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MAHINDRA & MAHINDRA LIMITED

EMPLOYEE BENEFIT FUNDS

Employee Benefit Funds

Employee Benefit Funds/Schemes

Retiral Benefit Funds

Provident Fund

Employee Pension Scheme 1995


(RPFC Managed under PF Act,1952)

Superannuation Scheme

Gratuity Scheme

Credit Co-op Society

Employee Benefit Funds

MAHINDRA & MAHINDRA LIMITED


STAFF PROVIDENT FUND

Employee Benefit Funds

Provident Fund
Trust Management
Governed under Employees Provident Fund Act,1952 and administered
through M & M PF Trust.

Trust Recognized by RPFC & by Commissioner Income Tax.


Management Control by Board of Trustees.

4 Trustees Representing Employees


4 Trustees Representing Employer

Employee Benefit Funds

Provident Fund
Appointment of Nominee
Each member must appoint Nominee by filling up Nomination Form.
Fresh Nomination should be made after marriage as Nomination made before
marriage shall be deemed invalid.

Nominee can be changed any time by submitting fresh Nomination Form.

If no Nomination submitted by the member , upon his death the amount shall be
payable equally to the family members.

Employee Benefit Funds

Provident Fund Contribution


12 % of PF Base Salary is deducted from monthly salary as Employee's PF Contribution.
12 % matching Contributions paid by the Employer to the PF Trust after deducting
Employee Pension Scheme Contribution Maximum of Rs. 1250/- per month (8.33 % of
Rs.15,000 salary) to the RPFC.

Employee can choose to contribute thru his salary additional amount as voluntary
contribution.

PF Interest declared every year by Finance/Labour Ministry/Central Board of PF Trustees.

On the PF Account Balance, member will be credited with the interest annually on
monthly running balance :
FY
F06 to F10
F11
F12
F13
F14
F15

Interest Rate
% p.a.
8.50
9.50
8.25
8.50
8.75
8.75
Employee Benefit Funds

Provident Fund
Loans/Withdrawals

Refundable Loans were stopped from April 2007 onwards as per PF Act requirements.

Non Refundable Loans :


Members Submit Loan Applications thru ER / HR Dept. along with copies of prescribed

documentary evidence
Loans are sanctioned in the Loan Committee's Weekly Meetings
Loans are processed on our PF System & authorised by 2 Employee Trustees jointly with
Employer Trustee
Remittance advices are signed jointly by two signatories & sent to HDFC Bank for ECS credit
& Demand Drafts
Every Week approximately 30-40 loan applications are approved amounting to Rs. 75-80 Lakhs

Employee Benefit Funds

Provident Fund Loans Housing


Minimum 5 years * membership

Least of following :
36 months ** PF salary or
100 % Total PF balance or
Cost of House or
Applied Amount

Documents Required :
Copy of sale agreement, stamp duty/registration
receipt, payment receipts issued by builder etc.
* 10 years membership for Repayment of Housing Loan taken from Financial Institutions
** 24 months PF salary for Purchase of site

Employee Benefit Funds

Provident Fund Loans House Repairs


Minimum 5 years membership & 5 years old house

Least of following :
12 months pf salary or
Own & Voluntary PF balance or
Cost/Estimate of Repairs or
Applied Amount

Documents Required :
Proof of 5 years old house, NOC from Society
Estimate of Repairs amount etc.

Employee Benefit Funds

Provident Fund Loans Medical


Hospitalisation, Major Operation & Sickness

Least of following :
6 months PF salary or
Own & Voluntary PF balance or
Cost of treatment or
Applied Amount

Documents Required :
Certificate from Doctor of Hospital requiring more than one
month hospitalisation or major surgical operation with
estimate of cost etc.

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Provident Fund Loans


Marriage & Post Matriculation Education of Children
Minimum 7 years membership

Least of following :
50 % own & Voluntary PF balance or
Cost/Applied Amount

Maximum 3 loans permitted


Documents Required :

Marriage Loan

Marriage Invitation card, hall booking receipt etc.


For Education Copies of fee receipts, admission receipt,
certificate from institute/college etc.

Higher Education

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Provident Fund Loans


Pre-Retirement withdrawals
Within one year before Normal Retirement

Maximum 90 % of pf amount to his credit


Documents Required :
HR or ER Department to certify Retirement Date.

