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Retirement Solutions
Group Gratuity Plan
Retirement Solutions:
You value your employees contribution. You value their loyalty. And you want to pass on to them blissful golden years ahead as a token of gratitude. Retirement planning is crucial to assure your employees from any worries of improving longevity, increasing inflation, medical bills or taxes, so that they can actually enjoy the benefits of their hard-earned savings. SBI Life offers competitively rewarding and attractive retirement solutions for your employees.
SBI Life Group Gratuity Plan (UIN No: 111N010V01) is a Non-linked scheme designed to help employers to manage their gratuity liability in a scientific manner through a host of flexible plan options.
• Wider investment avenues and prudent asset allocation ensuring maximization of value
• Free annual actuarial valuation
• Option of Pooling or Ring fencing (only for large funds)
• Flexible and competitive term life insurance cover.
Group Super Annuation
Today when Indian economy is attracting all major developed economies and globally India is becoming favorite destination for world-class organizations, it is equally challenging for an organization not only to retain the talent in the organization but also to make them feel pride in continuing with the same.
SBI Life present group super Annuation scheme as one of the most interesting tool, which reflects not only your employee centric attitude but also provides one of the best managed portfolio and protection service. Better employee morale will lead to grater efficiency and productivity.
SBI Life provides two types of Superannuation schemes:
1. Defined Benefit Scheme
2. Defined Contribution Scheme
Defined Benefit (DB):
This defines the amount of benefit that an employee receives at retirement. Actuarial valuation is conducted to determine the funding rate. A pooled fund is maintained for all members of the scheme.
Upon retirement of a member, the amount required to secure the benefit is drawn from the pooled fund. The pooled fund should achieve the required funding level to enable the employer to meet the benefit obligations.
Defined Contribution (DC):
This defines the annual contribution that the employer will deposit into the scheme for each employee. Contributions are usually fixed as a percentage of the employees' salary.
Individual employee accounts reflecting the contributions and the interest accumulations are maintained. Upon retirement, the individual account is released to provide funds to secure the benefits under the scheme.
Under both the schemes, i.e. Defined Contribution scheme and Defined Benefit scheme, SBI Life's liability will be limited to the Fund available only.
Services Offered:
Investments:
SBI Life would like to manage Superannuation Scheme under cash accumulation system. The contributions will be credited to the pooled fund. The fund will be invested as per Section 27 and 27A of the Insurance Act 1938. Interest will be declared by the company based on earnings every year and the same will be credited to the fund net of Fund Management charges.
Scheme Record keeping:
Under Defined Contribution scheme, SBI Life will maintain a separate account for each individual member for the opening balance of the fund, total contributions received, investment returns and the closing balance of the fund. The Fund statement for individual member will be issued at the end of each financial year.
Under Defined Benefit scheme, One running account is maintained for each scheme.
Others:
SBI Life will facilitate the completing all the documents which are to be submitted to the Income Tax Department, for getting the approval of the superannuation scheme.
Benefits:
At Maturity/Vesting/Retirement Age:
If the scheme is a Defined Contribution scheme, the employee shall have the option to commute a maximum of one third of the pension. The accumulated amount less commuted value, if any, in the account will be used to purchase pension from SBI Life or any other insurer/Approved Annuity provider)
If the scheme is a Defined Benefit scheme, Benefits will be provided as per the rules of the scheme and as instructed by the trustees and the employee shall have the option to commute a maximum of one third of the pension.
On Withdrawal of a member from the scheme (voluntary resignation from service prior to the age of superannuation):
If the scheme is a Defined Contribution scheme, the accumulated amount (contribution plus interest) may be transferred to the approved Superannuation fund of new employer OR
It can be used to purchase an immediate pension subject to maximum of one third commutation of the pension, if opted OR the fund can be allowed to accumulate till the Superannuation of the employee, in such case on death of the employee the accumulated amount will be utilized to provide pension to the nominee.
If the scheme is a Defined Benefit scheme, Benefits will be provided as per the rules of the scheme and as instructed by the trustees. The employee shall have the option to commute a maximum of one third of the pension.
On death while in service:
Defined Contribution Scheme:
The accumulated amount (contribution plus interest) to the credit of the member which will be used to purchase a pension on the life of the beneficiary.
Plus
The Sum Assured according to the life cover provided, if any. The nominee will have an option to take the Sum Assured as a lump sum or to use the sum assured to purchase an annuity, if he/she desires.
Defined Benefit Scheme:
The amount equal to the purchase price to purchase the benefits as per the rules of the scheme and as instructed by the trustees, will be provided.
Plus
The Sum Assured according to the life cover provided, if any. The nominee will have an option to take the Sum Assured as a lump sum or to use the sum assured to purchase an annuity, if he/she desires.
Tax Benefits under Income Tax Act 1961:
Benefit to Employers -
• Annual Contribution by the employer to an approved superannuation fund in respect of any particular employee will be treated as expenditure to the company, subject to maximum of Rs. 1,00,000/- per employee.
• Any income received by the trustees on behalf of an approved superannuation fund is exempted (Section 10 (25) (iii) of the Income Tax Act, 1961).
Benefits to Employees -
• Payment of contribution towards an approved superannuation fund is eligible for deduction, subject to a maximum of Rs. 1,00,000 (Section 80 C of the Income Tax Act, 1961).
• Commuted value i.e. a maximum of one third part of the pension, is tax free.
• Employer's contribution will not be treated as perks in the hands of the employee.
• Pension will be treated as salaried income and taxed accordingly.
• Benefits payables on death are exempt from tax u/s 10(13).
Group Immediate Annuity
SBI Life Insurance introduces “Group Immediate Annuity” Plan for employers, who want their existing annuity liability to be totally/partially managed by SBI Life. Buy out of pension liabilities is a method by which the employer transfers the risk of running a defined pension scheme completely to SBI Life Insurance Company. In this way the deferred benefits of the employees are protected and the employer also gets rid of the risk of the pension scheme running into deficits in the future.
Why SBI Life Insurance as your preferred partner:
SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. State Bank of India is the largest bank in India and Cardif is a vibrant insurance company wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. SBI Life Insurance's mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency
Key Features:
Life Annuity Option
Life annuity payable at a constant rate through out the life time of annuitant. There is no death benefit under this option.
Options to choose the periodicity of your annuity:
Employees can choose the periodicity of the annuity depending upon the needs. The options available are Annual, Half yearly, Quarterly, and Monthly.
Annuityrates guaranteed for life:
Attractive annuity rates due to group effect
Annuity rates decided at the time of entry are guaranteed for the rest of life for the given purchase price.
Eligibility criteria
Employees with in age group of 40 years (as on last birthday) to 80 years (as on last birthday) are eligible to this plan.
Minimum group size: 25 members
The minimum annuity amount shall be Rs. 6000 per year.
SBI Life Golden Gratuity
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
SBI Life presents “SBI Life - Golden Gratuity”-- a yearly renewable unit linked group gratuity plan. SBI Life - Golden Gratuity is backed by SBI Life´s strong investment team, which provides an opportunity for higher market linked returns on corpus made by Past Service Liability payment as Initial Contribution and Current Year Liability as Annual Contribution. Along with managing your gratuity fund a life cover on your employee´s life protect their family financially in case of unfortunate event.
According to the Payment of Gratuity Act 1972 after a continuous service of 5 years in an organization by an employee the employers who come under its purview have to pay a minimum gratuity amount equivalent to 15 days wage based on last drawn wage for each year of service rendered by an employee at the time of exit from the service. The exit may be because of Resignation, Retirement, Death or Permanent total disability whilst in service.
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