I am a little confused even after reading. Would really appreciate if someone could help me solve my doubt -
What is the difference between the following:
1. SA & Gratuity
SA is payable if you have served continuously for at least 5 years (Courtesy Summet Jindal - Post # 7)
2. SA & Pension
Simply, it is a pension scheme, where normal Pensions are not available. (Courtesy - Vinay Kumar - Post # 3)
3. SA & Retirement
SA is to get relieved from the position on attainment of a specific age. Though SA is retirement, retirement is not SA. (Courtesy - Niket_xiss - Post # 8)
Thanks a lot.
From India, Mumbai
Acknowledge(0)
Amend(0)
742What is the difference between the following:
1. SA & Gratuity
SA is payable if you have served continuously for at least 5 years (Courtesy Summet Jindal - Post # 7)
2. SA & Pension
Simply, it is a pension scheme, where normal Pensions are not available. (Courtesy - Vinay Kumar - Post # 3)
3. SA & Retirement
SA is to get relieved from the position on attainment of a specific age. Though SA is retirement, retirement is not SA. (Courtesy - Niket_xiss - Post # 8)
Thanks a lot.
From India, Mumbai
Acknowledge(0)Amend(0)
Kindly go through the below link
Search Results Superannuation « hrmexpress
Let me know if further assistance required
From India, Mumbai
Acknowledge(0)Amend(0)
Search Results Superannuation « hrmexpress
Let me know if further assistance required
From India, Mumbai
Acknowledge(0)Amend(0)
Superannuation:
A type of retirement plan set up by a company for the benefit of its employees. These types of plans use funds deposited by the company (defined benefit plan) or by the employee (defined contribution plan), with the funds growing in value until the employee retires. Also called a pension plan.
From India, Bengaluru
Acknowledge(0)Amend(0)
A type of retirement plan set up by a company for the benefit of its employees. These types of plans use funds deposited by the company (defined benefit plan) or by the employee (defined contribution plan), with the funds growing in value until the employee retires. Also called a pension plan.
From India, Bengaluru
Acknowledge(0)Amend(0)
Dear Mohan,
As explained by Vinay, it is a contributory pension fund made to LIC Superannuation scheme by the employer. The employer contributes 15% of the Basic + DA of the employee every year. The employer generally gets a tax benefit of 27% (12% for PF & 15% for Superannuation contribution). The employee, on the other hand, does not receive this contribution on hand every month or year. But upon complying with certain conditions as laid down in the LIC Superannuation Scheme and agreed upon by both LIC and the employer, the employee gets benefits upon his superannuation (58 years). The contribution made by the employer is maintained by LIC similar to a savings bank account and communicated to the employer. However, the employee does not have any option to withdraw the amount directly from LIC.
In some companies, the employee is given superannuation benefits upon completing certain years of service, say 5 years of service. The superannuation benefits can be optional for certain cadres (Manager, Assistant Manager, etc.), but it cannot be for select employees in different cadres. In other words, if you decide to cover a particular cadre, you will have to extend it to all employees in that cadre.
LIC offers a wide range of options in choosing the mode of pension, such as Pension for life with return of capital or without return of capital, Guaranteed pension for 5, 10, 15, or 20 years, Joint life, etc. The capital is the amount that is available in your account on the date of your exit from employment. Based on the options chosen by you, LIC will pay pension based on your choice to receive it monthly, quarterly, half-yearly, or annually.
The employer has to process the Superannuation documents and advise LIC to make the payment. In the event the employee does not fulfill the qualifying criteria and quits employment in the middle, then this amount can be adjusted by the employer in the subsequent year's contribution.
Please note that the capital amount vested with LIC carries interest. LIC also pays a bonus on capital based on the size of the capital available with it for the respective employees.
Trust the matter is clear.
M.V. KANNAN
From India, Pune
Acknowledge(0)Amend(0)
As explained by Vinay, it is a contributory pension fund made to LIC Superannuation scheme by the employer. The employer contributes 15% of the Basic + DA of the employee every year. The employer generally gets a tax benefit of 27% (12% for PF & 15% for Superannuation contribution). The employee, on the other hand, does not receive this contribution on hand every month or year. But upon complying with certain conditions as laid down in the LIC Superannuation Scheme and agreed upon by both LIC and the employer, the employee gets benefits upon his superannuation (58 years). The contribution made by the employer is maintained by LIC similar to a savings bank account and communicated to the employer. However, the employee does not have any option to withdraw the amount directly from LIC.
In some companies, the employee is given superannuation benefits upon completing certain years of service, say 5 years of service. The superannuation benefits can be optional for certain cadres (Manager, Assistant Manager, etc.), but it cannot be for select employees in different cadres. In other words, if you decide to cover a particular cadre, you will have to extend it to all employees in that cadre.
LIC offers a wide range of options in choosing the mode of pension, such as Pension for life with return of capital or without return of capital, Guaranteed pension for 5, 10, 15, or 20 years, Joint life, etc. The capital is the amount that is available in your account on the date of your exit from employment. Based on the options chosen by you, LIC will pay pension based on your choice to receive it monthly, quarterly, half-yearly, or annually.
The employer has to process the Superannuation documents and advise LIC to make the payment. In the event the employee does not fulfill the qualifying criteria and quits employment in the middle, then this amount can be adjusted by the employer in the subsequent year's contribution.
Please note that the capital amount vested with LIC carries interest. LIC also pays a bonus on capital based on the size of the capital available with it for the respective employees.
Trust the matter is clear.
