Superannuation may not have a clear meaning to most but is indeed a great group life insurance option for employers who wish to provide their employees a way to be able to enjoy maximum benefits with minimal contribution towards their own pension. Superannuation plans are basically based on the AS 15 (2005 revised) benefits that a company has to provide their employees and hence works as both a pension as well as life insurance plan with annual contributions being made.
The PNB MetLife Superannuation plan is as simple as the name suggests. The scheme rules will be governed and agreed upon by the bank/insurance provider and the employer, providing a sustainable mode of superannuation for the employee's. A lot of companies may also want the fund management and administration of such pension plans to be outsourced. MetLife insures and ensures that the requirements for such a plan is met for all parties involved.
Eligibility Conditions for PNB MetLife Superannuation Plan:
|Minimum Entry Age||18 years (based on the last birthday)|
|Maximum Entry Age||As per rules of the scheme|
|Maximum Maturity Age||As per rules of the scheme|
|Minimum Group Size||At least 10 employees or more|
|Maximum Group size||No Restrictions|
|Minimum Policy Term||Annually renewable policy|
|Minimum Contribution||Based on the certificated provided by an independent actuary as per revised AS15|
|Maximum Contribution||Based on the certificated provided by an independent actuary as per revised AS15|
Policy Terms for the PNB MetLife Superannuation Plan:
|Single/Regular Premium||Annually renewable each year but any no. of premiums can be paid.|
Premium Payments Offered by PNB MetLife Superannuation Plan:
|Minimum Premium (Contribution)||Based on the certificated provided by an independent actuary as per revised AS15|
|Maximum Premium (Contribution)||Based on the certificated provided by an independent actuary as per revised AS15|
|Premium Payment Mode||Premiums can be paid in any mode as decided and agreed by both parties.|
Key Features of PNB MetLife Superannuation Plan:
|Type of Plan||Superannuation group plan|
|Premium Payment options||Annually renewable. No restrictions in the number of installments or monthly, annually, semi-annually or quarterly.|
|Free Look period||Within 15 days|
|Reinstatement||A surrendered policy cannot be reinstated|
|Revival||No revival applicable after surrender or termination.|
|Surrendering Policy||If you surrender the policy, PNB MetLife is liable to pay: Before 3 years of policy renewal: Surrender Value = Fund Value - Surrender Charge. (Surrender charge calculated based on Part E and the Market Value Adjustment). On the 4th year of policy: Surrender Value = Fund value|
|Partial Surrender||Not allowed|
|Loan Against Policy||Not available for group plans|
|Benefit Statement||Receivable at every financial year stating the benefits claimed and the funds available.|
Charges for PNB MetLife Superannuation Plan:
|Fund Management Charges||0.40 percent per annum|
|Surrender Charges||0.05 percent of the fund value, which should not exceed Rs.5 lakhs.|
|Market Value Adjustment||(Fund Value of scheme – Surrender Charges) X (1- market value of total Fund / Policy Account Value of total Fund)|
Benefits of PNB MetLife Superannuation Plan:
Death benefits: This will be given to the insured member’s stated nominee in the case of the death of the insured. This will also include accrued bonuses and other payouts if applicable based on the scheme rules governed by the bank and the employer. No Market value Adjustment will be conducted in such cases. The accrued benefit is subject to the Fund available in the scheme.
Guaranteed Accrued Benefit: This benefit is paid out in the case of death, disabilyt, illness, termination, resignation or retirement of the individual based on the scheme rules with a minimum of 2% being the guarantee. The exact amount will also be determined by the MetLife Immediate Annuity UIN: 117N029V01.
Tax Benefits: Tax benefits are applicable under the Income Tax Act, 1961, but may be subject to changes based on amendments made in the section of the Act dictating the tax benefits from life insurance.
MVA: Market Value Adjustment will be used to calculate fund value in the case of bulk exit or surrender of policy for 3 years of the running policy. From the fourth year no surrender charges will be levied, hence the full fund value will be paid off.
Claim Filing for PNB MetLife Superannuation Plan:
The employer needs provide a notice with details of the circumstances for the claim requirement that must be written within 30 days of the occurrence along with other documents and information as mentioned below:
- PNB MetLife Claim form completed
- The Employer’s certification for the amount payable as accrued benefit based on Scheme Rules/Trust Deed( as agreed upon by bank and employer)
- For death claims only: Death certificate issued by a renowned governmental authority.
- Proof of Age of the Insured Employee
- Employer’s declaration form that is completed and signed by the Employer or a trustee that has been mentioned in the Trust Deed
- Additional documents based on the situation and PNB MetLife’s requirement.
Salient Features of PNB MetLife Superannuation Plan (Other Than Benefits):
Free Look Period
The employer as the group policy administrator gets a free look period of 15 days which starts from the receipt date mentioned on the Group Policy making sure that the terms and conditions of this Group Policy are being met. If the employer has any problems or has objections on the stated terms and conditions the policy can be cancelled by providing a written notice to PNB MetLife stating the problems and the entitled refunds will be given except stamp duty charges will be deducted.
No partial withdrawal provision is allowed for this MetLife plan.
Loan Against Policy
Loans cannot be taken against this policy since this is a group plan.
Interest Charged on PNB MetLife Superannuation Plan
Interest rates applicable for every quarter in a financial year will be declared in the beginning of each quarter. Once the interest is calculated the interest will made a part of the fund.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017