Retirement Solution - Business Needs

A business has many risks and it is liable towards the employees. There is a need for group plans in business and group insurance plans are beneficial to your and your company in many ways:

• If you are running a company and you have a group of employee working for you ,you can boost up your employees moral by providing them with group insurance and retirement policies.
• Many group policies can be bought on contributory basis from both employees and employers.
• You to fulfill your statutory responsibilities towards your employees.
• The policies can be modified to suit your employee’s requirements and also fulfill your business needs.
• Your employees will be benefited from the policies and feel obligation towards your business.
• Tax benefits are available on such policies

Group Gratuity:

It is a statutory obligation of a business owner to provide gratuity to its employees on cessation of service.

Gratuity is paid in the following conditions:

• Gratuity is given to employee having a service of not less than five years or
• Gratuity is provided on superannuation or
• Gratuity is given on his retirement or resignation. or
• Gratuity is given in case of death or disablement of employee due to accident or disease but the number of served year should be 5 years at least.

The calculations for gratuity and benefits of gratuity vary according to the following conditions:

• The amount of gratuity amount depends on the number of years of service and terminal salary of the employee.
• Gratuity amount can be paid on contributory basis from the employee and employer and the employer will be benefited in tax on giving group gratuity to his employees.
• Amount paid into gratuity remains untouched even in case of changing fortunes of the employers.
• Annual cost for gratuity is determined after calculation of percentage of annual salary bill to make the employer know of his liability in advance.
• Individual data of the employees for calculation of the rate of contribution is called once in a year.
• The pace of accumulation is faster in gratuity due to higher yield of the fund.
• Group gratuity scheme provides service benefit in case of unforeseen contingencies like death and gives complete security to the employee and his family’s needs.

Group Superannuation:

Group superannuation can be taken up for a group of employees by the employer on contributory scheme. The employer can contribute percentage of salary of employees to provide benefits to its employees.

The benefits of superannuation are many:

• On retirement ,employee can get his money as a large sum of amount to be used in any pension scheme or to fulfill his desire.
• In case of death of the employee, the employee’s family can receive lump sum superannuation money to be invested in any pension scheme to be utilized as a financial support by the family and loved ones.
• Lump sum payment on the unfortunate death of a member /employee while in service can be received as a benefit of taking up the policy. This benefit is given in case group insurance is taken along with the group superannuation scheme.
• In case of withdrawal of the superannuation money, it can be transferred to new employer’s superannuation scheme or can be used for immediate or deferred pension schemes.
• Tax benefits are provided in group superannuation scheme.