IndiaFirst Life Group UL Superannuation Plan

IndiaFirst Life Group UL Superannuation Plan

A superannuation pension plan ensures the financial freedom of your employees even after their retirement. Employees make the organisation what it is—they are the very heart and soul of every enterprise. With the IndiaFirst Life Group UL Superannuation Plan, employers can fulfil their responsibility towards employees and offer them the best-in-class retirement benefits they deserve. This group unit linked pension plan is designed to help you create a corpus of funds for your employees to pay out superannuation benefits to them post-retirement.

Unit linked pension plans serve the needs of the employer as well as the employees. Employers can bank on a satisfied workforce that works hard for a company taking care of them. Employees have an incentive to stay loyal to their organisation, and receive superannuation benefits when they need them the most.

Reaching retirement age without being in a position to assure financial security for yourself and your loved ones is a worrisome thought. With the IndiaFirst Group Unit Linked Superannuation Plan, you can make these worries disappear from your employees’ minds by catering to their needs for retiral benefits paid out from a pool of funds you have created for this purpose.

What is IndiaFirst Life Group UL Superannuation Plan?

IndiaFirst Life Group Unit Linked Superannuation Plan is a yearly renewable, group unit-linked pension plan catering to an employee’s needs of retiral benefits such as superannuation benefits. Under this group unit linked pension plan, employers have a flexible and cost-effective way to build a corpus to fund their employees’ pension needs.

Superannuation

To ‘Superannuate’ is to retire due to infirmity or reaching a pre-defined age. Unlike a pension plan that an employee may choose to invest in for themselves, a superannuation pension plan is a company pension plan that an employer offers to the employees as a service benefit or retirement benefit. Superannuation benefits are provided through an organisation pension plan that the employer forms for the betterment of the company’s employees.

Linked

The IndiaFirst Life Group Unit Linked Superannuation Plan is a market-linked plan that offers superannuation benefits. A unit-linked plan invests the accumulated funds in the capital market. These funds could be invested in equity instruments, debt, or a combination of both, depending on the plan.

Group pension plan

In a group plan, the employer is the master policyholder, and the employees are the group members or beneficiaries of the policy. Group plans offer standardised benefits across the board to all the members as they are all covered under a single contract. With a group superannuation pension plan, the employer provides superannuation benefits to all employees through a single plan that can be renewed year-on-year. New employees can also be added to the group plan as required.

The IndiaFirst Life Group Unit Linked Superannuation Plan is a fund-based group superannuation product. It covers superannuation benefits as per scheme rules for employer-employee groups. The master policyholder is the employer or trust formed by the employer that will manage funds to meet the superannuation benefits requirements as per scheme rules. As a trustee, this superannuation pension plan enables you to maximise your investment returns and meet your obligations towards your employees cost-effectively and smartly.

What are the Key Features of IndiaFirst Life Group Unit Linked Superannuation Plan?

For you, the Master Policyholder:

• You may choose to cover the retirement benefit of all your members
• You may choose to pay the entire contribution on behalf of your members, or it can be paid by both you and your member
• You may optimize your investment returns by choosing between 3 funds across different asset classes or by selecting any of the 3 Investment Strategies

Your Members:

• Get an opportunity to secure their retirement
• See their money grow by watching it being invested in various funds/investment strategies available under the policy
• Track their investments with the option of individual member level accounts in the policy

What are the eligibility criteria for IndiaFirst Life Group Unit Linked Superannuation Plan?

The essential eligibility criteria for the IndiaFirst Life Group Unit Linked Superannuation Plan are as follows:

• The minimum age at entry under this group unit linked pension plan is 18 years as on your last birthday.
• The maximum age at entry under this group superannuation pension plan is 70 years as on your last birthday.
• The maximum age at exit under this superannuation pension plan is 71 years as on your last birthday.
• If being paid by the master policyholder alone, the premium paying mode is annual. However, if the life cover premium is being paid separately by the master policyholder and members, it can be paid annually, half-yearly, quarterly, or monthly.
• The minimum initial contribution under the IndiaFirst Life Group Unit Linked Superannuation Plan is Rs. 1,00,000 per policy. There is no limit on maximum contribution.
• The IndiaFirst Life Group Unit Linked Superannuation Plan covers employer-employee groups only. The minimum group size is 10 members; there is no maximum group size limitation.
• Under this superannuation pension plan, the contributor could be the master policyholder, member, or both.
• The plan term under the IndiaFirst Life Group Unit Linked Superannuation Plan is 1 year on an annually renewable basis by the master policyholder.
• The sum assured on death is fixed at Rs. 5,000 per member, if opted.

