PRMS FAQs

1. Why has NTPC Ltd Post Retirement Employees Medical Benefit Trust been formulated?
Trust has been formulated for providing Medical Benefit to members and their spouses, in
accordance with the Rules of Trust. As per DPE guidelines, CPSEs can to contribute 30% of Basic+
DA on superannuation benefits (CPF, gratuity, PRMS and Pension) of an employee. Contribution
for CPF and Gratuity has been fixed as per the statutory requirements.
Thus, creation of PRMS trust will help optimization of PRMS expenditure, ensuring the
sustainability of this scheme.
2. Who will be a member of this Trust?
All the employees on regular rolls of the company on or after 01.01.2007 will be a member of
this Trust subject to fulfilling the eligibility conditions.
3. Who are eligible to avail the benefits of this scheme?
The members and spouses of members, who separate from the company on account of
Superannuation, Premature retirement, Death or VRS (in case PRMS facility is specifically
extended in that scheme). Employees should have necessarily completed 15 years of continuous
service in NTPC on the date of separation.
4. Who all are not eligible for membership of the scheme?
Employees who had resigned/resigns in future/ were/are discharged / dismissed / removed /
compulsorily retired / terminated from service./employee who have superannuated from the
Company but have rendered less than 15 years of continuous service in CPSE including in the
Company. Also, trainees (ETs/ DTs/ ATs), employees on deputation in NTPC are not eligible.
Employees separating under VRS where PRMS facility is not extended, are not eligible.
5. What will be the company contribution in this scheme?
Company will contribute towards the scheme an amount as determined through the Actuarial
valuation on the year to year basis within the ceiling of 30% of (BP+DA) as reduced by company
contribution towards CPF and gratuity. The balance amount after deduction of CPF, gratuity and
PRMS goes towards Pension contribution.
6. Is members contribution mandatory in this scheme?
NTPC Ltd Post Retirement Employees Medical Benefit Trust has received approval of Income Tax
under section 10 (23AAA). As one of the requirements under sec 10 (23AAA), contribution to the
fund are to be made by the employees by way of periodical subscription. All existing eligible
employees have to contribute towards the membership of the scheme. One time option for
withdrawal from the scheme is available. The last date for the withdrawal from the scheme is
30.06.2016. All new joining cases will compulsorily become a member of this scheme at the time
of regularization in NTPC, subject to fulfilling the eligibility conditions.

7. What will be the members contribution in this scheme?

All the eligible employees are required to contribute towards membership fee of the scheme an
amount as notified by the trust from time to time during their entire service period. Presently
the membership fee is 14400/-. This amount will be divided by the number of months of
service left for an employee till notional date of retirement.
For eg. If an employee will be retiring in Dec, 2017, his monthly contribution will be 14400/divided by 20 (i.e. no. of months of service left w.e.f. 01.05.2016). Hence, it will be 720/- . This
calculation will be done each month, i.e. balance amount divided by balance period of service.
8. Will the contribution remain constant over my service career?
The contribution amount may be changed in future based on the decision of Board of Trustees.
9. If both, me and my spouse are working in NTPC, will the deduction be done for only one of us?
No, deductions will be done for both the employees, if they have not opted out of this scheme.
Both the employees will get the individual full OPD yearly limit at the time of availing benefits.
10. In case of death of an employee during service, how will the contributions be deducted?
Contribution will be deducted as per above mentioned calculation, during the service period of
an employee. The balance of contribution recoverable/ payable for an employee at the time of
death will be adjusted against the final settlement.
11. How will the members contribution be taken?
There will be a monthly deduction from employees salary for PRMS membership. This recovery
has been started from the payroll of May 2016 and will be with effect from March 2016.
For eg. In above case of employee will be retiring in Dec, 2017, his monthly contribution will be
720/-. Three times this amount has been deducted in May 2016 salary, i.e., 3x 720 = 2160/-.
For June 2016, again calculation will be done as balance amount divided by balance period of
service.
However, for employees retiring till April 2017, the monthly amount has not been multiplied by
three for deduction in May 2016.
12. What will happen to 10000/- security deposit taken from the employee?
The interest-free security deposit of 10000/- for adjustment of non entitled IPD bill items will
be taken from employees through cheque/draft at the time of separation, as per the existing
procedure.
13. If I do not complete 15 years of continuous service or resign from the company or am not
eligible to avail the benefits of the scheme, what will happen to the contributions that have
been deducted from my salary?
The members who are not eligible to avail the benefits of the scheme due to any reason at the
time of separation, the contributions that have been deducted from their salary will be refunded
to them without any interest.

14. If I opt for sabbatical, will the PRMS benefits be available to me?
In case employee opts for sabbatical then he/she will be eligible for PRMS if he/she joins back
NTPC within in the stipulated period before normal date of superannuation provided he fulfills
the criteria of 15 years of continuous service i.e. period of sabbatical in such cases will be
considered as continuous service. Monthly PRMS recovery will get regulated as per balance
amount recoverable and balance service of the employee in the month when next salary is
getting processed.
However, in case of death of an employee during the period of Sabbatical (within the stipulated
period) shall be considered as death while in service for the purpose of admissibility.
15. If I opt out of this scheme today, but in future decide to become a member, can I do so?
In case an employee doesnt opt to become a member at present, wants to join the scheme at a
later date. Then PRMS trust will take a decision about grant of membership of the scheme to the
employee. However he/she may be allowed membership in future only after remittance of
contribution till that date along with interest as decided by then Board of Trustees. The decision
of the Trust will be final.
16. Will the benefits under PRMS be administered directly by Trust to the members?
No, the benefits under PRMS will be administered by the company, as done presently. The
actual cost of PRMS expenditure will be reimbursed to the company by Trust on annual basis.
17. In case the employees or spouses death, what will be the annual OPD limit of the surviving
person?
When both, member as well as his/her spouse, are alive, the annual OPD limit will be as notified
by PRMS Trust from time to time, which at present is an amount equivalent to maximum of the
pay scale last drawn by employee. In case of death of one of the spouses, annual ceiling shall be
reduced to half from the next financial year in which the death takes place.
18. What is the validity of Income tax approval granted to the Trust?
The NTPC Post Retirement Employees Medical Benefit Trust was accorded approval by
Commissioner of Income tax as a Welfare Fund for AY 2015-16 and 2016-17. The exemption has
been renewed for next two years i.e. AY 2017-18 & 2018-19.
19. Will the Trust bear PRMS expenditure of employees separated prior to 01.01.2007?
No, the Trust does not bear PRMS expenditure of employees separated prior to 01.01.2007. This
expenditure is separately accounted for and is administered from a different corpus.