What is Super Annuation Benefit and how to check it online ?

This post will explain how to check your Superannuation Balance if your employer maintains it with LIC .

I will share with you an important thing today which one of my friend Subbu has figured out himself . Credit goes to him.

A lot of employees do not care to check there Superannuation amount , or they are not even aware that it exists. Knowing the amount of your superannuation can be helpful , because then you know that you have that much saving and hence when you plan your investments , you can factor in this information and take better decisions . This small amount make big chunks of your portfolio .

What is Superannuation Benefit ?

Superannuation is a retirement Benefit by employer . It is a contribution made by employer each year on your behalf towards the group superannuation policy held by the employer. This is an important part of creating wealth for your retirement .


Some other points are :

a) Superannuation Fund is a retirement benefit given to employees by the Company.

b) Normally the Company has a link with agencies like LIC Superannuation Fund, where their contributions are paid.

c) The Company pays 15% of basic wages as superannuation contribution. There is no contribution from the employee.

d) This contribution is invested by the Fund in various securities as per investment pattern prescribed.

e) Interest on contributions is credited to the members account. Normally the rate of interest is equivalent to the PF interest rate. Read what is EPF and PPF ?

f) On attaining the retirement age, the member is eligible to take 25% of the balance available in his/her account as a tax free benefit.

g) The balance 75% is put in a annuity fund, and the agency (LIC) will pay the member a monthly/quarterly/periodic annuity returns depending on the option exercised by the member. This payment received regularly is taxable.

h) In the case of resignation of the employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a Superannuation scheme, then the employee can withdraw the amount in the account, subject to deduction of tax and approval of IT department, or retain the amount in the Fund, till the superannuation age.

Source : http://www.citehr.com

What is the SuperAnnuation Amount ?



Interest Earned :
This is interest paid by LIC every year on the contribution by employer .

Rules of Superannuation on Maturity

Once the employee completes 3 years of service and works till his/her retirement, he/she can make use of superannuation balance as a form of pension. He/She can withdraw 1/3rd of the accumulated balance after retirement and the rest can be availed as monthly pension till end of life.

Steps for checking Superannuation balance online?

1. Go to licindia.com

2. Register for a user id and password.

3. Login.

4. Click on ‘Group Scheme Details’ tab.

5. Click on ‘member’ radio button.

6. Get the group policy number for super annuation from your company’s payroll department and enter ” in the policy number text box and click ok. (Talk to your finance department for getting the group policy number , this will be unique for all the employees of a company).

7. It will ask for LIC Id no and Date of Birth fields.

8. To get LIC Id no, call LIC branch with which your employer has a super annuation account and inform that you are calling from your company and provide your name to the LIC official. They will give your LIC ID No.

9. Since most companies had not furnished the date of birth details to LIC, enter ’01/07/1960′ / ’07/01/1960′ (forgot the order, try both n check) in the date of birth field.

10. You will get the policy enrolled and you can click on the policy number to view the details. The details will contain the accumulated balance till the last financial year. It also shows contribution made by your employer i the current financial year.

Are you able to see Superannuation Balance for yourself ? Were you aware of it ? Please share with us on comments section . Also please share if you find any discrepancies with the steps .

Note : Some data for this post may be out of date , If one comes to know about it , please let us know ,so that I can make the changes .

Last post was a video post where I talked personally about “How to choose mutual funds” using valueresearchonline.com site .

352 CommentsAdd Comment

  1. Manish

    Thanks for sharing the useful information.

    Pension returns (after superannuation scheme maturity) are very less and is approx 7.25% annual on the purchase price (amount converted to annuity). Is there any way we can withdraw the amount and thus can invest in higher paying instruments.

  2. d srinivas rao

    Sir,

    my present company has no Superannuation scheme. In my previous company I served for 4 years and 10 months. They had superannuation scheme. They said I must complete 5 yrs service to get the refund of SA. Please advise me.

  3. Thanks for your information on how to check on-line the details of LIC superannuation pension. It gives the details of pension last disbursement and date. Apart from this, I am also interested to know the total fund value due after retirement along-with employer contribution, which LIC has not given on the website

  4. Nidhi

    Hi Manish

    1.Apart from LIC any other super annuation fund managers are there ?

    2. Is the contribution towards SA is safe , in case a company shuts down or goes under weather?

    Thanks in advance !

  5. harmandeep

    Sir i have recently resigned,having 4 years of work experience.I am going for higher studies.
    Can i withdraw the superannuation amount.
    If yes,how much and how..?

  6. Pradhan S C

    It is clear that we can widraw 1/3 amount & can take pension on balance amount but is there a option where if i want pènsion on complet contribution amount.
    also pl advise which is advisible?.
    Thanks. Pradhan S C.

  7. Bala

    Hi,

    Thanks for your crisp and easy to understand information
    I had invested in SA in my previous employer, but my current employer does not have the scheme
    So I want to do maximum possible withdrawal and convert the rest to pension. LIC is giving 5 different options.
    Could you provide advise on which option to choose given my current situation (M/42/employed/spouse employed/2 child)?

  8. My present employer does not have superannuation fund facility and my previous employer has refused to pay the superannuation fund saying that as per policy employee who has not completed minimum 15 yrs of continous service or attained 48yrs of age is not eligible.
    Kindly guide me on this.

  9. Krishna

    Thanks. I did not know that you can get Superannuation details in the online LIC link. I saw the balances just now & am relieved that its a transparent system. I was getting worried that the money was being lost in some big black box with no visibility. Appreciate your article which provides very useful info.

    Regards,

    Krishna

  10. Vignesh

    Thanks for your guidelines on how to know the balance in my superannuation fund. I am able to see the balance available.

    Now, I need your guidance on how to claim the superannuation fund as I have changed my employer & my new employer has no option of superannuation.

    Thanks

  11. [email protected]

    Hi,

    My father was NTPC employee. He passed away on JULY-2000. We are receiving LIC annuity pension cheques every year since then. I was very young at the time Super annuition was discussed and it was decided to take the monthly amount of 15k for 15 years. I now want to understand what will happen at the end of the 15 year term?

    Will I be getting the amount back or they will continue with the same policy?
    How should I be contacting LIC for futher details of my policy?

    Iam sorry Iam failrly new at all this, any help assistance would be greatly appreciated.

    Regards

  12. Dhamotharan

    Dear sir
    As I am retiring in this month (june’15), I have to choose one option for LIC Superannuation for pension. Can you suggest which can be best option from available options & give the reasons as guidance to me?
    Regards

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