BSNL Employees Superannuation Pension Trust Rules

BSNL Employees Superannuation Pension Trust Rules

BSNL Employees Superannuation Pension Trust Rules: Issued vide Circular No.
382 dated  28.09.2017, BSNL EMPLOYEES SUPERANNUATION PENSION TRUST RULES,  RULES (SECTION: I), 1. DEFINITIONS,  In these Rules, where the context so admits, the masculine shall include
the feminine the singular shall include the plural and the following words
and expressions shall, unless repugnant to the context have the following
meanings:

BSNL EMPLOYEES SUPERANNUATION PENSION TRUST RULES

RULES

(SECTION: I)
1. DEFINITIONS
In these Rules, where the context so admits, the masculine shall include
the feminine the singular shall include the plural and the following words
and expressions shall, unless repugnant to the context have the following
meanings:






i) COMPANY shall mean BHARAT SANCHAR NIGAM LIMITED.
ii) The EMPLOYER shall mean, the Company as defined in (i)
above and subject to the prior approval of the Commissioner of Income-Tax
shall include any firm, concern agency or body corporate which may, by
purchase, amalgamation or otherwise take over the whole or substantially
the whole of the business of the Company and which shall enter into a Deed
in such a form as the Trustees shall require undertaking to continue the
obligations of the Firm/Company under these presents and releasing the
Firm/ Company under these presents and releasing the Company from all
further liability thereof.

iii) BOARD OF DIRECTORS shall mean Board of Directors of
the company.

iv) CORPORATION shall mean Fund Manager engaged for the
purpose of this scheme.
v) CPSE shall mean Central‘Public Sector Enterprise.
vi) SCHEME shall mean BSNL Employees Superannuation
Pension Scheme, described in the Rules and the Trust Deed;
vii) RULES shall mean the Rules of the Scheme as herein
set out and any amendments made thereto from time to time;
viii) TRUSTEES shall mean the Trustees for the time being
of the BSNL Employees Superannuation Pension Trust.
ix) EMPLOYEES shall mean regular employees of the Company
and shall exclude apprentice, absorbed employees of DOT/DTS/DTO who are
already covered by Rule 37-A of CCS (Pension) Rules 1972, the employees who
are not on the regular rolls of the company and employees posted on
deputation in the company and shall be deemed to include whole time
bonafide working Directors who do not own beneficial share holding carrying
more than 5% voting rights in the Company and the employees of DOT/DTODTS
who have been absorbed in BSNL with the option of pension on pro-rata
basis/immediate absorption.
ix) MEMBER shall mean an Employee who has been admitted to
the membership of the Scheme and shall include any such person only so long
as he continues to be admitted to the benefits hereunder.
x) ENTRY DATE shall mean (a) in relation to the Members
the Effective Date and (b) in relation to new Members admitted to the
Scheme after the Effective Date, the Annual Renewal Date which is
coincident with or which’next follows the date on which they become
eligible.
xi) SALARY shall mean the monthly sum paid by the company
to the employee as basic pay together with any deamess allowance which may
for the time being be paid to such employee but shall not include any
commission, house rent allowance, bonus, overtime and any other allowance
and perquisite which such employee may receive from the company.
xii) SERVICE shall mean in relation to a Member the period
for which for the purpose of the Scheme, he has been or deemed to be in
continuous service with the employer and this will include, inter alia,
periods of authorized leave. Such service relating to a Member will be the
total of
a) the period of future service with the Employer reckoned from the date of
his/her entry into the Scheme up to his Normal Retirement Date or the date
of cessation of Service, as the case may be, AND;
b) the period of past service already rendered in the company since his/her
joining the company.
xiii) BENEFICIARY shall mean the member and in case of his
death his widow, his children or dependants of the member.
xiv) EFFECTIVE DATE in relation to the Scheme shall mean
05th May 2016.
xv) ANNUAL RENEWAL DATE in relation to the Scheme shall
mean the policy renewal date with the Fund Manager and the same will be
updated once the scheme has been approved and notified;
xvi) NORMAL RETIREMENT DATE shall mean in respect of each
Member the date on which the Member completes the age of superannuation;
fig
xvii) APPROVED FUND shall mean a Superannuation Fund Which
has been and continues to be approved by the Commissioner of Income Tax
under Part-‘B’ of the Fourth Schedule to the Income Tax Act, 1961.
xviii) TRUST means the Irrevocable trust under which the
Fund is established.
xix) Superannuation in relation to an employee means:
a) The attainment by the employee of such age as is fixed in the conditions
of services as age on attainment of which the employee shall cease to be
employee.
b) In other case, the attainment by the employee at the age of 60 years or
as decided by the Company.
xx) CONTIBUTION means any sum credited by an Employer out
of his own money to the individual account of an employee but does not
include any sum credited as interest.
xxi) ANNUITY shall mean the particular Deferred Annuity or
Deferred Annuities effected or to be effected in respect of the Members.
2. THE TRUSTEES TO ACT FOR MEMBERS AND THE EMPLOYER

