BHARAT HEAVY ELECTRICALS LIMITED CORPORATE OFFICE 17 01 2015EOI.pdf · · 2015-01-19BHARAT HEAVY...

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BHARAT HEAVY ELECTRICALS LIMITED

CORPORATE OFFICE

No. AA: HR: BHEL Pension Scheme Date: 17.01.2015 To- (All Life Insurance Companies)……………..... ……………………………………………………….. ……………………………………………………….. Dear Sir,

Sub: Expression of Interest (EOI) for Fund Managers cum Annuity Providers for BHEL Employees Superannuation Benefit Fund

BHEL is the largest Engineering and Manufacturing enterprise of India in the energy & infrastructure related sectors. BHEL was established more than 40 years ago and manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian economy viz., Power Generation & Transmission, Industry, Transportation, Renewable Energy, Defence etc. The wide network of BHEL’s 17 Manufacturing Units, 2 Repair Units, 4 Power Sector Regions, 8 Service Centers, 15 Regional Offices, 1 Subsidiaries and more than 150 Project Sites spread all over India and abroad enables the Company to provide most suitable products, systems and services efficiently and at competitive prices. BHEL’s vision is to be “A global engineering enterprise providing solutions for a better tomorrow”. The Company has managed to sustain its leadership position and is ready to embark on a new phase of dynamic growth. BHEL is a “Maharatna PSU” and a Limited Company registered under the Indian Companies Act 1956 and its stock is listed with BSE and NSE. Presently 63.06% is held by GOI (promoter), 32.61% is held by Institutions and 4.33% by others. BHEL (hereinafter may also be called as the Company) has realized the capability to deliver 20,000 MW p.a. power equipment capacity. The Company has achieved a Turnover of ₹ 40,338 Crores in FY 2013-14. Based on the DPE instructions, which have allowed upto 30% of Basic pay plus DA for four elements of superannuation benefits viz. CPF, Gratuity, Pension and Post Retirement Medical Benefits to its employees, a Pension Scheme has been implemented in BHEL. The Company has formed a Trust, “BHEL Employees’ Superannuation Benefit Fund” (herein after may also be called as the “Trust”) which will be dealing with respective Fund Managers for management of the Funds contributed by the Company every year. The said Trust will also assist in providing Pension Corpus to the eligible employees/ beneficiary for purchase of Annuities from the Annuity Providers upon cessation from service of the Company including death, as approved in the BHEL Pension Scheme. The Copy of the BHEL Employees’ Scheme is enclosed.

The said Trust also assists in providing Pension Corpus to the eligible employees/ beneficiary for purchase of Annuities from the Annuity Providers upon cessation from service of the Company including death, as approved in the BHEL Pension Scheme.

Closing Date: 27.01.2015 Time by: 3 PM




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BHEL invites Expression of Interest (EOI) from the interested Insurance Companies registered with the IRDA having IRDA approved Group Pension Products on traditional platform on 01.10.2014, to select and appoint minimum of five nos. to a maximum of Ten Insurance Companies as Fund Managers cum Annuity Providers. The detailed EOI document containing role & responsibilities of Fund manager and Annuity Provider, Pre-Qualification and Evaluation criteria’s of offers for appointment of Fund Manager and Annuity Provider, General Terms & Conditions etc. is enclosed. Insurance Companies interested in the EOI for appointment of Fund Manager/ Annuity Providers

may submit their offers containing Part – I Technical cum commercial offer & Part –II Evaluation for

empanelment as Fund Manager cum Annuity Provider offers in two separate envelopes, both of

these two envelopes be then kept into another envelope super-scribed as “EOI for BHEL

Employees Superannuation Benefit Fund” addressed to Sr. Manager (HR) Corporate HR &

Secretary BHEL Employees’ Superannuation Benefit Fund, BHEL Corporate Office, Siri Fort

New Delhi; and submit the same in TENDER BOX provided for the purpose on or before,

Date 27.01.2015 up to 3:00 p.m.

Any EOI(s) received after the specified time of their ‘Submission’ shall be treated as ‘Late EOI’ and shall not be considered under any circumstance. The prospective bidders are advised to visit BHEL web site “www.bhel.com” for update on the Expression of Interest including modification of terms & conditions of the EOI document before the due date of offer submission. The sealed covers received on or before the due date and time i.e. 27.01.2015 by 3 PM shall be opened at 3.30 p.m. on 27.01.2015 or such extended time if so communicated by BHEL, in the presence of the representatives (one each) of the interested Insurance Companies who have submitted their sealed cover and want to be present.

Thanking You, Yours faithfully,

for and on behalf of Bharat Heavy Electricals Limited

(Manoj Singh) Sr. Manager (HR) & Secretary- BHEL Employees Superannuation Benefit Fund Encl: As above

http://www.bhel.com/




CORPORATE OFFICE

Annexure-1

Special Terms & Conditions of Empanelment of Fund Manager cum Annuity Provider

The Trust intends to select and appoint a minimum of five nos. and a maximum of Ten Insurance Companies as Fund Managers- cum-Annuity Providers out of the Insurance Companies having IRDA approved Group Pension Products on traditional platform as on 01.10.2014, based on evaluation criteria specified at Annexure- 2 & 3. In a scenario where top five Fund Managers happen to be the top five annuity providers, the total no. of Fund Manager cum Annuity Provider will get restricted to five nos. only. Accordingly, based on the evaluation criteria there will be a minimum of five and a maximum of ten Fund Manager cum Annuity Providers.

1. Roles and Responsibilities of Fund Manager(s) The Five Fund Managers will be identified out of the Insurance Companies registered with the IRDA having IRDA approved Group Pension Products on traditional platform on 01.10.2014, through the selection process by the Company will be managing the funds for a term of five years from the date of appointment or till 30.06.2019 whichever occurs later. However, BHEL reserves the right to terminate the contract and go for fresh empanelment at any time before the expiry of the above mentioned period of 5 years. Insurance companies interested in appointment as ‘Fund Manager’, as a Pre-Qualification, must have IRDA approved annuity product with options LA-ROC & JLA ROC, as Group/ retail product. The selected Fund Managers with whom the funds will be placed will have to re-invest the funds in the Group Pension Products on traditional platform. The monthly/ quarterly/ half yearly/ annual statement giving the details of inflows and outflows will have to be submitted by the Fund Managers. On behalf of the eligible beneficiary and based on the advice of the Secretary /Trust for the purpose, the Fund Manager will transfer the Pension Corpus to Annuity Provider(s) for purchase of Annuities through NEFT/ electronically within 2-3 working days from the receipt of the authorization by Post/ email/ Fax. Pension corpus as stated above may also be advised to be released by the Trust in parts with a time gap. Therefore, Annuity Providers, in such an event, will be issuing more than one annuity account for a single beneficiary. The contact details including the name and full address of the dealing officials in the Insurance Company will have to be indicated by the Fund Manager who will be dealing with the Trust. In case of change in the contact details the same will be promptly communicated to the Trust. Initial contribution & contribution received during the empanelled period will be allocated amongst

the appointed Fund Managers. In addition, Token amount as mentioned in the EOI shall also be

allocated to the appointed Annuity Providers who are not the top ranking Fund Managers but rank

high for being empanelled as Annuity Providers. Such appointed Annuity Providers will not be

considered for the purpose of re-distribution and / or additional contributions during the period of

empanelment. Allocation of funds, i.e. initial & periodic contributions received from the Company,




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to appointed fund managers will be decided by BHEL Superannuation Benefit Trust from time to

time in the pre-determined ratio.

Similarly, withdrawal of funds during empanelled period (i.e. upto 31.05.2017 & then during the subsequent years) will be effected as per pre-determined criteria decided by BHEL Superannuation Benefit Trust from time to time. However, BHEL reserves the right during the period of contract, to withdraw the Fund from the Fund

Manager(s) in case of non/ under performance even under good Market conditions and place

such Fund(s) with any other Fund Manager(s) after giving one month’s notice.

