Superannuation.

Hi Friends,
Can anybody give me the brief idea of the Superannuation?
:?

Dear Seniors
Please give your version on Annuties and super annuties and their calculations and their reflections on employee benefits!
Waiting for your kind reply!
A N A N D A

hi
All the benifits,arrears,compensations ( if any ), to be more precise the final settlement made financially for a employee on his retirement is know as Superannuation.
Think u get a picture.
Regards
satya

Hi !

Here is some information on Superannuation Fund.

a) Superannuation Fund is a retirement benefit given to employees by the

Company.

b) Normally the Company has a link with agencies like LIC

Superannuation Fund, where their contributions are paid.

c) The Company pays 15% of basic wages as superannuation

contribution. There is no contribution from the employee.

d) This contribution is invested by the Fund in various securities as per

investment pattern prescribed.

e) Interest on contributions is credited to the members account. Normally

the rate of interest is equivalent to the PF interest rate.

f) On attaining the retirement age, the member is eligible to take 25% of

the balance available in his/her account as a tax free benefit.

g) The balance 75% is put in a annuity fund, and the agency (LIC) will

pay the member a monthly/quarterly/periodic annuity returns

depending on the option exercised by the member. This payment

received regularly is taxable.

h) In the case of resignation of the employee, the employee has the

option to transfer his amount to the new employer. If the new

employer does not have a Superannuation scheme, then the employee

can withdraw the amount in the account, subject to deduction of tax

and approval of IT department, or retain the amount in the Fund, till

the superannuation age.

Normally Companies do not extend the Superannuation benefits to all employees- but only to a specific category of employees - like for example Level-1 of Managers onwards..

Hope the above has thrown sufficient light on the topic of Superannuation.

Regards

P.Arun Kumar

Thanks Mr. Arun for thebrief idea of the super annuation.
Do employer have to file any Half Yearly or Yearly returns of superannuation? and to whome?
Shweta

There is no statutory compliances regarding Superannuation Fund - like periodic returns etc.
THe company only has to ensure that the relevant rules pertaining to Income tax is followed at the time of releasing / transferring the superannuation fund amount. - Pls refer the points mentioned in my earlier mail.
Regards
P.Arun Kumar

Dear Mr. Arunkumar,

Your mail on Superannuation was quite comprehensive.

However, I would like to draw your attention to a few points:

point E) You have mentioned that the rate of interest is almost as much as the PF rates. With LIC I have found that the Rate of interest is decided by them based on not just the superannuation fund value i.e. the amount paid to them for maintaining the superannuation fund of the company. In case the gratuity fund is also maintained with them then the gratuity fund value and superannuation fund value are combined to provide the interest rate on the fund. They have different slabs for different fund sizes and this varies every year.

Point F) & point H) In my company whether the person has resigned or retired for withdrawal from the fund with LIC, only 33% of the amount is allowed to be withdrawn from the fund. The rest is converted into capital for payment of annuities. Both the option of withdrawal & option for annuities has to be clearly mentioned by the member for availing benefits. The annuity amount would vary depending on age of the employee at time of applying for annuity, individual fund size, and whether the option is for monthly, quarterly, half-yearly or annual payments of annuity.

With warm regards,

Swapna

If the Employer leaves the company within 2 years & joins the new company, will he eligible to withdrawn the superannuation amount from the old company.
Is there any facility to transfer this amount to new employer from Old employer.
Please reply on this
rgds
Chidanand

[HTML] c) The Company pays 15% of basic wages as superannuation
contribution. There is no contribution from the employee.[/HTML]
Hi,
Can I get section #, rule # i.e legal text to support this.
My employer is deducting 27% of basic every month from each employee salary.
Also says legally it can be paid only after minimum 5 years of completion of service with the same company. Is it so?
Thanks,
Saurabh

How is superannuation paid in the following cases
(i) Employee resigns after a year of service
(ii) Employee resigns after five years of service but before retirement?
(iii)Employee resigns after ten years of service but before retirement?
Hari