The Trustees will act for and on behalf of the Members and the Employer in
any matter relating to the Scheme and every act done and agreement made by
the Trustees shall be binding on the Members and the Employer.

3. ELIGIBILITY






i) All Employees, more specifically covered at Para 1 (ix) above, who are
on the regular rolls of the Company on or after effective date. shall be
eligible to participate in the Scheme provided the employee is not more
than 45 years of age as on date of joining the company. However, the age
limit of 45 years shall not be applicable in respect of the Employees in
the following cases:
a. An officer shall have put in a minimum of 15 years of service rendered
in continuity in CPSE’s/Company at the time of superannuation and benefits
would be allowed by the CPSE from where the incumbent has superannuated.
b. As regards Board level executives who are contractual appointees they
too can enjoy the benefits under these schemes provided his/her total
period of service rendered in continuity in CPSE(s)/Company including the
period at Board level in a CPSE is not less than 15 years at the time of
superannuation. Further, provided that such period of service rendered. in
any .CPSE(s)/Company has not already been counted for any pension benefits.
c. In case a regular member of the scheme dies / becomes permanently
disabled and incapacitated leading to cessation of his/ her service before
putting in 15 years of service in a CPSE prior to superannuation he/she may
be given the benefit as admissible under the scheme.
d. The service rendered in Government prior to joining Company would not
count for the purpose of computation of total service in Company required
for availing the benefit under this scheme
ii) The Trustees’ decision regarding the eligibility of an Employee for the
purpose of the Scheme shall be final and binding on the employee concerned.
iii) Transfer of equitable interest in the Scheme
a) If an employee joins another CPSE after resigning from the Company, he
may be entitled to transfer the Employer and Employee contributions
accumulated in his account at the time of such resignation to the other
CPSE with concurrence of Company provided that the other CPSE has an
Approved similar Defined Contribution Superannuation Fund and consensus to
transfer the sum.
Note: In case officers who resign from one CPSE to join another CPSE not
having similar schemes, or any organization not being a CPSE (irrespective
of whether such scheme exists in that organization or not) shall not be
allowed the benefit of transferring their accumulated fund under these
schemes.
b) If, an employee joins the Company after resigning from another CPSE, or
on becoming a Member of the Scheme desires to pay, procure or transfer to
the Trust a sum to which (as a Member of any Approved Fund) he may be
entitled, the Trustees shall be authorized to receive such payment or
transfer and the amount so paid or transferred shall be placed to the
credit of such Member On retiring from service at Normal Superannuation
Date or on early superannuation on VRS or on death, such Member or his
Beneficiary, as the case may be, shall be entitled to such additional
pensions as are attributable to the value as at the date of superannuation
or death of the total amount “so paid or transferred in accordance with
conditions, if any, stipulated by the Approved Fund from which the amount
has been transferred.
Note: The transfer to the Scheme by the Trustees as mentioned above shall
be made only between Defined Contribution Superannuation Funds approved by
the Commissioner of Income Tax. Clause ‘iii’ of this Rule shall be
applicable only in cases where transfer of equitable interest is from/ to a
CPSE.
c) In the case of Employee joining the Company from another organization,
which is not a CPSE defined here in above, his past service with the
previous organization shall not be reckoned for the purpose of this Scheme.
iv. In order to be eligible for crediting the past service/ amount received
towards the past service period in a CPSE, the previous service in CPSE as
well as service in the Company shall be deemed to be continuous without any
break, subject to the conditions that there is no intervening service in
any concern other than CPSE or the Company. It is clarified that admissible
joining time taken by an Employee or leave with prior concurrence of
Company on account of movement from one CPSE to another would not be
considered as break in service.
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v. The amount so received from CPSE to Employee’s individual account
towards the past service period shall be credited separately under
Employer’s contribution and Employee’s contribution
vi. The past service of a Member in CPSE shall be reckoned only for the
purpose of determining the continuity of service to avail the benefits of
the Scheme.
vii. The amount in the Superannuation Fund due from earlier CPSE should be
transferred to the Company within a period of 12 months from the date of
joining duty in the Company or the Notification Date, whichever is later.
In case of an employee joining the Company while retaining lien with CPSE,
the period of 12 month shall be extended to the total period of lien.
viii. If the Employee does not bring in the amount within said period of 12
months or the period of lien, as the case may be, transfer of such amount
later shall not be allowed