Monthly statement of the Fund and monthly/quarterly/ half- yearly/ annual statement will be

submitted by the Fund Manager(s).

There will be a monthly /fortnightly/ weekly meeting of the Fund managers and Trustees/ Company representatives. By virtue of being selected as Fund Managers, these five Insurance Companies will get selected automatically as Annuity Providers.

2. Roles and Responsibilities of Annuity Provider(s)

In addition to five Funds Managers who by virtue of being selected as Fund Manager get empanelled as Annuity Provider with the Company/Trust, a maximum five Annuity Providers may also be identified out of the Insurance Companies having IRDA approved Group Annuity Products on traditional platform as on 01.10.2014 in case they happen to rank higher in the evaluation for annuity providers. In a scenario where top five Fund Managers happen to be the top five annuity providers, the total no. of Fund Manager cum Annuity Provider will get restricted to five nos. only. Accordingly there will be a minimum a five and a maximum of ten Fund Manager cum Annuity Providers. The five annuity providers so selected will remain empanelled for a term of five years from the date of appointment for immediate annuities or till 30.06.2019 whichever occurs later. However, BHEL reserves the right to terminate the contract and go for fresh empanelment at any time before the expiry of the above mentioned period of 5 years. Insurance companies interested in appointment as ‘Annuity Provider’, as a Pre-Qualification, must have IRDA approved annuity product with two options viz. LA-ROC,JLA- ROC, as Group product. For appointment as Annuity Provider only these two annuity options shall be evaluated.

However, besides these two options, insurance companies may also offer annuity options of Life Annuity( LA) and Joint Life Annuity (JLA) as group annuity product. No other annuity options is permissible to be offered to beneficiaries. To de-panel the Annuity Provider(s) in case of withdrawal of approval/ de-registration/ imposition of penalty or deficient services to Annuity purchases which in the sole opinion of BHEL/ Trust are serious enough to invite such action against the Annuity Provider(s).




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On being eligible for Pension Corpus, on behalf of the beneficiary and based on the authorization received for the purpose, the Fund/ Trust will transfer the Pension Corpus to Annuity Provider(s) specifying selected annuity option(s) for purchase of Annuities. Pension corpus as stated above may be released by the Fund in parts with time gaps. Based on receipt of the pension corpus, annuity providers will issue more than one annuity account for disbursement of annuities. The annuity providers will issue a separate annuity certificate to all annuitants against each annuity account containing detailed terms & conditions. Scrutiny of the documents/ Forms for purchase of annuity filled by the employee/ beneficiary will have to be completed and deficiencies, if any, communicated to the Trust by the Annuity provider within a period of 2 to 3 working days from the date of receipt of Pension Corpus from the Fund Manager. The Annuities as per option given by the beneficiary/ employee will be issued by the Annuity Provider within 10 working days from the date of receipt of documents complete in all respects. Any employee/ beneficiary shall have the option to add any of own sum directly to the Annuity provider while purchasing Annuity out of the Pension corpus, the Annuity Provider will have no objection to such additional purchases and will apply the same rate as indicated under the scheme. BHEL has developed a web based portal for its retired employees/ beneficiaries for applying for pension and all annuity providers will be provided a system generated application form duly signed by the applicant for purchase of annuities. Annuity providers will be required to upload pension data on the portal in respect of cases processed by them on a monthly basis. Annuity providers may have an option to integrate their IT based application with BHEL Pension Portal. Also after remittance of pension corpus (purchase price) to annuity provider and start of the pension (annuity), all matter related to nomination(s), change in bank accounts and return of capital to nominee etc. will be directly dealt by annuity providers with the annuitants and / or the registered nominees. The Fund (Trust) will not be involved in any issues after commencement of pension/ disbursement of annuities. The Annuity Provider will be called for a review meeting in respect of the pending claims/ discussion on issues raised by the employees/ beneficiaries on a Fortnightly / monthly basis. The Annuity Provider will have to provide the details of the dealing officials in the identified branches who will be dealing with BHEL Trust. Since the retirement date in BHEL is 24th of the month, the Annuity Options and the specific applicable rates will be provided by the Annuity Providers to BHEL on a monthly basis latest by 10th of the same month to enable the employees to exercise the options. Further, the annuity rates will remain valid till the end of the month. The employee / beneficiary from BHEL have been given an option under the Pension Scheme to select maximum two Annuity Provider(s) for purchase of annuity.




CORPORATE OFFICE

Annexure-2

PRE QUALIFICATIION CRITERIA FOR APPOINTMENT OF FUND MANAGER CUM ANNUITY PROVIDER

As pre-qualification for the Expression of Interest (EOI), the Insurance Companies, having Group

Pension Products on traditional platform and duly approved by IRDA, will be required to ‘un-

conditionally’ agree for all of the following conditions failing which their application will stand

‘summarily rejected’.

Pre- Qualification Criteria- Confirmation in Affirmative for following conditions:

1. Confirmation of having Group Pension Products on traditional platform and duly

approved by IRDA and in vogue (i.e. allowing enrollment of new members)

2. Initial the policy term will be for a period of more than One year upto 31.05.2017. Thereafter,

the policy shall be renewed on an annual basis. Accordingly initial funds & contribution

received during the initial policy term shall be allocated to empanelled fund managers only

as per criteria specified at Annexure- 3 Part A & B. During the subsequent renewed policy

term(s), re-distribution of funds amongst empanelled fund managers shall be done based

on criteria specified at Annexure - 3 Part C. Since such redistribution of funds shall happen

only after the maturity of the policy term, it will not be termed as “bulk exits” and “surrender”,

hence, provisions of Market Value Adjustment (MVA) shall not be attracted.

Further since vesting/ withdrawal from invested funds by the “Trust” for purchase of annuities

by beneficiaries is NOT termed as “bulk exits” and “surrender”, provisions of Market Value

Adjustment (MVA), in such cases, shall not be attracted. Those of the insurance companies

who agree to this condition in to-to will be preferred for selection as fund manager for bulk

of the funds since it is clearly in advantage of the trust & retired employees.

Accordingly on or after 31.05.2017, funds initially placed and also periodic contribution

placed for more than one year shall be re-distributed amongst the fund managers. The

respective Insurance Company(s) will have to provide waiver of the applicability of Market

Value Adjustment (MVA) in cases of withdrawal of funds which were placed for a period of

more than one year and being withdrawn for re-distribution as per criteria specified at

Annexure- 3 part C.

3. Returns to fund invested shall be net of all charges hence there shall be no separate fund

management charges,

4. The empanelled period being initially for five years, there shall be no surrender charges.




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5. There shall be no entry and exit charges/ load.

6. Since no brokerage is involved, there shall be no administrative charges. Otherwise also

no administrative charges is payable.

7. Initial Policy term will be upto 31.05.2017. Thereafter, the policy shall be renewed on annual

basis.

8. There shall be No Lock-In period

9. Interest accrued on fund invested on annual basis shall be inclusive of Minimum Floor Rate,

non-negative additional interest and non- negative residual additions and any other

additions, if any.

10. Insurance companies interested in appointment as ‘Fund Manager’, as a Pre-Qualification,

must have IRDA approved annuity product with options LA-ROC & JLA ROC, as Group/

retail product.

Insurance companies interested in appointment as ‘Annuity Provider’, as a Pre-Qualification, must have IRDA approved annuity product with two options viz. LA-ROC,JLA- ROC, as Group product. For appointment as Annuity Provider only these two annuity options shall be evaluated. However, besides these two options, insurance companies may also offer annuity options of Life Annuity( LA) and Joint Life Annuity (JLA) as group annuity product. No other annuity options is permissible to be offered to beneficiaries.

11. Insurance company should not be “Black-Listed” by any other CPSE and / or Central Govt.

organization. In case a bidder is “Black-Listed” by any other CPSE and / or Central Govt

organization, such a fact should be brought to the notice of BHEL as part of the bid or during

the process of evaluation as the case may be. Such a bidder will automatically stand

disqualified for evaluation for empanelment as Fund Manager cum Annuity Provider. If it

comes to the notice of the Trust at a later date that the bidder had suppressed the facts of it

being black-listed by any other CPSE and /or Central Government Organization, the

Insurance Company will automatically cease to be a Fund Manager and the fund invested

with such an insurance company shall be withdrawn along with the interest accrued based

on last declared rates and such withdrawal will not attract Market Value Adjustment (MVA).