Employee Benefit Funds

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Provident Fund
Final Settlements
Resigned/Retired Members to submit application for settlement of PF Account (Form 19)
Resigned Members submits Form 13 thru his new Employer for transfer his PF Account to

New Employer's PF
Encashment of PF for service less than 5 years is subject to Income Tax Deduction at source
In Death Cases the Nominee to claim PF by submitting Form 20 along with Death Certificate
PF Balance remaining unclaimed, will not earn any interest after his account remains
unclaimed/inactive for more than 36 months.

Employee Benefit Funds

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Employees' Pension Scheme 1995

Monthly EPS Contribution of 8.33 % of monthly PF Base Salary Max. Limit Rs.6,500/( i.e. max. Rs.541) upto 31/08/2014 and Rs.15,000/- ( i.e. max. Rs.1250) from
01/09/2014 are paid by Company out of Employers PF Contribution to the local RPFC
offices respectively for each of our Units/Factories.

EPS Contribution payment stops on completion of 58 years of age.

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Employees' Pension Scheme 1995


Employees' Pension Account maintained by the RPFC offices located nearer to
each Unit/Factory across the country.

There are no individual balances maintained by the RPFCs like PF Accumulated


Balance.

The Pension benefits are computed based on completed year of service and
average salary of 60 months with maximum of Rs. 6,500/- per month ( upto
31/08/2014) or Rs. 15,000/- per month (from 01/09/2014) as applicable.

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Employees' Pension Scheme 1995 - Benefits


Pension Entitlement on completion of 58 years of age with minimum completed
service of 10 years .

Pension Computation formula :


Pensionable Salary (Average of last 60 Months) Max. Rs. 6,500 (upto 31/08/2014) and
Max. Rs.15,000 (from 01/09/2014) X No. of Years Service after 16th November,1995

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Plus pre-1995 service benefit
Minimum Pension of Rs. 1,000/- per month

For service less than 10 years lump sum withdrawal benefit given.
For transfer of pension benefit on location change or resignation on submission of
Form 13 to RPFC.

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Employees' Pension Scheme 1995 Claim Form


Prescribed Pension Claim Form to submitted to local RPFC office thru Company on
completion of 58 years of age.

Pension Bank Account on single name to be opened with SBI, PNB, HDFC etc.

Currently RPFC takes very long time to commence pension .


Pension work out to approx. Rs. 2,000 to Rs. 2,200 per month.

Employee Benefit Funds

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Employees' Pension Scheme 1995


Death Benefits
Death While in Service :

Widow Pension of approx. Rs. 2051/- p.m. for her life time and also Pension for
maximum 2 children of Rs. 500/- each upto the age of 25 yrs
Death After Retirement /Commencement of pension :

On Death after commencement of pension widow pension @ 50 % of the original


pension for her life time.

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Employees' Deposit Linked Insurance scheme 1976


Death Benefits
Death While in Service :

LIC pays Widow/Nominee approx. Rs. 3.62 Lakhs as lump sum death benefit.
Death After Retirement

Nil

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MAHINDRA & MAHINDRA LIMITED


SUPERANNUATION SCHEME

Employee Benefit Funds

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M & M Superannuation Scheme


Main Features
Company formed a Trust Mahindra & Mahindra Limited Superannuation Scheme for
providing Pension Benefits .
Scheme is Non Contributory Defined Contribution Pension Scheme i.e. Employee does
not Contribute.
Company Contributes 15 % of PF Base Salary diverted out of CTC.
Option for Officers in L7M Grade & Above to join the Scheme.
Benefits are Forfeited fully & also Not eligible for any Pension Benefits if Officer resigns
before completing 5 years of service with the Company.

Once Officer joins the Scheme he can not opt out of the Scheme while in service of the
Company.
If Officer opts for not to join the Scheme, he will be paid fully taxable Superannuation
Allowance of 15 % of PF Base in the monthly salary.

Employee Benefit Funds

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Superannuation Scheme
Fund Management

The Scheme is Managed by Trustees & Administered mainly through LIC and Pvt.
Insurance Companies e.g. HDFC Standard Life , ICICI Prudential Life, Kotak Mahindra
Insurance.
The existing superannuation schemes of all the Insurance Companies have been frozen by
IRDA during the year 2013-14 and continued only for existing members.
All Private Insurance Companies Superannuation Schemes have been closed from 1st April,
2013 onwards and no new member can opt for these schemes.
New members can only join LIC's new scheme after 1st April, 2014 onwards.
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Superannuation Scheme
Appointment of Nominee
Each member must appoint Nominee by filling up Nomination Form.
Fresh Nomination should be made after marriage.

