(ET)
Coal India has handed over Rs 1,131 crore to Life Insurance Corporation of India for managing a recently introduced pension scheme that covers 16,000-odd working and retired executives of the state owned coal mining firm.
A trust has been created by the company to handle the Coal India Executive Defined Contribution Pension Scheme, 2007, and LIC has been appointed as its fund manager. The fund remitted to LIC is for 12,388 executives currently on the rolls of Coal India and 3,800 people retired after January 2007, a senior company executive told.
The pension scheme was envisaged several years ago, but was implemented only recently mainly due to delay in clearances from the government. As part of the scheme, Coal India management will contribute 9.84% of basic pay and dearness allowance minus central government’s contribution towards coal mines pension scheme.
