In a major relief to the Food Corporation of India (FCI) employees, the Union Cabinet on Wednesday approved a pension scheme and post-retirement medical services to about 35,000 employees of state-run Food Corporation of India (FCI), which would cost Rs 134.4 crore annually.
“The Cabinet took a big decision. It has approved introduction of pension and post-retirement medical services as part of superannuation benefits for employees of FCI,” Food Minister Ram Vilas Paswan said after the meeting.
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The entire expenditure for the pension and medical scheme would be borne from the savings of FCI over the past 3-4 years, estimated to be around Rs 800 crore by bringing in effeciences in their operation and would not inflate the subsidy burden.
FCI employees were seeking pension benefit since 2006. The pension would be given with effect from December 1, 2008, while the medical services for retired officials of all categories would be implemented from April 1, 2016, an official statement said.
The annual financial implication for both schemes combined would be around Rs 134.4 crore at the present level of salaries of the employees, it added.
Those with a minimum service period of 15 years before superannuation except in case of death would be eligible.
Employer’s contribution would be 10 per cent of the basic pay and dearness allowance (DA) per month in respect of all existing employees as on December 1, 2008, while employees’ mandatory contribution would be two per cent of basic pay plus DA per month.
