Hi, can anybody please help me to know how an employer, having its already established self-managed gratuity trust fund, can switch over to a group gratuity scheme of an insurer? I wanted to know the detailed process in steps required for this. It would be a great help if anybody can provide the required info.
Thanks.
From India, Kolkata
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Thanks.
From India, Kolkata
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You need to approach any of the insurance companies that have a Group Gratuity Scheme with details of your self-managed Gratuity Trust Fund. The insurance company will calculate the premium payable by you towards this GGS after taking into account the Trust Fund. When switching over to the GGS, you will have to transfer your self-managed Trust Fund to the said insurance company.
From India, Mumbai
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2584From India, Mumbai
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Steps to Switch from a Self-Managed Gratuity Fund to a Group Gratuity Scheme
First, you have to approach any of the Group Gratuity providers, giving them all information such as the number of employees, date of joining, date of birth, and date of retirement of individual members. Based on this information, they will calculate the premium payable by you annually.
A resolution is to be passed by the Trustees for the transfer of the Gratuity Fund to the Group Gratuity Scheme. A Board of Directors resolution (of the establishment) is also required for the above. With these resolutions and the Balance Sheet of the Trust, approach the Income Tax Department, who have given you IT exemption earlier for this transfer. (Some Group Gratuity providers assist in this process.)
If you are a self-managed and IT-exempted fund, and you earn a yield of 9 to 9.50% on your investments, it is not advisable to surrender the Fund unless you are facing compelling circumstances.
From India, Mumbai
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First, you have to approach any of the Group Gratuity providers, giving them all information such as the number of employees, date of joining, date of birth, and date of retirement of individual members. Based on this information, they will calculate the premium payable by you annually.
A resolution is to be passed by the Trustees for the transfer of the Gratuity Fund to the Group Gratuity Scheme. A Board of Directors resolution (of the establishment) is also required for the above. With these resolutions and the Balance Sheet of the Trust, approach the Income Tax Department, who have given you IT exemption earlier for this transfer. (Some Group Gratuity providers assist in this process.)
If you are a self-managed and IT-exempted fund, and you earn a yield of 9 to 9.50% on your investments, it is not advisable to surrender the Fund unless you are facing compelling circumstances.
From India, Mumbai
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Tr. need identification process-veer group.doc