Proposed SAIL Pension Scheme

Coverage :
Non-executives (including Trainees recruited for eventual employment) on
rolls of the Company on or after 01/01/2012.
Contract Appointees & employees on deputation to SAIL not covered.
Eligibility for benefits :
Minimum 15 years of service and superannuate from the Company.
In case of death/PTD/Medical invalidation, minimum service condition shall
be waived off.
Scheme :
Effective date :
Contributions with effect from 1st January, 2012.
Employees retired in the intervening period will also eligible for Pension.
Trust Managed :
Contributions direct deposit to SESBF Trust.
Funds to be self-managed or through a Fund Manager decision of the
Trust.
Annuity Provider(s) to be decided by the Trust.
Contributions to the Fund :
Company contributions (6% of Basic Pay plus D.A. w.e.f. 01/01/2012).
Voluntary contributions by the individual (@2% of Basic Pay plus D.A. to
continue, option of contributing voluntarily available to increase monetary
benefit from the Scheme).
Annuities :
Employees exiting before completing 15 years will be eligible only for own
contribution and interest.
On superannuation / separation individual to purchase annuity from
various annuity options from a prescribed Annuity Provider(s).
Fund Management (through existing SESBF Trust) :
Existing SESBF accumulations in individual accounts to be merged with
Pension Account.
Management of funds in-house or partly / fully through IRDA approved
Fund Manager decision of the Trustees.
Annuity Provider(s) to be decided by the Trust.
No need for acquiring a fresh income tax exemption.
Benefits both Employers & Employee contribution :
Cases of death / PTD / Medical invalidation.
Resignation to other CPSE having similar scheme.
Cases of Voluntary Retirement as per the prevailing scheme at that time.
Deputation from other CPSE (provided employee joins back).
Cases of employees maintaining lien with SAIL.
Contribution for lien period not payable.
Contribution re-starts from date of re-joining.
Service period not accounted for.
Benefits Employee contribution only :
Resignation / Transfer to other CPSE / Organization.
Compulsory retirement, removal or dismissal because of disciplinary
proceedings as per CDA Rules / Standing Orders.
Cases of employees maintaining lien with SAIL but superannuating from the
borrowing Organization.
Nominations :

 In absence of Nomination, nomination(s) made by the employee under P.F.

to be considered.
Process Road Map :
Go ahead from Union and SEFI representatives.
Decision of the SESBF Trust.
SAIL Board.
Approval from Administrative Ministry.
Implementation.
Availing Annuity :
On superannuation / separation individual to purchase annuity from
various annuity options from a prescribed Annuity Provider(s).
Commutation not allowed.
Annuity Providers :
Life Insurance Corporation off India.
SBI Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd.
Bajaj Allianz Life Insurance Co. Ltd.
Reliance Life Insurance Co. Ltd.
Star Union Dai-ichi Life Insurance Co. Ltd.
GSCA RATES
(Revised annuity options & rates w.e.f. 01/08/2012)
Type of Annuities
60 years
Purchase Price
Annuity for life
Annuity for life with
return of Capital (ROC)
Annuity for 5 years
certain & life thereafter
Annuity for 10 years
certain & life thereafter
Annuity for 15 years
certain & life thereafter
Annuity for 20 years
certain & life thereafter
Annuity
for
life
increasing at a simple
rate of 3% p.a.
Annuity for life with 50%
to spouse
Annuity for life with
100% to spouse
Annuity for life with
100% to spouse with
ROC

GSCA Monthly Annuity at Age

Basic
Rate
91.2
69.3
90.4
88.6
86.2
83.2
74
84.6
78.8
68.7

2.5
lakhs
1960.4
2
1504.1
7
1943.7
5
1906.2
5
1856.2
5
1793.7
5
1602.0
8

5 lakhs 7.5
lakhs
3945.8 5937.50
3
3033.3 4568.75
3
3912.5 5887.50
0
3837.5 5775.00
0
3737.5 5625.00
0
3612.5 5437.50
0
3229.1 4862.50
7

10
lakhs
7925.0
0
6100.0
0
7858.3
3
7708.3
3
7508.3
3
7258.3
3
6491.6
7

1822.9
2
1702.0
8
1491.6
7

3670.8
3
3429.1
7
3008.3
3

7375.0
0
6891.6
7
6050.0
0

5525.00
5162.50
4531.25