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It is a proven fact that the driving force behind any organisation is its employees and the driving force behind these employees can be the assurance of a financially secured present and relaxed retired life in the future. As a responsible employer, it is important to think and chalk out a good retirement plan for your loyal employees. By doing so you can motivate your employees to work longer in your organisation and also establish your image as the most preferred employer. Today, organizations across the world help employees to safeguard their retirement era by providing various kinds of retirement benefits.
Superannuation plans have been one of the most common and successful long-term investment vehicle designed to provide money during retirement. Max New York Life's flexible Unit Linked Group Superannuation Plan provides a win-win situation to both the employer as well as the employee. This plan is easy to use and provides extra and great value for your hard earned money.
Superannuation Benefits can only be Payable on Occurrence of following Events, as per Trust Rules:
- Death
- Disablement resulting in termination of employment of a member
- Retirement
- Resignation
- Any other reason resulting in termination of employment of a member
Benefits Payable on Occurrence of Death or Disablement:
The benefit payable on the death or disablement of the member would be the account value existing in the voluntary contribution and main account of the member, on the date of intimation for occurrence of the event. The benefit payout options shall be at the discretion of the nominee or legal heir.
The Nominee/Legal Heir can choose either:
-100% accumulations to purchase annuities
Or
-100% withdrawals, as lump sum benefit with no tax implications
Or
- A part of the account value can be used to purchase annuities and rest can be withdrawn as lump sum benefit
Benefits Payable on Survival (Retirement & Resignation):
Under insured events such as Retirement, Resignation or Termination of Employment the trustees would provide following benefit options to the members:
- The applicable account value (as per trust rules), would be used to buy annuities from MNYL or from any other IRDA approved insurers.
- Commute maximum up to one-third (1/3) of the account value as immediate cash payment, and rest of the amount to be used to buy annuities as per above clause.
MNYL offers a fully featured flexible superannuation plan, which is both easy to use and provides extra and great value for your hard earned money. The product provides a win - win situation to both the employer as well as the employee. The tax benefits to the trust are availed by the employer (Employer's contribution is treated as Business Expense), whereas the employee is provided by a healthy retirement fund. The employee, as per the trust rules, can choose from various annuity options at the time of annuitization.
Advantages of MNYL Group Superannuation Plan
Great Value For Your Money
- Employer and Employee contributions in the first policy year will be allocated at 103%.
- No Entry Load or Allocation Charge During the entire Policy Life.
- From second policy year onwards, the contributions will be allocated at 100%.
Lower Charges
- Fund Management Charges on the funds available are competitive in the industry.
- No redirection charge and bottom low switch charges.
Easy To use & Understand
- Minimal of charge components
- Simple and transparent product design
- Flexibilities in investment by the Employer as well as employee - Switching & Redirections
Eligibility Criteria:
- Applicable to Groups
- Minimum Group Size is 25 Members
- Minimum Entry Age is 18 Years
- Maximum Entry Age is 64 Years
- Minimum annual Contribution is Rs. 6000/- per annum per member
- Maturity/ Retirement Age - as per Scheme Rules
Fund Options - Fund Type Description |
| Asset Types |
Conservative Fund (%) |
Balanced Fund (%) |
Growth Fund (%) |
| Govt. Securities |
50-80 |
20-50 |
0-30 |
Corporate Bonds
(Investment Grade) |
0-50 |
20-40 |
0-30 |
Cash/Call Money
Markets |
0-20 |
0-20 |
0-20 |
| Equities |
Nil |
10-40 |
20-60 |
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Annuity Option available from MNYL
At MNYL, options available under immediate annuity are as follows:
- Life Annuity i.e. the annuity is paid to the employee during its entire lifetime.
- Life Annuity + Return of Purchase Price on Death.
- Life Annuity but guaranteed for 5 or 10 or 15 or 20 Years
In future, MNYL may alter or add other annuity options.
Tax Benefits
- Initial Contributions as well as ordinary Annual contribution is allowed as a business expense for the employer (Sec 36 (1) (iv))
- In case ordinary annual contribution does not exceed Rs.100,000.00 per employee per annum, no Fringe Benefit Tax is payable by the employer on the amount of contribution
- Income received by trustees on behalf of an Superannuation Fund is exempt from tax. (Sec 10 (25) (iii))
- Ordinary Annual Contribution is not treated as income in the hands of the employees (Sec 17 (2) (v))
- Any contribution by employee to a superannuation fund will be entitled for deduction under section 80C
- Any payment made from an approved superannuation fund on death of the employee or to the employee in lieu of or in commutation of an annuity on or after retirement or on his becoming incapacitated prior to such retirement or by way of refund of contribution on the death of the employee is exempt from tax.( Section 10(13))
- Annuity payments are chargeable to tax.(Section 17(1)(ii))
- If an employee commutes the annuity before retirement or being incapacitated then the commuted value will be taxable in his hands at an average rate of tax for the preceding three years at which employee was liable to pay tax on his income.
- Additional Protection is available through riders for Critical Illness, Accidental Death Benefits, Disability and Dismemberment.
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