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MAHINDRA & MAHINDRA LIMITED

EMPLOYEE BENEFIT FUNDS

Employee Benefit Funds

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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


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STAFF PROVIDENT FUND


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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



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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

.



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Provident Fund Contribution

12 % of PF Base Salary is deducted from monthly salary as Employee's PF Contribu

12

%

matching

Contributions

paid

by

the

Employer

to

the PF

Trust

after

dedEmployee

Pension

Scheme

Contribution

Maximum

of

Rs

.

1250

/

-

per

month

(

8

.

33

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 Trus

On the PF Account Balance, member will be credited with the interest annually on

monthly running balance :

FY Interest Rate

% p.a

.F06 to F10

8.50F11

9.50F12

8.25

F13

8.50F14

8.75F15

8.75


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Provident Fund

Loans/Withdrawals

Refundable Loans

were stopped from April 2007 onwards as per PF Act requirem

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 cred

& Demand Drafts

Every Week approximately 30

-

40 loan applications are approved amounting to

Rs

. 75

-

80 La



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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


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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.



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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


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


Marriage Invitation card, hall booking receipt etc.

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


Higher Education

Marriage Loan

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http://www.animationfactory.com/en/search/close-up.html?&oid=5318835&s=176&sc=176&st=1122&q=Higher%20Education&spage=8&hoid=d8c6c085ca6d0f19dd468de0844e5551

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Provident Fund Loans –

Pre-Retirement withdrawals

Within one year before Normal Retirement

Maximum 90 % of pf amount to his credit


HR or ER Department to certify Retirement Date.


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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 New Employer's PF

Encashment of PF for service less than 5 years is subject to Income Tax Deduction at so

In Death Cases the Nominee to claim PF by submitting Form 20 along with Death Certifi

PF Balance remaining unclaimed, will not earn any interest after his account remains

unclaimed/inactive for more than 36 months.


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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 Account maintained by the RPFC offices located nearer toeach 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 ( upto31/08/2014) 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

____________________________________________________ 70

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.


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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 originalpension 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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SUPERANNUATION SCHEME


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M & M Superannuation Scheme –

Main Features

Company formed a Trust Mahindra & Mahindra Limited Superannuation Schemproviding Pension Benefits .

Scheme is Non – Contributory Defined Contribution Pension Scheme i.e. Employeenot 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 re

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

Company.

If Officer opts for not to join the Scheme, he will be paid fully taxable SuperannuAllowance of 15 % of PF Base in the monthly salary.


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Fund Management

The Scheme is Managed by Trustees & Administered mainly through LIC andInsurance Companies e.g. HDFC Standard Life , ICICI Prudential Life, Kotak MaInsurance.

The existing superannuation schemes of all the Insurance Companies have been froIRDA during the year 2013-14 and continued only for existing members.

All Private Insurance Companies Superannuation Schemes have been closed from 12013 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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Fresh Nomination should be made after marriage.


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


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Fund Investment Options

Service Providers

Cash Accumulation Scheme of LIC

=> Capital Guaranteed Secured Sch eme

=> Superannuat ion accumulat ion grows by annual ly interest credi ted by LIC

Unit Linked Schemes of HDFC Standard Life Insurance –

ICICI Prudential Life Insurance - Kotak Life Insurance

(Schemes frozen as on 31 st

March, 2013 and no new m embership can b e avai led underthese schemes)

=> Unit L inked Scheme => Daily NAVs Declared=> Valuation depends on stoc k market & financial perform ances=> Risk o f Capital Erosio n=> may also give very high returns based on s tock m arket per formance


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Returns During Accumulation/Service Period

LIC Declared Interest Rates for last 5 Years

Private Insurance Companies based on NAV

NAV Per Unit (Rs.)

Year Returns (% p.a.)2010-11 9.50%

2011-12 9.55%

2012-13 9.55%

2013-14 9.30%

2014-15 9.40%


As at 31st March HDFC LifeICICI Prudential

LifeKotak Life

2011 51.90 32.83 31.82

2012 52.93 33.38 31.40

2013 57.20 36.61 34.27

2014 62.78 42.78 38.542015 79.87 54.29 50.04

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Contributions Invested : Returns

Assuming Rs.50000/- annual contributions invested from 2006-07 to2014-15, the fund value under various options would be :

Fund Options Fund Value31 March 2015Rs. Lakhs

LIC 7.26 the balance will never get reduced

ICICI Prudential Life Insurance 8.60 }} these balances will vary +/-

HDFC Standard Life Insurance 7.81 } dependent on the NAVs} of these schemes.

