SAFEGUARDS WORKFORCE'S FUTURE

LIC’S NEW GROUP SUPERANNUATION CASH ACCUMULATION SCHEME

New Group Superannuation Cash Accumulation Scheme has been making meaningful contribution in safeguarding the future of many employees.The change in the social environment, the shift from the joint family systems, improvement in longevity, changing interest rate regimes leading to uncertainty of regular income, etc have made it a necessity for every individual to prepare for post-retirement income, which is regular, secured and life long. LIC provides the solution through its New Group Superannuation Cash Accumulation Scheme.

DESIGNING OF SUPERANNUATION SCHEME

The superannuation schemes organised by employers for the benefit of their employees are designed based on the provisions of Part B of IV Schedule of the Income Tax Act, 1962 and other income tax rules. Under this scheme, the employer designs the Pension Scheme Rules and contributes to the scheme. Such contributions are accumulated with interest and the accumulated amount (corpus) is utilised to provide pension benefits.

ADVANTAGES

LIC’s New Group Superannuation Scheme gives the advantage to the employer to create an employee welfare measure with administrative simplicity. In case of Defined Benefit Schemes, the adoption of the scheme allows the employer to fund the liability in a budgeted manner through the scientific process of Actuarial Valuation. The employer can realise the Income Tax benefits every year as the contributions are treated as business expenses to the company.

ADMINISTRATION OF SUPERANNUATION SCHEME Individual Account

The Superannuation contribution is earmarked to the individual. The contributions are remitted along with the list of members. LIC of India maintains the contributions in respect of each of these members. Member wise accumulated fund balance statement is provided at the end of each year.

Benefit pay out

On exit of the member due to retirement/resignation, the commutation benefit is paid out of the corpus available and the remaining balance is used to purchase pension for the lifetime of the member.

The option to commute or to choose the type of pension is decided by the member as per the scheme rules. LIC provides multiple pension / annuity options to the employee to be exercised by him /her on the exit date.