FAQ ON THE FCI - DEFINED CONTRIBUTION PENSION SCHE! Query 1: Date of implementation of the scheme Reply: The Pension Scheme shall be effective from 04-12-2008. Query 2: Coverage & eligibility of the scheme, Reply: The scheme covers all Category |, Il, Ill & IV Employees on regular rolls of the Corporation as on the effective date ie. 01-12-2008 and those joining subsequent thereto subject to their eligibility as follows:- a. All Category |, II, Ill & IV Employees on regular rolls of the Corporation as on the effective date i.e. on 01-12-2008, shall be admitted to the benefits of the Scheme as per the provisions of the Pension Scheme, provided that their continuous service in the regular scale of pay on the effective date plus continuous service to be rendered thereafter till the normal date of their superannuation is not less than 15 years, b. All employees except trainees and adhoc / contractual employees, joining the Corporation on regular rolls on or after the effective date i.e. 01-12-2008 shall become members of the Scheme from the date of joining the Corporation, provided that their continuous service in the regular scale of pay from the date of joining the Corporation till the date of their superannuation is expected to be not less than 15 years. ¢. Trainees shall join the scheme on successful completion of training and upon regularization in the regular scale of pay, on the regular rolls of the Corporation provided their continuous service, in the regular scale of pay, from the date of joining the regular scale till their normal date of superannuation is expected to be not less than 15 years. Query 3: Whether the employees / ex- employees governed under the CDA scales of Pay are eligible to join in the scheme. Reply: No. this scheme is applicable to those employees who are governed under the IDA pay scales of the Corporation. Query 4: Whether this scheme is also applicable to the employees of other Organisations working in the Corporation on Deputation Reply: The scheme shall not be applicable to Employees on deputation unless they are absorbed in the Corporation after severing their connection with the previous employer. Query 5: Whether this scheme is applicable to the employees of the Corporation working in other organisation on DeputationReply: Yes. Employees of the Corporation on deputation to other Organisation / Service would continue to be covered by the scheme provided the Corporation's and Employee’s contribution for the period of deputation would be payable by the Organisation / Service of deputation. In case the Organisation / Service of deputation does not have provision for such payment, the same shall be payable by the employee concemed Query 6: Whether this scheme is applicable to the employees of the Corporation working in other organisation by retaining lien of service with the Corporation. Reply: Yes. Employee(s) of the Corporation, who joined /are joining other Organisation by retaining lien of service, would continue to be covered by the scheme provided the Corporation's and Employee's contribution for the period of lien would be payable either by the employee or his employer. Query 7: Whether the Ex- Employee / spouse/ beneficiary of the deceased employee can opt-out from the said scheme. Reply: Yes the Ex-Employee / spouse/ beneficiary, who retired / expired during the period 01.12.2008 to 31.12.2016, can opt-out from the said scheme. Query 8: Whether the Ex- Employee / spouse/ beneficiary of the deceased employee, if they opt-out from the said scheme, will get interest on the amount of the contribution by Employer since 01.12.2008 Reply: No. The Ex- Employee / spouse/ beneficiary of the deceased employee, if they opt-out from the said scheme, will get the principal amount on account of Employer contribution only, subject to deduction of Statutory Tax, if any Query 9: The Ex- Employee / spouse/ beneficiary of the deceased employee, if they opt-out from the said scheme, in how many installments they will get their share of Employer's Contribution i.e. 10% of Basic Pay + DA. Reply: The Ex- Employee / spouse! beneficiary of the deceased employee, if they opt- out from the said scheme, will get their share of Employer's Contribution i.e. 10% of Basic Pay + DA in lump sum subject to deduction of Statutory Tax, if any. Query 10: Whether the Pension, once fixed by the Annuity Provider, can be revised in case the interest rates are revised (increases / decreases). Reply: No. The Pension, once fixed by the Annuity Provider shall remain unchanged, subject to Annuity option exercised. Query 14: Whether the PAN Number and Aadhaar Number are compulsory