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Introduction: It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The plan provides for annuity payments of a stated amount throughout the life time of the annuitant. Various options are available for the type and mode of payment of annuities. Options The following Type of Annuity:

options

are

available

under

Available: the plan

Annuity payable for life at a uniform rate. Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the annuitant is alive. Annuity for life with return of purchase price on death of the annuitant. Annuity payable for life increasing at a simple rate of 3% p.a. Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant. Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

You may choose any one. Once chosen, the option cannot be altered. Mode:

Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You may opt any mode of payment of Annuity.

Salient features:

Premium is to be paid in a lump sum. Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under: Mode Monthly Quarterly Half-yearly Yearly Minimum Annuity Rs. 500 per month Rs. 1000 per quarter Rs. 2000 per half year Rs. 3000 per year

No medical examination is required under the plan.

No maximum limits for purchase price, annuity etc. Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last birthday. Age proof necessary.

Annuity Rate: Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under different options is as under: Age last Yearly annuity amount under option birthday (i) 40 45 50 55 60 65 70 75 ( ii ) (15 years ( certain) ) iii ( iv ) ( v ) ( vi )

7510 7440 7770 7660 8140 7950 8650 8330 9350 8790 10410 9330 12080 9830 14510 10220

6930 5610 7310 7120 6960 5890 7500 7240 7000 6280 7760 7420 7050 6810 8130 7670 7110 7530 8640 8030 7180 8590 9400 8570 7260 10220 10560 9370 7360 12590 12240 10590

Incentives for high purchase price: If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity due to available incentives. Cooling-off period If you are not satisfied with the Terms and Conditions of the policy, you may return the policy to us within 15 days from the date of receipt of the Policy Bond. On receipt of the policy we shall cancel the same and the amount of premium deposited by you shall be refunded to you after deducting the charges for stamp duty. Paid-up The policy Surrender No surrender Loan No loan does value will not will be acquire be any paid-up under the the value: value. : policy. : policy.

Value available

available

under

Section 41 of Insurance Act 1938 :

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the

policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer: provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

Note : For full details please refer to the Policy document or contact our nearest Branch Office.

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Whether or not your pension plan is insured will depend on the type of pension plan you have. Subject to certain limitations, the Pension Benefit Guaranty Corporation insures certain benefits under defined benefit pension plans. There is generally no insurance for a defined contribution plan. Defined benefit pension plans are set up to ensure that employees are taken care of after retirement. Because employees depend on pension plan income, many pension plans are insured so that the pension plan itself is protected from anything that may happen to the business. This is usually done through the government or through private insurers. ERISA or the Employee Retirement Income Security Act of 1974, created the Pension Benefit Guaranty Corporation in order to ensure that workers' pensions would be safe in the event that a business goes under and/or mismanages pension funds, resulting in the promised pensions not being available to employees. However, the insurance offered through this plan only applies to certain workers and employees, and only to those who have vested defined pension benefit plans. As of 2011, approximately 44 million Americans have plans protected by the Pension Benefit Guaranty Corporation. In other cases, defined benefit pension plans may be insured by the company who is offering the plan. However, the insurance plan must be maintained by the employer in order for the pension plan to stay valid. It's not legally mandated that every employer provide a pension plan, nor is there a legal mandate that any employer that provides a pension plan for employees has to have it insured. Whenever you contribute to a pension plan, you should make sure before contributing to it from your own earnings that it is indeed insured so that youre taken care of in your retirement. If you have concerns about your defined benefit pension plan or any of your legal rights relating to your pension plan, it's always in your best interest to speak to a qualified lawyer.
View Related ERISA / Employee Pension Rights ArticlesView the Next FAQ

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Pension Schemes in India

A pension is a financial arrangement to ensure a steady income for people when they are no longer in a position to earn income from employment. With life expectancy on the rise, investing in pension schemes has become ever more prudent today. There are many different pension schemes in India, both in the private sector and from the government. Every pension scheme offers different features to cater to the specific needs of different individuals. The government of India actively promotes various pension schemes for the citizens. Tax deductions are offered on pension schemes in order to encourage people to save money in pensionfunds. The following are some of the prominent pension schemes run by the government of India at present (1):

Swatantra Sainik Samman Pension Scheme, 1980 Scheme for providing immediate relief to the families of Government servants who die while in service. Scheme of Liberalized Pensionary awards in the case of death / disablement as a result of attack by extremists, anti-social elements, etc.

Scheme for payment of pensions to Central Government Civil pensioners through authorised Banks. Defined Contribution Pension Scheme (New Pension Scheme). National Social Assistance Programme (NSAP) administered by Ministry of Rural Development.

