LIC New Group Superannuation Cash Accumulation Plan: Check eligibility, maturity and other benefits

This LIC Plan is basically an Employer-Employee Group Scheme and is best suited for employers having Defined Contribution as well as Defined Benefit Superannuation Scheme for their employees.

New Delhi: Life Insurance Corporation of India (LIC) offers Group Superannuation Plan, called the New Group Superannuation Cash Accumulation Plan (NGSCA).

This is basically an Employer-Employee Group Scheme and is best suited for employers having Defined Contribution as well as Defined Benefit Superannuation Scheme for their employees.

Eligibility Criteria:

i. Minimum Entry Age: 18 years (completed)

ii. Maximum Entry Age: 75 years (nearer birthday)

iii. Maximum Maturity Age: 85 years (nearer birthday)

iv. Minimum Contribution:

Under Defined Benefit Scheme: Contribution requirement will be determined as per AS 15 (Revised) or IND AS 19 or any other standards applicable for long term Employee Benefits subject to minimum of Rs 10,000 at the time of inception of the policy.

Under Defined Contribution Scheme: Rs.1200 per annum per Member.

v. Maximum Contribution:

Under Defined Benefit Scheme: Contribution requirement will be determined as per AS 15 (Revised) or IND AS 19 or any other standards applicable for long term Employee Benefits.

Under Defined Contribution Scheme: As per Scheme Rules.

vi. Minimum Group Size for new employer-employee Scheme: 10

vii. Minimum Group Size for Govt. Sponsored Social Security Scheme: No Restriction

viii. Maximum Group Size: No Restriction

ix. Policy Term: Annually renewable

Benefits of LIC New Group Superannuation Cash Accumulation Plan

In case of exit of a Member due to death or resignation or retirement (including normal retirement, voluntary retirement and retirement on medical grounds as per Scheme Rules) or Termination of service, the following benefits are payable under this policy: 

Under Defined Contribution Scheme: Individual Policy Account Value in respect of that Member shall become payable in accordance with the Superannuation Scheme Rules of the Master Policyholder. The Individual Policy Account shall cease once the benefit is paid.

The Corporation’s total liabilities shall be limited to the amount available in the Individual Policy Account in respect of the Member.

Under Defined Benefit Scheme The benefit amount will be payable as per the Scheme Rules of the Master Policyholder from the Group Policy Account.

In case the balance in the Group Policy Account of the Scheme is insufficient to pay out the benefits as per the Scheme Rules, it will be the responsibility of the Master Policyholder to first make the payment to the Corporation so as to enable the Corporation to pay such benefits. However, the Corporation’s total liability towards the Master Policyholder shall be limited to the Group Policy Account Value.