Session on

Superannuation Benefits
12th February, 2019

- Anupriya
 Agenda

• DPE Guidelines w.e.f 01 01 2007 & onwards

• What Constitutes Retirement Benefits?
• Provident Fund & EPS
• Gratuity
• Post Retiral Medical Benefits
• BHEL Employee Pension Scheme
• Other Superannuation Benefits
• Way forward…
1. DPE Guidelines
What Constitutes Retirement
benefits
 Break-Up of 30% of Basic Pay + DA (Post 2007) as on 31.03.2018

S.No. Component %age Remarks

1. Contributory Provident Fund 12% As per EPF Act

2. Gratuity 4.8% As per Payment of Gratuity Act

3. Post-Retirement Medical 6.3 % As per actual and actuarial cost

Benefit (PRMB)
4. Pension 6.9% Based on finalized account for
the Fin Year 2017-18
Total 30% -

It is evident from above that any increase of PRMB expenses will result into lower
contribution towards Pension.
• CONTRIBUTORY in Nature
• SUBSCRIPTION
• Member Contribution- 12% of Basic Pay plus DA
• Company Contribution- 12% of Basic Pay plus DA minus 8.33% of Basic
Pay plus DA w.r.t. maximum Rs.15000/- goes to Pension fund
• Total amount of savings (MC+CC) with the interest to be withdrawn after
separation
• 90% of Member Contribution + Company Contribution can be withdrawn
1 year before superannuation
• If not applied within 7 days then TDS to be deducted on the interest
payable on the PF amount
EMPLOYEES’ PENSION SCHEME (EPS)
of 1995
• Employee provident fund organization(EPFO) manages the pension account of
all those who are contributing to EPF including private trust.
• 8.33% of employer’s monthly contribution from the EPF goes into EPS.
Monthly contribution to EPS is restricted to 8.33% of 6500 or Rs 541 p.m and
from Sep 2014 Rs 1250 (8.33% of 15,000).
• Lifelong pension is available to the member and upon his death members of the
family are entitled for the pension.
• Pensionable Salary X Pensionable service / 70
• Widow Pension -Upto the date of death or remarriage of the widow
(Min.Rs.450/p.m.)
• Children Pension - For two children upto the age of 25 yrs or marriage. For
each child - 25 per cent of the amount admissible to the widow
(Min.Rs.150/p.m.)
ELIGIBILITY
Minimum five years of service (except in death case)

ENTITLEMENT
• Maximum Rs.20,00,000/-
• Last Pay drawn X 15 X Completed years of service) / 26
• Period of more than 6 months to be considered as full year of service
• On superannuation / resignation / termination ( except in cases of
forfeiture)
• Totally Tax Free
 PRMB -
RETIRED EMPLOYEES’
CONTRIBUTORY HEALTH SCHEME
(RECHS)
 Coverage

Intended to extend medical cover to the retired

BHEL employee and his/her spouse, and spouse of
an employee who dies in harness
Eligibility
• Regular employee who retires from BHEL after min. 15yrs of cont.
service in CPSEs out of which 5 yrs in BHEL.
• Appointed by PESB & retire from Com. On superannuation with 15 yrs.
Of continuous service
• Other regular employees with 15 yrs of service
• Board level appointees who have rendered min. 15 yrs. Of continuous
service in CPSEs
• Spouse of an employee who dies in harness
• Permanent disability on account of while in service
• No Functional Director including EDs/GMs with ED powers who has
retired/resigned, shall accept any appointment/post with which co had
business relations within one year from the date of retirement. Surety
bond to be obtained. Any violation would invite withdrawal of RECHS
• A Medical Insurance coverage and RECHS benefits may be
availed simultaneously. Bill from single source
 Admissibility in Case of Spouse of Deceased
Employee

• Spouse of deceased to continue availing benefits subject

to meeting criteria of eligibility
• Not available in case availing from other source
• Surviving spouse may become RECHS member even if
not a member already while spouse was alive
REGISTRATION
A retired employee who intends to avail of medical facilities under this
scheme, can register him/herself at any BHEL Division/ Permanent Office
for availing the facilities.
Membership to be made online on RECHS system

MEMBERSHIP FEE
One time payment equivalent to half of the last serving month’s basic pay
drawn before retirement

RE-VALIDATION FEE
Executive Cadre - Rs. 200/- p.a.
Non-Executive Cadre - Rs. 100/- p.a.
• Membership to be maintained in central database and validity of membership to
be aligned with continuity of benefits
• Membership to become invalid if not revalidated and penal re-entry
charges effected for renewal
• Contribution is non-refundable
• In case of employees who are on deputation / takes up appointment at Board
level. On time contribution apart from Membership fees:
Board level appointee who leaves due to non- Prescribed RECHS contribution as per
extension of tenure/ resignation/ selection to % of BP+DA is reqd. to be remitted
other PSUs and are otherwise eligible or either by individuals orgn. Or by
BHEL exe. after min, 20 yrs leave to join individual himself for the period spent.
other co. board of other CPUS and retire
from there.