for opting out from the Pension schemeThe same are required to the purpose of deduction and remittance of Tax, if any, and for the purpose meeting official requirement. Query 12: Whether it is mandatory to opt for the scheme by the legal heirs of the deceased employee, in case, the death occurs at a later stage i.e.after 01.02.2017. Reply: The Ex-Employee / spouse/ beneficiary, who retired / expired during the period 01.12.2008 to 31.12.2016, can opt-out from the said scheme. Query 13: Whether an Employee / Ex- Employee once opted in for one of the Pension Scheme of the Annuity provider can opt out in future with return of capital option Reply: This will be governed by the schemes of the Annuity Providers as opted by the beneficiary Query 14: Who will make the payment to the Ex- Employee / spouse/ beneficiary of the deceased employee, if they opt-out from the said scheme? Reply: The payment will be made by the office of the Corporation where they served the last. Query 15: Percentage of Subscription / Contribution to the Pension fund by the Employee and the Employer respectively. Reply: Employer's Contribution: FCI shall contribute towards Pension Scheme @10% of (Basic Pay + DA) of eligible employees or such other percentage as may be notified by the Corporation with the approval of Central Government from time to time, subject to the condition that the total post-retirement benefits comprising of Gratuity, Provident fund, Post-Retirement Medical benefits and Contributory Pension shall not exceed 30% of Basic Pay and DA or such other percentage as may be fixed by the Government from time to time. Member's Contribution: All eligible employees shall contribute at the rate of 2% of (Basic Pay+ DA) or such other percentage of (Basic pay + DA) as may be fixed by the Corporation as mandatory contribution towards pension with effect from 01-12-2008. However, no past service contribution shall be collected from the spouse of an eligible employees who expired while in service of FCI on or after 01-12-2008 and from the spouse of an employee who superannuated on or after 01-12-2008 but is not alive as on the date of issue of this Circular. Query 16: Date of disbursement of Pension to the Ex- employees retired / expired during the period 01.12.2008 to 31.12.2016, whether the same is from the date of superannuation / date of death. Reply: The Ex- employees retired / expired during the period 01.12.2008 to 31.12.2016 will get the pension, if they join the scheme, after completing the formalities as required under the scheme circulated Query 17: Management of Pension fund and Nomination of Fund Manager.Reply: The custody, control and management of the Fund shall be vested in a Board of Trustees constituted by the Corporation which shall only be responsible for and accountable to the Members and/or the Corporation and any Statutory Authorities for proper accounts of the fund including receipt and payment of money from the fund and the money remaining in the custody and for proper investment and accounting of the pension fund and payment of pension benefits as per the provisions of these rules to the Members/Beneficiaries LIC of India is nominated as Fund Manager of the Pension Scheme, initially for a period of one year or till the appointment of a regular Fund Manager, whichever is earlier, on nomination basis. Query 18: Name of the Approved Companies (by IRDA) authorized to provide the Annuity Schemes. Reply: The Life Insurance Corporation of India, SBI Life Insurance Co. Ltd., HDFC Life Insurance Co, Ltd., ICICI Prudential Life Insurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd., Birla Sun Life Insurance Co, Ltd. And other Insurance companies as approved by the IRDA time to time. Query 19: Annuity Schemes of various Annuity providers. Reply: Annuity Schemes of various Annuity providers are enclosed herewith for ready reference as Annexure ~A, Query 20: Rate & Date from which the Interest is payable by the Fund Manager. Reply: The rate of Interest will be decided by the Fund Manager time to time and the same will be payable as and when the amount transferred in to their account. Query 21: Why this One time Membership Fee is payable by the members. Reply: Since the cost of administration of Pension Trust shall be borne by the Trust itself, one-time non-refundable "Membership Fee" of Rs.100 (Rupees One Hundred only) shall be collected from each eligible member. Membership-fee shall be recovered from the arrear contribution of the initial members and from the 1* month contribution of new members on their joining the Pension Scheme Query 22: Whether the pre-audit is required before