NEW PENSION SCHEME AS SUPERANNUATION BENEFIT FOR BOTH

BOARD LEVEL AND BELOW BOARD LEVEL EXECUTIVES OF CIL

AND ITS SUBSIDIARIES

Features

1. As per the pay revision w.e.f. 01.01.2007 for Board level and below board level

executives of CIL and its subsidiaries, a provision of Superannuation Benefit

equaling to 30% of basic pay and VDA has been provided. Accordingly, the

apportioned contribution has been fixed for PF 12 %, Gratuity 4.16%,

Superannuation Medical Benefit Fund 4%, Pension Fund 3% and Superannuation

Fund 6.84%.

2. The Board of CIL has approved for adoption of the New Pension Scheme of

PFRDA (Pension Fund Regulatory and Development Authority) wherein

9.84% of basic pay and VDA after amalgamating Pension and Superannuation

Fund will be deposited and applicable w.e.f. 01.01.2007.

3. This is an additional benefit to the executives being provided without diluting the

existing statutory benefits i.e. CMPF, CMPS etc.

4. It has been decided to adopt Direct Upload Model i.e. all NPS activities will be

performed by Management itself. CIL has received consent from PFRDA to

operationalize NPS through direct interface with CRA (Central Recordkeeping

Agency) - Exemption from interfacing through a PoP (Point of Presence).

5. It has been decided to adopt Decentralized Model i.e. the CIL will be registered

as Corporate Head Office (CHO) as well as Corporate Branch Office (CBO) and

the subsidiaries of CIL will be registered as Corporate Branch Office (CBO) in the

NPS system.

6. CRA service charge would be borne by the subscribers.

7. Cutoff period of the registration to be kept for six months i.e. registration will be

done only for those subscribers who have retirement period of six months.

8. Scheme preference (Pension Fund Manager, PFM selection) will be left to the

individual Subscriber.

9. National Pension System by PFRDA in detail is given in Annexure-A.

10. The Corporate Head Office (CHO) registration form is enclosed as Annexure -

Co-N1.

11. The Corporate Branch Office (CBO) registration form is enclosed as Annexure -

Co-N2.

12. The Application form for Subscriber Registration is enclosed as Annexure –OS-

S1.

Note: Any further guidelines received will be communicated in due course.

Annexure - A