SAIL Pension Scheme

SAIL Pension Scheme

• SAIL has introduced a Pension Scheme for its

ex-employees vide Circular dated 29.4.2019

• In line with the Guidelines issued by

Department of Public Enterprises (DPE),
Government of India

• With the approval of Ministry of Steel & SAIL

Board
 SAIL Pension Scheme
 Persons covered:
• Executives (including Management trainees) on
rolls of the Company on or after 01.01.2007
(including those appointed at the Board level)
• Non-executives (including trainees recruited for
eventual employment) on rolls of the Company
on or after 01.01.2012.
• New entrants -

D.o.J - after 1.1.2007 (Executives incl. Board

level Officers)
- after 1.1.2012 (Non-executives)
also covered from the date of their joining SAIL
 SAIL Pension Scheme

 Eligibility for benefits:

• Minimum 15 years of service and

superannuation from the Company.

• Death/PTD/Medical invalidation leading to

cessation of Service - irrespective of duration
of service rendered
 SAIL Pension Scheme
 Contributions:

• The contribution under the Scheme shall be made to the

SAIL Pension Fund to be managed by SAIL Pension Trust
notified by the Management.

• The employer’s contribution to the Scheme will be a

percentage of Basic Pay plus DA. This percentage will be
decided and notified by the Company from time to time,
based on factors like affordability, capacity to pay and
sustainability. The Company will pay it’s contributions in
a staggered/deferred manner as per its financial and
liquidity position. There shall not be any liability on
account of interest.
 SAIL Pension Scheme
Contributions:

Executives : Effective from 1.1.2007

Time period Contribution
1.1.2007 to 31.3.2015 @ 9% of BP + DA
1.4.2015 to 31.3.2018 @ 3% of BP + DA

Non-Executives : Effective from 1.1.2012

Time period Contribution

1.1.2012 to 31.3.2015 @ 6% of BP + DA
1.4.2015 to 31.3.2018 @ 2% of BP + DA
 SAIL Pension Scheme
 Benefits:
• Only in the form of annuities from various annuity
options from the approved Annuity Provider(s), on
notional date of superannuation.
• Commutation of accumulated Corpus not permissible.
• In case of Death/PTD/Medical Invalidation, benefits to
accrue on separation of employee from Company.
• Payment to start from date of purchase of annuity by
employee/nominee.
• Annuity would depend upon the accumulated corpus of
employee (both Employer and Employee contributions
along with interest accrued) as per the Annuity Plan
opted by him/her.
• It has been decided to empanel Annuity Providers as
empanelled under NPS.
 SAIL Pension Scheme
 Fund Management:

• The SAIL Pension Fund will be managed by the Trust

constituted for the purpose of providing pension to the
members.

• The Trust shall manage the SAIL Pension Fund ‘in-house’

as per guidelines issued by the government or partly/
fully through PFRDA approved Professional Fund
Manager or through an IRDA approved Life Insurance
Company.
 Voluntary Contribution & Withdrawal

 In case the total corpus in the account of

member/beneficiary is less than Rs. 2 Lakhs on the date of
purchase of annuity, the member or the beneficiary can
avail the option of withdrawal of corpus in lump-sum.

 The withdrawal in such cases will be subject to Income Tax

deduction as per the Income Tax Act 1961.

 A member/beneficiary may also contribute voluntarily to

the corpus to make it sufficient for purchase of annuity.

 Members/beneficiaries who have a sufficient corpus for

purchase of annuity, may still contribute voluntarily to the
corpus to get higher pension.
 SAIL Pension Trust

 Duly constituted & first meeting held on 30.4.2019

 Following decision taken by Trust –
a. Coverage in Ist Phase – employees separated till
31.3.2016
b. Annuity Service Providers empanelled with NPS to be
empanelled with SAIL Pension Trust for purchase of
annuity-
1. Life Insurance Corporation of India
2. SBI Life Insurance Co. Ltd
3. HDFC Life Insurance Co. Ltd
4. ICICI Prudential Life Insurance Co. Ltd
5. Star Union Dai-ichi Life Insurance Co. Ltd

c. SAIL Pension Trust shall enter into a Master Policy

under Group Pension Schemes of the ASPs for purchase
of annuity by its members/beneficiaries.
 Procedure for registration
An online portal has been developed for inviting application
from eligible ex-employees for enrolment under SAIL Pension
Scheme which can be accessed from internet through SAIL
website i.e. www.sail.co.in.

Employees have to register online on the portal and submit

the printed Annuity Application Form alongwith requisite
documents for start of Annuity.

The members/beneficiaries can view the details of the

company contribution in their pension account, annuity plans,
rates provided by the ASPs, pension calculator, scheme/policy,
details of Nodal Officers of their Plant/Unit, etc. through the
portal after logging in with the PAN and date of birth of the
concerned ex-employee.
 Procedure for registration
In case of any discrepancy, ex-employees/nominees can
approach their respective nodal officers/cross-functional
committee constituted at each Plant/Unit, online through
portal, e-mail or in person.