Further, suitable action in line with the Company’s Policy will be taken against such

Insurance Company. However the annuities issued to beneficiaries will not get affected.

Insurance Companies, having affirmative answers to conditions stipulated in Pre-

Qualification, will only qualify for the evaluation for empanelment as Fund Manager

cum annuity providers. Those of the insurance companies who agree to condition

stipulated above w.r.t. MVA, in to-to will be preferred for selection as fund manager

for bulk of the funds since it is clearly in advantage of the trust & retired employees.

Part II envelope of only such Insurance Companies shall be opened.




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Annexure-3

CRITERIA FOR EVALUATION OF OFFERS FOR FUND MANAGER, ANNUITY PROVIDER

Insurance Companies, having affirmative answers to conditions stipulated in Pre-Qualification, will

only qualify for the evaluation for empanelment as Fund Manager cum annuity providers. Such

qualifying Insurance Companies will be evaluated for appointment as Fund Manager and Annuity

Provider separately:

A. Initial Evaluation for empanelment as Fund Manager – 100 marks

S.No. Criteria Weightage Parameter / verification

1. Group Traditional (Fund Based)

Plans- Asset Under Management

(As on 31.03.2014)

Note: Such group traditional plans

may be having different names in

Companies as per Product Approval

by IRDA

25 Group Traditional (Fund Based) Plans- Asset Under

Management other than Annuity. This shall comprise of

AUM of Employer-employee related policies only.

1(i) Group Traditional (Fund based)


(Annuity Only)

(for information

only)

Group Traditional(Fund Based) Plans- Asset Under

Management (Annuity)

2. Net worth net of accumulated losses

(As on 31.03.2014)

10 Annual Report Disclosures

3. Returns/ interest declared in traditional plans for a corpus invested on actual case basis (other than guaranteed

returns) ( Insurance Company shall provide evidence in the format given along with contact details for placement of

funds of having been appointed as Fund Managers for the specified corpus against which the returns are being

furnished by them. Wherever evidence in the form of work order for placement of funds is not attached, the same

will be treated as NIL and ranked accordingly.)

For evaluation for appointment as ‘Fund Manager’, funds invested as ‘Pension Funds’ are only to be reckoned.

Average return of only Non- Guaranteed returns are to be provided for evaluation.

*Since new pension products were not vogue during entire FY 2013-14 with most of insurance companies, all insurance

companies shall furnish returns in respect of the last four quarters, ending 31.12.2014 for new products.

i). Upto 25 Crs.

2011-12: 2.25 Avg. annual Interest accrued in last three FY 2011-12 (old

products), 2012-13 (Old products), 2013-14 (New

products) 2012-13 : 2.25

2013-14* : 4.50

ii). Above 25 Crs. to 50 Crs 2011-12: 2.75 Avg. annual Interest accrued in last three FY 2011-12 (old


products) 2012-13 : 2.75




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2013-14* : 5.50

iii). Above 50 Crs. to 100 Crs. 2011-12: 3.25 Avg. annual Interest accrued in last three FY 2011-12 (old


products) 2012-13 : 3.25

2013-14* : 6.50

iv). Above 100 Crs. to 200 Crs. 2011-12: 3.75 Avg. annual Interest accrued in last three FY 2011-12 (old


products) 2012-13 : 3.75

2013-14* : 7.50

v). Above 200 Crs 2011-12: 4.25 Avg. annual Interest accrued in last three FY 2011-12 (old


products) 2012-13 : 4.25

2013-14* : 8.50

Format for reference for clients:

Corpus invested Fin.Year Rate of actual

interest /

returns

declared

Nature of

returns

(Non

Guaranteed/

Guaranteed)

Name of client Contact details

of client (Ph.

No.)

Address

details

B. Initial Evaluation for empanelment as Annuity Provider – 100 marks

S.No. Criteria Weight-age Parameter

1. Group Traditional (Fund Based) Plans- Asset Under

Management(As on 31.03.2014)

Note: Such group traditional plans may be having

different names in Companies as per Product Approval

by IRDA

30 Group Traditional (Fund Based) Plans- Asset

Under Management other than Annuity. This

shall comprise of AUM of Employer-

employee related policies only.

2. Net worth net of accumulated losses (As on

31.03.2014)


3. Avg. annuity rates for last three years per hundred

rupees of corpus (without any incentive on amount

of corpus)

Reference age for returns/rates: 60 Years

(only for

information)

Avg. return in last three fin. Yrs.




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i). Life Annuity with Return of capital 20 Avg. return in last three fin. Yrs.

ii). Joint Life Annuity with Return of capital 20 Avg. return in last three fin. Yrs.

3 Incentive on individual corpus -

3(i) Less than ₹ 250000/- 2 Additional Avg. return in last three fin. Yrs.

3(ii) ₹ 250,000/- to ₹499,999/- 2 Additional Avg. return in last three fin. Yrs.

3(iii) ₹5,00,000/- to 7,49,999/- 2 Additional Avg. return in last three fin. Yrs.

3(iv) ₹ 8,00,000/- & ₹9,99,999/- 2 Additional Avg. return in last three fin. Yrs.

3(v) ₹10,00,000/- & above 2 Additional Avg. return in last three fin. Yrs.

4. Incentive on total corpus remitted during the year-

4(i) Less than ₹ 2.5 Crs. 2 Additional Avg. return in last three fin. Yrs.

4(ii) Above ₹ 2.5 Crs up to ₹ 10 Crs. 2 Additional Avg. return in last three fin. Yrs.

4(iii) Above ₹ 10 Crs. upto 25 Crs 2 Additional Avg. return in last three fin. Yrs.

4(iv) Above ₹ 25 Crs. upto 50 Crs 2 Additional Avg. return in last three fin. Yrs.

4(v) Above ₹ 50 Crs. upto 100 Crs 2 Additional Avg. return in last three fin. Yrs.

C. Evaluation Criteria for Fund re-distribution amongst Top Five Fund Managers at the time of renewal of policy on or after 31.05.2017

S. No. Criteria Weightage Parameter / verification Details submitted

by the Insurance

Company

Marks awarded



(During Last FY at the time of

evaluation)




by IRDA

25 Group Traditional (Fund

Based) Plans- Asset Under

Management other than

Annuity. This shall

comprise AUM of

Employer-employee

related policies only.



(Annuity Only)

(For

information

only)

Group Traditional (Fund


Management

(Annuity).


(During Last FY at the time of

evaluation)

10




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3. Returns/ interest declared in traditional plans for a corpus of given hereunder:

Net %age returns declared on

corpus allocated to them by BHEL

Trust during the last one year

ending 31.03.2017 and thereafter

on an annual basis.

65 Net incremental amount

on funds invested to be

provided

Other Important Instructions:

Based on the information furnished by the bidders against each of the criterion, the bidders with highest figure will be marked as 1,2,3 ….. The respective weights will then be multiplied to the marks so assigned. The resultant figure for each of the criteria shall be totalled. The totals so arrived at will be finally ranked from lowest total to the highest (where the lowest total will be ranked as final number 1 rank). Accordingly based on evaluation criteria specified at Annex 3 A, top five Fund Manager and as per evaluation criteria specified at Annexure 3 B top five Annuity Providers will be selected.




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Annexure-4

GENERAL TERMS & CONDITIONS FOR APPOINTMENT OF FUND MANAGER CUM

ANNUITY PROVIDER

1.0 SUBMISSION OF EOI

The information submitted should be complete in all respects.

Proposals on company’s letterhead with required details and documents should be either

typed or written legibly in English. Alterations/ overwriting, if any, in the profile/ proposal

should be authenticated by the person signing the profile/ proposal.

