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KRIBHCO EMPLOYEES SUPERANNUATION PENSION
SCHEME:
Kribhco has
introduced Krbhco Employees Superannuation Pension Fund scheme from
1.10.2012 taking a Master Policy from LIC for giving pension to
retirees. Out of distributable profit of 5%, 1.5% and 1% of profit
before tax is diverted to the corpus of this fund every year. A
portion of employees annual incentive payment also goes to the
corpus of this fund. Apportioned fund accumulation in each employee
account is updated annual. Upon retirement and until the incentive
payment is due to a retiree, the fund grows including interest. The
scheme provides for life cover of Rs. 10 lakh for each member upto
60 years. In the event of death of an employee during service, his
nominee/legal heir gets annuity for an amount of Rs. 10 lakh plus
his accumulation in the pension fund corpus.
The management
as a special case is taking extra period of insurance cover upto 65
years of age for all members, depending upon personal option of an
individual, because such willing retiree has to pay the insurance
premium. Upto to the eligibility period of incentive payment
receivable to a retiree, the premium amount for insurance cover will
be met from the amount payable. Thereafter one can go for the extra
cover of Rs10 lakh continuing upto 65 years provided he pays a small
premium of Rs.3540 every year (the rate may change in future) for
which option will be sought from eligible retired persons every year
in Sept. The renewal of policy is done every 1st of October. If the
retiree is not opting for addl. cover upto 65 yrs, (when email
intimation comes to the retiree in Sept), the trust ask LIC to fix
his pension and he will continue to get the fixed pension as per
choice given i. e. monthly, quarterly, half yearly, yearly. LIC will
send a detailed calculation sheet on fixing the
pension.Nominee/spouse will get full fund value in the unfortunate
event of member's death(if one is giving option 3). In case death
happens within the addl. insurance cover period, the spouse will get
Rs10 lakh as insurance extra. It is just like LiC jeevan suraksha.
If the retiree opts for pension in the first year itself, no extra
cover.
This LIC pension through the incentive was introduced in
2012-13. Retirees whose fund value was upto Rs.1.6 lakh, they were
being paid back the fund value. They can also opt for xtra cover of
Rs. 10 lakh upto the age of 65 yrs by paying the premium. For being
eligible for pension, minimum fund value was required to be Rs. 1.6
lakh.
For clarity, an Example:
X retired in June 2020, he
is eligible for incentive payable for 2020-21 which is normally done
in Sept 2021. So His contribution to the LIC pension from incentive
continues in 21-22 and his extra coverage of 10 lakh will go upto
Sept 2022 i. e. from Oct 21 to Sept 22. From Oct 2022 upto his
attaining 65 yrs age, every year, he can opt for extra cover of 10
lakh on payment of small premium amount (presently it is 3540). In
sept 2022, he will get a email for this. on opting for pension, our
trust will write to LIC for fixing the pension. So based on his
total accumulation (distributable profit contribution as fixed and
contributions through incentives from 2012-13, when the scheme
started), LIC will fix pension monthly, quarterly, half or yearly as
one opts. This year interest rate is 7.40% I think. On unfortunate
death of the member, spouse can opt for receiving the whole
accumulated amount (which is option 3 and the ideal option, though
there are other options) and furnish prescribed claim form through
the Trust.
Those (newly retiring persons) who have eligibility
for extra insurance cover upto 65 year of age, it is recommended,
they should opt for the same. |
