Hi Friends, Can anybody give me the brief idea of the Superannuation? :?
From India, Mumbai
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10From India, Mumbai
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Dear Seniors Please give your version on Annuties and super annuties and their calculations and their reflections on employee benefits! Waiting for your kind reply! A N A N D A
From India, Bangalore
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From India, Bangalore
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Hi,
All the benefits, arrears, compensations (if any), to be more precise, the final settlement made financially for an employee on his retirement is known as Superannuation.
I hope you get a clear picture.
Regards,
Satya
From India, Hyderabad
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All the benefits, arrears, compensations (if any), to be more precise, the final settlement made financially for an employee on his retirement is known as Superannuation.
I hope you get a clear picture.
Regards,
Satya
From India, Hyderabad
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Hi!
Here is some information on Superannuation Fund.
a) Superannuation Fund is a retirement benefit given to employees by the Company.
b) Normally, the Company has a link with agencies like LIC Superannuation Fund, where their contributions are paid.
c) The Company pays 15% of basic wages as superannuation contribution. There is no contribution from the employee.
d) This contribution is invested by the Fund in various securities as per the investment pattern prescribed.
e) Interest on contributions is credited to the member's account. Normally, the rate of interest is equivalent to the PF interest rate.
f) On attaining the retirement age, the member is eligible to take 25% of the balance available in his/her account as a tax-free benefit.
g) The balance of 75% is put in an annuity fund, and the agency (LIC) will pay the member a monthly/quarterly/periodic annuity return depending on the option exercised by the member. This payment received regularly is taxable.
h) In the case of the resignation of the employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a Superannuation scheme, then the employee can withdraw the amount in the account, subject to the deduction of tax and approval of the IT department, or retain the amount in the Fund until the superannuation age.
Normally, Companies do not extend the Superannuation benefits to all employees but only to a specific category of employees - for example, Level-1 of Managers onwards.
Hope the above has shed sufficient light on the topic of Superannuation.
Regards,
P. Arun Kumar
From India, Bangalore
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Here is some information on Superannuation Fund.
a) Superannuation Fund is a retirement benefit given to employees by the Company.
b) Normally, the Company has a link with agencies like LIC Superannuation Fund, where their contributions are paid.
c) The Company pays 15% of basic wages as superannuation contribution. There is no contribution from the employee.
d) This contribution is invested by the Fund in various securities as per the investment pattern prescribed.
e) Interest on contributions is credited to the member's account. Normally, the rate of interest is equivalent to the PF interest rate.
f) On attaining the retirement age, the member is eligible to take 25% of the balance available in his/her account as a tax-free benefit.
g) The balance of 75% is put in an annuity fund, and the agency (LIC) will pay the member a monthly/quarterly/periodic annuity return depending on the option exercised by the member. This payment received regularly is taxable.
h) In the case of the resignation of the employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a Superannuation scheme, then the employee can withdraw the amount in the account, subject to the deduction of tax and approval of the IT department, or retain the amount in the Fund until the superannuation age.
Normally, Companies do not extend the Superannuation benefits to all employees but only to a specific category of employees - for example, Level-1 of Managers onwards.
Hope the above has shed sufficient light on the topic of Superannuation.
Regards,
P. Arun Kumar
From India, Bangalore
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Thanks Mr. Arun for thebrief idea of the super annuation. Do employer have to file any Half Yearly or Yearly returns of superannuation? and to whome? Shweta
From India, Mumbai
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From India, Mumbai
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There are no statutory compliances regarding Superannuation Fund, such as periodic returns, etc. The company only has to ensure that the relevant rules pertaining to income tax are followed at the time of releasing or transferring the superannuation fund amount. Please refer to the points mentioned in my earlier email.
Regards,
P. Arun Kumar
From India, Bangalore
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Regards,
P. Arun Kumar
From India, Bangalore
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Dear Mr. Arunkumar,
Your email on Superannuation was quite comprehensive. However, I would like to draw your attention to a few points:
Point E) You have mentioned that the rate of interest is almost as much as the PF rates. With LIC, I have found that the rate of interest is decided by them based on not just the superannuation fund value, i.e., the amount paid to them for maintaining the superannuation fund of the company. In case the gratuity fund is also maintained with them, then the gratuity fund value and superannuation fund value are combined to provide the interest rate on the fund. They have different slabs for different fund sizes, and this varies every year.
