Ministries to work on medical fund for retiredd CPSE employees

NEW DELHI: Unable to receive an "appropriate response" from various ministries for setting up a medical fund for retired employees of the Central Public Sector Enterprises, the Department of Public Enterprises has again asked them to work on the proposal.

The Department has written to various ministries/ departments asking them to hold consultations, with CPSEs under their purview, for contributing 1-1.5 per cent of Profit Before Tax (PBT) for creating the medical fund.

The DPE move follows the recommendations of the Second Pay Revision Committee, which had called for such a fund.

"In the introductory year of operation of the (medical) scheme, not more than 1.5 per cent of the previous year's PBT would be permissible for funding of the scheme. In the subsequent years, depending upon the need, contribution to the Corpus, if required, would be made.

"However, in no case the contribution to the Corpus in any year will exceed 1.5 per cent of the PBT," the DPE said in a memorandum.

The memorandum said the department had last year sought feedback on the same. "The DPE, however, did not receive appropriate response from the concerned ministries".