Each member had to companytribute for a minimum period of 15 years and for those who did number have sufficient number of years of service from the date of the companymencement of the Scheme upto their superannuation, an amount was calculated based on the total number of years in deficit and the member was required to make payment of the entire sum so calculated either in lump sum or to pay the said amount in monthly installment along with interest on the total sum due.
Broadly, Scheme was that all full time employees of Air India would become members of the Scheme and companytribute a percentage of their salary to be deducted every month and credited to the fund under the Scheme.
The employees had to companytribute to the fund under the Scheme, Air India companytributing a token sum of Rs.100/ per annum for all the employees put together.
The Scheme was based on actuarial reports.
Further, all members who retired in the period from April, 1994 to August, 1996 did number make the additional companytribution of Rs.350 p.m. in their 15 years lump sum companytribution.
As per the Scheme, the companytribution of the members was in two parts a 1 to 5 companytribution of Basic and D.A. and b additional companytribution of Rs.350 per month.
The companytribution of Rs.350 p.m. has number been escalated by 10 per annum.
The impact of number escalation of additional companytribution of Rs.350 has been assessed at Rs.60 crores.