4. EVIDENCE OF AGE
Initially the company Will provide the details of ages of employees based
on Service records.

5. MEMBER NOT TO WITHDRAW
No member shall withdraw from the Scheme while he is still an Employee in
the category state above.

SECTION : II

CONTRIBUTIONS AND SCHEME OF INSURANCE

6. CONTRIBUTIONS:

The contributions shall be duly paid by the Company to the Trust in respect
of each Member in the proportion mentioned in paras (a) & (b) below, on
the relevant dates stated hereinafter and the Trust shall pay the same to
the Fund Manager for the purpose of effecting annuities in the manner
prescribed by the Trust in consultation with the Company from time to time.
i. INITIAL CONTRIBUTION: Initial contribution @ 3% would be paid by the
Company in respect of past services ‘of the Employees, commencing w.e.f
05.05.2016 till the end of the month immediately preceding the month of
severance of the Employment with the Company for reasons other than
resignation, termination, disciplinary proceedings, lis pendens or due to
sudden disappearance or the month in which the Scheme and the Trust Deed is
approved by the Company, whichever is earlier.
ii. MONTHLY CONTRIBUTION:
a) The monthly contribution payable by the company in respect of each
member shall be @ 3% of Basic Pay plus DA. This contribution shall be
credited to the individual account of member as Employer’s contribution
through the Trust and shall be payable throughout the period of his service
up to the normal Superannuation date/date of cessation from service/Death
of the member.
The rate of Employer’s contribution will be subject to review depending
upon the financial position of the company.
b) Employees can make voluntary contribution to the scheme maximum upto
Basic Pay provided the take home salary should not be less than 1/4th of
the Gross Salary.
NOTE: The aggregate of contribution paid by the Company for any year for
any Member together with the total contribution paid by the Company to any
Provident Fund in respect of the said Member shall not at anytime exceed
the prescribed percentage of the aggregate Salary paid by the Employer to
the Member as per the Income-tax Act, 1961.
c) In the subsequent years, the Employer and Employee contribution for the
months of April to March of each financial year shall be payable by the
15th of the immediately succeeding month.
d) An amount forfeited by the trustee shall be kept separately in surplus
account. The money kept in surplus account will be utilized for the purpose
of investment in accordance with Rule 85 of Income Tax, 1962.
iii. Expenses of Scheme to be borne by the Company: The expenses for
administration of the Scheme shall be payable by the Company and shall be
paid in addition to the contributions herein mentioned.
iv. Employer lending Member’s services (deputation) & continuity of
Membership
a) In the event of a Member’s service being lent by the Employer to any
other company, firm, association or concern under the management or
associated with the Employer, or to CPSE or Govt. Department or Autonomous
Body for the purpose of this Rule, the Member’s services shall be deemed to
be continuous and uninterrupted.
b) During such period the contributions payable by the Employer/Employee
shall continue to be paid to the Trust. The Employer may recover such
Employee’s contributions from the company, firm, association, concern or
CPSE to which the Member’s services are lent and the Employee’s
contribution shall be deducted from his Salary.
v. Employees right of lien over the post and his continuity in membership:
In case of an Employee who joins another CPSE but maintains lien over the
employment with the Company, the Contribution for the lien period by the
Employer and the Employee shall not be payable and his accumulated
contributions shall be maintained with the Fund Manager. In the event, such
Employee rejoins the Company, the Contributions shall become payable by the
Company and employee from the date of rejoining the Company.
vi. In the event an Employee is sanctioned study leave with salary as per
the Company’s Service Rules, the Employee contribution as well as Employer
contribution under the Scheme shall be payable only up to period he is paid
leave salary. On exhaustion of leave salary, the contributions shall
recommence from the date the Employee rejoins the Company.
vii. In the event an Employee is sanctioned leave without pay, neither
Employer nor Employee contribution shall be payable for the period of leave
without. pay.
viii. In the event a suspended Employee is reinstated, the Employer and
Employee contribution under the Scheme for the period of suspension may be
payable as per the company rules.
ix. In the event of Employee resigning from Company and joining a CPSE
which does not have an Approved Defined – Contribution Superannuation
Scheme, the treatment of accumulation in respect of such Employees shall be
as per DPE guidelines in this regard from time to time.
7. ANNUITIES

