With initiatives from Estt Section, BSNL CO, a team consisting representatives from LIC and LIC Pension Fund Ltd made a presentation and informal discussion on introduction of NPS (National Pension Scheme) in lieu of existing SPS (Superannuation Pension Scheme) for directly recruited Executives and Employees of BSNL.
This special and short notice meeting was held on 25/08/2025 at 1100 AM at 9th Floor Conference Hall, Bharat Sanchar Bhawan, New Delhi.
Shri. S. P. Singh, PGM Estt BSNL CO, Shri. Rajeev Singh, PGM CA, Shri. Ram Kishan, DGM Estt, Shri. Jagdeep Singh, DGM CA, Shri Sanjeev Kumar AGM Estt along with other officers participated in this special meeting.
From SNEA this meeting was attended by Mrs. Anu Agarwal, CP BSNL CO, Shri. Arvind Pal Dahiya, JSC and Shri. M. S. Adasul, GS.
LIC PFL representative Shri Dhruv Seth, gave detailed presentation and explained in detail pro and cons of switching to National Pension System NPS from existing Superannuation Pension Scheme SPS Fund for BSNL recruited Executives and Employees.
LIC Pension Fund Ltd is subsidiary company of LIC and both have taken initiatives for giving opportunity for BSNL Executives and Employees to shift from SPS to NPS.
All the doubts and queries raised by participants were clarified by the representatives of LIC and LIC PFL. Some of the points which were clarified are as follows.
- This will be optional for all Executives and required information will be provided by LIC, LICPFL to BSNL.
- BSNL Executives and employees will have option to continue in SPS or switch over to NPS.
- This can be partially implemented for BSNL executives and employees i.e. SPS and NPS will continue in BSNL and the executives will have option to shift from SPS to NPS or to continue under SPS.
- Employees will have to shift/open their NPS account under Corporate NPS.
- Entire working from Opening NPS Account, Management to withdrawal/ receipt of final payments will be online.
- On submission of Option by individuals for shifting from SPS to NPS, his/her funds with SPS will be shifted to LICPFL.
- Once shifted from SPS to NPS, then return back is not possible.
- At the time of retirement out of total accumulated corpus, maximum 60% can be withdrawn by Members as tax free corpus. The remaining amount will be used to purchase annuity plan through the PFRDA approved Annuity Service provider. This annuity plan will provide Pension.
- Up to 60% Corpus withdrawal will be tax free. There will be no GST levied on the annuity plan purchase.
- LICPFL will manage the Funds by investing in different financial assets viz. Equity, Corporate Bonds, Government Securities and AIF(Alternate Investment Funds)
- NPS provides market linked returns. As on 28.08.2025, LIC PFL has provided 13.09% in equity tier 1 scheme, 9.52% in Government Securities tier 1 scheme and 8.99% in Corporate Bonds tier 1 schemes, since inception.
- Money gets invested as per preference providedby NPS Member (Corporate or Employee) during opening of the account.
After elaborate informal discussions, it was decided that at prima facia, shifting from SPS to NPS seems to be a better option.
In conclusion, PGM Estt informed that a committee will be constituted to study this proposal further to understand its benefits and losses to BSNL Executives and Employees and detailed proposal will be shared with all Executives and Employees and with option. It was also decided to publish FAQ about this proposal.
SNEA appeals all the Executives and Employees to go through this proposal and share queries and doubts if any with Shri Arvind Pal Dahiya, JSC SNEA CHQ (Mob 9416051919) or directly with Shri. Dhruv Seth, Manager, LICPFL {Mob 8800339858) .
Before conclusion of this meeting, we requested representatives of LIC, to clear about accountability and non-visibility of the SAB contribution of BSNL Executives on LIC Website and it was informed that there are certain technical issues, which are being sorted out and the work is expected to be completed by end of Sept 2025 and thereafter update information will be available on monthly basis.
Meeting lasted for about One and half hours and concluded with thanks by Estt Section and with unanimous conclusion for constitution of the Committee for giving option to willing Executives and Employees for change over from SPS to NPS.
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