Superannuation Plan

The driving force behind an organisation is its people. And the driving force behind the people can be the promise of a secure future and a comfortable retired life. A promise that can be made by the employer through an appropriate retirement solution. In short, a retired life the employee can look forward to.

As a thoughtful employer, it's imperative on your part to chalk out a comfortable retirement plan for your employees. A gesture that will go a long way in not only establishing your image as the most preferred employer but also serving as a motivational and retention tool for your employees. That's precisely where the Birla Sun Life Group Superannuation Plan comes in, a retirement plan designed to give your employees a happy and tension-free life..

BSLI Offerings

	Post ULIP Plan
	Group Unit Linked Plan (GULP)
	Guaranteed Interest Credit Plan

Post ULIP

Key Features:

Maximise your returns - You have the opportunity to appreciate your capital invested through earning market-linked returns.

Flexibility to choose your funds: The unit-linked platform offers the choice of 3 balanced and 4 debt funds.

Investment fund	Risk profile	Asset allocation	Minimum	Maximum
Group Secure	Medium	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	80% 10%	90% 20%

Group Stable	High	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	65% 20%	80% 35%

Group Growth	High	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	50% 30%	70% 50%

Group Fixed Interest	Low	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	100% NIl	100% Nil

Group Bond	Medium	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	100% NIl	100% Nil

Group Gilt	Low	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	100% NIl	100% Nil

Group Short term debt	Very Low	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	100% NIl	100% Nil

Capital protection: You also have the option of capital protection against any market fluctuation, for all the funds at no additional costs.

Financial stability: This plan provides post retirement financial stability to all your employees. It also allows them to track the status of their investment and growth, via an annual investment statement sent to them every year.

Switch between the funds: To enable you to manage your risk and optimize the returns based on market performance, the policy allows your employees to make two free switches per year .

Group Unit Linked Plan (GULP)

Key Features: This plan can be offered as Defined Benefit as well as Defined Contribution

Get more for less through efficient returns - We offer an opportunity to earn market-linked returns on the Gratuity Contribution.

Choose your fund. Choose your future - The Unit-Linked platform offers the benefit of ten investment funds

Investment Fund	Risk Profile	Asset Allocation	Min.	Max.

Group Fixed Interest	Low	Debt Instruments, Money Market and Cash Equities and Equity Related Securities	100% 0%	100% 0%

Group Bond	Medium	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Gilt	Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Secure	Medium	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	80% 10%	90% 20%

Group Stable	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	65% 20%	80% 35%

Group Growth	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	50% 30%	70% 50%

Group Floating Rate	Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Protection	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Money Market	Very Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Short Term Debt Fund	Very Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Manage your risk with protection fund option - At the time of inception of the policy, we also offer you an opportunity to preserve your capital.

Initial Allocation

We offer unique value added benefit of additional units up to 5% of the initial contribution.

Feel free to Switch Funds - To enable you to manage the risk and optimize the returns based on market performance, you have the option of changing the allocation in various funds.

Annual Bonus Units – Additional Bonus units will be allocated to the policy based on the average fund value on the annual renewal;

Guaranteed Interest Credit (GIC)

Key Features: This product is suitable for Defined Benefits

Earn a guaranteed Interest rate: Interest rate is guaranteed across the different deposit tenures at a compounding rate for contributions to the Group Gratuity, Leave Encashment and Pooled Superannuation funds.

Flexibility to choose your tenure: You have the convenience of choosing your guaranteed interest deposit tenure as 3, 5, 8 or 10 years.

Enjoy a mandatory life cover: The policy provides a mandatory flat/graded Life Insurance cover for all employees provided the sum assured is equal to future service gratuity contribution or a minimum of Rs 1000 per employee.

Know your returns upfront: The policy allows you to know your guaranteed returns before getting into the contract thus providing complete transparency.

Minimal surrender charges: Surrender charges are as low as 0.5 per cent in the 1st year, 0.25 per cent in the 2nd year and NIL thereafter

Group Value Plus Plan (GVPP)

Key Features:

Multiple Plan Options
You have a choice of five plan options A, B, C, D and E that enable you to select suitable plan fulfilling your specific needs.

Manage Multiple or Single account for each scheme/member
You may specify the number of accounts you want to maintain. Your premium will be invested account wise and fund value will be tracked for each account separately. Your policy can be managed with multiple accounts as well as different fund allocation to suit each account. Additionally, you have the freedom to open new accounts at any time by paying fresh premium specified at the time of payment.