i. The Trustees shall maintain with the Fund Manager a Consolidated Fund
and also monitor the contributions made in respect of all the Members into
such Fund as per the terms agreed with the Fund Manager
ii. The Trustees shall effect “Annuities” with the Fund Manager in respect
of each Member in terms of the Rules of this Scheme at the time of the
Normal Superannuation Date or death, as the case may be, in accordance and
consistent with the Rules of the Scheme. The amount for which such
Annuities shall be taken should be in accordance with the provisions stated
under Section III of the Rules. The Annuities will not be entitled to
participate in the profits of the Fund Manager.
8. SCHEME OF INSURANCE

i. For the purpose of providing pensions to the Members, the Trustees shall
enter into a Scheme of Insurance with the Corporation where the Corporation
will issue ‘a Master Policy. In terms of the Master Policy, the Corporation
will maintain a running account in favour of the Trustees to which will be
credited the contributions paid by the Trustees in respect of all the
Members. Every year, the Corporation will allow interest on the balance
standing to the credit of the running account at a rate to be determined by
the Corporation as at the close of each financial year. When a pension
becomes payable to the Member on his retirement or cessation of service or
to his Beneficiary in the event of his death, the Corporation shall, on the
advice of the Trustees, appropriate the accumulation of concerned Members
to provide for payment of the pension according to the option elected by
the Member or his Beneficiary as the case may be, provided that it a part
of the pension is to be commuted, the commuted value will become payable in
one lump sum, in which case only the balance of the pension will become
payable.
ii. If the Corporation with the sole intention of granting relief to the
Members/Beneficiaries who are already drawing the pension decides to grant
increases in the quantum of pension. Such Members/Beneficiaries shall be
eligible for the said increase in the Pension from such date and in such
form as may be allowed by the Corporation.
SECTION: III

9. BENEFITS

9.1. BENEFITS ON NORMAL SUPERANNUATION AGE

i. Upon superannuation of a Member on the Normal Superannuation Date, the
pension shall become payable to him if he has completed not less than 15
years Service and his balance, which shall be utilized to provide him
appropriate pension, would be equal to the following:
a) Total contributions to his account, comprising contributions by the
Company and Employee including the additional contributions made by the
Employee towards the Fund, if any, and interest earned thereon; and
b) Any other amount transferred from previous employers or CPSE and
interest thereon.
ii. Upon superannuation of a Member on the Normal Superannuation Date and
subject to the condition that the Member has put in a minimum 15 years of
Service, pension shall be paid to the Member as per the frequency chosen
(monthly, quarterly, half yearly or yearly) and as per the pension option
selected by him from the various options as offered by the concerned Fund
Manager. Pension benefits would depend upon the accumulated corpus
available in his individual account (both Employer and Employee
contributions along with accrued interest)
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iii. The condition that a Member has to complete minimum 15 years Service
in order to be entitled to superannuation benefits as contemplated in the
Scheme shall not be applicable in the circumstances enumerated in Paras 9.2
& 9.3 below.

