The Andhra Pradesh Road Transport Corporation on Wednesday started the process of dividing the Staff Retirement Benefit Scheme (SRBS) and the Staff Benevolent Trust (SBT) set up for its employees.
Leaders of the RTC Employees Union, the National Mazdoor Union and the Telangana Mazdoor Union jointly constituted an 11-member committee to look into the modalities at a meeting attended by officials of the corporation from Andhra Pradesh and Telangana at RTC House in the city.
Under the SRBS, the corporation employees contribute a monthly sum of ₹250 and the management contributes certain amount, which is used later towards their retirement benefit. This employees’ fund is not mandatory and they contribute voluntarily.
The RTC management pays an amount of ₹6 crore per annum towards interest for the employees’ money, which in turn is utilised to sanction loans to workers for personal use, marriage or for education purpose.
The RTC management currently has employees’ money to the tune of ₹414 crore. While it is expected to pay interest to the employees every quarterly, no meeting has been held since October 2015.
MD’s proposal opposed
The organisation’s MD M. Malakondaiah’s proposal that the interest rate on the employees’ money be brought down from 9.5 % to 8.5 % was opposed by the RTC Employees Union leaders who said he had no right to seek changes in the pattern.