Points F) & H) In my company, whether the person has resigned or retired for withdrawal from the fund with LIC, only 33% of the amount is allowed to be withdrawn from the fund. The rest is converted into capital for payment of annuities. Both the option of withdrawal and the option for annuities have to be clearly mentioned by the member for availing benefits. The annuity amount would vary depending on the age of the employee at the time of applying for annuity, individual fund size, and whether the option is for monthly, quarterly, half-yearly, or annual payments of annuity.
With warm regards,
Swapna
From India, New Delhi
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Your email on Superannuation was quite comprehensive. However, I would like to draw your attention to a few points:
Point E) You have mentioned that the rate of interest is almost as much as the PF rates. With LIC, I have found that the rate of interest is decided by them based on not just the superannuation fund value, i.e., the amount paid to them for maintaining the superannuation fund of the company. In case the gratuity fund is also maintained with them, then the gratuity fund value and superannuation fund value are combined to provide the interest rate on the fund. They have different slabs for different fund sizes, and this varies every year.
Points F) & H) In my company, whether the person has resigned or retired for withdrawal from the fund with LIC, only 33% of the amount is allowed to be withdrawn from the fund. The rest is converted into capital for payment of annuities. Both the option of withdrawal and the option for annuities have to be clearly mentioned by the member for availing benefits. The annuity amount would vary depending on the age of the employee at the time of applying for annuity, individual fund size, and whether the option is for monthly, quarterly, half-yearly, or annual payments of annuity.
With warm regards,
Swapna
From India, New Delhi
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If the employer leaves the company within 2 years and joins a new company, will they be eligible to withdraw the superannuation amount from the old company? Is there a facility to transfer this amount to the new employer from the old employer?
Please reply to this.
Regards,
Chidanand
From India, Bangalore
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Please reply to this.
Regards,
Chidanand
From India, Bangalore
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[HTML] c) The Company pays 15% of basic wages as a superannuation contribution. There is no contribution from the employee.[/HTML]
Hi,
Can I get the section number and rule number, i.e., legal text to support this? My employer is deducting 27% of the basic amount every month from each employee's salary. They also mention that legally, this amount can only be paid after a minimum of 5 years of completion of service with the same company. Is this information correct?
Thanks,
Saurabh
From India, Delhi
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Hi,
Can I get the section number and rule number, i.e., legal text to support this? My employer is deducting 27% of the basic amount every month from each employee's salary. They also mention that legally, this amount can only be paid after a minimum of 5 years of completion of service with the same company. Is this information correct?
Thanks,
Saurabh
From India, Delhi
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How is superannuation paid in the following cases:
(i) Employee resigns after a year of service
(ii) Employee resigns after five years of service but before retirement?
(iii) Employee resigns after ten years of service but before retirement?
Hari
From India, Delhi
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(i) Employee resigns after a year of service
(ii) Employee resigns after five years of service but before retirement?
(iii) Employee resigns after ten years of service but before retirement?
Hari
From India, Delhi
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Hi Arun,
I want to know the procedure for withdrawal and transfer of Superannuation contributions. Suppose an employee has changed his job and wants to transfer his superannuation, what does he have to do? Is there any form to be filled, and to whom does he have to submit the form? Please provide the details in this forum, and it would be kind of you to send details to my ID -
.
Regards, Naveen
From India, Visakhapatnam
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I want to know the procedure for withdrawal and transfer of Superannuation contributions. Suppose an employee has changed his job and wants to transfer his superannuation, what does he have to do? Is there any form to be filled, and to whom does he have to submit the form? Please provide the details in this forum, and it would be kind of you to send details to my ID -
Regards, Naveen
From India, Visakhapatnam
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In case the reitrement of an Employee is extended, what are the changes in the policies that will be made for him after 58 ( if this is the retirement age )
From India, Delhi
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From India, Delhi
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In my company, we do not have this superannuation scheme. One of my employees was previously working for a different company where he had the superannuation scheme. So now he wants to withdraw it. Can he withdraw this amount? Will it be taxable, or is it safe to keep the amount in his previous company only, which he can claim once he retires? Please guide me on this.
From India, Pune
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From India, Pune
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Dear Friends,
I am facing a specific problem in connection with the recent job change. If anyone can give me the right advice, it will be a great help.
