28 February 2008
Some facts about Superannuation -
a) It is a retiral benefit.
b) It is normally computed at 15% of the monthly basic salary. Hence if the basic is Rs.10,000 p.m., the Superannuation contribution will be Rs.1,500 per month.
c) The Company opens a Superannuation Fund with an agency like for example - LIC. Monthly contributions are made by the Company on behalf of the eligible employees. (There is no recovery from the employees).
d) This Fund is normally invested in Govt. securities / equity to get returns.
e) When the employee retires, he/she can normally (based on rules of the Fund), be eligible for 25% of the accumulated fund.
f) The remaining is moved to a annuity fund and monthly returns commuted as pension is paid to the employee.