The Cabinet Wednesday approved a new pension scheme and post-retirement medical services to about 35,000 employees of state-run Food Corporation of India (FCI), which would cost annually Rs 134.4 crore.
New Delhi: The Cabinet Wednesday approved a new pension scheme and post-retirement medical services to about 35,000 employees of state-run Food Corporation of India (FCI), which would cost annually Rs 134.4 crore.
"The Cabinet today took a big decision. It has approved introduction of pension and post-retirement medical services as part of superannuation benefits for employees of FCI," Food Minister Ram Vilas Paswan told PTI after the meeting.
FCI employees were demanding for pension benefit since 2006. The entire expenses would be borne by the FCI, which has saved significant amount by reducing foodgrains loss in transit and storage among others, he said.
The pension to FCI employees would be given with effect from December 1, 2008, while the medical services for retired officials of all categories would be implemented from April 1, 2016, an official statement said.
The annual financial implication for both schemes combined would be around Rs 134.4 crore at present level of salaries of the employees, it added.
All employees in Category I, II, III and IV of the Corporation on the payroll as on 1.12.2008 or appointed thereafter would be covered under the scheme.
Those with a minimum service period of 15 years before superannuation except in case of death would be eligible.
Employer's contribution would be 10 per cent of the basic pay and dearness allowance (DA) per month in respect of all existing employees as on December 1, 2008, while employees mandatory contribution would be two per cent of basic pay plus DA per month.
The employees voluntary contribution would be up to 25 per cent of basic pay plus DA per month.
As far as post-retirment medical services are concerned, the government said all employees can avail including retired employees who are members of the current employee funded Medical Health Scheme for Retirees.
Those with a minimum service of 15 years before superannuation except in case of death would be eligible. The employer's contribution would be 3.83 per cent of basic pay plus DA, while employees contribution would be last drawn basic pay and DA at the time of retirement or death during service subject to minimum of Rs 10,000.
The Scheme would cover the medical expenses of retired member, his/her spouse and dependent disabled child at any hospital in India subject to the overall annual ceiling.
FCI is the government's nodal agency engaged in procurement and distribution of foodgrains.