1. My company has deducted Rs. 40,000 per year towards superannuation for 3 years. But when I left, in my claim of full and final, I mentioned this amount. However, they say it is a retirement benefit which I can't claim. I asked them to provide me with the Superannuation fund details on which they have deposited my superannuation amount, but they are not ready to provide that. I found out that there is no such fund, and it was just an appointment/revision letter gimmick. Is there any legal way through which I can get this money back?
2. There was an amount of Rs. 12,000 mentioned in the appointment/revision letters towards Gratuity. I know that gratuity is claimable only after 5 years. But at the same time, someone told me that gratuity cannot be part of CTC. It must be beyond any employee's contribution. Is there any way to get this money back?
3. My salary revision was due in the month of May 08. But they did it during the first week of October. It was mentioned that the salary revision is with effect from 1st May 2008. I accepted the revision letter by affixing my signature with date. However, when I left the company by the end of October and I claimed the full and final, I added this arrears as well. But when they settled the account, they didn't consider this arrears. A total sum of Rs. 90,000 was there towards this arrears.
Can anyone give me the right advice on how to proceed on the above points to get this money back? It is not a small amount.
Please help.
Pr
From India, Bangalore
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I am facing a specific problem in connection with the recent job change. If anyone can give me the right advice, it will be a great help.
1. My company has deducted Rs. 40,000 per year towards superannuation for 3 years. But when I left, in my claim of full and final, I mentioned this amount. However, they say it is a retirement benefit which I can't claim. I asked them to provide me with the Superannuation fund details on which they have deposited my superannuation amount, but they are not ready to provide that. I found out that there is no such fund, and it was just an appointment/revision letter gimmick. Is there any legal way through which I can get this money back?
2. There was an amount of Rs. 12,000 mentioned in the appointment/revision letters towards Gratuity. I know that gratuity is claimable only after 5 years. But at the same time, someone told me that gratuity cannot be part of CTC. It must be beyond any employee's contribution. Is there any way to get this money back?
3. My salary revision was due in the month of May 08. But they did it during the first week of October. It was mentioned that the salary revision is with effect from 1st May 2008. I accepted the revision letter by affixing my signature with date. However, when I left the company by the end of October and I claimed the full and final, I added this arrears as well. But when they settled the account, they didn't consider this arrears. A total sum of Rs. 90,000 was there towards this arrears.
Can anyone give me the right advice on how to proceed on the above points to get this money back? It is not a small amount.
Please help.
Pr
From India, Bangalore
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I was covered under superannuation scheme at L&T from 2000 to 2005. I left them in 2006. Now they are telling that I am not eligible to receive the money accumulated under the scheme. Is it correct?
From India, Lucknow
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From India, Lucknow
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nice discussion thnks arun for ur valuble suggestion . Do u know which year the super annuation is started? or any act is there related to this. kindly explain.
From India, Madras
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From India, Madras
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Dear All,
I would like to highlight some more things on the Superannuation benefit.
Superannuation is basically what we call a pension on retirement. The Life Insurance Corporation is the biggest institution selling pension annuities to various companies and sending pensions directly to the bank account of pensioners. Almost all the companies, other than state and central Govt concerns, have their pension arrangements with LIC. Any company can arrange a pension through LIC subject to the following conditions:
There must be a Trust Deed and Rules of the Fund approved by the Income Tax authority having jurisdiction over the Company. There must be a Board of Trustees of the Fund as per the rules of the Fund and a Fund Manager who will advise LIC about annuity purchases, widow pension, and refund of the capital sum. It is not necessary that contributions have to be 15%, but as per IT Rule, the maximum contribution for the pension fund is 15%, on which the company will get tax benefits. As per the IT Act, the total contribution put together PF and pension, on which a Company gets tax benefits, is 27%. Since PF covers 12%, which is statutory, the maximum allowable limit for pension contribution is 15% of the basic salary. Since Superannuation is not a statutory matter, the lower limit can be anything, which depends on the Company. The Scheme broadly can be of two types - DB scheme (Defined Benefit) and DC (Defined contribution). Under the DB scheme, the contribution is paid to LIC based on Actuarial Valuation, while under DC, straightaway contributions as per fund rule can be remitted to LIC. However, when you start the fund, you have to value the liability actuarially by submitting data to LIC. The interest earned by the pension fund is not like PF and much lower than 12%. The current LIC rate of interest is between 7-7.5%. Under the DB scheme, pension and the capital sum are determined based on the last salary of the retiree and LIC annuity rate. Under DC, the accumulated sum is the capital sum, but the quantum of pension is determined by the available LIC annuity rate. The age of the pensioner and his spouse is taken into consideration for the annuity rate. One can opt for 2/3rd widow pension on his death or can opt for a refund of the capital sum to the nominee on his death. A person can commute 1/3rd of his pension, which is 33% of the pension. The pension, once fixed, is fixed for life. Like Govt pension, it is not DA-linked, and thereby it does not increase at any point in time. Pensioners have to submit a Life Certificate as per LIC requirements.
