Presentation on BEL Retired Employees Contributory Health Scheme

Presentation on BEL Retired Employees Contributory Health Scheme [BERECHS] Dt. 19 -11 -2012

BERECHS SCHEME The BERECH Scheme was introduced in the year 1996 with a primary objective to provide medical facilities to the retired employees and their spouses to the extent provided under the Scheme. The Scheme was introduced with an objective to be a self sustained scheme. ELIGIBILITY: Employees retiring on superannuation with minimum 15 years of service in BEL. Employees retiring from the service of the Company, under VR Scheme, after attaining the age of 50 years and on completion of 15 years of service. All Full-Time Directors on the Board of the Company who retire on superannuation OR on completion of full tenure of service, whichever is earlier. Surviving spouse of a deceased employees who had put in a minimum of 10 years of service in the Company. The Benefits under the scheme are available to both the members & their spouse. 2

CONTRIBUTION FROM RETIRING EMPLOYEES Employees opting to become members of the scheme have to make one time non-refundable deposit (for Self & Spouse together) as under: 3

A) In-Patient Treatment under Insurance Scheme: Insurance Coverage is taken for in-patient treatment as per option indicated by the retiree to the extent indicated below: The difference between the actual admissible expenditure, in respect of cases which involve prolonged and / or repeated hospitalization for treatment of cancer, heart ailment, kidney transplantation and neurological disorders is borne by the Company. In respect of Joint replacement therapy, the additional expenditure is limited to 4 times the insurance coverage of retiree and spouse put together. 4

BERECHS SCHEME INPATIENT TREATMENT All members and their spouses are entitled to inpatient treatment in any registered hospital / nursing home established in allopathic system of medicine. The hospital / nursing home should be registered with local municipal health authorities and is under the supervision of a registered and qualified medical practitioner. For treatment of identified major illness such as cancer, heart ailment, kidney transplantation, neurological disorders, BEL reimburses the difference between the actual admissible charges and insurance cover. Category I II & III Ward Entitlement Private Ward Semi- Private Ward OUTPATIENT TRATMENT The Company also reimburses 75% of the cost of diagnostic tests and 60% of the cost of medicines. 5

DPE GUIDELINES As per Government of India, DPE Office Memorandum No. 2 (70)/08 -DPE (WC) dated 26. 11. 2008 and 02. 04. 2009 on pay revision for executives, CPSEs would be allowed 30% of Basic Pay + DA as superannuation benefits which would include Contributory Provident Fund, Gratuity, Pension and Post Superannuation Medical benefits. Contributory Provident Fund: 12. 00% of Basic + DA Gratuity contribution 4. 81% BERECH – serving employees 3. 25% Proposed Pension Scheme 6. 00% Total 26. 06% The total comes upto 26. 06% approximately and is well within the ceiling of 30% of Basic + DA. 6

STATEMENT OF BERECHS EXPENDITURE AS A % OF PBT Rs in Crores Particulars BERECHS PROVISION (Employees + Beneficiaries) PBT for the year % of BERECHS (Employees + Beneficiaries) to PBT Actual BERECHS Expenditure (excl. Provision) % of BERECHS expenditure to PBT % of Total BERECHS expenditure including provisions to PBT Sl No A B C (A/B) 09 -10 19. 14 10 -11 8. 06 11 -12 16. 79 1045. 02 1161. 15 1074. 85 1. 83% 0. 69% 1. 56% 8. 05 8. 49 13. 20 E (D/B) 0. 77% 0. 73% 1. 23% F (A+D)/B 2. 60% 1. 43% 2. 79% D 7

STATEMENT OF PER HEAD BERECHS EXPENDITURE Particulars Unit 09 -10 10 -11 11 -12 Actual BERECHS Expenditure (excl. Provision) Rs. / In Crore 8. 05 8. 49 13. 20 Expenditure on Insurance Premium (Incl. above) Rs. / In Crore 5. 13 5. 72 10. 53 No. 14378 15400 17266 Per Head Net Expenses borne by BEL In Rs. 5598 5511 7465 Per Head Expenditure on Insurance Premium In Rs. 3566 3712 6102* No. of Persons Covered *64% Increase In Insurance Premium Per Head over the previous year 8

STATEMENT OF EXPENDITURE ON BASIC & DA - INCURRED FOR LAST THREE YEARS Rs in Crores Particulars 09 -10 10 -11 11 -12 Exe Basic & DA 226. 14 278. 09 292. 46 Non Exe Basic & DA 236. 79 219. 83 193. 81 Total Basic & DA 462. 93 497. 92 486. 27 No. of Employees 11545 11180 10791 9