2.0 COST OF DOCUMENT

NIL

3.0 INCOMPLETE EOI

Incomplete EOIs, which do not contain all the information called for with supporting

documents and/ or any addition/ deletion in the EOI document/ Annexures not

authenticated as stated in S. No 1.0 above are liable to be rejected.

4.0 SELECTION PROCEDURE

The Trust shall empanel maximum Five Fund Managers through the selection process for managing the funds for a period of five years from the date of appointment or 30.06.2019 whichever occurs later. In addition to the max. Five Funds Managers, maximum Five annuity providers will also be appointed who will be allocated 1% of the initial contribution for five years period of empanelment as ‘Annuity Provider’ as stated above. However BHEL reserves the right to terminate the contract and go for fresh empanelment at any time before the expiry of the above mentioned period of 5 years. For selection of the Insurance Companies to be appointed as Fund Managers and

forming a Panel of Annuity Providers, procedure detailed at Annexure - 3 Part –A & B

shall be adopted:

a). Fund Managers: Initial contribution & contribution received from the Company during the empanelment period will be invested with appointed five fund managers as per pre-determined criteria.

b). Panel of Annuity Providers: In addition to five Funds Manager who by virtue of being

selected as Fund Manager get empanelled as Annuity Provider with the

Company/Trust. A maximum of Five Annuity providers may also be identified out of the




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Insurance Companies having IRDA approved Group Annuity Products on traditional

platform as on 01.10.2014 in case they happen to rank higher in the evaluation for

annuity providers. In a scenario where the top five Fund Managers happen to be the

top five annuity providers, the total no. of Fund Manager cum Annuity Provider will get

restricted to five nos. only. Accordingly, there will be a minimum of five and a maximum

of ten Fund Manager cum Annuity Providers.

5.0 SHARING OF BUSINESS – FUND MANAGEMENT (INITIAL & SUBSEQUENT

CONTRIBUTION)

5.1 PLACEMENT OF FUNDS WITH FUND MANAGERS:

Based on the criteria specified at Annexure- 3 Part A & B, 95 % of the initial funds will be placed with top five Fund Managers in the ratio of 29%, 24%, 19%, 14% and 9 % i.e. ‘Scheduled Allocation’ within a period of 30 days from selection. Balance 5% of initial fund would be invested with top five insurance companies selected as annuity providers with 1% of the fund each, based on the criteria specified for selection of Annuity Providers. The periodic contribution received during the period upto 31.05.2017 will be distributed in totality amongst the said Five Fund Managers only. For effecting such a distribution, the above ratios (i.e. 29%, 24%, 19%, 14% and 9 %), will be extrapolated for 100% and funds distributed accordingly. In case top five fund managers happen to be top five annuity providers, the total no. of Fund Manager cum Annuity Providers will get restricted to Five Nos. only as mentioned above. In such a case, 1% of fund earmarked for 5 annuity provider(s) will also be allocated to the top 5 Fund Managers only. However, the fund allocated for investment will not exceed 10% of the Group Traditional Asset Under Management (AUM) of the Insurance Company excluding Annuity, at the time of fund allocation. In case any of the Fund Manager is not able to get the “Scheduled Allocations percentage” due to ceiling of AUM or due to any other reason, the residual amount shall be allocated to the other Fund Managers in the ratio of “Scheduled allocation” i.e. 29%, 24%, 19%, 14% and 9 %, extrapolated to 100%. Accordingly on 31.05.2017 and annually thereafter, funds placed / redistributed and also periodic contribution placed for more than one year shall be re-distributed amongst the five fund managers based on the ranking arrived as per criteria specified at Annexure- 3 /Part C. Contribution from the Company, received by the fund beyond 31.05.2017 and annually thereafter will also be transferred in the ratio of “Scheduled allocation” i.e. 29%, 24%, 19%, 14% and 9 %, extrapolated to 100%. The incremental returns being credited on annual basis would have to comprise of minimum floor rate, non-negative additional interest, non-negative residual additions and other additions, if any. The exercise for re-distribution of funds amongst the appointed funds managers shall occur for the first time on or after 31.05.2017 and the funds shall be placed on or before 30.06.2017. Thereafter this exercise for re-distribution shall be carried out on or after 31st




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May every year and redistributed funds shall be placed with fund managers on or before 30th June every year.

5.2 WITHDRAWAL OF FUNDS FOR DISBURSEMENT OF PENSION CORPUS TO BENEFICIARIES FOR PURCHASE OF ANNUITIES

During the period upto 31.05.2017 withdrawal of funds from the appointed fund managers (& not annuity providers) will be in the reverse order of initial percentage allocation of funds i.e. 9%, 14%,19%, 24% & 29%. Beyond 31.05.2017, withdrawal of funds for Pension Corpus payout will be as per reverse order of the ratio of “Scheduled allocation” i.e. 9%, 14%,19%, 24% & 29%, extrapolated to 100%, at the time of re-distribution (Ref. criteria Annexure-3 Part C). Meaning thereby that higher withdrawal in %age terms will be from the fund manager, who has given least %age incremental returns on annual basis and are scoring lower Marks based on Asset Under Management & Net worth as specified at Annexure-3 part C. Thus initial ratio of distribution of funds will undergo a change on periodic basis at the time of each renewal term of the policy.

6.0 VALIDITY

(a) For Fund Management: The Fund Managers identified through this

methodology will be managing the funds initially for a term of five years from

the date of appointment or 30.06.2019 whichever occurs later.

(b) For panel of Annuity Providers: The first panel shall be valid for a term of five

years or 30.06.2019 whichever occurs later and will be revised periodically as

deemed fit.

However BHEL reserves the right at any time during the period above to impose the

following actions after giving one month’s notice:

a) To withdraw the Fund from the Fund Manager(s) in case of his non/ under

performance even under good Market conditions and /or withdrawal of approval/

de-registration/ imposition of penalty by IRDA or any actions which in the sole

opinion of BHEL/ Trust are serious enough to invite such action. The amount so

withdrawn along with interest accrued till the date of withdrawal (based on the last

interest declared for the funds invested by BHEL) and without applying MVA shall

be placed by BHEL Trust with the other Fund Managers. For effecting such a

distribution, the applicable ratios i.e. 29%, 24%, 19%, 14% and 9 %, extrapolated

to 100%.will be extrapolated for 100% and funds distributed accordingly.

b) To de-panel the Annuity Provider(s) in case of withdrawal of approval/ de-

registration/ imposition of penalty or deficient services to Annuity purchasers

which in the sole opinion of BHEL/ Trust are serious enough to invite such action

against the Annuity Provider(s).




CORPORATE OFFICE

7.0 AUTHORISED OFFICER OF BHEL

ED (HR&CC) shall be the authorized authority and his decision shall be final and binding

with regard to the EOI.

8.0 CONFIDENTIALITY

The Insurance Companies shall keep confidential and shall not, without the written

consent of BHEL, divulge to any third party any document, data or other information

furnished directly or indirectly by BHEL hereto in connection with the EOI. The Insurance

Companies shall not use such documents, data and other information received from

BHEL for any purpose other than purpose mentioned in the EOI.

9.0 ARBITRATION

(i) In the event of any dispute, difference, controversy or claim arising out of or in any

way relating to this EOI, the Parties shall endeavor to resolve such dispute or

disagreement through mutual discussions conducted in good faith. If the Parties fail to

arrive at a mutual settlement within thirty (30) days after receipt by a Party of written

notice from the other Party informing that such dispute or disagreement exists, the same

shall be referred to arbitration under the Arbitration & Conciliation Act, 1996. The

arbitration shall be conducted by a sole arbitrator who shall be appointed by ED

(HR&CC), BHEL Corporate Office, BHEL House, Siri Fort, New Delhi. The seat of

arbitration shall be Delhi, and shall be conducted in the English language. The award

of the arbitrator shall be final and binding on the Parties.