There are many other things you have to take into consideration when you set up a superannuation fund which cannot be explained here. These are only a few important points.
From India, Calcutta
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I would like to highlight some more things on the Superannuation benefit.
Superannuation is basically what we call a pension on retirement. The Life Insurance Corporation is the biggest institution selling pension annuities to various companies and sending pensions directly to the bank account of pensioners. Almost all the companies, other than state and central Govt concerns, have their pension arrangements with LIC. Any company can arrange a pension through LIC subject to the following conditions:
There must be a Trust Deed and Rules of the Fund approved by the Income Tax authority having jurisdiction over the Company. There must be a Board of Trustees of the Fund as per the rules of the Fund and a Fund Manager who will advise LIC about annuity purchases, widow pension, and refund of the capital sum. It is not necessary that contributions have to be 15%, but as per IT Rule, the maximum contribution for the pension fund is 15%, on which the company will get tax benefits. As per the IT Act, the total contribution put together PF and pension, on which a Company gets tax benefits, is 27%. Since PF covers 12%, which is statutory, the maximum allowable limit for pension contribution is 15% of the basic salary. Since Superannuation is not a statutory matter, the lower limit can be anything, which depends on the Company. The Scheme broadly can be of two types - DB scheme (Defined Benefit) and DC (Defined contribution). Under the DB scheme, the contribution is paid to LIC based on Actuarial Valuation, while under DC, straightaway contributions as per fund rule can be remitted to LIC. However, when you start the fund, you have to value the liability actuarially by submitting data to LIC. The interest earned by the pension fund is not like PF and much lower than 12%. The current LIC rate of interest is between 7-7.5%. Under the DB scheme, pension and the capital sum are determined based on the last salary of the retiree and LIC annuity rate. Under DC, the accumulated sum is the capital sum, but the quantum of pension is determined by the available LIC annuity rate. The age of the pensioner and his spouse is taken into consideration for the annuity rate. One can opt for 2/3rd widow pension on his death or can opt for a refund of the capital sum to the nominee on his death. A person can commute 1/3rd of his pension, which is 33% of the pension. The pension, once fixed, is fixed for life. Like Govt pension, it is not DA-linked, and thereby it does not increase at any point in time. Pensioners have to submit a Life Certificate as per LIC requirements.
There are many other things you have to take into consideration when you set up a superannuation fund which cannot be explained here. These are only a few important points.
From India, Calcutta
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Hi all,
The following write-up on superannuation from a leading insurance company would be useful to all of you, I hope.
Best regards,
Niranjan R
Group Superannuation Scheme
An organization today not only has to fill various positions with competent and trained personnel but also has to create an environment where they can give their best, derive a sense of well-being, fulfillment, security, and take pride in their continued association with the organization. The provision of a pension may be an attraction for individuals to continue in the organization and contribute their best, as with the continuous improvement in longevity, a regular income even after retirement has become a necessity. To provide pension benefits to employees, an employer has two alternatives under the provisions of Rule 89 of the Income Tax Rules 1962.
1. Create a privately managed trust fund and purchase annuity from an insurance company to provide a pension for retiring members.
2. Entrust the management of the Pension Fund to an insurer by purchasing its Group Superannuation Scheme.
ADVANTAGES OF THE MANAGED PENSION FUND:
Group Insurance in conjunction with the Group Superannuation Scheme can be taken by an organization to provide an attractive lump sum payment on the unfortunate death of a member while in service at a very nominal cost.
The employer contributes a certain fixed percentage of the salary of each member. These contributions are accumulated by the fund manager, and the accumulated amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1. ON RETIREMENT:
Upon retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per their choice.
