MSRTC P.F. / EDLI / Gratuity Trusts

BACKGROUND/PRESENT POSITION.

CONTRIBUTORY PROVIDENT FUND –

The Employees' Provident Fund & Miscellaneous Provisions Act – 1952 was made applicable to the Corporation in the year 1959 when the Transport industry was covered under the Act by issue of a notification. In view of a specific provision in Sec. 17 of the Act, the Corporation obtained Exemption from the State Government being the appropriate Govt. under the Act. It also formed a separate trust to deal with P.F. matters of it's employees. As per Provident Fund Regulations 1956, there shall always be at least 4 and not more than 8 trustees on the Trust. The structure of Contributory Provident Fund trust is as below.

 

Vice-Chairman & Managing Director	Ex-officio chairman
Financial Adviser & Chief Accounts Officer	Ex-officio Trustee-secretary
General Manager ( P & I R )	Ex-officio Trustee
Secretary MSRTC	Ex-officio Trustee

and 4 Trustees nominated by recognized labour Union. In view of insertion of Sec. 16 in the Act., w.e.f. the year 1988, the Corporation has taken a stand that, it has been excluded from the operation of the act. The Corporation however, has opted for voluntary coverage for the Pension Scheme introduced under the Act. w.e.f. 16/11/1995 as the Corporation dose not have its own Pension Scheme. Investment corpus and other information is as below. ( Rs. In Crs.)

Particulars	PF Trust
Equities & Related Investments as on 31/03/2019	225.96
Bonds & Related Investment as on 31/03/2019	4882.94
Interest Receipt (F.Y. 2018-19)	347.93
Rate of Return (F.Y. 2018-19)	7.13%
No. of Subscribers (as on 31/03/2019)	101409

 

ADDITIONAL GRATUITY-CUM-EDLI SCHEME.  

The Corporation has also formed a separate scheme to deal with Employees' Linked Insurance Scheme which is compulsory under the Act. the Corporation has obtained exemption from the EDLI Scheme under the Act and framed separate scheme as Additional Gratuity-cum- Employees' Deposit Linked Insurance Fund Scheme. As per this scheme, in case of death overall 51 months salary (Basic Pay + D.A.) or EDLI Scheme under the Act. whichever is more, is paid to the nominee of the employee. The administration of the Additional Gratuity-Cum-Employees' Deposit Linked Insurance Scheme is vested with the Trustees of the MSRTC Contributory Provident Fund. Investment Corpus and other information is as below.( Rs. in Crs)

Particulars	EDLI Trust
Equities & Related Investments as on 31/03/2019	10.22
Bonds & Related Investment as on 31/03/2019	226.58
Interest Receipt (F.Y. 2018-19)	18.45
Rate of Return (F.Y. 2018-19)	8.14%

GRATUITY.

The Corporation has framed it's own regulations , with the sanction of State Government , for Gratuity of the employees and has formed a separate Trust for the same.  At present the Corporation is covered under the Payment of Gratuity Act 1972, as per the act ,15 days salary ( Basic + D.A.) is paid for each completed year of service as gratuity, subject to maximum of Rs. 10 lac.  As per gratuity regulations there should always be at least 4 and not more that 8 trustees on the trust.  As per Corporation Board resolution gratuity Trust is as below.

Vice-Chairman & Managing Director	Ex-officio chairman
Financial Adviser & Chief Accounts Officer	Ex-officio Trustee-secretary
Labor commissioner	Ex-officio Trustee
Secretary MSRTC	Ex-officio Trustee & representative of class I & II officers.

and 2 Trustees are  nominated from Corporation Board and 2 representative are nominated by recognized labor Union. Investment corpus and other information is as below . ( Rs. In Crs.)

Particulars	Gratuity Trust
Equities & Related Investments as on 31/03/2019	55.25
Bonds & Related Investment as on 31/03/2019	1157.84
Interest Receipt (F.Y. 2018-19)	84.56
Rate of Return (F.Y. 2018-19)	7.30%

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