pension will benefit around 94,000 serving and 56,000 retired CPSEs employees under the Ministry of Steel.
  • This will add a financial burden of Rs. 45 crore per month on the Steel Ministry.
  • New Steel CPSEs Employees Pension Scheme will be subject to various factors like affordability, paying capacity and CPSEs sustainability.
  • Govt. will not provide any budgetary support for the operation of this scheme.
  • Respective boards of CPSE will decide the contribution amount every year. This amount would depend on the profit of the entire CPSE and employee cost with an upper ceiling of 30% (Basic Pay + DA) of total superannuation benefits.
  • Management of each CPSE is given the responsibility to frame the details and prepare the road map of implementation.

Representatives of various employees unions and officer associations have discussed various issues with the Steel Minister. This includes the concern of introducing Pension Scheme as a part of superannuation benefits, provident fund, gratuity and medical benefits.

Ministry of Steel has already extended the benefits to CPSE employees. NMDC and MOIL have already introduced pension scheme for its employees on the recommendations of Second Pay Revision Committee. So, keeping in mind the demand of employees of other CPSEs, Steel Ministry has announced to launch this pension scheme.

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