Flexible premium anytime
You have the convenience to pay the premium in one or more installments. Also, you may pay premium at any point of time

Customised investment portfolio as per changing needs
You have a choice of market cycle or self managed options to manage your investment portfolio.
In the Self Managed option, you have the freedom to decide how to invest your premiums. We offer eleven investment fund options to suit your specific needs. Under the MarketCycle Option, your portfolio will be structured as per your risk profile – you can decide whether you are Aggressive, Moderate, Conservative or Assure in your approach towards investments. Your portfolio will then be monitored and administered by us, saving you the time and effort involved in overseeing it yourself.
You can change the risk profile anytime that too free of charge. The rebalancing of the MarketCycle Option is also free of charge.
You also can switch from Self Managed Option to MarketCycle Option or vice versa at any time.

INVESTMENT FUND OPTIONS
The portfolio of the different Investment Fund Options is given below:

Investment Fund	Risk Profile	Asset Allocation	Min.	Max.

Group Money Market	Very Low	Debt Instruments, Money Market & Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Short Term Debt	Very Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Gilt	Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Fixed Interest	Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Income Advantage	Low	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Bond	Medium	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	100% 0%	100% 0%

Group Secure	Medium	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	80% 10%	90% 20%

Group Stable	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	65% 20%	80% 35%

Group Growth	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	50% 30%	70% 50%

Group Growth Advantage	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	40% 30%	70% 60%

Group Growth Index Plus	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	40% 30%	70% 60%

Group Growth Multiplier	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	40% 30%	70% 60%

Group Growth Maximiser	High	Debt Instruments, Money Market and Cash Equities & Equity Related Securities	0% 80%	20% 100%

How Superannuation works

To build a retirement corpus for the employees, an employer makes periodic contributions to the superannuation fund. This contribution is invested in various securities to generate returns. Any interest earned on the contributions is credited to the member’s account. On retirement, the member can opt to take 1/3rd of the corpus due as a tax free amount and the balance as an annuity fund generating monthly, quarterly or yearly returns. This periodic payment however is taxable..

For the employer, contribution of up to 27 per cent of an employee’s basic salary is a deductible business expense. This 27 per cent is inclusive of 12 per cent contribution made towards the provident fund.

Regulations

The contributions made by the employer towards superannuation are accumulated in a fund maintained by a recognized trust or insurance company. Such contributions are utilized to provide the below mentioned benefits.

Eligibility Condition and Contribution

	Employees with 18 years of age or more are eligible for Superannuation plan. There is no maximum age limit.
	Superannuation is not mandatory by law for any organization. The option is solely available to the employer to provide pension to all employees. Though the contribution is generally made by the employer, the employees too may contribute in certain schemes (known as the Contributory Pension Fund Scheme).
	Broadly there are two types of superannuation schemes, ‘Defined Contribution’ and ‘Defined Benefit’.
	In the defined contribution scheme the contribution is defined up to 15 per cent of basic salary and is exempt from tax
	In the defined benefit scheme, the benefit is defined to the member and is linked to salary, years of service etc.

Benefits

For Employees

	Retirement benefits
	From the corpus accumulated, one-third could be commuted as a tax free amount. The balance is utilized to provide a pension as per choice.
	Death Benefits
	The benefits of the plan are passed to the beneficiaries. In case of death of an employee, all benefits available under the Scheme are 'tax-free' in the hands of the beneficiaries.
	Withdrawal due to change in Employer
	The accumulated amount could be transferred to the Superannuation Scheme of the new employer or opt for immediate or deferred pension.

For Employers

	Hassle free administration
	The entire process and administration of employees’ funds and account are managed professionally,reducing delays in claims, and any liquidity crunch.
	Tax Benefits
	The annual contributions by the employer are treated as deductible business expense as per Section 36(1) (iv) of the Income Tax Act, with a maximum limit of 27 per cent of the employees’ salary. This 27 percent includes the contribution made towards the provident fund.

Tax Treatment

For the Employee

The employee's contribution in the case of Contributory scheme is allowed as a deduction under Section 80C of the Income-Tax Act.

As per Section 17(2) (v) the contributions paid by the employer are not treated as perquisites in the hands of the employee concerned.

As per Section 10(25) (iii) of the Income-Tax Act, the income from the fund is exempt from tax.

Equitable transfer does not attract tax as per the CBDT letter dated 1/2/80 addressed to CIT Bombay.

Pension/annuity to member is taxable under Section Sec 17(1) (ii)

Under Section 10(13) of the Income-Tax Act, the benefits received are tax free in case of:

	Death of the beneficiary
	Commuted value paid on retirement
	Refund of contributions in case of death

For the Employer

	Annual contributions of up to 27 per cent (inclusive of the 12 per cent contribution made towards the provident fund) of the basic salary by the employer are treated as deductible business expense as per Section 36(1) (iv) of the Income Tax Act.
	As per a notification issued by the Central Board of Direct Taxes, up to 80 per cent of the contribution(s) towards the past service liability are treated as deductible business expense spread over five equal installments.
	Employers Initial Contribution is not treated as taxable perquisites under Section 17(2)(v) of the Income-tax Act.