Professional Documents
Culture Documents
Provident Fund
Superannuation Scheme
Gratuity Scheme
Provident Fund
Trust Management
Governed under Employees Provident Fund Act,1952 and administered
through M & M PF Trust.
Provident Fund
Appointment of Nominee
Each member must appoint Nominee by filling up Nomination Form.
Fresh Nomination should be made after marriage as Nomination made before
marriage shall be deemed invalid.
If no Nomination submitted by the member , upon his death the amount shall be
payable equally to the family members.
Employee can choose to contribute thru his salary additional amount as voluntary
contribution.
On the PF Account Balance, member will be credited with the interest annually on
monthly running balance :
FY
F06 to F10
F11
F12
F13
F14
F15
Interest Rate
% p.a.
8.50
9.50
8.25
8.50
8.75
8.75
Employee Benefit Funds
Provident Fund
Loans/Withdrawals
Refundable Loans were stopped from April 2007 onwards as per PF Act requirements.
documentary evidence
Loans are sanctioned in the Loan Committee's Weekly Meetings
Loans are processed on our PF System & authorised by 2 Employee Trustees jointly with
Employer Trustee
Remittance advices are signed jointly by two signatories & sent to HDFC Bank for ECS credit
& Demand Drafts
Every Week approximately 30-40 loan applications are approved amounting to Rs. 75-80 Lakhs
Least of following :
36 months ** PF salary or
100 % Total PF balance or
Cost of House or
Applied Amount
Documents Required :
Copy of sale agreement, stamp duty/registration
receipt, payment receipts issued by builder etc.
* 10 years membership for Repayment of Housing Loan taken from Financial Institutions
** 24 months PF salary for Purchase of site
Least of following :
12 months pf salary or
Own & Voluntary PF balance or
Cost/Estimate of Repairs or
Applied Amount
Documents Required :
Proof of 5 years old house, NOC from Society
Estimate of Repairs amount etc.
Least of following :
6 months PF salary or
Own & Voluntary PF balance or
Cost of treatment or
Applied Amount
Documents Required :
Certificate from Doctor of Hospital requiring more than one
month hospitalisation or major surgical operation with
estimate of cost etc.
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Least of following :
50 % own & Voluntary PF balance or
Cost/Applied Amount
Marriage Loan
Higher Education
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Provident Fund
Final Settlements
Resigned/Retired Members to submit application for settlement of PF Account (Form 19)
Resigned Members submits Form 13 thru his new Employer for transfer his PF Account to
New Employer's PF
Encashment of PF for service less than 5 years is subject to Income Tax Deduction at source
In Death Cases the Nominee to claim PF by submitting Form 20 along with Death Certificate
PF Balance remaining unclaimed, will not earn any interest after his account remains
unclaimed/inactive for more than 36 months.
13
Monthly EPS Contribution of 8.33 % of monthly PF Base Salary Max. Limit Rs.6,500/( i.e. max. Rs.541) upto 31/08/2014 and Rs.15,000/- ( i.e. max. Rs.1250) from
01/09/2014 are paid by Company out of Employers PF Contribution to the local RPFC
offices respectively for each of our Units/Factories.
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The Pension benefits are computed based on completed year of service and
average salary of 60 months with maximum of Rs. 6,500/- per month ( upto
31/08/2014) or Rs. 15,000/- per month (from 01/09/2014) as applicable.
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Plus pre-1995 service benefit
Minimum Pension of Rs. 1,000/- per month
For service less than 10 years lump sum withdrawal benefit given.
For transfer of pension benefit on location change or resignation on submission of
Form 13 to RPFC.
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Pension Bank Account on single name to be opened with SBI, PNB, HDFC etc.
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Widow Pension of approx. Rs. 2051/- p.m. for her life time and also Pension for
maximum 2 children of Rs. 500/- each upto the age of 25 yrs
Death After Retirement /Commencement of pension :
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LIC pays Widow/Nominee approx. Rs. 3.62 Lakhs as lump sum death benefit.
Death After Retirement
Nil
19
20
Once Officer joins the Scheme he can not opt out of the Scheme while in service of the
Company.
If Officer opts for not to join the Scheme, he will be paid fully taxable Superannuation
Allowance of 15 % of PF Base in the monthly salary.
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Superannuation Scheme
Fund Management
The Scheme is Managed by Trustees & Administered mainly through LIC and Pvt.
Insurance Companies e.g. HDFC Standard Life , ICICI Prudential Life, Kotak Mahindra
Insurance.
The existing superannuation schemes of all the Insurance Companies have been frozen by
IRDA during the year 2013-14 and continued only for existing members.
All Private Insurance Companies Superannuation Schemes have been closed from 1st April,
2013 onwards and no new member can opt for these schemes.