Employees who are / have been on Prescribed RECHS contribution as per

deputation /lien to Board level position, to % of BP+DA is reqd. to be remitted
other CPSEs/other orgn. either by individuals orgn. Or by
individual himself after being relieved
from that organization
Options for Change of Location for availing Medical
Benefits
• Minimum for a period of one year, change of location for
availing Medical benefits

• In case of TA claim, the same shall be frozen for a period of

two years
Classification for Hospitalization Under
RECHS

• BHEL Units having Company Hospital

• BHEL Units/ Division not having Co Hospital but have
Company Approved Hospitals
• At BHEL Units not having Company Hospital or
Company Approved Hospitals
• At Places, where Co Hospital, Co Approved Hospital and
Registered N Homes are not available
At BHEL Units, having Company Hospital
• Beneficiary entitled as indoor patients as per entitlement on the date of
retirement, irrespective of the station where the beneficiaries has
registered.

• Expenses incurred in AIIMS/ PSU/ Govt. Hospital/ Railways/Defence

Hospital reimbursable in full with entitlement similar to serving
employee

• Major ailments and Common Ailments of old age may also be provided
in Co. approved hospital by CMS. The referral letter shall clearly specify
the room rent/ ward entitlement and other conditions.
BHEL Units not having Company Hospital but Company
Approved Hospital
• Beneficiary entitled as indoor patients for Major Ailment/
Common ailment of old age on being referred to by the
AMA/CMO
• For other Ailments-treatment allowed as per BHEL schedule of
rates-may be taken in Company approved or Registered Nursing
Homes
• Reference rates shall be as per BHEL Schedule of rates
BHEL Units, not having company hospital or Company
Approved Hospital

• Reimbursement in full on submission of bills only if taken in

AIIMS/ Govt/ PSU/ Railway/ Defence

• Reimbursement allowed in Registered Nursing Homes as per

Annexure C and as applicable for that location

• Reference rates shall be as per BHEL Schedule of rates

At places, where no Company Hospital/Company Approved
Hospital/Registered Nursing Homes

• Beneficiaries may avail treatment at State recognized Nursing

Homes

• Reimbursement allowed in Registered Nursing Homes as per

Annexure C and as applicable for that location

• Reference rates shall be as per BHEL Schedule of rates

Hospitalization: contd
• In Co Approved hospital, allowed only for Major Ailment/
Common Ailment of Old age as given in Annexure ‘A’ & ‘B’
respectively. The Ward entitlements will be as per Annexure ‘C’.
• Uniform treatment charges, room rent at par with serving
employees
• Package Deal
• Beneficiaries to deposit 20% of the estimated amount with the
hospital directly or 10000+surety of serving employee.
Reimbursement may be claimed from Co. on submission of bills.
Outstation Treatment

• May be permitted for Major/Common Ailment only. No TA

admissible

• May also be permitted for “other ailment’ if considered essential

with recorded reasons by AMA/CMO

• Permission to be given judiciously by committee and only to Co.

Approved Hospital. Other than that by Head of Unit only

• No post facto allowed. Bills will not be reimbursable

Contd…

• For Major/Common in Co Approved - same rates as agreed to be

allowed for that location

• For Other ailments – BHEL Schedule of rates for that location

• If treatment taken in other than co approved hospital, where rates
are higher than Baseline, baseline rates would be extended. In case
baseline not available, CGHS rates to be extended and approval of
CMD required.
Day Care Procedure

• At Company Hospital: entitled to day care procedure

• In Co Approved/Registered Nursing Home By AMA/CMO for
Day care procedures not available in co hospital.