9.2. BENEFITS ON VOLUNTARY SUPERANNUATION OR PREMATURE SUPERANNUATION
ON MEDICAL GROUNDS

i. In the event of a Member opting for voluntary superannuation as per
Company’s rules, such Cases of VRS for which specific schemes has been
framed would be examined in terms of such specific schemes of VRS of the
Government Company applicable in respect of employees of Company. Benefits
under these schemes would not accrue to VRS/VSS optees automatically.
ii. In case, the Employee opts for premature superannuation on medical
grounds, which shall be applicable only in cases involving Total Permanent
Disablement / becoming incapacitated, pension shall be payable irrespective
of whether the Member has completed 15 years Service or not (similar to
PF). The amount payable shall be calculated in the manner as prescribed
under Para 9.1 and an appropriate pension will become payable to him.
9.3. BENEFITS ON DEATH

In the event of death of a Member while in service of the Company, the
Beneficiary(s) of the Member shall be entitled to an immediate pension,
irrespective of whether the Member has completed 15 years of Service or
not, the first installment of the pension being due’in the month subsequent
to the month of death of the Member.

9.4. BENEFITS ON RESIGNATION PRIOR TO NORMAL SUPERANNUATION DATE

i. In the event of the employee leaving the services of the Company on his
own free will or otherwise before becoming eligible for the benefit i.e.
before completing 15 years continuous service in the Company, the Employer
will discontinue making contributions in respect of such employee and the
amount accumulated by way of Employee contribution including any additional
contribution, if any, by the Employee only shall be refunded after
deduction of charges, if any, and subject to Income Tax Rules, 1962 as
applicable.
ii. In case an Employee resigns and joins another CPSE having an Approved
Defined Superannuation Scheme, the accumulated amount (both Employer and
Employee contribution) along with interest lying in his individual account
may be transferred at the request of the employee to the said Approved
Defined Contribution Superannuation Scheme of which he may become member in
future, if the amount is not transferred on account of the CPSE not having
any Approved Defined Contribution Superannuation Scheme, then both
employees’ and employers’ contribution, if any, along with interest thereon
shall be refunded to him/or annuity allowed at the option of the
beneficiary provided he completes 15 years of continuous service in
different CPSEs.
iii. The undistributed Employer’s contribution shall be transferred to the
Surplus Account and may be adjusted against the future contributions by
Employer. However in this regard DPE guidelines from time to time shall
prevail.

9.5. BENEFITS ON CESSATION OF SERVICE ON ACCOUNT OF DISCIPLINARY
PROCEEDING

If the Member ceases to be in Service as a result of Disciplinary
Proceedings initiated against him as per the Service Rules, such employee
will be entitled only the Employee’s Contribution including additional
voluntary contribution, if any, along with accrued interest thereon,
subject to Income Tax Rules, 1962, as may be applicable, shall be refunded
to the Employee after settling all his dues payable to the Company and
after deduction of charges, if any.
9.6. BENEFITS LIS PENDENS

In the event a Member, against whom judicial proceedings are instituted or
disciplinary proceedings are contemplated /instituted before the Normal
Superannuation Date, attains the age of normal superannuation and becomes
eligible for grant of pension under the Scheme, the benefits of pension to
such Member shall be kept in abeyance till the outcome of such proceeding.
If such Member is found guilty of offence pursuant to the judicial
proceeding and/or disciplinary proceedings, as the case may be, warranting
cessation of his service had he continued in the service, only the
Employee’s Contribution, if any, along with interest thereon shall be
refunded to him, after settling all the dues payable by him to the Company
and deduction of charges, if any.

