On Retirement:

An amount equal to 1/3^rd (or such a fraction as provided under the Trust Rules) of the Purchase Price of the Pension amount calculated will be paid and the balance of the Purchase Price will be utilised to purchase the pension.

On Death:

A pension, as defined in the Trust Rules will become payable to the beneficiary.

On withdrawal:

The Transfer Value as defined in the Trust Rules will be transferred to the Superannuation Scheme of the new employer provided the rules of both the schemes provide for the same. Alternatively, a pension can be provided from the normal retirement date as provided in the old employer's scheme or the commuted value and immediate pension can also be provided.

Annuity Options:

The customer may avail of Tata AIG Group Immediate Annuity with Return of Purchase Price, for purchase of annuity.

As per the request of the policyholder, Tata AIG Life will arrange for the purchase of annuity contracts from any Insurance Regulatory & Development Authority (IRDA) approved annuity provider.

Tax Benefits under Income Tax Act, 1961:
For the employer*:

• Annual contributions are allowed as deductible business expenses u/s 36(1) (iv)
• Maximum contribution that an employer can make is 27% (inclusive of the contribution towards Provident Fund) of employees' annual salary- Rule 87
• Interest income on the fund is tax-free u/s 10(25)(iii)
• Fringe Benefit Tax is not payable for contribution paid up to Rs. 1,00,000 per employee per member

For the employee*:

• Contributions by the employer are not treated as perquisites u/s 17(2)
• Commuted value (1/3rd) on retirement is tax free u/s 10(13)
• Benefits payables on death are exempt from tax u/s 10(13)
• Employees' contribution, if any, qualifies for tax exemption u/s 80C
• Superannuation is a voluntary scheme and the employer is free to define the benefits and the eligibility criteria