Details

SHORT NOTES ON CIL EXECUTIVE DEFINED CONTRIBUTION PENSION SCHEME-2007

• Start Date: 01.01.2007

• Eligibility: All executives (incl. MTs) on/after 01.01.2007; min. 15 yrs service for pension (some exceptions apply).

• Exclusions: Deputed Govt. officers, contract consultants.

Contributions:

• Employer: 9.84% of Basic + DA (after deducting Rs1600 govt. part)

• Employee: Voluntary

• Fund Managed by: Trust under CIL

• Credited Monthly till retirement/death/disablement/separation

Pension Benefits:

• At Superannuation (age 60): Annuity from accumulated corpus

• On Death/Disablement: Pension to nominee or member (even greater than 15 yrs)

• On VRS (15+ yrs): Pension as per rules

• On Resignation/Dismissal: Only own contribution + interest

Annuity Options:

• Life pension, joint pension, with/without return of corpus, fixed-term guarantee, 3% yearly increase, 1/3rd commutation allowed

Trust Administration:

• Trust: Irrevocable, managed by 11 CIL-nominated Trustees

• Duties: Manage funds, appoint managers, invest, meet quarterly

• Decisions: Majority vote; Chairman has casting vote

• Delegation: Committees/subcommittees permitted