Nominee can be changed any time by submitting fresh Nomination Form.


If no Nomination submitted by the member, upon his death the amount shall be payable
equally to the family members.

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Superannuation Scheme
Fund Investment Options
Service Providers
Cash Accumulation Scheme of LIC
=> Capital Guaranteed Secured Scheme
=> Superannuation accumulation grows by annually interest credited by LIC

Unit Linked Schemes of HDFC Standard Life Insurance


ICICI Prudential Life Insurance - Kotak Life Insurance

(Schemes frozen as on 31st March, 2013 and no new membership can be availed under
these schemes)

=> Unit Linked Scheme


=> Daily NAVs Declared
=> Valuation depends on stock market & financial performances
=> Risk of Capital Erosion
=> may also give very high returns based on stock market performance

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Superannuation Scheme
Returns During Accumulation/Service Period
LIC Declared Interest Rates for last 5 Years
Year
2010-11
2011-12
2012-13
2013-14
2014-15

Returns (% p.a.)
9.50%
9.55%
9.55%
9.30%
9.40%

Private Insurance Companies based on NAV


NAV Per Unit (Rs.)
As at 31st March

HDFC Life

2011
2012
2013
2014
2015

51.90
52.93
57.20
62.78
79.87

ICICI Prudential
Life
32.83
33.38
36.61
42.78
54.29

Kotak Life
31.82
31.40
34.27
38.54
50.04

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Superannuation Scheme
Contributions Invested : Returns
Assuming Rs.50000/- annual contributions invested from 2006-07 to
2014-15, the fund value under various options would be :
Fund Options

Fund Value
31 March 2015
Rs. Lakhs

LIC

7.26 the balance will never get reduced

ICICI Prudential Life Insurance

8.60 }
} these balances will vary +/7.81 } dependent on the NAVs
} of these schemes.
7.56 }

HDFC Standard Life Insurance


Kotak Life Insurance

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Superannuation Scheme
Pension Benefits

No vesting rights or benefit entitlement for resignation before completing 5 years service
Upon separation after 5 years service option
- can start immediate pension or
- transfer accumulation to new employers scheme or
- can start pension from normal retirement age
Pension Quantum based on accumulated balance with LIC or/plus sale value of Units of Pvt
Insurance Companies
Monthly Pension Paid only by LIC

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M & M Superannuation Scheme


LIC Pension Types

On joining Superannuation Scheme member has to opt for the Pension Option from
any one from the following :

20 Years Certain and for life thereafter


15 Years Certain and for life thereafter
10 Years Certain and for life thereafter
5 Years Certain and for life thereafter
Life Pension with option of Return of Capital to Nominee

The option can be changed any time before commencement of Pension

Pension option also to be confirmed/changed on retirement while starting pension

Retirement Pension under above options can be started with or without 1/3rd tax free
commutation

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Superannuation Scheme
Retirement Pension Benefits
Sample Computation

Particulars

ROC pension

20 Yrs Guarantee 15 Yrs Guarantee 10 Yrs Guarantee 5 Yrs Guarantee &


& Life thereafter & Life thereafter & Life thereafter Life thereafter

Fund Value as on Retirement


(Rs. Lakhs)
1/3 rd Commutation

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5

2/3 rd Balance for Pension

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Annuity / Pension Rates

7.28%

8.67%

8.97%

9.21%

9.39%

Pension Rs. p.a.


Pension Rs. p.m.

72800
6066

86700
7225

89700
7475

92100
7675

93900
7825

Benefits to Nominee

No Pension. Capital

Pension upto Completion of Guaranteed Period only

Refund Rs. 10 Lakhs

No Capital Refund

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Superannuation Scheme
Tax Reliefs to Members

Superannuation
Scheme

Under Section 17(2)(vii) of Income Tax Act, Superannuation Contribution paid the
Company up to Rs. 1 Lakh is Exempt from Income Tax and contribution above Rs. 1 lakh is
added to income as perquisite and TDS @ applicable rates to be paid.
Under Section 10(25)(iii) of Income Tax Act , interest income credited to the accumulated
balance is Tax Free.
Under Section 10 (10A)(ii) 1/3rd Commutation of Pension on retirement is Tax Free.

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Superannuation Scheme
Death Benefits
Death While in Service
Immediately after Death , Widow/Nominee to submit LIC's pension Claim Form along with
the copy of death certificate for starting pension benefits on the accumulated sum.

