Superannuation also called Pension benefit is one of the most important benefit for your employee. This is a retirement benefit offered to employees to help them save a portion of their incomes during their tenure of employment, so as to secure their financial future post retirement.
The savings made over the years are grown by investing into ICICI Prudential superannuation plans and help build a corpus to purchase an annuity on retirement, which will take care of their financial requirements, be it their medical needs or taking care of their loved ones.
ICICI Prudential superannuation plans are designed to meet the "Accumulation Phase" requirement to grow your employee's savings in line with their risk appetite and provide a substantial kitty at the time of retirement from employment.
What are the benefits of funding superannuation with ICICI Prudential?
Scheme setup assistance - ICICI Prudential shall assist in customizing solutions specific to your needs.
Manage your investments - ICICI Prudential offers a complete and competitive range of investment options keeping your needs in mind.
The two investment plans offered by ICICI Prudential are as follows: a) Unit linked funds are market linked investments which help you to get good returns and empower you as an employer to decide the asset allocation best suiting their needs... click for more details.
b) Whereas the Endowment fund aims at offering a steady appreciation of your investments also guaranteeing the capital invested by you. click for more details.
Dedicated service team - ICICI Prudential understands that service is of utmost importance and has a dedicated group service team to help service your requirements
Claim Settlement - ICICI Prudential undertakes to settle claims and payouts within specified turn around times.
Annuity Payment - ICICI Prudential offers a complete solution for you with a Group Immediate Annuity plan and further offers concessions for superannuation customers. ICICI Prudential five annuity options for your employees to choose from.
What tax benefits do I get by funding the superannuation liabilities?*
Employer:
Employer's contribution to an approved superannuation fund is allowed as expenditure deduction under Section 36(1) (iv), subject to limits set out in Rule 87 and 88 of Income tax Rules, 1962.
Any income received by the trustees on behalf of an approved superannuation fund is exempt under Section 10 (25) (iii).
Employee:
Employees contribution towards an approved superannuation fund is eligible for deduction under Section 80C, subject to limits set out in Section 80CCE.
Amount received at retirement on commutation of the annuity is exempt Section 10(13) read with Rule 90.
Benefits payable on death are exempt from tax under Section 10(13).
Employer's contribution in excess of Rs 100,000 is treated as a perquisite in the hands of the employee under Section 17(2)(vii).
Pension / Annuity will be treated as salary income and taxed accordingly.
*Above tax benefits are as per Income Tax Act, 1961 and Income Tax Rules, 1962. Please consult your Legal/ Tax expert for details. ICICI Prudential Life Insurance Company Limited shall not be held responsible in any manner in case you do not get the above stated tax benefits. Please note that the prevailing and applicable tax laws shall be final, conclusive and binding on both the parties.
The employer may institute the following superannuation schemes; defined benefit or defined contribution.
In case the employer opts to setup a defined benefit (DB) superannuation scheme, the benefits payable to the employee on retirement is defined upfront. The employer may choose to contribute towards the superannuation liability and the contribution is then invested with ICICI Prudential superannuation plan to grow in line with its liability. The fund created under the plan is further used to make claim payments on employee exits.
In case the employer opts to setup a defined contribution (DC) superannuation scheme a fixed amount or a pre decided percentage of the each employee's salary is periodically directed towards the employee's superannuation kitty. The contribution is then invested with ICICI Prudential superannuation plan to grow and accumulate up to retirement. The accumulated fund is used to purchase an Annuity plan that would subsequently provide periodic cash inflows for the employee.
How can I get in touch with ICICI Prudential for further details?
We offer several options for you to contact us as per your convenience. Choose from one of the following:
