Extract of Annual Report 2013-14 of SAIL (Page 57)

32.11.   As per the Department of Public Enterprises (DPE’s) Guidelines, the Company is required to contribute 30% of salary (Basic Pay+ Dearness Allowance) in respect of executive employees as superannuation benefits, which may include Contributory Provident Fund (CPF), Gratuity, Pension and Post- Superannuation Benefits. From 1.1.2007 to 31.3.2013, the Company had been providing for Superannuation Benefits, as per details given in the table below. During the year, contribution rate to Post-retirement Medical Benefit (PRMB) Schemes for executive employees has been actuarially computed and as per the Actuary’s Report dated 5th May, 2014, the cost of PRMB Schemes as a proportion of salary for the executive employees is 4.26%. To comply with the DPE’s Guidelines relating to contribution to Superannuation Benefits within overall limit of 30% of salary of executive employees, the provision for pension benefit has been reduced from 12% to 9% (rounded-off) during the year, as per details given below:

Sl.No.	Superannuation Benefit	Percentage of Salary Provided by the Company	Percentage of Salary Provided by the Company
		From 1.1.2007 to 31.3.2013	From 1.4.2013 to 31.3.2014
1	Contribution to Provident Fund	12.00%	12.00%
2	Gratuity	4.81%	4.81%
3	Post-retirement Medical Benefits	1.19%	4.26%
4	Pension (balance portion of Superannuation Benefits)	12.00%	8.93%

Further, as per Memorandum of Understanding entered on dated 25th January,2014 between SAIL Management and the Unions of non-executive employees, pension benefit for non-executives has been agreed @6% of salary w.e.f. 1 st January, 2012. Keeping in view the above, an excess provision of other benefits for executive employees upto 31 st March 2013, of Rs.201.21 crore in Employee Benefits Expense (EBE) and Rs.9.63 crore in Expenditure During Construction (EDC), has been written back during the year, as per details given below: (Plantwise/Unitwise details given)

-Emphasis in Bold letters is by FORSE