According to sources, the scheme provides for monthly pension, refundable loan, medical facility/ mediclaim policy and house rent grant/ lumpsum payment. The pension, which will begin with an individual's separation from employment, will be payable till he attains 60 years of age.

The Tisco management hopes to reduce its manpower to 55,000 by March 31, 2000 from the existing 60,000. However, this will also include 900 employees from the company's cement division which was hived off to Lafarge early this month. Another 1200 to 1500 employees will reach the superannuation age of 60 years.

Those who are yet to attain the age of 40 years and have not completed 10 years of service on the date of separation will be entitled to a monthly pension equivalent to the last salary drawn by them till they attain the ageof superannuation.

An employee who separates before crossing the age of 45 will get monthly pension equivalent to 1.25 times his last drawn salary till he is 60 years old. A person separating after 45 will be entitled to monthly pension equivalent to 1.5 times his last drawn salary till the age of superannuation. The term salary includes basic pay, personal pay wherever applicable and dearness allowance, but no other allowances, benefits and/ or perquisites.

If a separated employee dies within the pension period, monthly pension will be paid to his joint account holder till the scheduled date of 60 years. The separated employees and their families will continue to get existing medical facilities till the age of 60 years. Family means wife/ dependent husband, sons aged 21 years or less, unmarried daughters and parents completely dependant on and residing with the employee.

A separated employee will also be entitled to normal settlement dues like provident fund, gratuity, employees' pension scheme,encashment of all unavailed leave and sick leave as per company rules apart from some farewell gift.

If a separating employee wants to start some business or vocation, he can apply for a loan of Rs 2,00,000 or 50 per cent of the total pension benefits, whichever is less. The loan will be paid in four equal instalments and the the employee will get the first instalment within 30 days of vacating the company accommodation. The second instalment will be provided after 12 months, the third after 24 months and the fourth 36 months after the payment of the first instalment.

Each separating employee will get a house rent grant not exceeding Rs 500 a month payable for three years or up to 60 years of age, whichever comes earlier or a lumpsump amount of Rs 25,000 for those aged 58 years, Rs 20,000 for those between 58 and 59 years and Rs 15,000 for those between 59 and 60 years.