(ii) If the bidder is a Public sector enterprise, then in the event of any dispute or

difference, controversy or claim arising out of or in any way relating to this EOI, the

Parties shall endeavor to resolve such dispute or disagreement through mutual

discussions conducted in good faith. If the Parties fail to arrive at a mutual settlement

within thirty (30) days after receipt by a Party of written notice from the other Party

informing that such dispute or disagreement exists, the unresolved dispute or difference

shall be referred to Arbitration as per Department of Public Enterprise, Government of

India Guidelines for arbitration.

10.0 GOVERNING LAWS AND COURT JURISDICTION

The EOI shall be governed by the laws in force in India. Subject to clause 11.0

hereinabove, the Courts at Delhi, India shall have exclusive jurisdiction in regard to all

claims in respect of this EOI.

11.0 CANCELLATION OF THE EOI




CORPORATE OFFICE

BHEL reserves the right to cancel/ scrap the EOI without assigning any reason

whatsoever.

12.0 INTEGRITY PACT

The Insurance Company should note that “Integrity Pact” as enclosed at Annexure F with

this EOI Document shall be applicable. The Insurance Companies evincing interest shall

submit integrity pact duly signed by authorized signatory of the Insurance Company. This

pact shall be considered as a preliminary qualification for further participation. The

independent external monitor (IEM) for this EOI process shall be:

Shri D.R.S Chaudhary, IAS (Retd.) Flat No. L-202 & L-203 (1st Floor)

Ansal Lake View Enclave

Shamla Hills

Bhopal- 462 013 (M.P.)

[email protected]

13.0 Insurance Companies evincing interest shall not contact BHEL on any matter relating to

the EOI after opening of the same. Any effort to influence BHEL in evaluation/ comparison

or award decision may result in rejection.

mailto:[email protected]




CORPORATE OFFICE

Annexure-5

INTEGRITY PACT

Between

Bharat Heavy Electricals Ltd. (BHEL), a company registered under the Companies Act 1956 and having

its registered office at “BHEL House”, Siri Fort, New Delhi – 110049 (India) hereinafter referred to as

“The Principal”, which expression unless repugnant to the context or meaning hereof shall include its

successors or assigns of the ONE PART

and

______________________________________________________________, (description of the party

along with address), hereinafter referred to as “The Bidder/ Contractor/Insurance Company” which

expression unless repugnant to the context or meaning hereof shall include its successors or assigns of

the OTHER PART

Preamble

The Principal intends to award, under laid-down organizational procedures, contract/s for

______________________________________________________________________________

__________________________________________________________________________________

________________________________________. The Principal values full compliance with all

relevant laws of the land, rules and regulations, and the principles of economic use of resources,

and of fairness and transparency in its relations with its Bidder(s)/ Contractor(s).

In order to achieve these goals, the Principal will appoint Independent External Monitor(s), who

will monitor the tender process and the execution of the contract for compliance with the principles

mentioned above.




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Section 1 – Commitments of the Principal

1.1 The Principal commits itself to take all measures necessary to prevent corruption and to observe

the following principles:-

1.1.1 No employee of the Principal, personally or through family members, will in connection

with the tender for, or the execution of a contract, demand, take a promise for or accept,

for self or third person, any material or immaterial benefit which the person is not legally

entitled to.

1.1.2 The Principal will, during the tender process treat all Bidder(s) with equity and reason. The

Principal will in particular, before and during the tender process, provide to all Bidder(s)

the same information and will not provide to any Bidder(s) confidential / additional

information through which the Bidder(s) could obtain an advantage in relation to the tender

process or the contract execution.

1.1.3 The Principal will exclude from the process all known prejudiced persons.

1.2 If the Principal obtains information on the conduct of any of its employees which is a penal

offence under the Indian Penal Code 1860 and Prevention of Corruption Act 1988 or any other

statutory penal enactment, or if there be a substantive suspicion in this regard, the Principal

will inform its Vigilance Office and in addition can initiate disciplinary actions.

Section 2 – Commitments of the Bidder(s)/ Contractor(s)

2.1 The Bidder(s)/ Contractor(s) commit himself to take all measures necessary to prevent

corruption. He commits himself to observe the following principles during his participation in

the tender process and during the contract execution.

2.1.1 The Bidder(s)/ Contractor(s) will not, directly or through any other person or firm, offer,

promise or give to the Principal or to any of the Principal’s employees involved in the

tender process or the execution of the contract or to any third person any material,

immaterial or any other benefit which he / she is not legally entitled to, in order to obtain




CORPORATE OFFICE

in exchange any advantage of any kind whatsoever during the tender process or during the

execution of the contract.

2.1.2 The Bidder(s)/ Contractor(s) will not enter with other Bidder(s) into any illegal or

undisclosed agreement or understanding, whether formal or informal. This applies in

particular to prices, specifications, certifications, subsidiary contracts, submission or non-

submission of bids or any other actions to restrict competitiveness or to introduce

cartelization in the bidding process.

2.1.3 The Bidder(s)/ Contractor(s) will not commit any penal offence under the relevant IPC/ PC

Act; further the Bidder(s)/ Contractor(s) will not use improperly, for purposes of

competition or personal gain, or pass on to others, any information or document provided

by the Principal as part of the business relationship, regarding plans, technical proposals

and business details, including information contained or transmitted electronically.

2.1.4 The Bidder(s)/ Contractor(s) will, when presenting his bid, disclose any and all payments

he has made, and is committed to or intends to make to agents, brokers or any other

intermediaries in connection with the award of the contract.

2.2 The Bidder(s)/ Contractor(s) will not instigate third persons to commit offences outlined above

or be an accessory to such offences.

Section 3 – Disqualification from tender process and exclusion from future

contracts

If the Bidder(s)/ Contractor(s), before award or during execution has committed a transgression

through a violation of Section 2 above, or acts in any other manner such as to put his reliability or

credibility in question, the Principal is entitled to disqualify the Bidder(s)/ Contractor(s) from the

tender process or take action as per the separate "Guidelines on Banning of Business dealings with

Suppliers/ Contractors". framed by the Principal.

Section 4 – Compensation for Damages (NOT APPLICABLE)

4.1 If the Principal has disqualified the Bidder from the tender process prior to the award according

to Section 3, the Principal is entitled to demand and recover the damages equivalent Earnest

Money Deposit/Bid Security.




CORPORATE OFFICE

4.2 If the Principal has terminated the contract according to Section 3, or if the Principal is entitled

to terminate the contract according to section 3, the Principal shall be entitled to demand and

recover from the Contractor liquidated damages equivalent to 5% of the contract value or the

amount equivalent to Security Deposit/Performance Bank Guarantee, whichever is higher.

Section 5 – Previous Transgression

5.1 The Bidder declares that no previous transgressions occurred in the last 3 years with any other

company in any country conforming to the anti-corruption approach or with any other Public

Sector Enterprise in India that could justify his exclusion from the tender process.

If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender

process or the contract, if already awarded, can be terminated for such reason.

Section 6 – Equal treatment of all Bidders/ Contractors/ Sub-contractors

6.1 The Bidder(s)/ Contractor(s) undertake(s) to obtain from all subcontractors a commitment

consistent with this Integrity Pact and report Compliance to the Principal. This commitment

shall be taken only from those sub-contractors whose contract value is more than 20 % of

Bidder’s/ Contractor’s contract value with the Principal. The Bidder(s)/ Contractor(s) shall

continue to remain responsible for any default by his Sub-contractor(s).

6.2 The Principal will enter into agreements with identical conditions as this one with all Bidders

and Contractors.

6.3 The Principal will disqualify from the tender process all bidders who do not sign this pact or

violate its provisions.

Section 7 – Criminal Charges against violating Bidders/ Contractors /Sub-

contractors

If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an

employee or a representative or an associate of a Bidder, Contractor or Subcontractor which

constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will

inform the Vigilance Office.




CORPORATE OFFICE

Section 8 –Independent External Monitor(s)

8.1 The Principal appoints competent and credible Independent External Monitor for this Pact. The

task of the Monitor is to review independently and objectively, whether and to what extent the

parties comply with the obligations under this agreement.