• At Co Approved Hospital: credit only to those who have accepted

BHEL Schedule of rates or else reimbursement as per Annexure D

• Prior intimation necessary to BHEL doctor

OPD (Incl Consultation/Diagnostic tests/Medicines)
• Two Option: CO Hospital/Dispensaries or Fixed OPD
• To the extent available with Co Hospital/Dispensaries
• Reimbursement on certification basis only
• Option once exercised cannot be changed for the benefit period
• Fixed OPD: 1500 per month and to be claimed at the end of the
year
• Co Dispensary: 2000 emergency basis only
• No Medicines to be allowed to be purchased from outside
Annexure A
List of Major Ailments
1. Cardiac Procedures and Surgeries
2. Cancer
3. Renal
4. Neurological
5. Cases of major accidents requiring hospitalization treatment
comprising of Head, Spinal injuries, Complicated Multiple
Fractures requiring implants prosthesis, plating and nailing.
6. Acute Abdomen and Septicemia
Annexure B
List of Common Ailments of Old Age
1. Prostrate Surgery
2. Hernia
3. Gall Bladder Stone
4. Hysterectomy
5. Breast Lump
6. Pulmonary Fibrosis
7. Cataract / Blindness
8. Cellulites/Abscess
9. Multiple Sclerosis
10. Total Knee Replacement
11. Total Hip Replacement
ANNEXURE C – Ward entitlement at Co approved Hospitals & Registered Nursing Home
a) Ward entitlements at Company Approved Hospitals (₹ / Day)
Category Ward Entitlements
GGMs, GMI/Cs and above Nursing Home (Single Bedded)
E5 to E8 Semi Nursing Home (Double Bedded)
AVI/BVI to E4 and AV/BV & below Semi Paying (3 or more Bedded)

b) Room rent ceilings at Registered Hospital/Nursing Homes at ‘X’ Class, ‘Y’ class cities and at other places & for Un-
registered Nursing Homes at all places (₹ / Day)
Regd Hosp.
Ward ‘X’Class Cities Regd Hosp. Regd Hosp. at
Category Entitleme Delhi Mumbai Chennai Kolkata B’lore Hyd Other Than ‘Y’ Class other cities/
nt Metro, Hyd, cities Unregd at all places
& B’lore
GGMs,
GMI/Cs Deluxe 5950 4200 2800 4200 3850 3920 2520 1760 1400
and above
Nursing
Home
E5 to E8 4340 3010 2100 2800 3080 2450 1890 1320 1050
(Single
Bedded)
Semi
Nursing
AVI/BVI to
Home 3220 1820 1750 2450 1960 1813 1575 1100 900
E4
(Double
Bedded)
Semi Paying
AV/BV &
(3 or more 2170 1190 1295 980 1260 882 1165 800 650
below
Bedded)
Annexure D
List of Day care procedures
I General Surgery
1. Incision & drainage
2. Ganglion removal
3. Sub cut – dermoid, sebaceous cyst
4. Hamartoma, Papilloma, Lipoma, wart, hemangioma removal
5. Sclerotherapy for varicose vein
6. Fibroadenoma excision
7. Lymph node biopsy
8. Circumcision
9. Suturing of lacerated wound
10. Hydrocele
11. Toe nail removal
12. Cystoscopy, sigmoidoscopy, upper GI scopy
13. ESWL, Ureteroscopy
14. Prostate Biopsy
15. Urethral Dilatation
List of Day care procedures – contd.
II. Obstetrics & Gynaecology
1. Dilation & curettage, cervical biopsy
2. Cone biopsy
3. Polyp removal
4. Hysteroscopy
5. Diagnostic laproscopy

III. ENT
1. Polyp removal
2. Foreign body removal
3. Bronchoscopy, Laryngoscopy
4. Biopsy for tumors
5. Sub mucous resection

IV. Ophthalmology
1. Chalazion, stye – removal
2. Cataract Surgery
3. Foreign body removal
4. Laser Surgery for retina
5. Strabismus repair
6. Tonometry
List of Day care procedures – contd.

V. Orthopedics
1. Arthroscopy
2. Carpal tunnel release
3. Intraarticular & epidural Steroid injection
4. Closed reduction
5. Hardware removal
6. Manipulation under anaesthesia
7. K-wire fixation
8. Excision of dupytrens contracture

VI. Dental
1. Extraction
2. Restoration
3. Nasalbone fracture reduction
 Rules wrt. In-admissibility of
Medicines etc.

• Medicines which are of food value;

• Medicines in the nature of toiletries; and
• Medicines which are of a prophylactic nature
except to the extent specifically provided for in
these rules
BHEL EMPLOYEE PENSION SCHEME
In-Flow to Common Fund at Company Level
• The Company contributes to the Trust / Fund an amount at the rate of X% of
the Pay + DA per annum of the employees on the rolls of the Company as on
1.1.2007 and onwards.
• This percentage contribution towards Pension fund is reviewed every year
to ensure that the contribution of the Company towards the four
superannuation benefits such as PF, Gratuity, Post-retirement medical benefit
(BHEL RECHS) and Pension
• The overall ceiling of 30% of Basic + DA of all regular employees.
• Individual Pension corpus to be based on annual % contribution from
Company to Pension Fund AND number of days per month for the entire
service decided on a year to year basis.
Salient Features of the scheme
• Amount of Pension based on returns from the scheme.
• Individual Pension Corpus to buy Annuity from Annuity Providers, who will
give monthly pension pay out.

