A lot of employees do not care to check there Superannuation amount , or they are not even aware that it exists. Knowing the amount of your superannuation can be helpful , because then you know that you have that much saving and hence when you plan your investments , you can factor in this information and take better decisions . This small amount make big chunks of your portfolio .
What is Superannuation Benefit ?
Superannuation is a retirement Benefit by employer . It is a contribution made by employer each year on your behalf towards the group superannuation policy held by the employer. This is an important part of creating wealth for your retirement .
Some other points are :
a) Superannuation Fund is a retirement benefit given to employees by the Company.
b) Normally the Company has a link with agencies like LIC Superannuation Fund, where their contributions are paid.
c) The Company pays 15% of basic wages as superannuation contribution. There is no contribution from the employee.
d) This contribution is invested by the Fund in various securities as per investment pattern prescribed.
e) Interest on contributions is credited to the members account. Normally the rate of interest is equivalent to the PF interest rate.
f) On attaining the retirement age, the member is eligible to take 25% of the balance available in his/her account as a tax free benefit.
g) The balance 75% is put in a annuity fund, and the agency (LIC) will pay the member a monthly/quarterly/periodic annuity returns depending on the option exercised by the member. This payment received regularly is taxable.
h) In the case of resignation of the employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a Superannuation scheme, then the employee can withdraw the amount in the account, subject to deduction of tax and approval of IT department, or retain the amount in the Fund, till the superannuation age.
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