9.7. BENEFITS ON SUDDEN DISAPPEARANCE AND UNKNOWN WHEREABOUTS OF
MEMBER:

In the event if any Member while in Service suddenly disappears and his
whereabouts are unknown, the pension benefits shall be payable to his
Beneficiary(s) after a lapse of a period of one year from the date of
filing of FIR with the concerned police station and observing other
formalities as prescribed by the Trustees. The benefits shall be payable as
per Para 9.1 above.
10. COMMUTATION OF PENSION

A maximum of 1/3rd of the Corpus in the account of member may be commuted
for a single payment, and for remaining 2/ 3rd of the amount the annuity
would be purchased.
11. ACCOUNTS

i. The account of the Scheme shall be maintained by the Trust and shall
contain such particulars as the Trustees may think proper as required by
law and accurate accounts shall be kept and maintained by the Trustees.
ii. As soon as may be after the 1st day of April every year, the Trustees
shall take a general account of the assets of the Trust and shall prepare
receiptsand payments account showing the receipts and payments, credits and
debits, dealings and transactions during the year terminating on 3lst day
of March in such form as may be considered suitable by the Trustees.
iii. The Trustees shall appoint Auditors On yearly basis who shall have
access to all books, papers, vouchers, accounts and documents connected
with the trust and who shall in writing report to the Trustees on the
annual Balance Sheet, Receipts and Payments Account, Income and Expenditure
Account. These Accounts shall be adopted at a meeting of the Trustees every
year within six months of close of the annual accounts.
iv. The Fund Manager shall issue to the Trustees within one month from the
Annual Renewal Date, a certificate indicating the total amount of
consolidated fund as on the previous Annual Renewal Date, the annuities
effected in between the above two Annual Renewal Dates and the final
balance as on the last Annual Renewal Date.
v. The Fund Manager shall also issue to the Trustees within 2 months from
the closing of the financial year, a consolidated certificate indicating
the total corpus amount available including the interest as on 3lst March
along with consolidated statement of account of all the Members indicating
the Employer / Employee contribution along with the accrued interest. The
Trustees shall also issue a certificate indicating the opening balance,
current year contribution and interest on the Employer and the Employee
contribution as on 3lst March of every year.
12. AMENDMENT OF THE RULES

i. The Company reserves the right to vary the Contributions to be made
under the Scheme at anytime and/or amend the Rules of the Scheme, after
giving three months notice in writing to the Trustees, the Fund Manager and
to all the Members of the Scheme.
ii. The total contributions made by the Company towards superannuation
benefits including Provident Fund, Gratuity, Retired Employees Medical
Scheme and Pension shall not exceed 30% of basic pay plus deamess allowance
of an Employee. The Company shall periodically review the contributions
made by it and may, keeping in view the financial health of the Company and
or total contribution towards superannuation benefits, vary the ordinary
annual contribution under the Scheme.
iii. No such amendment shall affect in anyway (i) pensions already paid by
the Fund Manager and (ii) benefits already secured as per the Scheme.
iv. In the event of discontinuance of the Contributions by the Employer,
the benefits under the Annuities shall vest in the Member and the Member
shall be entitled to exercise in respect of his benefits, the same
discretions as the Trustees had under the Rules.
13. GENERAL

