Few questions about Superannuation Fund ?

POSTED BY seeking ON March 19, 2014 5:22 pm ONE COMMENT

The balance in my Superannuation account as on 31.3.2009 was Rs 730,000. Is it correct to assume that on 30.9.2016 it would be around 13 Lakhs assuming 9% interest?

I wrote to the former company to send me the latest figures but they are late, may be lazy too.

I would like my monthly pension to start 1.10.2016. My year of birth is 1953.

My questions: How much would be my monthly payments? Are they subject to tax? How does the company decide my monthly pension? Is it determined by LIC, with whom they have tied up?

I need this info so that I can manage my other sources of income.

 Another question is 

The form for application for receiving pension has (among others) the following questions:

7.       Whether Option to commute part of

Pension exercised or not? (Tick

Appropriate column)                             :             YES                                            NO

 

8.       If the answer is YES, what Proportion?

(Tick applicable Column)                      :               1/3                                              1/2

Does this mean that I can choose between commuting 1/3rd or 1/2 of the corpus in my account?

What is the right thing to do if I do not need to commute, but would rather receive a higher monthly pension for life? Should I then answer NO to question 7, and that means I do not even have to answer 8?

Please advise.

Thanks for your help.

One reply on this article “Few questions about Superannuation Fund ?”

  1. ashalanshu says:

    Dear Seeking, please cvontact your employer to get details on your current corpus or w’d be corpus in superannuation fund. In case of cash commutation, 1/3 rd part is tax free. anything more than this (1/2 is offered to you as option), ‘ll become taxable.

    To opt or not is your personal choice.

    Thanks

    Ashal

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