for its executives who retired from January 1, 2007 onwards, said an official statement.
V.M. Chamola, director (HR), Dr. A.K Mishra, director (finance) and Ashok Tandon, executive director (company secretary) HAL jointly signed the ‘Trust Deed’ to form the “HAL Executives Defined Contribution Pension Trust”. Dr. R.K. Tyagi, chairman, HAL and trustees of the Pension Fund, Bangalore were also present.
“Implementing the pension scheme will boost the financial security of the retired executives and infuses confidence to the serving HAL officer fraternity, said Dr. R.K. Tyagi, chairman HAL, during the “Trust Deed” signing event.
The scheme would benefit around 2000 executives already retired from January 1, 2007 and 9,800 serving executives of the company. HAL would contribute seven percent of the basic pay plus dearness allowance (DA) drawn by each executive from January 1, 2007 onwards to fund the Scheme. Executives can also make voluntary contribution to the Scheme, the statement added. LIC of India would manage the Corpus Fund.
Pension payable on retirement would depend on the Corpus accrued in the individual’s account. For payment of Pension, Annuity will be purchased from approved Annuity Service Providers. The scheme would facilitate improving the Social Security status of executives on their retirement, the statement further said.
HAL is one of Asia's largest aerospace companies. The state-owned PSU is primarily involved in aerospace industry, which includes manufacturing and assembling aircraft, navigation and related communication equipment, as well as operating airports.