8.2 The Monitor is not subject to instructions by the representatives of the parties and performs his

functions neutrally and independently. He reports to the CMD, BHEL.

8.3 The Bidder(s)/ Contractor(s) accepts that the Monitor has the right to access without restriction

to all contract documentation of the Principal including that provided by the Bidder(s)/

Contractor(s). The Bidder(s)/ Contractor(s) will grant the monitor, upon his request and

demonstration of a valid interest, unrestricted and unconditional access to his contract

documentation. The same is applicable to Sub-contractor(s). The Monitor is under contractual

obligation to treat the information and documents of the Bidder(s)/ Contractor(s) / Sub-

contractor(s) with confidentiality.

8.4 The Principal will provide to the Monitor sufficient information about all meetings among the

parties related to the contract provided such meetings could have an impact on the contractual

relations between the Principal and the Contractor. The parties offer to the Monitor the option

to participate in such meetings.

8.5 As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so

inform the Management of the Principal and request the Management to discontinue or take

corrective action, or heal the situation, or to take other relevant action. The Monitor can in this

regard submit non-binding recommendations. Beyond this, the Monitor has no right to demand

from the parties that they act in a specific manner, refrain from action or tolerate action.

8.6 The Monitor will submit a written report to the CMD, BHEL within 8 to 10 weeks from the

date of reference or intimation to him by the Principal and, should the occasion arise, submit

proposals for correcting problematic situations.




CORPORATE OFFICE

8.7 The CMD, BHEL shall decide the compensation to be paid to the Monitor and its terms and

conditions.

8.8 If the Monitor has reported to the CMD, BHEL, a substantiated suspicion of an offence under

relevant IPC / PC Act, and the CMD, BHEL has not, within reasonable time, taken visible

action to proceed against such offence or reported it to the Vigilance Office, the Monitor may

also transmit this information directly to the Central Vigilance Commissioner, Government of

India.

8.9 The number of Independent External Monitor(s) shall be decided by the CMD, BHEL.

8.10 The word ‘Monitor’ would include both singular and plural.

Section 9 – Pact Duration

9.1 This Pact begins and shall be binding on and from the submission of bid(s) by bidder(s). It

expires for the Contractor 12 months after the last payment under the respective contract and

for all other Bidders 6 months after the contract has been awarded.

9.2 If any claim is made / lodged during this time, the same shall be binding and continue to be

valid despite the lapse of this pact as specified as above, unless it is discharged/ determined by

the CMD, BHEL.

Section 10 – Other Provisions

10.1 This agreement is subject to Indian Laws and jurisdiction shall be registered office of the

Principal, i.e. New Delhi.

10.2 Changes and supplements as well as termination notices need to be made in writing. Side

agreements have not been made.

10.3 If the Contractor is a partnership or a consortium, this agreement must be signed by all partners

or consortium members.




CORPORATE OFFICE

10.4 Should one or several provisions of this agreement turn out to be invalid, the remainder of this

agreement remains valid. In this case, the parties will strive to come to an agreement to their

original intentions.

10.5 Only those bidders/ contractors who have entered into this agreement with the Principal would

be competent to participate in the bidding. In other words, entering into this agreement would

be a preliminary qualification.

------------------------------------ -----------------------------------

For & On behalf of the Principal For & On behalf of the Bidder/ Contractor

(Office Seal) (Office Seal)

Place----------------------

Date-----------------------

Witness: ____________________ Witness: _______________________

(Name & Address) ____________ (Name & Address)________________

____________________________ _______________________________




CORPORATE OFFICE

Annexure- 6

GUIDELINES FOR SUBMISSION OF OFFERS & PROCESSING OF EXPRESSION

OF INTEREST – STAGE (I) EVALUATION FOR PRE-QUALIFICATION OF INSURANCE COMPANIES. . STAGE (II). EVALUATION FOR EMPANELMENT OF INSURANCE COMPANIES AS FUND MANAGER CUM ANNUITY PROVIDER (APPLICABLE ONLY FOR QUALIFYING BIDDERS AT STAGE -I)

A. Offer against the Expression of Interest shall be submitted in TENDER BOX placed for the

purpose of receiving the tenders in the Reception Area of the Corporate Side, at BHEL House

SIRI Fort New Delhi on or before the stipulated due date & time.

B. The offers shall be submitted in two parts:

i. Part – I Technical cum commercial offer. ii. Part –II Evaluation for empanelment as Fund Manager cum Annuity Provider offer.

I. Part-I : Technical cum commercial offer: The envelope shall contain the Technical cum Commercial Offer as per the enclosed proforma for technical cum commercial offer along with following other relevant documents:

i. Copy of Certificate of Incorporation, ii. Copy of commencement of Business, iii. IRDA Certificate of Registration with date of Renewal, iv. Details of Joint venture Partner with Share Holding including foreign partner, v. Name of PSU clients for Employees Superannuation benefits i.e. pension, gratuity, leave

encashment only. Copy of such empanelments vi. Copy of IRDA approval Group Pension Product with UIN No. , vii. Details of solvency margin, viii. Number of years experience in providing Annuities, ix. Details of branches which will be servicing to BHEL employees. x. No-Deviation Certificate as per Annexure 7. xi. Confirmation of IRDA guidelines as per Annexure 8. xii. Certificate confirming that the Insurance Company has not been black-listed by any other

CPSE and / or Central Government Organization as per Annexure 9.

The envelope shall be super scribed “Part-I: Technical cum Commercial Offer for empanelment of Fund Manager- Cum- Annuity Provider”.

II. The second envelope shall contain only the Annexure 6 (ii) and Annexure Annexure 6 (iii) as required for Part-II Evaluation for empanelment as Fund Manager cum Annuity Provider offer. Any other information in this Part-II shall not be considered. The envelope shall be sealed and super scribed “Part-II - Evaluation offer for empanelment as Fund Manager- cum- Annuity Provider”.

Both the above two envelopes shall be kept into another sealed cover. The cover of common

envelope shall be super scribed with Offer for “Empanelment of Fund Manager Cum Annuity




CORPORATE OFFICE

Provider- Due for opening on (Date), (Time) and shall be addressed to Sr. Manager (HR), Secretary

BHEL Employees Superannuation Benefit Fund, Corporate Office, Siri Fort, New Delhi, to reach on

or before by 15.00 hrs on due date 24.12.2014 and it should also contain from address of the

Insurance Company.




CORPORATE OFFICE

Annexure 6 (i)

PROFORMA FOR PART I - TECHNICAL CUM COMMERCIAL OFFER

Technical cum Commercial Offer for empanelment of Fund Manager Cum Annuity Provider

S.No. Technical Cum Commercial

Parameter

For Submission by Insurance Company

( Please tick ( ) in the appropriate box)

Agreed Not Agreed

(Tick mark in this

column will make

the firm

Disqualified)

1 Confirmation of having Group

Pension Products on traditional

platform and duly approved by IRDA

and in vogue (i.e. allowing

enrollment of new members)

2 Initial the policy term will be for a period

of more than One year upto

31.05.2017. Thereafter, the policy

shall be renewed on an annual basis.

Accordingly initial funds & contribution

received during the initial policy term

shall be allocated to empanelled fund

managers as per criteria Annexure-3

Part A & B.

During the subsequent renewed policy

term(s), re-distribution of funds

amongst empanelled fund managers

The sealed envelope shall be super scribed “Part-I : Technical cum Commercial Offer for

empanelment of Fund Manager Cum Annuity Provider”.

Note: Insurance Company not agreeing to any of the conditions below will NOT Qualify

in Technical Cum Commercial Evaluation & Its Part-II offer will not be opened.




CORPORATE OFFICE

shall be done based on a separate

criteria specified at Annexure 3 Part C.