In May 2009, the Pension Fund Regulatory and Development Authority (PFRDA) launched the National PensionScheme (NPS) for all citizens of India in the age group of 18 to 55. Under this scheme, money invested in thepension fund during the working life of the investor will come back partly as a lump sum, and partly as an annual payment or pension. (2) There are several pension schemes in the corporate sector that are created specially by the employers for the benefit of their employees. Labour Unions may also be involved in funding these pension schemes. Such occupational pensions are a form of deferred compensation, generally advantageous to employee and employer for tax reasons. Many pensions also contain an insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries, while annuity income insures against the risk of longevity. (3) In the current era of economic liberalization in India, the government has allowed the participation of foreigninsurance companies and pension funds to offer their schemes in India, in collaboration with their Indian counter-parts. There are popular pension plans offered by the private sector finance

companies in collaboration with foreign partners, such as Bajaj Allianz, Tata-AIG, Birla Sun Life, Bharti AXA, ING Vysya, Future Generali, Aegeon Religare, and ICICI Prudential pension plans. Public sector corporations such as LIC and SBI, and private sector companies such as Kotak Life and Sahara Life also offer indigenous pension plans for the Indian citizens. Life Insurance Corporation (LIC) in India offers 4 major Pension Plans by the name of Jeevan Nidhi, which is a Deferred Annuity Pension Plan, Jeevan Akshay, which is an Immediate Annuity Plan, Jeevan Dhara and Jeevan Suraksha Pension Plans that allow the policyholder to make provision for regular income after the selected term.(4) Investing in Pension Schemes is a wise approach for working people in all age groups so in order to ensure a more secure future for themselves. Whether it is public sector, government sector, or private sector workers, apension serves as a financial security against an unpredictable future for anyone when there may be no other source of income except a pension.

- Vikas Vij (views expressed in the article are that of the author)
Sources: (1) pensionersportal.gov.in (2) www.india-server.com/news/new-pension-scheme-launched-in-india-7092.html (3) www.indianmoney.com (4) www.apnainsurance.com/pension-plans-india/

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PM announces new pension scheme for overseas Indians

PTI Jan 8, 2012, 01.23PM IST

Tags:

Resource Mobility Partnership| Pravasi Bharatiya Diwas| Pension and Life Insurance Fund| Overseas Indian| Overseas Citizen of India| Manmohan Singh| Life Insurance Fund| European Union

JAIPUR: Fulfilling a long-standing demand, Prime Minister Manmohan Singh today announced a new pension and life insurance scheme for overseas Indian workers that would allow over five million workers, especially those working in the Gulf, to save money for the future. Announcing the Government's decision to introduce and sponsor the Pension and Life Insurance Fund (PLIF) at the 10th Pravasi Bharatiya Divas here, Singh said the scheme will encourage the overseas workers to voluntarily save money for their resettlement and old age.

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"I am happy to inform you that the government has decided to introduce and sponsor a new Pension and Life Insurance Fund for overseas Indian workers. "The scheme will encourage, enable and assist overseas workers to voluntarily save for their return and resettlement and old age," Singh said in his address that was heard with rapt attention by over 1,900 delegates from 60 countries.

Singh said the scheme, which was recently cleared by the cabinet, will also provide a low-cost life insurance cover against natural death. "This scheme fulfills a long-pending demand of our workers abroad," he said. Under the scheme, the government will co-contribute Rs 1,000 per annum for all subscribers who contribute between Rs 1,000 and Rs 12,000 per year. Women overseas workers will enjoy a special additional co- contribution of Rs 1000 a year. Referring to his Government's decision to allow Non-Resident Indians to vote in elections, he said pursuant to the law in this regard the Government has issued notifications for registration of overseas Indians under the Representation of People Act, 1950. Singh said, "this constitutes the first major step to enable Indians resident abroad to participate in our election processes". In its efforts to merge the People of Indian Origin and Overseas Citizen of India schemes, Singh said the government introduced a Bill in this regard by amending the Citizenship Act in the just concluded Parliament session. "This will rectify some of the anomalies in the schemes and provide for an Overseas Indian Card which will be given to foreign spouses of such card holders as well," the Prime Minister said. He noted that the Ministry of Overseas Indian Affairs was implementing the e-migrate project to provide end-to-end computerised solutions for all processes in the emigration system. The system will link all key stakeholders on a common platform which will be used by workers, offices of the protector of emigrants, recruitment agencies, immigration officials, employers and the Indian missions abroad, he said. Singh also said the government was expanding the scope of the Labour Mobility Partnership Agreements is being expanded to cover not only skilled workers but also students, academics and professionals.
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Such Human Resource Mobility Partnership agreements are being negotiated with The Netherlands, France, Australia and the European Union. Singh also paid rich tributes to the Indian community abroad and said the Indian diaspora has much more to contribute to the building of modern India.