2. ON DEATH:
The pension is payable based on the life of the beneficiary. The corpus is utilized towards the payment of the pension type the beneficiary may opt for, and the benefit received is tax-free. A lump sum is payable by way of death, besides the pension, if the employer has taken the Group Insurance Scheme in conjunction with the Group Superannuation Scheme.
3. ON WITHDRAWAL:
The member can transfer the equitable interest to the Superannuation Scheme of the new employer or opt for immediate or deferred pension.
PENSION OPTIONS:
- Life Pension ceasing at death.
- Life Pension with Return of Capital and Group Pension Terminal Bonus on death.
- Life Pension guaranteed for 5, 10, 15, or 20 years and life thereafter.
- Joint Life Pension payable on the last survivor of the employee and spouse.
- Joint Life Pension payable to the last survivor of the employee and spouse with the return of capital on the death of the last survivor. If desired, 1/3rd of the pension can be commuted at vesting.
ELIGIBILITY CONDITION:
It is not obligatory or statutory for the employer to provide a pension to all employees. It is entirely up to the employer to decide which class/classes of employees to extend the scheme to. The eligibility conditions may be defined based on designation or salary. However, after the categories are specified, the employer cannot discriminate between employees and must extend the scheme uniformly.
CONTRIBUTION:
The maximum annual contribution that an employer can make to the Pension Fund and Provident Fund is restricted by the Income Tax Provisions to 27% of the annual salary (basic plus D.A.). The annual contributions are treated as deductible business expenses.
WHO PAYS CONTRIBUTION?
Mostly, the employer contributes, but if desired, both the employer and the employees may contribute, in which case the scheme is called a Contributory Pension Fund Scheme.
TAX BENEFITS:
The provisions relating to the approved Superannuation Scheme are set out in Part 'B' of the Fourth Scheme of the Income-Tax Act, 1961, and Part XIII of the Income Tax Rules, 1962. The income tax concession will be available only if the scheme is approved by the CIT.
The annual contribution is treated as a deductible business expense in terms of Section 36(1)(iv) of the I.T. Act.
In terms of a Notification issued by the Central Board of Direct Taxes, 80% of the contributions towards the past service liability are treated as deductible business expenses spread over the subsequent years of payment.
The employee's contribution, in the case of the Contributions scheme, qualifies for exemption under Section 80C of the Income-Tax Act.
GROUP INSURANCE SCHEME IN CONJUNCTION WITH SUPERANNUATION SCHEME:
The members of the Group Superannuation scheme can be covered under Group Insurance in conjunction with a superannuation scheme to provide death risk cover while in service, subject to certain conditions.
From India, Madras
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The following write-up on superannuation from a leading insurance company would be useful to all of you, I hope.
Best regards,
Niranjan R
Group Superannuation Scheme
An organization today not only has to fill various positions with competent and trained personnel but also has to create an environment where they can give their best, derive a sense of well-being, fulfillment, security, and take pride in their continued association with the organization. The provision of a pension may be an attraction for individuals to continue in the organization and contribute their best, as with the continuous improvement in longevity, a regular income even after retirement has become a necessity. To provide pension benefits to employees, an employer has two alternatives under the provisions of Rule 89 of the Income Tax Rules 1962.
1. Create a privately managed trust fund and purchase annuity from an insurance company to provide a pension for retiring members.
2. Entrust the management of the Pension Fund to an insurer by purchasing its Group Superannuation Scheme.
ADVANTAGES OF THE MANAGED PENSION FUND:
Group Insurance in conjunction with the Group Superannuation Scheme can be taken by an organization to provide an attractive lump sum payment on the unfortunate death of a member while in service at a very nominal cost.
The employer contributes a certain fixed percentage of the salary of each member. These contributions are accumulated by the fund manager, and the accumulated amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1. ON RETIREMENT:
Upon retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per their choice.
2. ON DEATH:
The pension is payable based on the life of the beneficiary. The corpus is utilized towards the payment of the pension type the beneficiary may opt for, and the benefit received is tax-free. A lump sum is payable by way of death, besides the pension, if the employer has taken the Group Insurance Scheme in conjunction with the Group Superannuation Scheme.
3. ON WITHDRAWAL:
The member can transfer the equitable interest to the Superannuation Scheme of the new employer or opt for immediate or deferred pension.
PENSION OPTIONS:
- Life Pension ceasing at death.
- Life Pension with Return of Capital and Group Pension Terminal Bonus on death.
