Pension plans provide financial security as well as gives an opportunity to invest and accumulate savings and get lump sum amount at regular intervals through annuity plan on retirement. Pension reform to the National pension scheme offers a large variety of investment options to employees. The New Pension Scheme available to all Indian citizens structurally […]
There are many factors that can enhance or decline the chances of your employees sticking to the organisation. A good pension plan is one of them. While subscribing for the plan there are many factors you will need to consider, to ensure a healthy retirement solution for your employees. Following are some of the important […]
Pre-Independence Pension System The British started the pension system in India after the Indian struggle for independence in 1857. This was the reflection of the pension scheme then prevailing in Britain. But the provisions of this system discouraged the employees for creating a financial cover for their post-retirement life. So, confronting to all these problems, […]
Superannuation refers to the retirement benefit offered to the working class. In India, there are two types of superannuation benefits: Defined Benefit Plans: These schemes have a defined benefit which is fixed and known to the employees based on their service, rank and final salary. These are more popular among the employees, since regardless of […]
Superannuation being one integral aspect of social security is available as a product to the employers at different benefit rates in India. Employers have a market where they can compare and hitherto identify the best plans available. While the pre-retirement accumulation plans are offered by the Central Govt. Authority, the post-retirement annuities can be bought […]
National Pension Scheme (NPS) is a Government program under The National Pension System of India. The scheme looks forward to securing employees post retirement. The Government of India adopted the system from 1st January 2004. Under the NPS, every candidate has to acquire PRAN (permanent retirement account number) for the allotment of eligibility. In the […]
Annuities can be categorized in following three ways: Starting Time of the Annuity Type of Pension Amounts offered Type of Pension Scheme Annuities based on Starting Time Deferred Annuity – Your investment is made into a fund (of your choice) which keeps growing for a chosen period of time. You can choose the time when […]
The tax structure of superannuation fund is as follows: Tax on Contribution to Superannuation Fund An employee’s contribution to the superannuation fund is exempted from tax up to Rs. 1.5 Lakh (for F.Y. 2016-17) under section 80C. Interest accrued on the superannuation fund investment is not taxable. Employer’s contribution to the superannuation fund of an employee […]
There are various expenses or charges levied on a group superannuation plan, which need to be paid. Have a look at some of the expenses/charges applicable in the plan – Fund Management Charges – These are those charges which are deducted from the policy account at the end of each quarter or at the time […]
Though in most of the cases, the benefits under group superannuation is payable only at the time of retirement, there are some incidents where group superannuation benefit may be payable. Here are those- At the time of retirement – For starters, we are covering this benefit as well. You always have an option to use […]