"The government and people of India recognize and greatly value the important role being played by Indian communities living abroad. "We propose to facilitate, encourage and promote this engagement. Over the past year we have taken a number of steps towards this end," he said. "The 'global Indian' is a symbol of this diversity of our ancient land. Your individual prosperity and personal achievement are a symbol of what a diverse people like us can achieve," he said.
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Promoting pensions to employees a guide for employers Promoting pensions to employees A guide for employers Financial Services Authority The FSA is the independent watchdog set up by Parliament to regulate financial servicesPromoting pensions to employees a guide for employers Page 1 About this guide As an employer you may have offered your employees a pension scheme. You may want to promote your scheme to them, or you find that they look to you for help. But you may be unsure about what you can do. This guide tells you what you can do to promote your scheme to your employees. It also tells you how you can give them further help or advice without needing to be authorised by us (the FSA). It covers stakeholder pension schemes and group personal pension schemes. This guide does not cover occupational pension schemes. Those schemes are outside our regulatory scope. The Government has confirmed there are no

restrictions preventing employers from promoting them to their employees. This guide is not a definitive or comprehensive statement of the law either under the Financial Services and Markets Act 2000 or elsewhere as it applies to employers and their pension schemes. Nor does it give legal advice. If you have any questions about the content of this guide, please call our technical helpline on 020 7066 0082, or email: perimeterguidance@fsa.gov.uk Choosing a pension scheme is one of the most important financial decisions people will take in their working life. Many employers set up and contribute to pension schemes and will want to promote their schemes to their employees. Parliament has passed legislation to protect people who invest their money in private pension schemes. As an employer, you need to be confident that what you are doing does not breach the Financial Services and Markets Act 2000 (FSMA). There are exemptions from the restrictions in FSMA for many employers who want to promote their pension schemes. This means that most employers can promote their

schemes without worrying about infringing FSMA or needing to be authorised by us. You may have some questions about the legislation and how it affects you. For example: Q: Can I promote my scheme to my employees and encourage them to join it? Q: Which schemes are exempt from the restrictions on promotion? Q: If I want to give help or advice to my employees, do I need to be authorised by the FSA? Q: If my scheme is not exempt, what are the implications? Over the next few pages we try to answer questions like these, to help you understand what you can do without breaking the law and what you cant. Promoting pensions to employees a guide for employers Page 2 Freedom to promote your scheme In general, investments such as personal pensions can be promoted only by those people who are authorised by the FSA or where the promotional material has been signed off by someone authorised by us. But there is an exemption from these restrictions. Employers who meet certain

conditions listed below will qualify for the exemption. They can promote their pension schemes to their employees freely, without infringing FSMA or needing to become authorised by us. Those employers who qualify for the exemption can produce and issue their own promotional material to their employees without needing to get it signed off by someone authorised by us. We call these communications financial promotions. They include written documents, as well as promotional information given orally, such as during face-to-face conversations with individual employees or as part of a group presentation. Qualifying for the exemption Most employers offering group personal pensions or stakeholder pension schemes to their employees will qualify for the exemption from the restrictions within FSMA on communicating financial promotions. To qualify, you must meet all the following conditions: You must contribute to the scheme and the first promotion you make to an employee should confirm this. There are no minimum requirements on the size

of your contribution, but you must tell each employee in writing what your contribution will be before they join the scheme. You must not receive a direct financial benefit from promoting your scheme. So, for example, you must not be paid commission or receive some equivalent financial reward such as a reduction in motor fleet insurance premiums if your employees join your pension scheme. The promotions are given by you or someone employed directly by you. The exemption does not apply to third parties acting for you, such as pensions administrators where the administration of your scheme has been outsourced. In any written promotional material, you must highlight that your employees have the right to seek professional advice from someone regulated by us. If you do meet all these conditions, it is also a good idea for any employee who promotes your scheme to have sufficient competence, as well as knowledge and experience of the pension scheme. There are no formal accreditation criteria, but you could ask for help in training any relevant employee from