New members can only join LIC's new scheme after 1st April, 2014 onwards.
Employee Benefit Funds
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Superannuation Scheme
Appointment of Nominee
Each member must appoint Nominee by filling up Nomination Form.
Fresh Nomination should be made after marriage.
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Superannuation Scheme
Fund Investment Options
Service Providers
Cash Accumulation Scheme of LIC
=> Capital Guaranteed Secured Scheme
=> Superannuation accumulation grows by annually interest credited by LIC
(Schemes frozen as on 31st March, 2013 and no new membership can be availed under
these schemes)
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Superannuation Scheme
Returns During Accumulation/Service Period
LIC Declared Interest Rates for last 5 Years
Year
2010-11
2011-12
2012-13
2013-14
2014-15
Returns (% p.a.)
9.50%
9.55%
9.55%
9.30%
9.40%
HDFC Life
2011
2012
2013
2014
2015
51.90
52.93
57.20
62.78
79.87
ICICI Prudential
Life
32.83
33.38
36.61
42.78
54.29
Kotak Life
31.82
31.40
34.27
38.54
50.04
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Superannuation Scheme
Contributions Invested : Returns
Assuming Rs.50000/- annual contributions invested from 2006-07 to
2014-15, the fund value under various options would be :
Fund Options
Fund Value
31 March 2015
Rs. Lakhs
LIC
8.60 }
} these balances will vary +/7.81 } dependent on the NAVs
} of these schemes.
7.56 }
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Superannuation Scheme
Pension Benefits
No vesting rights or benefit entitlement for resignation before completing 5 years service
Upon separation after 5 years service option
- can start immediate pension or
- transfer accumulation to new employers scheme or
- can start pension from normal retirement age
Pension Quantum based on accumulated balance with LIC or/plus sale value of Units of Pvt
Insurance Companies
Monthly Pension Paid only by LIC
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On joining Superannuation Scheme member has to opt for the Pension Option from
any one from the following :
Retirement Pension under above options can be started with or without 1/3rd tax free
commutation
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Superannuation Scheme
Retirement Pension Benefits
Sample Computation
Particulars
ROC pension
15
5
10
7.28%
8.67%
8.97%
9.21%
9.39%
72800
6066
86700
7225
89700
7475
92100
7675
93900
7825
Benefits to Nominee
No Pension. Capital
No Capital Refund
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Superannuation Scheme
Tax Reliefs to Members
Superannuation
Scheme
Under Section 17(2)(vii) of Income Tax Act, Superannuation Contribution paid the
Company up to Rs. 1 Lakh is Exempt from Income Tax and contribution above Rs. 1 lakh is
added to income as perquisite and TDS @ applicable rates to be paid.
Under Section 10(25)(iii) of Income Tax Act , interest income credited to the accumulated
balance is Tax Free.
Under Section 10 (10A)(ii) 1/3rd Commutation of Pension on retirement is Tax Free.
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Superannuation Scheme
Death Benefits
Death While in Service
Immediately after Death , Widow/Nominee to submit LIC's pension Claim Form along with
the copy of death certificate for starting pension benefits on the accumulated sum.
Pension can be commenced under any of the options with or without option for
commutation of pension.
Death After Retirement/Commencement of Pension
Immediately after Death , Widow/Nominee to submit application along with the copy of
death certificate for claiming Return of Capital or Pension as per the option exercised by
the retired employee.
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Superannuation Scheme
Lump Sum Death Benefits
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Gratuity Fund
Appointment of Nominee
Each member must appoint Nominee by filling up Nomination Form.
Fresh Nomination should be made after marriage as Nomination made before
marriage shall be deemed invalid.
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http://corporate/sites/ccs/default.aspx
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Credit Society
Members Investment Options & Returns
Share Capital
Cumulative Deposit
Max Invest
Rupees
% p.a.
Returns
10,000
12.00
8,000
7.00
Fixed Deposit
82,000
TOTAL
100,000
8.50 plus
5.75 Addl. Int.
13.55
40
Min
Membership
1 month
Max Loan
Rupees
Interest
% p.a.
24,000
15.00
1 year
1,30,000
9.00
5 -10 yrs
2,60,000
13.00
10 - 20 yrs
3,25,000
Above 20 yrs
3,90,000
( 12 installments )
Addl. Loan
(96 installments )
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Employee Obligation
Submit Form 11 indicating your UAN & KYC particulars.
Submit PF, Superannuation, Gratuity Membership & Nomination Forms duly filled up if not
already done.
For transfer of PF/Superannuation Accumulations from previous employer fill up & submit Form
13 & Annexure `A` respectively.
For PF Voluntary Contribution intimate the
Payroll/Service Centre.
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