Employee Benefits
Credit Life
Group Pensions
Non Unit Linked
Tata AIG Life Comprehensive Superannuation Scheme Policy
Tata AIG Life Comprehensive Gratuity Scheme
Tata AIG Life Group Immediate Annuity with return of Purchase Price
Unit Linked
Tata AIG Life Retirement Assure Group Superannuation Scheme (Unit Linked)
Tata AIG Life Retirement Assure Group Gratuity Scheme (Unit Linked)
Tata AIG Life Retirement Assure Group Gratuity Scheme (Unit Linked)


Retirement Assure Group Gratuity Scheme (Unit Linked)

 As per the Payment of Gratuity Act 1972, an employer is obliged to pay gratuity to an employee after he/she has rendered a continuous service of at least 5 years. Gratuity is payable to such an employee on:

  • Normal retirement
  • Resignation/early retirement
  • Death or disablement due to accident or disease (completion of 5 years of service is not necessary in such cases).
If the Employer’s Gratuity Rules provide for higher benefits as compared to the Payment of Gratuity Act 1972, the benefits will be paid as per the Employers’ Gratuity Rules.

Tata AIG Life Retirement Assure Group Gratuity Scheme (Unit Linked) is designed to help you bear the financial burden of paying gratuity and provide you with an opportunity of earning returns on the funds invested.

How will the Employer/Trustee contribute to the Gratuity Scheme?

Employer/Trustee of the Gratuity Scheme shall fund for gratuity liability by:
  • Remitting the recommended contribution for the past service and an annual contribution for the future service
  • Transferring existing assets if any to Tata AIG Life based on mutually agreed asset valuation
How does the Unit Linked Gratuity Plan Structure work?

  • The Fund will be managed on a unitized basis.
  • Any contribution received will be converted into units based on the applicable fund unit price.
  • The fund value of the Gratuity Fund at any given time is based on the unit price declared at the close of business on the date on which the units are allocated

Can an Employer/Trustee decide on asset allocation?

An Employer/Trustee has the flexibility to decide the ratio of investment based on their risk taking appetite. They can invest in any of the following :

  • Upto 100% in Short Term Fixed Income Fund
  • Upto 100% in Bond Fund
  • Upto 100% in Growth Fund
  • Upto 100% in Balanced Fund
  • Upto 100% in Income Fund
  • Any combination of the above with a maximum of 60% in Equity Fund
    Tax Benefits for the Employer*:
    • Employers contribution to approved gratuity fund is an deductible business expenditure U/s 36(1)(v) as under:
      • Initial Contribution is allowed as deductible business expense to the extent of 8.33% of the member's salary for each year of employee's past service. (Rule 104)
      • Ordinary annual contributions is allowed to the extent of 8.33% of the employees salary.
    • Interest Income on the fund is non taxable in the hands of the Trustees u/s 10(25) (iv).
    Tax Benefits for the Employee*:

    Gratuity received is exempt from tax up to half a months salary for every completed year of service or Rs. 3.5 lakhs, whichever is less u/s 10(10).

    * Tax benefits are available as per the provisions of Income-tax Act, 1961 and subject to amendments thereof from time to time. To know whether you are eligible for above mentioned tax benefits, please consult your own professional advisors and Tata AIG Life Insurance Company Limited is not responsible in case you do not get any tax benefits stated above. Please note that the prevailing and applicable tax laws shall be final and conclusive on the matter and Tata AIG Life Insurance Company Limited is not responsible for the same at any time.”

    In Built Death Benefit:

    As part of the scheme, an additional benefit of Life Insurance Cover is included.

    In the unfortunate event of a serving employee's death, the coverage would provide for a lump sum payment equal to sum assured depending on the life cover opted by the Trustees with a minimum of Rs. 1,000/-.
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    UIN - 110L050V01
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    1-800-11-9966.
    Email:
    pensions@tata-aig.com
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