Group Superannuation Plans
A Retirement Benefit Your People Value
Provident fund and gratuity rarely give senior employees the retirement income they expect. A group superannuation plan lets an employer build an extra pension pot for chosen employees through a fund managed by a life insurer. Contributions are made each year, the insurer invests and administers the fund, and at retirement the employee receives a pension and, where the rules allow, a lump sum. MILES helps you design the plan, compare insurers and run it year to year.
What A Group Superannuation Plan Offers
Employer-Funded Pension
The company contributes a set amount or percentage of salary for each member, building a dedicated retirement fund.
Talent Retention Tool
A visible long-term benefit helps retain senior and key staff who value retirement security.
Professional Fund Management
The life insurer invests the fund and maintains individual member accounts under the chosen fund option.
Trust-Based Governance
The plan runs through a superannuation trust with clear rules on eligibility, vesting and payouts.
Annuity At Retirement
The accumulated fund can be used to buy an annuity that pays a regular income for life.
Broker-Led Comparison
We compare charges, fund options, annuity rates and service across life insurers before you choose.
What is a group superannuation plan?
A group superannuation plan is a retirement benefit scheme in which an employer contributes to a fund, managed by a life insurer, that pays members a pension and, where the rules allow, a lump sum at retirement. It is voluntary, sits on top of provident fund and gratuity, and is usually set up through a superannuation trust that holds the insurer's master policy.
It completes the retirement side of an employee benefits programme that also covers health, life and accident risks.
Defined contribution and defined benefit
| Type | How it works | Who carries the risk |
|---|---|---|
| Defined contribution | Employer pays a fixed amount or percentage of salary into each member's account. The pension depends on the fund built up. | Member, on investment performance |
| Defined benefit | The rules promise a pension based on salary and service. Contributions are set by actuarial valuation. | Employer, on funding and returns |
Most new plans in India are defined contribution because the employer's cost is known in advance. Defined benefit plans still exist in some older companies and need regular actuarial valuations, including for AS 15 or Ind AS 19 reporting.
How the plan works
- The employer forms a superannuation trust with trust rules on eligibility, contribution and vesting.
- The trust takes a group superannuation policy from a life insurer.
- Contributions are paid each year and credited to member accounts.
- The insurer invests the fund and credits returns as per the policy terms.
- On retirement, the member typically receives part of the fund as a lump sum, where the rules and tax law allow, and uses the rest to buy an annuity.
- On leaving early or on death, benefits are paid or transferred as the rules provide.
Investment options
Insurers offer traditional funds, where returns are declared periodically, and market-linked funds, where the fund value moves with markets. Returns are not guaranteed unless the policy states a guarantee. Charges, declared rate history and the ease of switching or transferring the fund matter as much as the headline return. Trustees should review fund performance and charges at least once a year and record the decision.
Tax treatment
Employer contributions to an approved superannuation fund, and benefits paid to members, receive specific tax treatment under the Income-tax law. There are limits on how much employer retirement contribution is tax-free in the employee's hands, and these limits can combine provident fund, pension and superannuation contributions. Rules change from time to time, so tax benefits are subject to prevailing law. Take advice from your tax adviser before fixing contribution levels.
Who needs it
- Companies wanting a retirement benefit for senior management or long-serving staff
- Employers offering flexible pay, where employees can choose superannuation within their cost to company
- Businesses with a legacy scheme that needs benchmarking, restructuring or transfer to another insurer
How MILES helps
- Compare life insurers: we set out fund options, charges, annuity choices and service standards side by side.
- Check the rules and wording: we review vesting, early-exit, transfer and surrender terms, including any market value adjustment.
- Place and transfer: we coordinate with trustees, the insurer and your advisers when starting a plan or moving an existing fund.
- Ongoing service: we support contribution remittances, member additions, exits and retirement claims.
What we need for a review
- List of eligible employees with dates of birth, joining dates and salaries
- Proposed contribution basis, such as a percentage of basic salary
- Existing trust deed, rules and policy statements, if any
- Whether you also want to review gratuity funding or group term life cover
You can also contact us to talk through design choices before sharing data.
Cover, exclusions and premiums depend on the insurer’s policy wording and underwriting. MILES Insurance Brokers Pvt. Ltd. is an IRDAI-licensed direct broker (Life & General, Reg. No. 954); the insurance is issued by the life insurer. Returns are not guaranteed unless stated in the policy, and tax benefits are subject to prevailing law. Insurance is the subject matter of solicitation.