- Life Pension guaranteed for 5, 10, 15, or 20 years and life thereafter.
- Joint Life Pension payable on the last survivor of the employee and spouse.
- Joint Life Pension payable to the last survivor of the employee and spouse with the return of capital on the death of the last survivor. If desired, 1/3rd of the pension can be commuted at vesting.
ELIGIBILITY CONDITION:
It is not obligatory or statutory for the employer to provide a pension to all employees. It is entirely up to the employer to decide which class/classes of employees to extend the scheme to. The eligibility conditions may be defined based on designation or salary. However, after the categories are specified, the employer cannot discriminate between employees and must extend the scheme uniformly.
CONTRIBUTION:
The maximum annual contribution that an employer can make to the Pension Fund and Provident Fund is restricted by the Income Tax Provisions to 27% of the annual salary (basic plus D.A.). The annual contributions are treated as deductible business expenses.
WHO PAYS CONTRIBUTION?
Mostly, the employer contributes, but if desired, both the employer and the employees may contribute, in which case the scheme is called a Contributory Pension Fund Scheme.
TAX BENEFITS:
The provisions relating to the approved Superannuation Scheme are set out in Part 'B' of the Fourth Scheme of the Income-Tax Act, 1961, and Part XIII of the Income Tax Rules, 1962. The income tax concession will be available only if the scheme is approved by the CIT.
The annual contribution is treated as a deductible business expense in terms of Section 36(1)(iv) of the I.T. Act.
In terms of a Notification issued by the Central Board of Direct Taxes, 80% of the contributions towards the past service liability are treated as deductible business expenses spread over the subsequent years of payment.
The employee's contribution, in the case of the Contributions scheme, qualifies for exemption under Section 80C of the Income-Tax Act.
GROUP INSURANCE SCHEME IN CONJUNCTION WITH SUPERANNUATION SCHEME:
The members of the Group Superannuation scheme can be covered under Group Insurance in conjunction with a superannuation scheme to provide death risk cover while in service, subject to certain conditions.
From India, Madras
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You need to check with your company as companies decide the eligibility criteria and superannuation is not a statutory benefit
From India, Madras
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From India, Madras
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Hello all,
I will just point out one thing. The cash option in superannuation, which is called commutation, is 33.3% and not 25%. The balance of 66.6% is invested to buy an annuity to pay the annuitant a monthly pension.
From India, Calcutta
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I will just point out one thing. The cash option in superannuation, which is called commutation, is 33.3% and not 25%. The balance of 66.6% is invested to buy an annuity to pay the annuitant a monthly pension.
From India, Calcutta
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Dear Sir,
You mentioned that there is no contribution required from the employee and only the employer pays 15% of the basic salary into the superannuation fund. However, my company deducts over 5000 Rs. per month towards the superannuation fund. Can you please confirm if my understanding is correct?
My second question is regarding how I can check the balance of my superannuation or gratuity fund.
Thank you.
From India, Dehra Dun
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You mentioned that there is no contribution required from the employee and only the employer pays 15% of the basic salary into the superannuation fund. However, my company deducts over 5000 Rs. per month towards the superannuation fund. Can you please confirm if my understanding is correct?
My second question is regarding how I can check the balance of my superannuation or gratuity fund.
Thank you.
From India, Dehra Dun
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Dear Swapna,
The query raised by you for point (e) is correct. LIC looks at the combined value of the corpus (Available/Maintained Gratuity & Superannuation Fund) for deciding the rate of interest. They have defined slabs according to which they give interest on the corpus. A higher or lower rate of interest given by LIC is also dependent on the bargaining powers of the employer with LIC.
Point two of yours is customized by your company; it goes according to the trust deed with LIC. The trustee of the scheme must have imposed such a clause.
With the changing business scenario, most employers are bringing flexibility in the trust deed. Once upon a time, the Superannuation fund was used as a retention tool as the majority of employers were having a 3-year cap for claiming the superannuation fund.
Bringing flexibility in the trust deed requires the approval of the board of directors, and then an application is made to CIT (Commissioner of Income Tax). Once approval is obtained, trust deed variation is possible to make it more favorable to the employees or subscribers of the scheme.
From India, Rohtak
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The query raised by you for point (e) is correct. LIC looks at the combined value of the corpus (Available/Maintained Gratuity & Superannuation Fund) for deciding the rate of interest. They have defined slabs according to which they give interest on the corpus. A higher or lower rate of interest given by LIC is also dependent on the bargaining powers of the employer with LIC.