Pension can be commenced under any of the options with or without option for
commutation of pension.
Death After Retirement/Commencement of Pension
Immediately after Death , Widow/Nominee to submit application along with the copy of
death certificate for claiming Return of Capital or Pension as per the option exercised by
the retired employee.

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Superannuation Scheme
Lump Sum Death Benefits

In addition to the normal Widow Pension upon Death of an


Officer while in service following Lump Sum Benefit is paid :
Insurance Benefit upon Death while in service for Officers 2 months PF base salary X No. of balance years
or
Rs 4.00 lacs whichever is less

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MAHINDRA & MAHINDRA


GRATUITY FUND

Employee Benefit Funds

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Gratuity Fund Trust Management

Management Control by Board of Trustees ( 4 nos. ) .

Administered through LIC.


Trust Approved by Commissioner Income Tax.

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Gratuity Fund
Appointment of Nominee
Each member must appoint Nominee by filling up Nomination Form.
Fresh Nomination should be made after marriage as Nomination made before
marriage shall be deemed invalid.

Nominee can be changed any time by submitting fresh Nomination Form.


If no Nomination submitted by the member , upon his death the amount shall be
payable equally to the family members.

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Gratuity Scheme For Executives - Benefits


Upon separation after 5 years service higher of following paid by Company as lump
sum :
1 ) lump sum gratuity per M & M Scheme :
: 5 to 10 years service - 1/3rd of last drawn pf base salary
for completed years of service
: Above 10 years service - 2/3rd of last drawn pf base salary
for completed years service .
or
2 ) as per Payment of Gratuity Act :

: 1/2 ( 15/26 ) of last drawn pf base salary for completed


years of service subject to maximum of Rs.10.00 Lakhs
Gratuity Amount in excess of following will be taxable :
: Last 10 months average pf base salary / 2 X completed years of
service subject to maximum of Rs. 10 Lakhs

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Gratuity For Executives - Death Benefits


Death While in Service
Immediately after Death , lump sum gratuity paid to Widow/Nominee based on
1/2 (15/26) [ 2/3rd above 10 years service ] of last drawn PF Base Salary X actual
completed years of service upto date of death.
plus Anticipated Gratuity Benefit as under :
1/2 ( 15/26 ) of last drawn pf base salary for completed years of service
including anticipated service upto normal retirement age subject to
maximum of Rs.10 Lakhs.
Less :
1/2 ( 15/26 ) of last drawn pf base salary for completed years of service upto the date
of death subject to maximum of Rs.10 Lakhs.

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MAHINDRA & MAHINDRA


CO OPERATIVE CREDIT SOCIETY LIMITED

Employee Benefit Funds

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Credit Society Membership & Benefits


Option to join as member after confirmation of service
Minimum contribution Rs. 300 per month & Maximum
Rs.5000 per month through salary accumulated upto
Rs. 1 Lakh.

After one year of membership eligible for loans


Benefits of Membership
- Savings at good yields
- Soft loans in case of need/emergency

More details available on Intranet Site of


M & M Co-operative Credit Society Ltd.

http://corporate/sites/ccs/default.aspx

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Credit Society
Members Investment Options & Returns

Share Capital

Cumulative Deposit

Max Invest
Rupees

% p.a.
Returns

10,000

12.00

8,000

7.00

Fixed Deposit

82,000

TOTAL

100,000

8.50 plus
5.75 Addl. Int.

13.55

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Credit Society : Loan Options to Members

Min
Membership

Short Term Loan

1 month

Max Loan
Rupees

Interest
% p.a.

24,000

15.00

1 year

1,30,000

9.00

5 -10 yrs

2,60,000

13.00

10 - 20 yrs

3,25,000

Above 20 yrs

3,90,000

( 12 installments )

Long Term Loan


( 96 installments )

Addl. Loan
(96 installments )

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Employee Obligation
Submit Form 11 indicating your UAN & KYC particulars.
Submit PF, Superannuation, Gratuity Membership & Nomination Forms duly filled up if not
already done.
For transfer of PF/Superannuation Accumulations from previous employer fill up & submit Form
13 & Annexure `A` respectively.
For PF Voluntary Contribution intimate the
Payroll/Service Centre.

desired % of PF Base Salary & inform

Blank Forms are Available on Intranet Portal `MConnect`


http://mconnect/Policies%20%20Manuals/Document%20Library/EmployeeBenefitFunds.aspx

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