Since such redistribution of funds shall

happen only after the maturity of the

policy term, it will not be termed as

“bulk exits” and “surrender”, hence,

provisions of Market Value Adjustment

(MVA) shall not be attracted. Further

since vesting/ withdrawal from

invested funds by the “Trust” for

purchase of annuities by beneficiaries

is NOT termed as “bulk exits” and

“surrender”, provisions of Market

Value Adjustment (MVA), in such

cases, shall not be attracted. Those of

the insurance companies who agree to

this condition in to-to will be preferred

for selection as fund manager for bulk

of the funds since it is clearly in

advantage of the trust & retired

employees.

Accordingly on or after 31.05.2017,

funds initially placed and also periodic

contribution placed for more than one

year shall be re-distributed amongst

the fund managers. The respective

Insurance Company(s) will have to

provide waiver of the applicability of

Market Value Adjustment (MVA) in

cases of withdrawal of funds which

were placed for a period of more than

one year and being withdrawn for re-

distribution.

3 Returns to fund invested shall be net of

all charges hence, there shall be no

separate fund management charges,

4 The empanelled period being initially

for five years, there shall be no

surrender charges.




CORPORATE OFFICE

5 There shall be no entry and exit

charges/ load.

6 Since no brokerage is involved, there

shall be no administrative charges

7 Initial the policy term will be upto

31.05.2017. Thereafter, the policy

shall be renewed on annual basis

during the empanelled period of five

years.

8 There shall be No Lock-In period

9 Interest accrued on fund invested on

annual basis shall be inclusive of

Minimum Floor Rate, non-negative

additional interest and non negative

residual additions and any other

additions, if any.

10.1 Insurance companies interested in

appointment as ‘Fund Manager’, as a

Pre-Qualification, must have IRDA

approved annuity product with options

LA-ROC & JLA ROC, as Group/ retail

product.

10.2 Insurance companies interested in appointment as ‘Annuity Provider’, as a Pre-Qualification, must have IRDA approved annuity product with two options viz. LA-ROC,JLA- ROC, as Group product. For appointment as Annuity Provider only these two annuity options shall be evaluated.

However, besides these two options,

insurance companies may also offer

annuity options of Life Annuity( LA)

and Joint Life Annuity (JLA) as group

annuity product. No other annuity

options is permissible to be offered to

beneficiaries.




CORPORATE OFFICE

11 Consent for the conditions stipulated at

Annexure-1 for Appointment as Fund

Manager.

12 Consent for the conditions stipulated at

Annexure-2 for Appointment as

Annuity Provider

13. Insurance company is Not “Black-

Listed” by any other CPSE/ Central

Govt. organization. If it comes to the

notice that the bidder had suppressed

the facts in this regard and it has in fact

been “Black-Listed” by any of the

CPSE/ Central Govt. organization,

insurance give consent that the fund

invested with such an insurance

company can be withdrawn and such

an insurance company will provide

interest as per last declared rates till

the date of withdrawal funds. However

the annuities issued to beneficiaries

will not get affected.

I. Copies of the following relevant documents are enclosed: i. Copy of Certificate of Incorporation, ii. Copy of commencement of Business,

iii. IRDA Certificate of Registration with date of Renewal, iv. Details of Joint venture Partner with Share Holding including foreign partner, v. Name of PSU clients for Employees Superannuation benefits i.e. pension, gratuity, leave

encashment only. Copies of such empanelment arrangements, vi. Copy of IRDA approval Group Pension Product with UIN No. , vii. Details of solvency margin,

viii. Number of years experience in providing Annuities, ix. Details of branches which will be servicing to BHEL employees x. No-Deviation Certificate as per Annexure 7.

xi. Confirmation of IRDA guidelines as per Annexure 8. xii. Certificate confirming that the Insurance Company has not been black-listed by any other

CPSE and / or Central Government Organization as per Annexure 9. .

(Signature of Appointed Actuary of the Company under seal)

(Signature of CEO/CFO of the Company under seal)




CORPORATE OFFICE

Annexure 6 (ii)

PROFORMA FOR PART- II – EVALUATION OF OFFER FOR APPOINTMENT AS FUND

MANAGER / ANNUITY PROVIDER

Part Two – Evaluation for empanelment as Fund Manager- Cum – Annuity Provider

Insurance Companies, having affirmative answers to conditions stipulated in Pre-Qualification, will

only qualify for the evaluation for empanelment as Fund Manager cum annuity providers. Such

qualifying Insurance Companies will be evaluated for appointment as Fund Manager and Annuity

Provider separately:

A. Evaluation for empanelment as Fund Manager – 100 marks

S.No. Criteria Weightage Parameter / verification Details submitted

by the Insurance

Company

Marks awarded



(As on 31.03.2014)




by IRDA

25 Group Traditional (Fund


Management other than

Annuity. This shall

comprise of AUM of

Employer-employee

related policies only.



(Annuity Only)

(For

informatio

n only)

Group Traditional(Fund


Management

(Annuity)


(As on 31.03.2014)


3. Returns/ interest declared in traditional plans for a corpus invested on actual case basis (other than guaranteed

returns) ( Insurance Company shall provide evidence in the format given along with contact details for placement

of funds of having been appointed as Fund Managers for the specified corpus against which the returns are being

furnished by them. Wherever evidence in the form of work order for placement of funds is not attached, the same

will be treated as NIL and ranked accordingly.)

The sealed envelope shall be super scribed “Part-II : Evaluation for empanelment as

Fund Manager- Cum - Annuity Provider”.

Note: Insurance Companies have to fill in information in- Part A Evaluation for

empanelment as Fund Manager & Part –B Evaluation for empanelment as Annuity

Provider.




CORPORATE OFFICE

For evaluation for appointment as ‘Fund Manager’, funds invested as ‘Pension Funds’ are only to be reckoned.

Average return of only Non- Guaranteed returns are to be provided for evaluation.

*Since new pension products were not vogue during entire FY 2013-14 with most of insurance companies, all insurance

companies shall furnish returns in respect of the last four quarters, ending 31.12.2014 for new products

i). Upto 25 Crs.

2011-12:

2.25

Avg. annual Interest

accrued in last three FY

2011-12 (old products),

2012-13 (Old products),

2013-14* (New products)

2011-12

2012-13 :

2.25

2012-13

2013-14 :

4.50

2013-14

ii). Above 25 Crs. to 50 Crs 2011-12:

2.75






2011-12

2012-13 :

2.75

2012-13

2013-14 :

5.50

2013-14

iii). Above 50 Crs. to 100 Crs. 2011-12:

3.25






2011-12

2012-13 :

3.25

2012-13

2013-14 :

6.50

2013-14

iv). Above 100 Crs. to 200 Crs. 2011-12:

3.75






2011-12

2012-13 :

3.75

2012-13

2013-14 :

7.50

2013-14

v). Above 200 Crs 2011-12:

4.25






2011-12

2012-13 :

4.25

2012-13

2013-14

:8.50

2013-14




CORPORATE OFFICE

Format for reference for clients:

Corpus invested Fin.Year Rate of actual

interest /

returns

declared

Nature of

return

(Non

Guaranteed/

Guaranteed)

Name of client Contact details

of client (Ph.

No.)

Address

details






CORPORATE OFFICE

Annexure-6 (iii)

B. Evaluation for empanelment as Annuity Provider – 100 marks

S.No. Criteria Weight-age Parameter Details submitted by the

Insurance Company

Marks

awarded


Plans- Asset Under

Management (As on

31.03.2014)

Note: Such group traditional

plans may be having different

names in Companies as per

Product Approval by IRDA

30 Group Traditional

(Fund Based) Plans-

Asset Under

Management other

than Annuity. This

shall comprise of

AUM of Employer-

employee related

policies only.


Plans- Asset Under

Management (Annuity Only)

(only for

information)

Group

Traditional(Fund

Based) Plans- Asset

Under Management

(Annuity)

2. Net worth net of accumulated

losses (As on 31.03.2014)

10 Annual Report

Disclosures

3. Avg. annuity rates for last

three years per hundred

rupees of corpus (without any

incentive on amount of

corpus)

Reference age for

returns/rates: 60 Years

(only for

information)

Avg. return in last

three fin. Yrs.

