PRC recommended that CPSEs should allow 30% of the Basic Pay as superannuation benefits which should include CPF, gratuity, pension and post-superannuation medical benefits.
CPSEs should make their own schemes to manage these funds or operate through insurance companies on fixed contribution basis. The amount of Pension, gratuity and post retirement benefits will be decided based on the returns from the schemes to be operated.
For purpose of paying the gratuity or post-superannuation benefits, the PRC recommended that there should not be any upper ceiling limit.
Pension and Medical benefits, as superannuation benefits, are aimed at ensuring the loyalty of executives to the CSPEs, and it should be extended to those who superannuate from the CPSE and have put-in 15 years of service.
CPSEs may create a corpus by contributing 1% to 1.5% of PBT to create fund in order to take care of medical and any other emergency needs of retired executives and also those who are not adequately covered by the Pension scheme.