the professional helpers of the scheme, such as an insurance company or pensions administrator. Advice and FSA authorisation Besides promoting your scheme to your employees, you might also be thinking about giving advice and other help to your employees on your pension scheme. And you might be wondering whether you need to be authorised by us to do this. As long as you are not in the business of providing investment advice and do not receive any commercial benefit for helping your employees with their pension options, you do not have to be authorised by us.Promoting pensions to employees a guide for employers Page 3 A commercial benefit could take several forms two of the most obvious are if the pension scheme provider paid you commission or you got a reduction in your premiums for insurance policies you have with that provider. But it would not include such things as negotiating special terms for your pension scheme or the indirect benefits to you, as an employer, of having a more satisfied workforce. Generally, employers are not in the business of giving investment advice and do not

receive any commercial benefit for helping their employees with pensions. So in most cases you should be able to help your employees, if you want to do so. Thats the general picture, but employers often ask us the two following questions about needing authorisation by the FSA. The answer to both is straightforward: Q: Does the fact that I choose a pension scheme for my employees mean that I need to be authorised by the FSA? A: No, so long as you receive no commercial benefit for choosing the scheme. Q: I deduct my employees contributions from their pay and pass them to the scheme provider. Does this mean that I have to be authorised by the FSA? A: No, so long as you receive no commercial benefit for doing so. Further help for your employees If you want to help your employees with their pension options, you need to be prepared for the questions they might ask. Q: What if my employees want help with financial questions? For example they might ask: Should I contract-out of the State Second Pension?

 Which of the investment funds on offer under the pension scheme should I choose? Would I be better off putting my money into something else, such as an ISA? Is it better to top-up my occupational pension with a stakeholder, an AVC or a personal pension? Is it a good idea to transfer benefits under my old pension scheme into this scheme? Remember helping your employees does not in itself mean that you have to be authorised by us. You only need to be authorised if you are in the business of giving investment advice and are benefiting commercially for doing so. However, questions like these are decisions for the individual employee to make based on their financial circumstances. Its unlikely you will be able to answer these types of questions, and nobody expects you to. Work on the basis that you can give help, as long as you stick to the facts. The main thing to remember is that you will not know the detail of an individuals financial circumstances or their expectations for the future. So you are unlikely to be in a position to give personalised advice and should not suggest that you are. If you do, and your employees act on your advice, they might blame you if

things do not turn out as they expected. However, there are other ways you can help: Our rules require the scheme provider (or your financial adviser if you used one to set up your scheme) to give certain information to your employees. This includes a Key Features Document. Promoting pensions to employees a guide for employers Page 4 The Key Features Document contains all the essential information that people will need to know: for example, on stopping and starting contributions, income tax, death benefits, state pensions and benefits. You will probably find that this information pack will answer most, if not all, of your employees questions. Another simple and safe thing to do with questions like these is to point your employees towards the help and information that is already available from the sources listed on page 5. Or you can always suggest that they seek help from professional financial advisers or the pension scheme provider our leaflet FSA guide to financial advice explains how to find an adviser. Promoting non-exempt schemes Even if you do not qualify for the exemption

described on page 2, you may still be able to promote your scheme. Some care is needed though. You may wish to give out your own written material, or discuss the scheme with your employees, individually or in groups. If you simply stick to giving factual information to help your employees understand what the pension scheme is all about, and avoid promoting the scheme, there should not be a problem. But if the material or conversations you have seek to promote the scheme or persuade your employees to join, it could be deemed to be a financial promotion. There are special rules for financial promotions which mean that they must be approved by someone authorised by the FSA, such as your financial adviser or pension provider. It makes no difference if you are not commercially benefiting from the promotional material. However, the restriction on financial promotions does not apply if you are required by law to offer investment products to your employees. So, for example, if you employ five or more people and do not offer or contribute to an

occupational or group personal pension scheme, you are obliged by law to offer your employees a stakeholder pension scheme. In this instance, any communication you make about the scheme in complying with the law is outside the restriction.Promoting pensions to employees a guide for employers Page 5 Sources of help for you and your employees Queries about pensions, other types of investments and financial planning Employee queries Your employees can contact the Pensions Advisory Service Helpline on 0845 601 2923. The Pensions Advisory Service is an independent organisation providing help with consumers pension queries. The Department for Work and Pensions (DWP) also publishes a range of free pension guides. You can order copies by ringing 0845 60 60 265. Or you can see whats available by visiting the DWPs website at www.thepensionservice.gov.uk/ Employer pension responsibilities The Pensions Regulator should be your first port of call. You can write to it at: The Pensions Regulator Napier House

Trafalgar Place Brighton BN1 4DW Phone: 0870 606 3636 Fax: 0870 241 1144 Email: customersupport@thepensionsregulator.gov.uk The Pensions Regulator website homepage is at www.thepensionsregulator.gov.uk/ For information about stakeholder pensions on the Pensions Regulator website go to www.thepensionsregulator.gov.uk/stakeholder Pensions/ Or you can find information about stakeholder schemes on the Department for Work and Pensions website at www.dwp.gov.uk/ If your employees have questions about different types of investments, pension top-ups or annuities, for example, contact our consumer helpline for copies of our free impartial guides: Stakeholder pensions and decision trees. FSA guide to pensions 1 starting a pension. FSA guide to pensions 2 reviewing your pensions. FSA Factsheet: Retiring soon what you need to do about your pensions.