2011-

12

2012-

13

2013-14

i). Life Annuity with Return of

capital

20 Avg. return in last

three fin. Yrs.

ii). Joint Life Annuity with Return

of capital

20 Avg. return in last

three fin. Yrs.

3 Incentive on individual corpus

3(i) Less than ₹ 250000/- 2 Additional Avg.

return in last three

fin. Yrs.

The sealed envelope shall be super scribed “Part-II : Evaluation for empanelment as

Fund Manager- Cum - Annuity Provider”.

Note: Insurance Companies have to fill in information in- Part A Evaluation for

empanelment as Fund Manager & Part –B Evaluation for empanelment as Annuity

Provider.




CORPORATE OFFICE

3(ii) ₹ 250,000/- to ₹499,999/- 2 Additional Avg.


fin. Yrs.

3(iii) ₹5,00,000/- to 7,49,999/- 2 Additional Avg.


fin. Yrs.

3(iv) ₹ 8,00,000/- & ₹9,99,999/- 2 Additional Avg.


fin. Yrs.

3(v) ₹10,00,000/- & above 2 Additional Avg.


fin. Yrs.

4. Incentive on total corpus remitted during the year

4(i) Less than ₹ 2.5 Crs. 2 Additional Avg.


fin. Yrs.

4(ii) Above ₹ 2.5 Crs up to ₹ 10 Crs. 2 Additional Avg.


fin. Yrs.

4(iii) Above ₹ 10 Crs. upto 25 Crs 2 Additional Avg.


fin. Yrs.

4(iv) Above ₹ 25 Crs. upto 50 Crs 2 Additional Avg.


fin. Yrs.

4(v) Above ₹ 50 Crs. upto 100 Crs 2 Additional Avg.


fin. Yrs.






CORPORATE OFFICE

Annexure – 7

NO DEVIATION CERTIFICATE

Notwithstanding anything mentioned in our EOI, we hereby accept all the terms and

conditions of BHEL’s EOI document and we do not have any deviation to this EOI document.

We hereby undertake and confirm that we have understood the scope of work and all the

terms & conditions properly and shall carry out the work as mentioned in this EOI document.

It is also confirmed that any deviation mentioned at any place other than this certificate shall

not be considered and treated as null and void.

For and on behalf of Insurance Company

Date:

Place: Signature of CEO/CFO:




CORPORATE OFFICE

Annexure – 8

CONFIRMATION TO IRDA / INSURANCE ACT GUIDELINES

I, _______________________________________________________________ hereby certify on behalf of ……………………………………………………… that our EOI/ Proposal no………………………………………. dated……………..against BHEL’s EOI document fully confirms to the Insurance Act/ IRDA and applicable guidelines. We further confirm that in the event of disclosure at a later stage that the same is in breach and BHEL is put to any disadvantage or face cancellation of the Policy or any claim becomes substandard/ untenable, the whole liabilities arising out of this shall lie wholly on us and we will bear all consequences thereof. It is further certified that I am the duly authorized representative of the Insurance Company.

For and on behalf of Insurance Company

Date:

Place:

Signature of CEO/CFO




CORPORATE OFFICE

Annexure- 9

DECLARATION REGARDING BLACKLISTING/NON BLACKLISTING FROM TAKING PART IN TENDER ANY OTHER CPSE AND /OR CENTRAL GOVT. ORGANIZATION

I / We CEO of M/S. --------------------------------------- hereby declare that the firm/company namely M/S.-------------------------------------- ---------------------------------------has not been blacklisted or debarred in the past by any other CPSE and / or Central Govt. organization from taking part in tenders.

Or I / We CEO of M/S ---------------------------------------- hereby declare that the company namely M/S--------- --------------------------------------- was blacklisted or debarred by CPSE named ________ and / or Central Govt. organization, named ____________________ from taking part in its tenders for a period of ---------- years w.e.f.--------- --------. The period is over on --------------and now the company is entitled to take part in tenders. In case the above information found false I/We are fully aware that the tender/ contract/ EOI offer/ will be rejected/cancelled by the Trust/ BHEL and the Insurance Company will automatically cease to be a Fund Manager & /or Annuity Provider. I/We also undertake that the fund invested with the insurance company shall be remitted to Trust along with the interest accrued based on last declared rates within 3 days of receipt of the communication from BHEL/Trust and such withdrawal will not attract Market Value Adjustment (MVA). It is further, understood that the Insurance Company shall be liable for suitable action in line with the BHEL’s Policy. However the annuities issued to beneficiaries will not get affected.

Signature ------------------------- Name ---------------------------------

CEO/CFO: ---------------------------------

Name & address of the firm: -------------------------------------




CORPORATE OFFICE

Annexure-10

CHECKLIST FOR SUBMISSION OF EOI

Sl. No. Description/Item Yes/ No

1 (a). Submission of Documents and information required for ascertaining the

qualification and ranking of the firm as per Part- I Technical cum

Commercial Offer enclosing copies of relevant documents (Ref.

Annexure- 2 & 6 (i) )

1(b). Documents and information required for ascertaining the qualification

and ranking of the firm as per Part –II Evaluation Offer for empanelment

as Fund Manager cum Annuity Provider (Ref. Annexure- 3; Ref. Part A

of Annexure- 6 (ii) )/ (Ref. Part B of Annexure-6 (iii))

1 ( c) Compliance of Tender Submission Procedure – e.g. Separate sealed

envelopes for two part bids etc. (Ref. Annexure-2)

3. Signed No Deviation Certificate & Acceptance of Terms & Conditions

(Ref. Annexure- 7)

4. Signed Certificate of declaration for confirmation of IRDA Guidelines/ Insurance Act (Ref. Annexure 8)

2. Signed Integrity Pact ( Ref. Annexure 5)

3. Signed certificate the firm is NOT “Black-Listed” by any CPSE/Central

Govt. Organization. (Ref. Annexure-9)




CORPORATE OFFICE

Annexure-11 Examples for initial allocation of Funds and subsequent re-distribution

Criteria Ins. Company X Y Z A B C D E

Method & example of Initial assessment for funds upto 31.05.2017

Group AUM (weihtage:25) 1 2 4 5 3 7 6 8

Marks (AUM) 25 50 100 125 75 175 150 200

Net worth Weightage 10) 1 3 4 2 6 7 8 5

Marks ( Net worth) 10 30 40 20 60 70 80 50

Marks (Retrurns) Based on returns of past three yrs. & weightage)

251.75 171.25 267.25 153.75 188.75 456 471.5 412.75

Total (Overall) 286.75 251.25 407.25 298.75 323.75 701 701.5 662.75

Overall ranking 2 1 5 3 4 7 8 6

Initial Corpus e.g. ₹ 600 Crs.

Ratio of distribution of funds 29%, 24%, 19%, 14% and 9 %

144 174 54 114 84 - - -

Note: Upto the period 31.05.2017, quarterly contribution of the company shall be distributed in same ratio

Method & example of Subsequent assessments beyond 31.05.2017 & thereafter on annual basis

Group Traditional (Fund Based) Plans- Asset Under Management (During Last FY on the date of re-assessment) Weightage: 25) (ranking)

1 2 4 5 3

Marks (AUM) 25 50 100 125 75

Net worth net of accumulated losses( Weightage: 10) (ranking)

1 3 4 2 6

Marks ( Net worth) 10 30 40 20 60

Net %age returns during last one year on corpus invested ( Weightage65)

8.75 8.75 9 9.25 9.5

Net returns ranking 4 4 3 2 1

Net worth marks 260 35 26.25 18 9.25

Overall marks 295 115 166.25 163 144.25

5 1 4 3 2

Total fund for redistribution ( ₹ 600/- Crs. corpus+ ₹ 54.30 Crs. interest)

%age allocation extrapolated to 100% 9.47 30.53 14.74 20 25.26

Actual distribution 62.00 200 96.00 131.00 165.30

BHARAT HEAVY ELECTRICALS LIMITED CORPORATE OFFICE 17 01 2015EOI.pdf · · 2015-01-19BHARAT HEAVY...

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