Union Cabinet approved the introduction of pension and post-retirement medical schemes

The Union Cabinet led by Shri. Narendra Modi approved the introduction of pension and post-retirement medical schemes for the 22,000 existing employees of Food Corporation of India (FCI) as per the guidelines of Department of Public Enterprise.

What is FCI ?

Food Corporation of India was set up on 14 January 1965 having its first District Office at Thanjavur – rice bowl of Tamil Nadu – and headquarters at Delhi under the Food Corporations Act 1964 to implement the following objectives of the National Food Policy

1. Effective price support operations for safeguarding the interests of the farmers
2. Distribution of food grains throughout the country for Public Distribution System
3. Maintaining satisfactory level of operational and buffer stocks of food grains to ensure National Food Security
4. Regulate market price to provide food grains to consumers at a reliable price.

It is one of the largest corporations in India and probably the largest supply chain management in Asia.

It operates through 5 Zonal offices and 24 Regional offices. Each year, the Food Corporation of India purchases roughly 15 to 20 per cent of India’s wheat output and 12 to 15 per cent of its rice output. The purchases are made from the farmers at the rates declared by the Govt. of India.

Pension Scheme:-

As per the press statement of the government of India, all employees including Category I, II, III and IV of the Corporation on the payroll as on 1.12.2008 or appointed thereafter are covered under the new pension scheme for employees of FCI.

• It adds that another 4,000 retired employees will also get benefit of the pension scheme.
• In order to qualify for this pension scheme one should have a Minimum service period of 15 years before superannuation except in case of death.
• The Employer’s Contribution is 10% of Basic pay and DA per month in respect of all existing employees as on 01.12.2008 or appointed thereafter.
• The Employees’ Mandatory Contribution is about 2% of basic pay + DA per month. Employees’ Voluntary Contribution and up to 25% of basic pay + DA per month.
• The scheme also offers Benefits of Pension (Annuity) on superannuation and Death Cover.

Post Medical Scheme:-

It applies to all employees Category I, II, III & IV employees of the Corporation including retired employees who are members of the current employee funded Medical Health Scheme for Retirees.

• A Minimum service period of 15 years before superannuation except in case of death qualifies one to this scheme.
• The Employer contribution is 3.83% of Basic + DA w.e.f. 01.04.2016.
• The Employee Contribution is Last drawn Basic pay and DA at the time of retirement / 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.