What is Superannuation benefit fund and how to check it online?
What is Superannuation benefit fund and how to check it online?
This article is on based request from Kiran on “Suggest a topic”.
Superannuation is a retirement benefit provided by employer. Companies have been making this benefit as part of the salary structure (CTC-Cost to company). Companies can create Superannuation fund account with any of the insurance companies like LIC, ICICIprulife etc. Employers are finding the ways and means to provide retirement benefits to employees to reduce attrition (resignations) so that employees can stay longer period with them. Along with PF and NPS, they are finding Superannuation as one more tool to provide retirement benefits to their employees.
Also read: What is gratuity and how it is calculated?
Features of Superannuation benefit fund?
- Companies can open superannuation benefit fund with any of the approved agencies like LIC, ICICIprulife etc
- Employer need to contribute to maximum of 20% of the salary to Superannuation fund. Generally companies are making this part of the CTC itself. Means, the amount paid on this Superannuation is coming from employee salary itself. There is no specific contribution from employees like it is done for PF account.
- Returns on Super Annuation fund are almost same as Provident Fund interest rates. The interest amount would be credited to members account every year.
- If an employee resigns and moves to another company, he can transfer the amount to the new company provided the new company is having approved superannuation fund. In case new company does not provide superannuation fund facility, the employee can withdraw the amount, however necessary tax would be applicable.
How Superannuation fund is calculated?
- Less than 1 year of service – NIL
- 1 to 2 years of service – 50% of contribution + interest received from fund
- 2 to 3 years of service – 75% of contribution + interest received from fund
- 3+ years of service – 100% of contribution + interest received from fund
Means, if you stay beyond 3 years of service, employer would contribute to 100% of the amount allocated for Superannuation. If an employee works for less than 3 years, though it is part of CTC structure, the employee would not really get benefited.
What are the tax benefits of superannuation benefit fund?
a) Retirement: One third of the superannuation accumulated (contribution + interest) can be taken as tax free amount in lump sum payment and balance need to be used to buy annuities.
b) Resignation: In case of resignation of the employee, he would get equated interest amount to his account for his share. Beyond 3 years, he can opt for pension or contribution can be transferred to new employer who may have approved super Annuation fund. In case the facility is not available with new employer, he can withdraw and necessary income tax would be applicable based on individuals income tax slab.
c) Contribution: Superannuation contribution more than Rs 1 Lakh is treated as taxable perquisite in the hands of employee. Means such amount would attract tax and necessary tax would be deducted by employer.
How to check superannuation benefit fund online?
Below is the sample example on how to check superannuation benefit fund online for LIC and ICICI. But before that, you should check with your HR / Payroll department /Finance department about the super Annuation policy number and website details.
How to check Super Annuation fund with LIC or ICICIPrulife online?
- Visit website licindia.com or ICICIprulife.com
- Click on register option. Update Policy number / DOJ / DOB / Premium amount. I understand majority of Date of birth (DOB) are not updated in LIC records, hence you should indicate as “01/07/1960” or “07/01/1960” in case It is not working.
- Visit “Group Scheme” info
- Go to “members” section
- You can see accumulated balance of your superannuation fund.
Also Read: Complete guide in New Pension Scheme (NPS) in India
The above process is only indicative and you may have further steps involved in it depending on the company where Superannuation fund is maintained. In case there are any additional steps, please provide the same, I would incorporate as part of above steps.
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What is Superannuation benefit fund and how to check it online
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As I was a member of this LIC superannuation scheme by my company. I had resigned from my company and my pension was started since 2016 and the amount was crediting to my bank a/c every month, but suddenly it has been stopped crediting since last 3 months (from nov’2021).
My request could you pls provide suggestions that how can I check with Lic ? Or could you please provide the current link by which I can check online status of my super Annuation scheme ?
Pls reply back and help me.
You need to approach LIC customer care on this. May be there is some KYC issue. Call LIC customer support and find out
I have not received monthly annuity amount of Rs.9573for the month of June 2022 . what is the reason
You need to approach insurance company for this
I took superannuation plan in my previous organization. When resigned withdrawn 1/3 rd amount. Remaining amount (Rs. 96,000)they kept in life long annuity.
and they just giving monthly pension as Rs. 483 only to me.
Not interested to take monthly pension. Also every year i need to provide Existence letter from gazetted officer. This is not so good to me.
Kindly advise how can i withdraw my annuity amount instead to get monthly.
you cannot get annuity amount otherthan death case please check with your previous employer for more details
Many thanks for the detailed reply
I retiered in June 2020. I received 1/3 of accoumulate amount yestrtday What I will get be amount of pension on monthly (Balance amount is approx Rs. 11.5 Lac).
Hello Sandeep, Pls go thru this article which I write few days back. You would get only 1/3 of accumulated amount on retirement and balance you need to approach your superannuation insurance company by selecting a pension scheme. https://myinvestmentideas.com/2020/10/how-to-withdraw-superannuation-fund-in-india/
I have a P&GS Policy (GSI-Assurance No4) from my employer @ LIC,ND. On my retirement in 1998 I got commutated 1/3rd and started getting Regular Monthly Pension since then. Q1: Can I get the balance 2/3rd lying with LIC and close the account? Q2: If I choose to continue what will happen to the balance corpus standing to my credit? Q3: On my death, will the Corpus money be paid to the Nominee?
Hello BK Chowdhary, This would depend based on the annuity plan which you have taken. If you have taken simple life long pension annuity plan, you would just get pension income for life long. check what plan you have taken.
I have resigned from an MNC in 2020 and want to understand how to claim this as I am getting reminders from my Co.
Where do I choose my Pension plans. I was never asked about this.
What option is best and under circumstances?
I finished 18 years with MNC
I still have many years for retirement.
I dont know which option to choose ..1/3 , or 1/2 or 100% . How does one determine this ? Pls advise.
If you do not need pension plan now and need only after retirement, best way is to transfer superannuation to NPS Tier-1. Once you move to Tier-2 NPS, it is in your control. You can get pension once you retire and as per the option you might chose at that time. Pls approach your payroll / HR dept to transfer to NPS
We can check with old portal, I have done it today. Use (Admin removed this as this if fake URL)
Guys, this is fake portal and does not belong to LIC. Pls do not use this link and do not provide any sensitive information.
Hi Suresh, request you to remove such comments as these can harm people as you have already mentioned in your reply / remarks to that message. Please, get it removed
Thumbsup to you. You made a point to remove it so that NO ONE can fall into that trap. I just removed it. Thank you Arun.