Hye Arun,
I want to know the procedure for withdrawal and transfer of Superannuation contribution? Suppose an employee has changed his job and if he want to tranfer his superannuation what he has to do. Is there any form to be filled and to whom he will have to submit the form.? Please give the details in this forum and also it will be kind to you if you send details on my ID -
Regards,
Naveen
From India, Visakhapatnam
I want to know the procedure for withdrawal and transfer of Superannuation contribution? Suppose an employee has changed his job and if he want to tranfer his superannuation what he has to do. Is there any form to be filled and to whom he will have to submit the form.? Please give the details in this forum and also it will be kind to you if you send details on my ID -
Regards,
Naveen
From India, Visakhapatnam
In my company we do not have this super annuation scheme. But one of my employees was previously working for a different company where he had the super annuation scheme. SO now he wants to withdraw it, so can he withdraw this amt? will it be taxable or is it safe to keep the amount in his previous company only which he can claim once he retires? Pls guide me on this.
From India, Pune
4From India, Pune
Dear Friends,
I am facing a specific problem in connection with the recent job change.If any one can give me the right advice,it will be a great help
1.My company has deducted Rs.40000 per year towards superannuation for 3 years.But when I left, in my claim of full and final,I mentioned this amount.But they says it is retirement benefit which i can't claim.
I asked them to provide me the Superannuation fund details on which they have deposited my super annuation amount but they are not ready to give that.I found out that there is no such fund and it was just a appointment/revision lette gimmic. Is there any leagal way thru which I can get this money back
2.There was an amount of Rs.12000 mentioned in the appointment / revision letters towards Gratuity. I know that the gratuity is claimable only after 5 years.But at the same time, someone told me that the Gratuity cannot be the 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 october first week.And 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.But when I left the company by the end of october and I claimed the full and final,I added this arears also.But when they settled the account,they didn't consider this arears.A total sum of Rs.90000 was there towards this arears.
Can anyone give me a right advice on how to proceed on the above points to get these money back.It is not a small money
Please help
Pr
From India, Bangalore
I am facing a specific problem in connection with the recent job change.If any one can give me the right advice,it will be a great help
1.My company has deducted Rs.40000 per year towards superannuation for 3 years.But when I left, in my claim of full and final,I mentioned this amount.But they says it is retirement benefit which i can't claim.
I asked them to provide me the Superannuation fund details on which they have deposited my super annuation amount but they are not ready to give that.I found out that there is no such fund and it was just a appointment/revision lette gimmic. Is there any leagal way thru which I can get this money back
2.There was an amount of Rs.12000 mentioned in the appointment / revision letters towards Gratuity. I know that the gratuity is claimable only after 5 years.But at the same time, someone told me that the Gratuity cannot be the 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 october first week.And 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.But when I left the company by the end of october and I claimed the full and final,I added this arears also.But when they settled the account,they didn't consider this arears.A total sum of Rs.90000 was there towards this arears.
Can anyone give me a right advice on how to proceed on the above points to get these money back.It is not a small money
Please help
Pr
From India, Bangalore
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
From India, Lucknow
Dear All,
I would like to highlight some more things on the Superannuation benefit.
Superannuation is basically what we call pension on retirement. 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 pension thro 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 rules of the Fund and a Fund Manager who will advice LIC about annuity purchases / widow pension and refund of capital sum. It is not necessary that contribution have to be 15% but as per IT Rule maximum contribution for pension fund is 15 % on which company will get tax benefit.As per IT Act total contribution put together PF nd pension on which a Company gets tax benefit is 27%. Since PF covers 12% which is statutory the maximum allowable limit for pension contribution is 15 % on 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 DB scheme 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 u start the fund u have be valued the liability actuarially by submitting data to LIC .The interest earned by pension fund is not like PF and much lower than 12%.The current LIC rate of interest is between 7- 7.5%.Under DB scheme pension and the capital sum is determined on the last salary of the retiree and LIC annuity rate.Under DC accumulated sum is the capital sum but quantum of pension is determined by available LIC annuity rate. The age of the pensioner and his spouse is taken into consideration for annuity rate.One can opt for 2/3rd widow pension on his death or can opt for refund of 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 of time.Pensioners have to submit Life Certificate as per LIC requirement.
There are many other things u have to take into consideration when u set a superannuation fund which cannot be explained here. These are only few important points.
From India, Calcutta
I would like to highlight some more things on the Superannuation benefit.