10 days time would be available to ex-employees/nominees to

verify the details, raise grievance, if any and get it resolved
before the portal shall finally be opened for registration.

After going through all the details, ex-employees/nominees

who have separated till 31.3.2016 have to register themselves
by filling up details of the concerned ex-employee like SAIL
personnel number, PAN, bank account number, e-mail, mobile
no., nominee details, Aadhaar number etc., along with option
of ASP and annuity plan.
 Procedure for registration

Ex-employees/nominees will also have to upload photographs

of self and spouse to complete the registration process.

Ex-employees/ nominees will be requested to examine the

annuity options to be opted very carefully as per their
requirement as no request for change in annuity option will be
entertained once it has been exercised.
 Overview of Annuity Options
Sl. Annuity Plans Explanation
No.
 The annuity will be payable at uniform rate for the life of annuitant.
1. Annuity for life  On the death of the annuitant, the annuity payments will cease and no
further amount will be payable.
Annuity for life  The annuity will be payable at uniform rate for the life of the annuitant.
with return of  On the death of the annuitant, the annuity payments will cease and
2.
purchase price on 100% of the purchase price (net of statutory levies) will be paid to the
death annuitant’s nominee.
 The annuity will be payable at uniform rate for the life of the annuitant.
Joint Life Annuity
 On death of the primary annuitant, secondary annuitant will receive
with 100% annuity
3. 100% of original annuity throughout life.
to the secondary
 On death of the last survivor, Purchase price is NOT returned to the
annuity
nominee.
Annuity for life  The annuity will be payable at uniform rate for the life of the annuitant.
with 100% annuity  On death of the primary annuitant, secondary annuitant will receive
4. to spouse on death 100% of original annuity throughout life.
of annuitant with  On death of the last survivor, 100% of the purchase price is returned to
return on purchase the nominee.
Details of the Annuity Schemes shall be shared by the Annuity Service
Providers
 Procedure for registration
After completion of the registration process, the Ex-
employees/nominees will be required to take a print of the
Registration Form, sign it and submit it to the respective Nodal
Officer/Personnel Officer

Following supporting documents are to be submitted

alongwith printed Annuity Form:

1. PAN Card & Aadhaar Card of the ex-employee/nominee

2. Cancelled Bank Cheque having name of the ex-
employee/nominee printed on it
3. Proof of deposit of Voluntary Contribution, if any.
4. Death certificate of ex-employee/employee in case of
deceased ex-employee/employee
 Procedure for registration
The verification of the registration data, corpus & Annuity
Form will be completed by respective Plant/Unit.

Pension Trust Representatives have been nominated at each of

the Plant/Unit to sign on the annuity forms for confirmation of
membership.

Plants/Units will forward the consolidated list of members/

beneficiaries to SAIL Pension Trust, which in turn will transfer
the Fund to ASP for purchase of annuity as per option of the
member/beneficiary.

The annuity option forms alongwith supporting documents

collected by the Nodal Officers shall be forwarded to
respective ASPs for start of pension.
 Nominations under SAIL Pension Scheme

• An employee separated on account of superannuation/ permanent

disablement & incapacitation (including PTD) may draw the benefits
under the Scheme notwithstanding any nomination made by him.

• Each eligible employee will be required to make his/her nominations

for receiving the benefits under the Scheme in case of his/her death.
All nominations under the Pension Scheme shall be as per the
provisions of Provident Fund & Miscellaneous Provisions Act, 1952

• Nomination once made will continue until the employee requests a

change in nomination. An eligible employee may, at anytime, without
the consent of the nominee, if any, revoke or change the nominee by
filing a written notice of the change to the Trustees.

• If a nominee is either a minor or is unable to give a legal

receipt/discharge to the Trustees, the Member employee at the time of
nomination, shall appoint a guardian who is capable of giving a legal
receipt/discharge to the Trust.
 Nominations under SAIL Pension Scheme
• In the event of death of a member employee, wherein more than one
beneficiaries were nominated and the Member employee had failed to
specify their respective shares, the benefits of the Pension Scheme shall
be shared equally amongst the beneficiaries. If any designated
Beneficiary dies, the share of such Beneficiary shall terminate and his
share shall be payable equally to the remaining Beneficiaries.

• In the absence of nomination under the Scheme, the nomination(s)

made by the employee under Provident Fund/Gratuity (nomination
under PF to prevail in case two separate nominations are given in PF &
Gratuity) would be treated as the nomination under this Scheme.

• Nominee of the deceased member employee will be required to

nominate the person who will receive the benefits under the Pension
Scheme in the event of his/her death.