Superannuation
Legal Eagle
(Querist) 16 February 2009
This query is : Resolved
Hi. In case an employee is contributing towards the superannuation and in case he resignes after 6 years of service, is he liable to get the superannuation / the money which he has contributed towards the superannuation or the said amount is kept with the Company. Is there any specific Act which can be referred to? Please advice.
sanjeev murthy desai
(Expert) 17 February 2009
Hi !
I think there is no statutory compliances regarding Superannuation Fund.
sanjeev desai
sanjeev murthy desai
(Expert) 17 February 2009
Here is some information on Superannuation Fund.
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.
Normally Companies do not extend the Superannuation benefits to all employees- but only to a specific category of employees - like for example Level-1 of Managers onwards..
Hope the above has thrown sufficient light on the topic of Superannuation.
Abhishek
(Expert) 17 February 2009
i will go wid Mr. desai...
A. A. JOSE
(Expert) 17 February 2009
Further clarification as rightly observed by Mr.Prabhakar would be welcome from the author please.
Legal Eagle
(Querist) 18 February 2009
Thank you every body for the clarification. To be more specific the Superannuation fund is towards the Pension Scheme,in case if the superannuation amount is forming a part of your CTC and when you resign the employer says that as you have resigned you are not entitled to the said amount, is it right? As a good amount is collected by the employer towards the superannuation fund. The employee is deprived from the said amount which was forming a part of the CTC. IS there any recourse to gain that? They are not ready to even pay the said amount after deducting appropriate tax. Please advice
sanjeev murthy desai
(Expert) 18 February 2009
I think, you may file a complaint before income tax officer or file a civil suit for declaration said ammount.
sanjeev desai
Hiralal Das
(Expert) 08 April 2009
Thanks all of you the ld. members and the author.
I think your valuable opinions will assist everybody to solve their problem/matter in question properly.
