Kotak Superannuation Group Plan - II

Kotak Superannuation Group Plan - II

Unit Linked Life Insurance
Note: In this policy, the investment risk in investment portfolio is borne by the policyholder.
The key to employee retention is in your hands. In today time when the prospect of out-living retirement savings is larger than ever, your employees might not take the time to plan their long-term financial goals or have the discipline to systematically save for their retirement years. As an employer, you can help your employees in their retirement planning and, in turn, increase employee retention. You can achieve this with Kotak Superannuation Group Plan - II. It offers:
Defined Benefit Scheme - In this scheme, you can provide employees a specific retirement benefit based on salary and years of service. Such plans are funded by your contributions. If there is any shortfall between the amounts available in the scheme for payment to the employee, the shortfall will be made good by the master policyholder or the employer.
Defined Contribution Scheme - In this scheme, both your employees and/or you can contribute towards fund accumulation and the rates of each of your and your employees contributions are usually defined as a percentage of salary. It is becoming more important for employees in today evolving marketplace where the average employee may switch jobs and even careers multiple times over the course of a lifetime. The fund value at the time of benefit payment will be payable.

Key features

Assured benefit
Get guarantees in the form of assured benefit payable as per option chosen: Defined Benefit Schemes - Assured Benefit payable on complete surrender shall not be less than 100.1% of the total contribution paid, net of withdrawals already made from the account. Assured Benefit shall be applicable on the entire superannuation fund available with the Insurer. Defined Contribution Schemes - Assured Benefit payable on retirement or death shall not be less than 100.1% of contributions paid. Assured Benefit is not applicable on exits other than retirement or death.

Monthly Regular Additions for higher fund sizes
Monthly Regular Additions are added to the Schemes and the percent varies by fund size at the beginning of the calendar month.

Benefits for the employer
It helps employer increase employee retention and motivation by helping to provide for their retirement. Any amount received by the trustees on behalf of an approved superannuation fund is exempt under sec 10(25) (iii) The amount of deduction available on ordinary annual contribution to an approved superannuation fund shall not exceed 27% (including the contribution to Provident Fund) of the employee's annual basic salary for each year of his service under section36 (1)(iv) of the Income Tax Act, 1961.

Benefits for the employee
Any employee contribution towards an approved superannuation fund qualifies for tax deduction (up to Rs. 1 lacs) under section 80 C of the Income Tax Act, 1961. On death, the benefit paid to nominee shall be exempt from tax under section 10(13) and shall be as per the scheme rules of the employer's superannuation scheme. On retirement (vesting), the benefit shall be as per the scheme rules of the employer's superannuation scheme and commuted benefit shall be tax free. Any contribution by employer to approved superannuation fund up to Rs. 1 lacs will not be included in perquisites of the employee under Sec 17(2)(vii). At the time of withdrawal from service, employee has an option to transfer his superannuation account to his/her new employer, if allowed as per scheme rules of the superannuation fund. Note: Tax benefits are subject to change in the tax laws. You are advised to consult your tax advisor for details.

Eligibility

Age criteria
Group size: Min: 10 | Max: No limit
Age criteria: Entry age (as on Last birthday): Min: As specified in the Trust Rules or 18 years, whichever is higher | Max: One year before Normal Retirement Age as specified in the Trust Rules or 74 years whichever is lower, Maturity age (as on last birthday): Normal Retirement Age as specified in the Trust Rule or 75 years whichever is lower

Term
1 year (renewable indefinitely)

Initial Contribution - Defined benefit
Minimum: Rs. 2,00,000 at inception | Maximum: No limit

Initial Contribution - Defined contribution
Minimum: Rs. 6,000 per member per year at inception | Maximum: No limit
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