Why do you need to buy IndiaFirst Life Group Unit Linked Superannuation Plan?

IndiaFirst Life Group UL Superannuation Plan helps you invest the funds set aside towards your member’s pension benefit into market-linked investments during their employment. With this plan, you can now ensure that your members can enjoy financial freedom for the rest of their lives.

• The IndiaFirst Life Group Unit Linked Superannuation Plan enables you to create a separate corpus of funds for your employees.
• You get to protect your working capital against volume retirement pay-outs.
• You can manage your future employee retiral benefits such as superannuation through a transparent and value-for-money plan.
• Your members actually get to see the money grow by watching it being invested in various funds/investment strategies available under the policy.
• You may optimize your investment returns by choosing between 3 funds across different asset classes or selecting any of the 3 Investment Strategies.
• Members can track their investments with the option of individual member-level accounts in the policy.
• You may choose to pay the entire contribution on behalf of your members, or it can be paid by both - you and your member. Your contribution is a deductible business expense under Section 36 (1) (IV) of the Income Tax Act, 1961. Any contribution made by the member(s) towards the Superannuation will be entitled to deduction under Section 80 (C), Income Tax Act, 1961.

What are the Benefits of Buying IndiaFirst Life Group Unit Linked Superannuation Plan?

Under the IndiaFirst Life Group Unit Linked Superannuation Plan, both the employer and the employees stand to receive benefits. Employers are responsible for certain liabilities towards their employees at the time of the employee’s retirement. By offering the employees superannuation benefits under this group unit-linked pension plan, the company can fulfil its responsibilities and go one step further to financially secure its employees even after retirement.

Schemes for Superannuation Benefits

In the IndiaFirst Life Group Unit Linked Superannuation Plan, the master policyholder decides how to use the accumulated fund at the time of exit or retirement or death of the member. There are two scheme options to choose from. The unit linked pension plans issued differ for each scheme.

Defined Contribution Scheme Superannuation Benefits

In a Defined Contribution scheme, the contribution to be made toward the superannuation pension plan is fixed and pre-defined. The superannuation benefits received under this scheme directly correlated with the market conditions and the contributions made.

Under the Defined Contribution (DC) scheme of the IndiaFirst Life Group Unit Linked Superannuation Plan, individual accounts are maintained for members. The master policyholder, employees/members, or both could make the contributions required as per the scheme rules. The scheme rules specify the amount of superannuation benefits payment and the time of benefit payment to the member. The benefits will be paid from the invested funds subject to availability of funds in the respective unit fund of the member/policyholder’s superannuation fund.

Death Benefit

The death benefit under the DC scheme of the IndiaFirst Life Group Unit Linked Superannuation Plan equals the individual member’s policy unit fund value (subject to availability of the fund in the respective unit fund of the respective member’s superannuation fund). An additional benefit of Rs. 5,000 per member is payable to the nominee if opted for. Once the death benefit is paid, all benefits for the member will cease.

Vesting Benefit

The vesting benefit under the DC scheme of the IndiaFirst Life Group Unit Linked Superannuation Plan equals the individual member’s policy unit fund value (subject to availability of the fund in the respective unit fund of the respective member’s superannuation fund). Once the vesting benefit is paid, all benefits for the member will cease.

Exit Benefit

Upon Exit (Termination of Service/Early Retirement/Resignation etc.), the member stands to receive a sum equal to the individual member’s policy unit fund value (subject to availability of the fund in the respective unit fund of the respective member’s superannuation fund). On payment of this benefit, all benefits for the member will cease. Other than exits as per the scheme rules, withdrawals shall not be allowed. In case of exit, the additional death cover, if opted, will be terminated immediately.

