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On Retirement of a member, the corpus
(contributions plus interest) is utilized
to provide the following :
- Commuted Value (Equivalent to 1/3rd
of the corpus) which is tax free.
- The corpus that remains after providing
for the commuted value is taken as the
purchased price to provide for pension.
The Pension is payable on the life of
the beneficiary. Corpus is utilized towards
the payment of pension of the type the
beneficiary may opt and the benefit so
received is tax free. A lump sum payable
by way of death besides the pension, if
the employer has taken Group Insurance
Scheme in conjunction with the Group Superannuation
Scheme.
- He can get the equitable interest
transferred to the Superannuation Scheme
of the new employer provide the rules
of both the Schemes provide for the
same.
- He may opt for a pension from the
normal retirement date as provided in
the old employer's scheme.
- He may opt for payment of commuted
value and pension, immediately in which
case the benefits would be taxable.
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