Report of Indian Institute of Public Administration ... - Ministry of Power

Assam
payment to the existing pensioners and those who will retire up to 2008-09. An
important event in the restructuring process of ASEB was the launching of
Assam Electricity Reforms, First Transfer Scheme, 2004 on 10 December
2004. The Scheme provided for the transfer and vesting of functions,
properties, obligations and liabilities of the ASEB in the State Government and
re-vesting of the same by the State Government in the new corporate entities.
The Scheme also covered the transfer of personnel of ASEB to the new entities.
The opening balance sheets of the five successor companies were attached to
the Transfer Scheme. The Scheme explicitly mentioned that the personnel who
would be transferred under this Scheme would be governed by the new
Regulations, which would not be in any way be inferior to those applicable to
them immediately before the transfer.
3.7 As it was necessary to carry along the unions and the staff representatives of
ASEB while implementing the policy of restructuring ASEB, a tripartite
agreement between the Government of Assam, ASEB and the recognised
associations/unions of ASEB was negotiated and signed on 9 December 2004.
It was agreed that there would be no retrenchment of the existing employees on
account of restructuring and rationalisation. Moreover, the terms and service
conditions upon transfer to the new entities would not be in any way less
favourable than the present terms and conditions under the ASEB. It was also
mentioned that there would be no lateral entry from outside in case qualified
and experienced persons were available in the cadre. It was also agreed that the
State Government, the Board and the successor entities would be jointly and
severally responsible to make payments in respect of pension, gratuity and
other retirement benefits. The Government of Assam took a policy decision for
taking over the unfunded liabilities relating to terminal benefits and General
Provident Fund (GPF). The same was notified on 4 February 2005. As regards
the unfunded terminal liabilities for which the undertaking had been given, the
Government of Assam agreed to provide for the development of a plan for
meeting those obligations. An actuarial valuation of ASEB as on 9 December
2004 was done for the unfunded liabilities. To estimate the current value of the
liabilities, the exercise covered the period of service put in by the employees up
to the date of valuation and the annual future rate of contribution to pay for the
gratuity and pensionary benefits. The net present value of the ASEB’s past
unfunded terminal benefits on account of pension came to Rs 1,470 crore and,
including gratuity and GPF, to Rs 2,169 crore. The plan envisaged that it would
8.7