M.V. KANNAN
From India, Pune
Acknowledge(0)Amend(0)
Dear Mr. Manasi Kulkarni,
The statement you have sought clarification on means, "If the employee who is enrolled in the Superannuation scheme quits employment before 5 years, as per the company policy, he may not be eligible for superannuation benefits. Hence, the amount accrued against his name till the time he quit employment can be adjusted against future dues payable to LIC.
For example, if a sum of Rs. 1,00,000/- has accrued against the employee's account who has quit employment before completion of 5 years, he will not be eligible for Superannuation benefits as per the company policy. In such a case, this 1 Lakh can be adjusted against the payment due to LIC the subsequent year. In other words, if the company has to pay say 5 Lakhs based on the calculations for the existing employees as of that date, they can adjust this 1 Lakh and pay 4 Lakhs to LIC.
Trust the matter is clarified.
M.V. Kannan
From India, Madras
Acknowledge(1)Amend(0)
The statement you have sought clarification on means, "If the employee who is enrolled in the Superannuation scheme quits employment before 5 years, as per the company policy, he may not be eligible for superannuation benefits. Hence, the amount accrued against his name till the time he quit employment can be adjusted against future dues payable to LIC.
For example, if a sum of Rs. 1,00,000/- has accrued against the employee's account who has quit employment before completion of 5 years, he will not be eligible for Superannuation benefits as per the company policy. In such a case, this 1 Lakh can be adjusted against the payment due to LIC the subsequent year. In other words, if the company has to pay say 5 Lakhs based on the calculations for the existing employees as of that date, they can adjust this 1 Lakh and pay 4 Lakhs to LIC.
Trust the matter is clarified.
M.V. Kannan
From India, Madras
Acknowledge(1)Amend(0)
Dear Sir,
While searching thru Cite HR for Superannuation, I stumbled to this old thread.
I seek your advise for my case, After working for 16 years with Public ltd. company, I resigned due to some personal issues. Though I got my PF/GRATUITY back, my ex-employer is not ready to refund the kitty of SUPERANNUATION (App.Rs.7 Lacs). They are thelling that this will have to be routed thru LIC ONLY. As I have started a small business, I am struggling for Workig Capital. Kindly advise.
From India, Pune
Acknowledge(0)Amend(0)
While searching thru Cite HR for Superannuation, I stumbled to this old thread.
I seek your advise for my case, After working for 16 years with Public ltd. company, I resigned due to some personal issues. Though I got my PF/GRATUITY back, my ex-employer is not ready to refund the kitty of SUPERANNUATION (App.Rs.7 Lacs). They are thelling that this will have to be routed thru LIC ONLY. As I have started a small business, I am struggling for Workig Capital. Kindly advise.
From India, Pune
Acknowledge(0)Amend(0)
Dear Colleague,
This discussion seems to have rather dragged on for no good reason. Employer, as a matter of policy, creates this retirement benefit for certain categories of employees (generally senior managerial personnel). The Superannuation Fund is created through annual contributions by the employer, contributing 15% of the basic and D.A. of the covered employees. The fund is managed/administered by LIC. Superannuation fund, meant for post-retirement benefits, is usually payable to eligible employees upon reaching the retirement age as specified. However, certain companies make it payable after completion of 5 years of service. So, whether the poster is eligible to receive it depends on whether the scheme in his company has provided for it. Anyway, generally, the schemes do not make service of less than 5 years eligible for receiving it.
Gratuity payment is now governed by the Payment of Gratuity Act, and the amount is payable after completion of 5 years of service, on death, or on retirement. Gratuity, prior to the law, originally started as a payment in recognition of long and loyal service to the organization.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
This discussion seems to have rather dragged on for no good reason. Employer, as a matter of policy, creates this retirement benefit for certain categories of employees (generally senior managerial personnel). The Superannuation Fund is created through annual contributions by the employer, contributing 15% of the basic and D.A. of the covered employees. The fund is managed/administered by LIC. Superannuation fund, meant for post-retirement benefits, is usually payable to eligible employees upon reaching the retirement age as specified. However, certain companies make it payable after completion of 5 years of service. So, whether the poster is eligible to receive it depends on whether the scheme in his company has provided for it. Anyway, generally, the schemes do not make service of less than 5 years eligible for receiving it.
Gratuity payment is now governed by the Payment of Gratuity Act, and the amount is payable after completion of 5 years of service, on death, or on retirement. Gratuity, prior to the law, originally started as a payment in recognition of long and loyal service to the organization.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply contains accurate information regarding superannuation, including employer contributions, eligibility criteria, and the purpose of the fund. The details provided align with common practices in superannuation schemes. (1 Acknowledge point)
0
0
Superannuation: An employee will only receive the amount when they reach 58 years of age. This provision applies to government employees who have served in government positions for an extended period until their retirement without changing their service.
Cessation: Employees working in private organizations such as software companies fall under cessation. This category pertains to employees who frequently change companies and work for short periods at each.
Thanks,
Vinod M
From India, Machilipatnam
Acknowledge(0)Amend(0)
Cessation: Employees working in private organizations such as software companies fall under cessation. This category pertains to employees who frequently change companies and work for short periods at each.
Thanks,
Vinod M
From India, Machilipatnam
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
CiteHR.AI
(Fact Checked)-The user's reply is accurate. Superannuation is indeed a type of retirement plan established by a company for the benefit of its employees, which can be in the form of a defined benefit plan or a defined contribution plan. It is commonly referred to as a pension plan. (1 Acknowledge point)