LIC’s New Group Superannuation Cash Accumulation Plan: Check eligibility, benefits and many more

India’s biggest life insurer Life Insurance Corporation of India (LIC) has come up with a new Group Superannuation Plan, called New Group Superannuation Cash Accumulation Plan (NGSCA) which 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.

According to the scheme, the Contributions can be paid at any time during the year and it will be credited to the Group Policy Account maintained in the name of employer/trustees/Master Policyholder. In case of Defined Contribution Scheme, Individual Policy Account in respect of each Member will also be maintained.

To be eligible for this scheme, the employee needs to fall in the age group of 18 and 75 years and in case of maturity age, it should be 85 years.

In terms of contribution, a minimum of Rs 10,000 is required at the time of inception of this policy and then a contribution of Rs 1,200 is mandatory every year for the members.

Also, the minimum group size for the new employer-employee scheme should be 10 and there is no restriction on the size of government-sponsored social security schemes, as per the rules mentioned in the scheme.

There are ample benefits for availing of this scheme. If there is an exit of a member, then he/she will be liable to get paid under the Superannuation Scheme Rules of the Master Policyholder. Also, the Individual Policy Account will stop once the benefit is paid.

Furthermore, there will be a minimum interest rate of 0.5% p.a. Which will be declared at the end of each financial year and it will be guaranteed during the entire term of the contract.