Superannuation is basically what we call pension on retirement. 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 pension thro 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 rules of the Fund and a Fund Manager who will advice LIC about annuity purchases / widow pension and refund of capital sum. It is not necessary that contribution have to be 15% but as per IT Rule maximum contribution for pension fund is 15 % on which company will get tax benefit.As per IT Act total contribution put together PF nd pension on which a Company gets tax benefit is 27%. Since PF covers 12% which is statutory the maximum allowable limit for pension contribution is 15 % on 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 DB scheme 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 u start the fund u have be valued the liability actuarially by submitting data to LIC .The interest earned by pension fund is not like PF and much lower than 12%.The current LIC rate of interest is between 7- 7.5%.Under DB scheme pension and the capital sum is determined on the last salary of the retiree and LIC annuity rate.Under DC accumulated sum is the capital sum but quantum of pension is determined by available LIC annuity rate. The age of the pensioner and his spouse is taken into consideration for annuity rate.One can opt for 2/3rd widow pension on his death or can opt for refund of 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 of time.Pensioners have to submit Life Certificate as per LIC requirement.
There are many other things u have to take into consideration when u set a superannuation fund which cannot be explained here. These are only few important points.
From India, Calcutta
Hi all
The following write-up on superannuation from a leading Insurance company would be of use to you all i hope
Best regards
Niranjan R
Group Superannuation Scheme
An organization today, has not only to man the various positions with competent and trained personnel but also has to create an environment wherein they can give their best and derive a sense of well-being, a sense of fulfillment and security and take pride in their continued association with the organization. Provision of pension may be an attraction for such persons to continue in the organization and give their best to the organization, as with continuous improvement in longevity a regular income even after retirement has become a necessity. To provide the pension benefits to employees, an employer has two alternatives under the provisions of Rule 89 of Income Tax Rules 1962.
Create a privately managed trust fund and as and when a member retires, purchase annuity from insurance company to provide pension for such retiring member.
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 for an attractive lump sum payment on the unfortunate death of a member while in service, at very nominal cost.
The employer contributes a certain fixed percentage of salary of each member. Such Contributions are accumulated by fund manager and the accumulated amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1) ON RETIREMENT:
On Retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per his choice.
2) ON DEATH:
The Pension is payable on the life of the beneficiary. Corpus is utilized towards the payment of pension of the type the beneficiary may opt and the benefit so received is tax free. A lump sum payable by way of death besides the pension, if the employer has taken Group Insurance Scheme in conjunction with the Group Superannuation Scheme.
3) ON WITHDRAWAL:
He can get the equitable interest transferred 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 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 on the part of the employer to provide for pension to all employees. It is entirely upto him to decide to which class/ classes of employees he desires to extends the scheme. The eligibility conditions may be defined on the basis of designation or salary. (However, after the categories are specified, employer cannot discriminate between the employees and thus extends 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 is so 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 term 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 contribution (s) towards the past service liability are treated as deductible business expenses spread over in 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 superannuation scheme so as to provide death risk cover while in service subject to certain conditions.
From India, Madras
The following write-up on superannuation from a leading Insurance company would be of use to you all i hope
Best regards
Niranjan R
Group Superannuation Scheme
An organization today, has not only to man the various positions with competent and trained personnel but also has to create an environment wherein they can give their best and derive a sense of well-being, a sense of fulfillment and security and take pride in their continued association with the organization. Provision of pension may be an attraction for such persons to continue in the organization and give their best to the organization, as with continuous improvement in longevity a regular income even after retirement has become a necessity. To provide the pension benefits to employees, an employer has two alternatives under the provisions of Rule 89 of Income Tax Rules 1962.
Create a privately managed trust fund and as and when a member retires, purchase annuity from insurance company to provide pension for such retiring member.
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 for an attractive lump sum payment on the unfortunate death of a member while in service, at very nominal cost.
The employer contributes a certain fixed percentage of salary of each member. Such Contributions are accumulated by fund manager and the accumulated amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1) ON RETIREMENT:
On Retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per his choice.
2) ON DEATH:
The Pension is payable on the life of the beneficiary. Corpus is utilized towards the payment of pension of the type the beneficiary may opt and the benefit so received is tax free. A lump sum payable by way of death besides the pension, if the employer has taken Group Insurance Scheme in conjunction with the Group Superannuation Scheme.
3) ON WITHDRAWAL:
He can get the equitable interest transferred 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 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 on the part of the employer to provide for pension to all employees. It is entirely upto him to decide to which class/ classes of employees he desires to extends the scheme. The eligibility conditions may be defined on the basis of designation or salary. (However, after the categories are specified, employer cannot discriminate between the employees and thus extends 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 is so 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 term 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 contribution (s) towards the past service liability are treated as deductible business expenses spread over in 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 superannuation scheme so as to provide death risk cover while in service subject to certain conditions.
From India, Madras
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Retirement on Superannuation - when - Court judgment.doc