Twelfth Meeting - Board of Trustees – FCI Welfare Trust

New Delhi
11th Sep, 2023

Item No. 65/2023 (12th -WT)

Subject: - Revision of Member contribution and Grants under Employee Funded Social
Security Scheme and Benevolent Fund Scheme.

1. Employee Funded Social Security Scheme: -

Employee Funded Social Security Scheme (EFSSC) is in operation in FCI w.e.f. 01.10.2012 for
welfare of FCI employee members. Under this scheme, members make a monthly subscription and
in the event of untimely death of any of the members, a lump sum grant is paid to next of kin of the
deceased staff members.
The contribution and ex-gratia payable at present is as follows: -
Contribution per member per month Rs 70
Age of deceased Grant payable (In
member Rs.)
Age Bracket 18-30 7,00,000
Grant payable upon death of staff
Age Bracket 31-45 6,30,000
member Age Bracket 46-50 4,55,000
Age Bracket 51-55 60,000
Age Bracket 56-60 40,000

2. Benevolent Fund Scheme: -

FCI had introduced Employee Benevolent cum Welfare Fund Scheme w.e.f. 01.04.1997 to provide
refundable advance to staff and labour of FCI for following purposes: -

• Higher Education of children,

• Marriage of daughter/dependent sister/self,
• Medical Treatment,
• Other purposes like purchase, renovation of house.
• In addition to this, scheme also provided for ex-gratia grant of Rs. 50,000 (Rupees Fifty
Thousand Only) in case of death of employee.

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Contribution per member per month in this scheme is Rs 30.

3. Review of scheme

A committee was formed in Feb 2022 to review the following: -

(i) Monthly Member contribution and amount of Grant payable under Employee Funded Contribution
Social Security Scheme and Benevolent Fund.
(ii) To evaluate proposal/quotation of Group Term Insurance from Group Term Insurance provider.

The Committee has submitted its Report dated 02-08-2022 which was put up before Board of
Trustee of FCI Welfare Trust vide Item No. 60/2023 (11th -WT) in their 11th meeting held on 27th
March, 2023. In the said meeting Representatives of various staff/labour bodies expressed some
reservations on acceptance of said Committee report in toto.
Accordingly, decision was taken to further evaluate the proposal through committee on the basis of
representation to be received from Employees Union/Bodies.
Employees Union / Bodies have submitted their suggestion and / or representation and same was
examined by DGM level Committee again constituted vide Order No. FCI / Trust Meeting / Welfare /
2018 dated 18th April, 2023.
The said committee examined the representation / suggestion received from Union/ Staff bodies
and submitted its report on 11th Aug, 2023. The same is placed before Board of Trustee.
(Annexure-IV). The major highlights of the committee report are as under:

A. Member Contribution: -
Scheme Existing Committee Recommendation
(Rs Per Month Per member) (Rs Per Month Per Member)
Benevolent Fund Scheme Rs. 30 Rs. 150
Employee Funded Rs. 70 Rs. 500
Contributory Social
Security Scheme

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B. Increase in Benefits / Grants: -

B.1 Benevolent Fund Scheme

Grants / Advances Existing Committee

Recommendation
Death Grant Rs. 50,000 Rs. 2,25,000
Premature retirement on Rs. 2,50,000 Rs. 5,00,000
medical grounds or due to
permanent disability
Specified Advances Rs. 1,50,000 Rs. 4,00,000

B.2 Employee Funded Contributory Social Security Scheme: -

Grants (Age bracket) Existing Committee

(Rs.) Recommendation (Rs.)
Age Bracket 18-30 7,00,000 22,00,000
Age
B Bracket 31-45 6,30,000 30,00,000
Age
. Bracket 46-50 4,55,000 25,00,000
Age Bracket 51-55 60,000 12,00,000
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Age Bracket 56-60 40,000 8,00,000

Committee has also recommended to review member contribution and grant after a
gap of 2 (Two) years considering the fund position with FCI Welfare Trust and other
relevant information at that time.

4. Examination of Committee Report by DCPS Division: -

a. Considering the financial feasibility, DCPS Division is in agreement with Committee

Recommendation on Employee Funded Contribution Social Security Scheme.
b. In respect to Benevolent Fund Scheme, DCPS Division is in agreement with all
Recommendation of the committee except the enhancement in grant on premature
retirement due to permanent disability and on medical grounds. Since, the death
grant has already been enhanced significantly, so we may keep the grant on
premature retirement to its existing level, i.e., Rs. 2,50,000 till next review to
observe the financial impact of enhancement made in death grant.
c. DCPS Division is of view that review of Benevolent Fund Scheme and Employee

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 Funded Contributory Social Security Scheme may be made once in a year rather
than 2 (Two) years as recommended by Committee Members.

5. Proposal: -
On the basis of Committee Members Recommendation and Examination by DCPS
Division, the proposal is placed Board of Trustee for deliberation and forwarding the
same to EP Division for examination and issue of instructions to field offices.

5.A Increase in Member Contribution: -

Scheme Existing Committee Recommendation
(Rs Per Month Per member) (Rs Per Month Per Member)
Benevolent Fund Scheme Rs. 30 Rs. 150
Employee Funded Rs. 70 Rs. 500
Contributory Social
Security Scheme

5.B Increase in Benefits / Grants: -

Benevolent Fund Scheme

Grants / Advances Existing Proposed

Death Grant Rs. 50,000 Rs. 2,25,000

Premature retirement on Rs. 2,50,000 Rs. 2,50,000
medical grounds or due to
permanent disability
Specified Advances Rs. 1,50,000 Rs. 4,00,000

Employee Funded Contributory Social Security Scheme: -

Grants (Age bracket) Existing Committee

(Rs.) Recommendation (Rs.)
Age Bracket 18-30 7,00,000 22,00,000
5 Bracket 31-45
Age 6,30,000 30,00,000
. Bracket 46-50
Age 4,55,000 25,00,000
Age
C Bracket 51-55 60,000 12,00,000
Age Bracket 56-60 40,000 8,00,000

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 5.C The benefits under Benevolent Fund Scheme and Employee Funded Contributory
Social Security Scheme will be reviewed after one year.

6. RESOLUTION: -
The Trustees are, therefore, requested to pass the following Resolution:

“RESOLVED THAT the proposal at 5 above be & is hereby approved.”

(Jagdish Kumar)
Secretary
For FCI Welfare Trust

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