i. The Trustees shall act for and on behalf of the Members and the Employer
in any matter relating to the Scheme and every act done by the Trustees
shall be binding on the Members and the Employee. The membership in the
Scheme shall be co-terminus with the employment of the Member with the
Employer
ii. A Member or his Beneficiary shall have no interest and/or right in the
Master Policy taken out in respect of the Members or any investment
otherwise made by the Trustees in accordance with the Rule of the Scheme
but shall be entitled to receive pension in accordance with the Rules.
iii. PROVIDED ALWAYS that the Trustees shall administer the Scheme for the
benefit of the Members and their Beneficiaries in accordance with the
provisions of these Rules.
iv. The benefits assured under the Scheme are strictly personal and cannot
be assigned, charged or alienated in any way.
v. Should anything contained in these Rules or in any alteration or
amendment thereof be inconsistent with the objects or provisions of the
Trust Deed, the provisions of the Trust Deed shall prevail. On any such
discrepancy coming to the notice of the Trustees, the Trustees shall with
the prior approval of the Commissioner of Income Tax take steps to amend
the said Rules as soon as may reasonably be possible, so as to bring them
in conformity with the provisions of the Trust Deed
vi. The Master Policy issued under the Scheme shall be under the Indian
Contracts Act. The Scheme will be subject to the laws of India including
the Indian Insurance Act, 1938, as amended, the Income Tax Act, 1961 and to
any legislation subsequently introduced. All benefits under the Scheme
shall be payable only in India. Should anything contained in these Rules,
or in any amendment made thereof be repugnant to any provision or
provisions of the Income Tax Act,1961 or the Income Tax Rules, 1962, or any
amendments thereto, the same shall be ineffective to the extent of
repugnancy. The Trustees shall remove any such repugnance, if so directed
by the Commissioner of Income Tax.
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vii. The Fund Manager will issue a single Master Policy to the Trustees to
provide for the benefit of the Members under the Scheme
viii. – The Employer is neither the Fund Manager nor the guarantor of any
Annuities purchased under these Rules and in the event of the Fund Manager
withholding any benefits in respect of any of the contracts under such
Annuities that may be issued owing to circumstances beyond the Employer’s
control or otherwise the Employer shall be under no liability whatsoever to
any Member entitled to the benefits secured by such Annuity or Annuities.
ix. This Scheme will be under a Defined Contribution Scheme and not under a
Defined Benefit Scheme subject to the contribution made by the CPSE within
the prescribed ceiling and based on affordability, the benefit to the
members would be determined based on the accumulated amount.
x. Contribution by CPSE for Pension Scheme is not guaranteed and can be
reduced or even refused on the ground of affordability, sustainability and
capacity to pay.
SECTION : IV

MISCELLANEOUS PROVISIONS

14. MEMBER TO HAVE NO LEGAL RIGHT

A member or his Beneficiary shall have no interest in the Master Policy
taken out in respect of the Members or any investment otherwise made by the
Trustees in accordance with the Rule of the Scheme but shall be entitled to
receive ‘a pension in accordance with the Rules. PROVIDED ALWAYS that the
Trustees shall administer the Scheme for the benefit of the Members and
their Beneficiaries in accordance with the provisions of these Rules.
15. RESTRAINT ON ANTICIPATION ENCUMBRANCE

The benefits assured under the Scheme are strictly personal and cannot be
assigned, charged or alienated in any way.
If any restraint or prohibitory order is served on the Trustees in respect
of any benefit payable to a Member or his Beneficiary or if the Member or
the Beneficiary shall become bankrupt or attempt to assign, charge or in
any way encumber the pension or any benefit there under, he shall forfeit
all rights and claim thereto and the same shall lapse to the Trustees but
without prejudice to the powers of the Trustees at their discretion to
maintain or continue the same, it they think fit, either immediately or
after an interval or otherwise to make payments for the support of the
Member or his Beneficiaries. The value of any or all benefits forfeited
shall be transferred to the ‘Surplus Account’.
16. TRUST DEED TO PREVAIL

Should anything contained. in these Rules or in any alternation or
amendment thereof be inconsistent with the object or provisions of the
Trust Deed, the provisions of the Trust Deed shall prevail. On any such
discrepancy coming to the notice of the Trustees, the Trustees shall, with
the prior approval of the Commissioner of Income Tax take steps to amend
the said Rules to bring them in conformity with the provisions of the Trust
Deed.
17. JURISDICTION

The Master Policy to be effected under the Scheme shall be an Indian
contract, subject to the laws of Indian including the Indian Insurance Act,
1938, as amended, the Life Insurance Corporation Act, 1956, the Income Tax,
Act, 1961 and to any legislation subsequently introduced. All benefits
under the Scheme shall be payable only in India. Should anything contained
in these Rules, or in any amendment made thereof be repugnant to any
provisions of the Income Tax Act, 1961 or the Income Tax Rules, 1962 and
the trust act it shall be ineffective to the extent of Such repugnance, any
such repugnance in so far as it relates to Income Tax Act 1961 and the
Rules there under shall be removed by the Trustees if so directed by the
Commissioner of Income Tax.
18. MASTER POLICY

