BSNL Employees Pension Scheme Monthly Contribution Rates

BSNL Employees Pension Scheme Monthly Contribution Rates

Monthly Contribution for BSNL Employees superannuation Pension Scheme under Rule No. 6 of Section II of BSNL EMPLOYEES SUPERANNUATION PENSION TRUST RULES is follows

Section II

6. CONTRIBUTIONS:

The contributions shall be duly paid by the Company to the Trust in respect of each Member in the proportion mentioned in paras (a) & (b) below, on the relevant dates stated hereinafter and the Trust shall pay the same to the Fund Manager for the purpose of effecting annuities in the manner prescribed by the Trust in consultation with the Company from time to time.

i. INITIAL CONTRIBUTION: Initial contribution @ 3% would be paid by the Company in respect of past services ‘of the Employees, commencing w.e.f 05.05.2016 till the end of the month immediately preceding the month of severance of the Employment with the Company for reasons other than resignation, termination, disciplinary proceedings, lis pendens or due to sudden disappearance or the month in which the Scheme and the Trust Deed is approved by the Company, whichever is earlier.

ii. MONTHLY CONTRIBUTION:

a) The monthly contribution payable by the company in respect of each member shall be @ 3% of Basic Pay plus DA. This contribution shall be credited to the individual account of member as Employer’s contribution through the Trust and shall be payable throughout the period of his service up to the normal Superannuation date/date of cessation from service/Death of the member.

The rate of Employer’s contribution will be subject to review depending upon the financial position of the company.

b) Employees can make voluntary contribution to the scheme maximum upto Basic Pay provided the take home salary should not be less than 1/4th of the Gross Salary.

NOTE: The aggregate of contribution paid by the Company for any year for any Member together with the total contribution paid by the Company to any Provident Fund in respect of the said Member shall not at anytime exceed the prescribed percentage of the aggregate Salary paid by the Employer to the Member as per the Income-tax Act, 1961.

c) In the subsequent years, the Employer and Employee contribution for the months of April to March of each financial year shall be payable by the 15th of the immediately succeeding month.

d) An amount forfeited by the trustee shall be kept separately in surplus account. The money kept in surplus account will be utilized for the purpose of investment in accordance with Rule 85 of Income Tax, 1962.

iii. Expenses of Scheme to be borne by the Company: The expenses for administration of the Scheme shall be payable by the Company and shall be paid in addition to the contributions herein mentioned.

iv. Employer lending Member’s services (deputation) & continuity of Membership

a) In the event of a Member’s service being lent by the Employer to any other company, firm, association or concern under the management or associated with the Employer, or to CPSE or Govt. Department or Autonomous Body for the purpose of this Rule, the Member’s services shall be deemed to be continuous and uninterrupted.

b) During such period the contributions payable by the Employer/Employee shall continue to be paid to the Trust. The Employer may recover such Employee’s contributions from the company, firm, association, concern or CPSE to which the Member’s services are lent and the Employee’s contribution shall be deducted from his Salary.

v. Employees right of lien over the post and his continuity in membership: In case of an Employee who joins another CPSE but maintains lien over the employment with the Company, the Contribution for the lien period by the Employer and the Employee shall not be payable and his accumulated contributions shall be maintained with the Fund Manager. In the event, such Employee rejoins the Company, the Contributions shall become payable by the Company and employee from the date of rejoining the Company.

vi. In the event an Employee is sanctioned study leave with salary as per the Company’s Service Rules, the Employee contribution as well as Employer contribution under the Scheme shall be payable only up to period he is paid leave salary. On exhaustion of leave salary, the contributions shall recommence from the date the Employee rejoins the Company.

vii. In the event an Employee is sanctioned leave without pay, neither Employer nor Employee contribution shall be payable for the period of leave without. pay.

viii. In the event a suspended Employee is reinstated, the Employer and Employee contribution under the Scheme for the period of suspension may be payable as per the company rules.

ix. In the event of Employee resigning from Company and joining a CPSE which does not have an Approved Defined – Contribution Superannuation Scheme, the treatment of accumulation in respect of such Employees shall be as per DPE guidelines in this regard from time to time.

Click to Read  : BSNL Employees Superannuation Pension Trust Rules