 FSA guide to pensions 3: Annuities and income withdrawal. Choosing a financial adviser how Key Facts can help you. FSA guide to financial advice. Telephone 0845 606 1234 and order some copies for your employees. You and your employees can also access these independent guides and more information on our Consumer website at www.fsa.gov.uk/consumer Technical Helpline if you want extra help on the guidance in this leaflet, please call us on 020 7066 0082.

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Desciption

Last Updated December 2008

Pays out a fixed lump sum on death before the end of the policy term Pays out a lump sum on death before the end of the policy term The lump sum decreases over the term of the policy Pays out a fixed lump sum on diagnosis of one of a specified number of critical illnesses before the end of the policy term

December 2008

December 2008

Level Term Assurance with Critical

Pays out a fixed lump sum December on death or earlier diagnosis 2008 of one of a specified number of critical illnesses before

Illness Cover 0.1Mb Decreasing Temporary Assurance with Critical Illness Cover 0.1Mb Income Benefit 0.1Mb

the end of the policy term

Pays out a lump sum on December death or earlier diagnosis of 2008 one of a specified number of critical illnesses before the end of the policy term The lump sum decreases over the term of the policy Pays out an income for a specified period on death before the end of the policy term December 2008

Whole Life Assurance 0.1Mb Income Protection 0.1Mb

Pays out a lump sum on December death 2011 Traditional with-profits policy Provides a regular income if October unable to work due to illness 2010 or injury and suffer a loss of earnings.

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Level Term Assurance (PDF - 0.1Mb) Decreasing Temporary Assurance (PDF - 0.1Mb) Critical Illness Cover (PDF - 0.1Mb) Level Term Assurance with Critical Illness Cover (PDF - 0.1Mb) Decreasing Temporary Assurnace with Critical Illness Cover (PDF - 0.1Mb) Income Benefit (PDF - 0.1Mb) Whole Life Assurance (PDF - 0.1Mb)

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Share Clip Reprints Print Email May 7, 2011 6:05 am

Charges on low-cost UK pension scheme hit

By Nicholas Timmins, Public Policy Editor

Treasury stinginess is making the charges for the governments new low-cost pension scheme too high, warns John Cridland, the director-general of the CBI employers organisation. The National Employment Savings Trust (Nest) the pension scheme into which millions of the lower paid are expected to be automatically enrolled in the coming years has charges equivalent to 0.43 per cent a year. More
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But its not cheap enough, Mr Cridland said, given that charges for privately provided defined contribution pensions have been falling with some now charging between 0.4 per cent and 0.6 per cent. That means that Nest will not be, as originally intended, a provider of last resort offering low charge pensions that the market cannot provide cheaply enough, he said. Instead it will face competition from other providers while not being appreciably cheaper than its competitors. The key reason for the relatively high charge is the Treasurys insistence that the 600m-700m ($982m-$1.1bn) loan it is providing to cover Nests initial setup

and administration costs be repaid relatively quickly, over about 20 years. That, Mr Cridland said, is because it is viewed as spending in the national accounts. In fact it is a loan, and should be treated as such, he told a pensions event hosted by Towers Watson, a consultancy group. And if it is a loan, a longer repayment period would be possible which would allow a simpler charging structure than the charge on each contribution, plus an annual management fee, that Nest has been forced to adopt to meet the Treasurys repayment terms. The charge could be got down to something more like 0.3 per cent, Mr Cridland said, which over a lifetimes investment makes a significant difference to the eventual pension pot. He said adopting that approach would help Nest focus not on the needs of the Treasury, but of those of its real customers, the millions of people who would benefit from a cheaper scheme. Nest itself declined to comment, but the Department for Work and Pensions showed no desire to reopen a battle with the Treasury that Mr Cridland said it needs to win. Mr Cridland also warned against over-regulation of the money purchase pensions which have replaced defined benefit schemes for most employees. More reports: www.ft.com/pensions
Copyright The Financial Times Limited 2012. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

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