releasing the final payment to opt- out ex-employees. Reply: Yes. The pre-audit is required before releasing the final payment to opt-out ex- employees. Query 23: Whether the benefit of Pension would be available to the employee of the Corporation, who leaves on account of resignation, termination, and dismissal / removal ele.Reply: Yes, in case of separation of an employee on account of resignation, termination, dismissal’ removal etc., payment of pension benefit shall be computed based on member's contribution only, if any, and interest accrued thereon, Query 24: Whether the benefit of this scheme would be available to the employees leaving services of the Corporation under VRS / Voluntary Separation scheme. Reply: In the event of member leaving the services of the Corporation under Voluntary Retirement Scheme / Voluntary Separation Scheme, the Pension shall be regulated in terms of such schemes applicable to such employees as notified by the Corporation. Query 25: Whether the Commutation of Pension is allowed under the scheme. Reply: Commutation is not permissible under the Scheme/ Rules. Query 26: Whether the employee can withdraw his / her membership once after the joining the scheme. Reply: No member shall be allowed to withdraw his/her membership of the Pension Scheme during his/ her employment with the Corporation. Query 27: Whether the Change of Nomination is allowed under the scheme. Reply: Yes, a member may apply in the prescribed nomination form to change the beneficiary (s) at any point of time during service.‘COMPARATIVE ANNUITY RATES STATEMENT FOR SUPERANNUATION FUND BY VARIOUS ANNUITY PROV! Awswexuee Ww Yu ERS {Subject to Revision) GE GOYEARS ANNUITY PURCTIASE PRICE TRE 100,000 (Rupees One Lal oniy) ‘MODE OF ANNUITY ‘MONTHLY 3 jal Alia Age tac | sprite taeC Lite|B4S4" | pysterence Assumed is S Years) aa oo B93 EO 2 FOR LIFE WITH ROC 338537 S27, 28.953] 379.68. 3 "ANNUITY FOR § EARS Tat 7 era 8.1) 536.17 « ANNUITY FOR 10 EARS 708 712 662, 6.14 527.15 3 "ANNUITY FOR IS YEARS? a7 [000 6a E33) 513.25 66s [NA $9487 6 ANNUITY FOR 20 YEARS+ 630 489.25) 7 | ANNUITY FOR LIFE INCREASING @s% PA | s7_ | 593 ith ee For Spouse Voungerto Emp 47131 8 | ANNUITY FORLIFEWITHs0%TosPOUSE | 672 | 674 |Noy 635 bop respllowe wap Available |Avaitae 49411 For Spouse Younger to ' 7 Emp 43320 9 | ANNUITY FORLIFE WITH 100% TOsPoUSE | «2s | oan | sis | oo mebaat anche 405.17) 469.23, io | ANNUITY FOR LIFE WITH S0% TO SPOUSE [Not ms he ceo ‘Option Not Available wir Roc Available | 57 _ | avaitabte lavaitae For Spouse Younger to ANNUITY FOR LIFE WITH 100% TO SPOUSE Emp 363.27 ee ‘WITH ROC se |e eu | ee For Spouse Older to Emp 38491) 372.81 cot INor Not 12 | ANNUITY FOR LIFE INCREASING @5% P.A |S diane [Nealable ae (tai Wuerdviii ty | ANNUNTY FOR LIFE WITH ROC ON [Not INer [Nor a DIAGNOSIS OF C1 Available [Available [Available | 526 [Available [Not Available ot INor ot Nor M4 |_ANNUITY FOR LIFE WITH ROCINPARTS |vaitapie [Available [Available | 427 _ |Avaitable_|Not Available 1p | ANNUMTY FOR LIFE WITH RETURN OF [Not Nor of [Not BALANCE PURCHASE PRICE [avaitable [Available [Available | 648 |Avaitable [Not Available 4Annexe? a, ‘COMPARATIVE ANNUITY RATES STATEMENT FOR SUPERANNUATION FUND BY VARIOUS ANNUITY PROVIDERS bet to Revs) ra TERS SNUTAV CHASE PRICE TE MOO Rapes One Lao MODEOF ANNUITY OUTER iin ge aca olin egy ric |seatie| ‘CC fpr rie] So 7 ANNUITY FORTE [as | 9 [ANWR FOR IRE WITHTROC fas {se is | ss 5 ISNUITY TORS WEARS | a7 ‘on | a0 A ANNUITY TOR WVEARS= aaa a} ees : ANSUITY FOR TSVEAIS® | a ise —| 18 issist $ ANNUITY FORO YEARS zim [Nk ‘ane —| Tas Lae [ANNOY FOR LIFE INCREASING ave PA | 170 —| “TS ik | 10699 yaaa Ror mtn ir iaen Geo 8 | ANNUITY FOR LIFE WITHs0% TO SPousE | 2030 | 2040 sas ee For Spouse Ober Emp wou Tarsjace tonne coo srou Ty 1048 9 | axnurrvrortirewira 0% rospouse | sass | assy | rote | 19a fo eee 1221.04 1419.41 ARNUAY FOR LIFE WITH SV TO WROTE Ia) Op Ne aa WITH ROC * ae 1698 | available aaa ANNUITY FOR LIE WITH 10% TO SPOUSE Tap 19830 - WITH ROC mat = -™ _ For Spouse Older to Emp fea ANNUITY FOR LIFE INCREASING @% PA 7 ANNUFTY FOR LIFE WITH ROC ON Rat DIAGNOSIS OFC 1525 [Rea [por aatane far 14 | ANNUITY FOR LIFE WITH ROC IN PARTS | suitable [Available 1324 _|Available_|Not Available se) ARNT FOR TIRE W fr Nat DALANCE PURCHL vata raat | eo a vataAnnexure’? wy ‘COMPARATIVE ANNUITY RATES STATEMENT FOR SUFERANMUATION FUND BY VARIOUS ANNUITY PROVIDERS (ube ess aE ave ARRUTTY PURCHASE FRICE TE TODO ages Ome Ta oT MODEOPANRUITY TAL YEARLY cI ‘ila Sun oe ‘Name of the Insurance Company tic }spauite] TC bape ritel Br ? 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