Eligibility
• Regular employees who superannuate on or after 1.1.2007
• Employees who die in harness/ termination due to incapacitation arising out of
employment injury.
• Lateral entry to BHEL : Pension corpus only for service rendered in BHEL,
based on period of contribution.
Out-Flow (Individual Pension Corpus)
• The Individual Pension Corpus for buying the Annuity will be arrived by
considering:
 Last drawn salary( Basic +DA) X Number of years of service in the Company X
(X)Number of days in a month of 30 days, as Certified by Actuaries
• For calculating “X “ days Basic Pay plus DA, the month shall be treated as 30
days.
• (X) No. of days will be reviewed every year.
 “X” is 10 days for the period from 01.01.2007 to 31.03.2012 which would vary,
depending on annual % contribution of Co. to the Fund.
 “X” is 9.5 days for the period from 01.04.2012 to 31.03.2016
• HPL, EOL, LWP & UA amount will be deducted from the corpus
Annuity Providers
• M/s Life Insurance Corporation of India
• M/s Bajaj Allianz Life Insurance Company Ltd
• M/s SBI Life Insurance Co. Ltd
• M/s HDFC Life

Four Options to choose from

• Life Annuity ( L.A.)
• Life Annuity with Return of Capital (LAROC)
• Joint Life Annuity (JLA)
• Joint Life Annuity with Return of Capital (JLAROC)

Payment Mode is also : Monthly, Quarterly, Half Yearly & Yearly.

FRINGE BENEFITS
 LEAVE

• Encashment of Earned leave up to a maximum of 300

days on superannuation
• Earned leave credited on pro-rata basis in the year of
retirement
• Up to 3 Lacs- Tax Free
 TRANSFER TRAVELLING
ALLOWANCE
ELIGIBILITY
• All retiring employees within one year of retirement
• Retired employees who die within one year from the date
of retirement
• Family of any employee who dies while in service
• Facility of RECHS for minimum 2 years at the final (new)
place of shifting
 TRANSFER TRAVELLING
ALLOWANCE
ENTITLEMENT
• Air/rail fare as per entitlement
• Cost of transportation of baggage
• Transfer grant(equal to one month’s basic pay)
• Incidental TA
• No disturbance allowance is admissible
• Cost of transportation of conveyance will not be admissible
 SETTLING DOWN AT THE LAST PLACE
OF DUTY/CONTIGUOUS PLACE
• They will be allowed 50% of the loading/ unloading charges as admissible to
serving employees to meet the charges towards carriage of personal effects.
• It would be regulated on self-certification basis.
• The following rates would be applicable:-
Grades (As on date of retirement) Amount admissible w.e.f. 06.04.2015
E5 and above Rs. 5000/-
E2 to E4, S5 to S8 & A12 /B12 Rs. 4000/-
E1, ET JE
S2 to S4 & A8/B8 to A11/B11
Rs. 3000/-
S0, S1, A4/B4 to A7/B7 & below
 BAGGAGE ALLOWANCE
Grades By Train / Steamer at the Rate per Km. for transportation By Road Loading and/or
current freight rates excluding tax, Octroi & toll charges (in Rs.) Unloading charges (one
notified by Min. of Rly & time) irrespective of
Shipping Corp Of India class of cities and no. of
respectively trucks
X & Y Class Cities Z Class Cities
(Originating City) (Originating City)
6000 kgs by Goods
46.90 per km By: 2 28.14 per km By: 2
E5 and above Train / 1 double
trucks (max) trucks (max) ₹ 10,000/-
container
E2 to E4, S5 6000 kgs by Goods
46.90 per km By: 1 28.14 per km By: 1
to S8 & A12 Train / 1 single
truck truck ₹ 8000/-
/B12 container
E1, ET JE, S2
4000 kgs by Goods
to S4 & 31.20 per km By: 1 18.72 per km By: 1
Train / 1 single
A8/B8 to truck truck ₹ 6000/-
container
A11/B11
S0, S1,
A4/B4 to 2000 kgs by Goods 15.60 per km By: 1 9.36 per km By: 1
A7/B7 & Train truck truck ₹ 6000/-
below
 Way forward….
www.ecare.bhel.in
http://ess.bhel.in/irj/portal
Thank You