The Corporation will issue a single Master Policy to the Trustees to
provide for the benefit of the Members under the Scheme.
19. SURPLUS ACCOUNT

Any sum forfeited to the Trustees under the Rules shall be credited to a
separate Account called the ‘Surplus Account’ and will be utilized for the
purpose of investment in accordance with Rule 85 of Income Tax Rule, 1962.
20. DEDUCTION OF SUMS DUE TO INCOME TAX AUTHORITIES

i. Income Tax : In any case where the Trustees or the Corporation is liable
to account to the Income Tax Authorities for Income Tax on any payments due
under the Scheme, the Trustees or the Corporation shall deduct a sum equal
to the tax from such payment and the shall not be liable to the Members for
the sum so deducted.
ii. If the Scheme for any reason ceases to be approved by the Commissioner
of Income-Tax, the Trustees shall nevertheless remain liable to tax on
benefits paid out of the Scheme in so far as such benefits are secured by
the contribution made before the Scheme ceased to be approved by the
Commissioner of Income Tax under the provisions of PART ‘B’ of the 4th
Schedule to the Income Tax Act, 1961.
21. APPOINTMENT OF BENEFICIARY

i. Every Member shall appoint one or more of his wife/ child/ children or
dependants as Beneficiary or Beneficiaries under the Scheme to receive the
benefits hereunder in the event of the death of the Member. If a Member
dies whilst is Service or before he has commenced to draw the pension or
after he has commenced to draw the pension but before he has received all
the guaranteed installment under the pension option elected by him, the
Trustees shall hold the benefits in respect of the Member UPON TRUST for
payment to the Beneficiary or Beneficiaries as shall’have been appointed by
the Member in accordance with, the remaining paragraph of this Rule.
ii. Every appointment to be made under this Rule shall be in writing signed
by the Member and attested by two witnesses and shall be according to the
form given in the Appendix to these Rules and shall remain in full force
and effect until the death of the Beneficiary or until the same will be
revoked in writing by the Member by whom the same was made and a fresh
appointment is made in the manner aforesaid.
iii. A member may from time to time or at any time without the consent of
the beneficiary, if any, revoke or change the Beneficiary by filling a
written notice of the change with the Trustees in the prescribed form
satisfactory to the Trustees whereupon an acknowledgement of the change and
the registration of the name of the new Beneficiary will be given to the
Member by the Trustees. The New appointment shall take effect on the date
the notice was signed whether or not the Member is living on the date of
acknowledgement of the change without prejudice to. the Corporation -or the
Trustees on account Vof any payment made before the acknowledgement of the
change.
iv. If a beneficiary shall at the time of his appointment be a minor or
otherwise under disability to give a legal receipt or discharge to the
Trustees the Member must at the time of such appointment as aforesaid
appoint a person who is major and who is capable of giving a 77 legal
receipt or discharge to the Trustees and to whom the benefits are to be
paid for and on behalf of such Beneficiary so long as such minority or
disability continues.
v. If more than one Beneficiary is appointed and in such appointment the
Member has failed to specify their respective interest, the Beneficiaries
so named shall share equally. If any designated Beneficiary predeceases the
Member the interest of such Beneficiary shall terminates and his share
shall be payable equally to such of the remaining Beneficiaries as survive
the Member unless the Member has made written request otherwise to the
Trustees in the prescribed form.
22. INTERPRETATION OF RULES

It shall be a condition of the membership of the Scheme that on any
question arising on any point of interpretation of these Rules or any point
relating to cessation of membership, the decision of the Trustees shall be
final. If the decision has any bearing on the provisions of part ‘B’ of the
Fourth Schedule to the Income Tax Act, 1961 or the Income Act Rules, 1962
it shall be forthwith reported to the Commissioner of Income Tax and if the
Commissioner of Income Tax so requires, the Trustees shall review the
decision. a,
Signed, sealed and delivered by the
above named Ms Sujata Ray, Director (HR)
one of the Trustees
(Signature of the Trustee)
bsnl superannuation pension trust rules
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