Kotak Life Insurance 7.56 }


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Pension Benefits

No vesting rights or benefit entitlement for resignation before completing 5 years s

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 UnInsurance 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 fromany 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 frecommutation


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Retirement Pension Benefits

Sample Computation


Particulars ROC pension

20 Yrs Guarantee

& Life thereafter

15 Yrs Guarantee

& Life thereafter

10 Yrs Guarantee

& Life thereafter

5 Yrs Guarantee

Life thereafte

Fund Value as on Retirement

(Rs. Lakhs)15

1/3 rd Commutation 5

2/3 rd Balance for Pension 10

Annuity / Pension Rates 7.28% 8.67% 8.97% 9.21% 9.39%

Pension Rs. p.a. 72800 86700 89700 92100 93900

Pension Rs. p.m. 6066 7225 7475 7675 7825

Benefits to Nominee

No Pension. Capital

Refund Rs. 10 Lakhs

Pension upto Completion of Guaranteed Period only

No Capital Refund

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Tax Reliefs to Members

Under Section 17(2)(vii) of Income Tax Act, Superannuation Contribution paCompany up to Rs. 1 Lakh is Exempt from Income Tax and contribution above Rs. 1

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 accumbalance is Tax Free.

Under Section 10 (10A)(ii) 1/3rd Commutation of Pension on retirement is Tax Free

SuperannuationScheme


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Death Benefits

Death While in Service

Immediately after Death , Widow/Nominee to submit LIC's pension Claim Form alothe copy of death certificate for starting pension benefits on the accumulated sum.

Pension can be commenced under any of the options with or without optcommutation of pension.

Death After Retirement/Commencement of Pension

Immediately after Death , Widow/Nominee to submit application along with the death certificate for claiming Return of Capital or Pension as per the option exercthe retired employee.


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Superannuation Scheme –

Lump Sum Death Benefits

In addition to the normal Widow Pension upon Death of anOfficer 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 yearsor

Rs 4.00 lacs whichever is less


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MAHINDRA & MAHINDRA

GRATUITY FUND


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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



Fresh Nomination should be made after marriage as Nomination made bemarriage shall be deemed invalid.


If no Nomination submitted by the member , upon his death the amounpayable 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 lumsum :

1 ) lump sum gratuity per M & M Scheme :

: 5 to 10 years service - 1/3rd of last drawn pf base salaryfor completed years of service

: Above 10 years service - 2/3rd of last drawn pf base salaryfor completed years service .

or

2 ) as per Payment of Gratuity Act :

: 1/2 ( 15/26 ) of last drawn pf base salary for completedyears 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 ofservice subject to maximum of Rs. 10 Lakhs


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Death While in Service

Immediately after Death , lump sum gratuity paid to Widow/Nominee based on1/2 (15/26) [ 2/3rd above 10 years service ] of last drawn PF Base Salary Xcompleted 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 serviceincluding anticipated service upto normal retirement age subject tomaximum of Rs.10 Lakhs.

Less :

1/2 ( 15/26 ) of last drawn pf base salary for completed years of service upto tof death subject to maximum of Rs.10 Lakhs.

Gratuity For Executives - Death Benefits


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MAHINDRA & MAHINDRA

CO OPERATIVE CREDIT SOCIETY LIMITED


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Credit Society Membership & Benefits

Option to join as member after confirmation of service

Minimum contribution Rs. 300 per month & MaximumRs.5000 per month through salary accumulated uptoRs. 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 ofM & M Co-operative Credit Society Ltd.

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




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Credit Society

Members Investment Options & Returns

Max Invest % p.a.

Rupees Returns

Share Capital 10,000 12.00

Cumulative Deposit 8,000 7.00

Fixed Deposit 82,000 8.50 plus5.75 Addl. Int.

TOTAL 100,000 13.55


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Credit Society : Loan Options to Members

Min Max Loan Interest

Membership Rupees % p.a.

Short Term Loan 1 month 24,000 15.00( 12 installments )

Long Term Loan 1 year 1,30,000 9.00( 96 installments )

Addl. Loan 5 -10 yrs 2,60,000 13.00(96 installments )

10 - 20 yrs 3,25,000

Above 20 yrs 3,90,000


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Employee Obligation

Submit Form 11 indicating your UAN & KYC particulars.

Submit PF, Superannuation, Gratuity Membership & Nomination Forms duly filled upalready done.

For transfer of PF/Superannuation Accumulations from previous employer fill up & submi13 & Annexure `A` respectively.

For PF Voluntary Contribution intimate the desired % of PF Base Salary &

Payroll/Service Centre.

Blank Forms are Available on Intranet Portal `MConnect`

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




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kgugig

Documents

pf system

pf salary or100

pf base salary

employees pf contribution

pf account balance

pf act requirements

employee trustees

employees provident