Loyalty Benefit

At the end of each policy year, the IndiaFirst Life Group Unit Linked Superannuation Plan offers annual Loyalty Benefit (LB) as a percentage per annum of the daily average fund value during the policy year. This LB depends upon the size and type of the funds invested. For Defined Contribution schemes, the average daily fund value is considered at the master policy level. The additional units are credited to the member unit funds on a pro-rata basis.

Defined Benefit Scheme Superannuation Benefits

In a Defined Benefit scheme, the superannuation benefits are pre-determined and fixed, irrespective of the contributions made to this superannuation pension plan. This benefit amount is arrived at through a pre-existing formula that considers numerous factors such as the years an employee has spent in the organisation, age at which the employee was inducted into the group unit linked pension plan, salary, etc. At the time of retirement, the member stands to receive a fixed amount derived from this formula.

Under the Defined Benefit (DB) scheme of the IndiaFirst Life Group Unit Linked Superannuation Plan only a superannuation fund is maintained, and individual member accounts are not supported. The master policyholder will contribute to the superannuation pension plan as per scheme rules. Scheme rules specify the amount of the benefit payment and the time of benefit payment to the member. The benefits will be paid from the invested funds subject to availability of funds in the respective unit fund of the respective group policyholder’s superannuation fund.

Death Benefit

The death benefit under the DB scheme of the IndiaFirst Life Group Unit Linked Superannuation Plan is payable as per the scheme rules of the master policyholder. An additional benefit of Rs. 5,000 per member is owed to the nominee if opted for.

Vesting Benefit

The vesting benefit under the DB scheme of the IndiaFirst Life Group Unit Linked Superannuation Plan is payable as per the scheme rules of the master policyholder (subject to availability of the fund in the respective unit fund of the respective group policyholder’s superannuation fund).

Exit Benefit

Upon Exit (Termination of Service/Early Retirement/Resignation etc.), the member stands to receive a lump sum benefit from the policy unit fund as per scheme rules of the master policyholder (subject to availability of the fund in the respective unit fund of the respective group policyholder’s superannuation fund). Other than exits as per the scheme rules, withdrawals shall not be allowed.

Loyalty Benefit

At the end of each policy year, the IndiaFirst Life Group Unit Linked Superannuation Plan offers annual Loyalty Benefit (LB) as a percentage per annum of the daily average fund value during the superannuation pension plan year. This LB depends upon the size and type of the funds invested.

Fund Options

With the IndiaFirst Life Group Unit Linked Superannuation Plan, you enjoy superannuation benefits that come from a policy customised to your needs. In a unit-linked policy, you get to choose which funds you would like to invest your money in, depending on your returns expectation and risk profile.

• Group Growth Advantage Fund allocates 80-100% of assets to equity and 0-20% to the money market. This superannuation pension plan fund delivers higher returns on a medium to long-term basis at medium to high investment risk.
• Group Secure Capital Fund allocates 70-100% of assets to debt securities and bonds and 0-30% to the money market. This superannuation pension plan fund delivers moderate returns on a medium to long-term basis at moderate investment risk.
• Group Money Market Fund allocates 0-20% of assets to debt securities and bonds and 80-100% to the money market. This superannuation pension plan fund delivers interest income on a short-term basis at very low investment risk and high liquidity.

Investment Strategy Options

To give you the best returns possible from your contributions, the IndiaFirst Life Group Unit Linked Superannuation Plan offers multiple investment strategy options.

• Systematic Transfer
• Age-based Asset Allocation Strategy (Applicable for DC schemes only)
• Automatic Trigger-based Investment Strategy

Switching Option

Under the IndiaFirst Life Group Unit Linked Superannuation Plan, you can move some or all the units from one unit-linked fund to another to meet changing investment needs. This process is called switching. There is no limit to the number of switches that the master policyholder can apply for.

Premium Redirection Option

Under the IndiaFirst Life Group Unit Linked Superannuation Plan, the master policyholder can choose to redirect future investments towards a different fund or set of funds. However, under the premium redirection option, your past allocation of contribution does not change.

Tax Benefits

Tax benefits (if any) may be available on premiums paid and benefit receivable as per prevailing Income Tax Laws. Tax benefits are subject to change from time to time as per the Income Tax Act, 1961.