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 […]
Employee retention is a constant concern for organisations. A group pension plan can help in this goal. It suggests the organisation’s long-term interest in the welfare of its employees. Thus, a group pension plan is a good investment for an organisation. However, picking the ideal group pension plan for your organisation can be confusing. This […]
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 is a form of retirement benefit that employers offer to employees. This may be the result of government mandates or could be an incentive for employee retention. Types of superannuation plans India has two types of superannuation benefit plans. Defined-benefit plans These schemes have a defined benefit, fixed and known to the employees, based […]
An integral part of social security in India is superannuation benefits. These are available in different formats. Employers can compare and identify the best plans available that they can then offer their employees. In India, Superannuation plans come in two main types: for accumulating retirement savings and for generating pension after retirement. Post-retirement benefit plans […]
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 […]