Point two of yours is customized by your company; it goes according to the trust deed with LIC. The trustee of the scheme must have imposed such a clause.
With the changing business scenario, most employers are bringing flexibility in the trust deed. Once upon a time, the Superannuation fund was used as a retention tool as the majority of employers were having a 3-year cap for claiming the superannuation fund.
Bringing flexibility in the trust deed requires the approval of the board of directors, and then an application is made to CIT (Commissioner of Income Tax). Once approval is obtained, trust deed variation is possible to make it more favorable to the employees or subscribers of the scheme.
From India, Rohtak
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Dear Sir,
I have applied for full & final settlement of Superannuation fund on 30.06.10 with Century Cement. But to my utter surprise my claim is rejected by company on 29.7.10 that as per rules of superannuation fund the member should have to complete minimum 5 years of service with organization. I was covered under the superannuation scheme from 1.12.2006 to 28.8.2008 at the age of 54 years and resigned due to illness on 28.8.2008 after completion of 56 years of age. Between these periods I have received a yearly statement of contribution also. I am not working with any organization. Now company is telling that I am not eligible. Kindly advice.
It would be great to receive replies also on my email –
Regards,
Kailash Jha
From India, Delhi
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I have applied for full & final settlement of Superannuation fund on 30.06.10 with Century Cement. But to my utter surprise my claim is rejected by company on 29.7.10 that as per rules of superannuation fund the member should have to complete minimum 5 years of service with organization. I was covered under the superannuation scheme from 1.12.2006 to 28.8.2008 at the age of 54 years and resigned due to illness on 28.8.2008 after completion of 56 years of age. Between these periods I have received a yearly statement of contribution also. I am not working with any organization. Now company is telling that I am not eligible. Kindly advice.
It would be great to receive replies also on my email –
Regards,
Kailash Jha
From India, Delhi
Acknowledge(0)Amend(0)
Dear Sir,
I have applied for full & final settlement of Superannuation fund on 30.06.10 with Century Cement. But to my utter surprise my claim is rejected by company on 29.7.10 that as per rules of superannuation fund the member should have to complete minimum 5 years of service with organization. I was covered under the superannuation scheme from 1.12.2006 to 28.8.2008 at the age of 54 years and resigned due to illness on 28.8.2008 after completion of 56 years of age. Between these periods I have received a yearly statement of contribution also.
I am not working with any organization. Now company is telling that I am not eligible.
The company might have taken advantage of this and claimed Income Tax rebate from IT dept on the contributions towards the Superannuation fund amount deposited on my name.
So if company cannot pay this amount to me then how company can get the benefit of tax rebate on the funds deposited.
Kindly advice ASAP.
It would be great to receive replies also on my email –
Regards,
Kailash Jha
From India, Delhi
Acknowledge(0)Amend(0)
I have applied for full & final settlement of Superannuation fund on 30.06.10 with Century Cement. But to my utter surprise my claim is rejected by company on 29.7.10 that as per rules of superannuation fund the member should have to complete minimum 5 years of service with organization. I was covered under the superannuation scheme from 1.12.2006 to 28.8.2008 at the age of 54 years and resigned due to illness on 28.8.2008 after completion of 56 years of age. Between these periods I have received a yearly statement of contribution also.
I am not working with any organization. Now company is telling that I am not eligible.
The company might have taken advantage of this and claimed Income Tax rebate from IT dept on the contributions towards the Superannuation fund amount deposited on my name.
So if company cannot pay this amount to me then how company can get the benefit of tax rebate on the funds deposited.
Kindly advice ASAP.
It would be great to receive replies also on my email –
Regards,
Kailash Jha
From India, Delhi
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Hi, Arun, Please tell me under which sub-section of section 10 of income tax act,the interest of superannuation fund is exempted for tax
From India, Kalyan
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From India, Kalyan
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I have been looking up the Superannuation documentation. It states that the Company pays 15% of basic wages as a superannuation contribution. There is no contribution from the employee. However, in the organization I work for, the same is being deducted from my CTC. Please let me know if this is correct. If this is wrongdoing by the organization, whom should I approach.
Thanks and Regards,
Andre Fernandes
From India, Mumbai
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Thanks and Regards,
Andre Fernandes
From India, Mumbai
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