A unit linked pension plan with the following features: Besides market linked returns, the SBI pension plan also gives guaranteed additions to further increase the corpus Guaranteed Additions accrue @10% of the annual premium from the 15th year of this SBI pension plan till the end of the term Moreover, a Terminal Addition @1.5% of the Fund Value will be paid on the vesting date On vesting, higher of the applicable Fund value including the guaranteed additions and terminal additions or 101% of total premiums paid by the policyholder under this SBI pension plan are payable The vesting corpus can be withdrawn up to the extent of the 1/3rd portion and the remaining proceeds will be utilized to receive the specified pension. A deferred annuity plan can also be purchased with the entire proceeds if needed under SBI pension plan The vesting age can also be postponed by the policyholder if he is aged 55 years or below. The maximum age to which the vesting can be postponed in 70 years On death of the policyholder during the tenure of the SBI pension plan, higher of the available fund value including terminal additions or 105% of the premiums paid until death is payable to the nominee The death benefit can be withdrawn in lump sum or used to buy an annuity plan from the company by the nominees of the SBI pension plan policyholders The investments are managed under the Advantage Plan feature which systematically reduces risk exposure as the SBI pension plan nears the vesting date to keep the investment secure The SBI pension plan has 3 fund options under the Advantage Plan which are Equity Pension Fund II, Bond Pension Fund II and Money Market Pension Fund II Eligibility Details SBI Life Annuity Plus Plan This is an Immediate Annuity plan which has the following aspects: The annuity is paid is paid immediately once the single premium is deposited with the insurer under the SBI pension plan There are two annuity options under the SBI pension plan. The first option is for a single life and the second option is for a joint life annuity. Both the options are further sub-divided into further annuity payout options. The annuity payout options under the Single Life Annuity option are: Lifetime Income Lifetime Income with Capital Refund Lifetime Income with Capital Refund in parts Lifetime Income with Balance Capital Refund Lifetime Income with Annual Increase of 3% or 5% Lifetime Income with Certain Period of 5, 10, 15 or 20 years The annuity payouts under the second option of joint life annuity include: Life or Last Survivor with 50% or 100% of the income Life or Last Survivor with 50% or 100% of the income and Refund of capital The policyholder of this SBI pension plan may avail advance annuity payouts in compliance with certain terms and conditions An Accidental Death Benefit Rider can be availed under the SBI pension plan up to a maximum coverage of Rs.50 lakhs The company promises higher rates of annuity payouts for higher premiums Eligibility Details Sample Annuity Rates The following table shows the sample rates of annuity payouts against specific amounts of premiums for individuals of different ages National Pension Scheme SBI The National Pension Scheme SBI refers to the NPS scheme launched by the Pension Fund Regulatory and Development Authority (PFRDA) to create a pension corpus, and which is managed by SBI through its subsidiary SBI Pension Funds Private Limited (SBIPFPL). The National Pension Scheme offers people in the 18-60 years age group the option to sign up for the plan and create a pension corpus for themselves in their retirement years. SBIPFPL is one of the three pension fund managers appointed by PFRDA to oversee the pension corpus for government employees, and one of the six appointed to oversee the retirement corpus for citizens. Salient features of National Pension Scheme SBI National Pension Scheme SBI is regulated by Pension Fund Regulatory and Development Authority and managed by SBI National Pension Scheme SBI is a voluntary scheme and allows any Indian citizen between the ages of 18 and 60 years to open a pension account The National Pension Scheme SBI account holders will each receive a Permanent Retirement Account Number (PRAN) that will remain fixed throughout the premium payment and pension payment periods Subscribers need to quote their PRAN in any National Pension Scheme SBI related matters including any correspondence or transaction National Pension Scheme SBI, like all other NPS schemes, will offer investors the option to open Tier I or both Tier I and Tier II accounts A Tier I account under National Pension Scheme SBI is a mandatory account that does not allow the investor to withdraw their money. This helps to build a large corpus of regular investments A Tier II account can only be opened under National Pension Scheme SBI by individuals who already have a Tier I account. It is a voluntary account and investors can withdraw money from the account to take care of their requirements. Bank details are compulsorily required to open a Tier II account under National Pension Scheme SBI Tier I account for National Pension Scheme SBI and other NPS schemes has the following requisites: Account opening amount (min.): Rs. 500 Contribution amount (min.): Rs. 500 Account balance at year-end (min.): Rs. 6, 000 Tier II accounts of National Pension Scheme SBI and other NPS schemes have the following requisites: Amount Opening Amount (Min.): Rs. 1000 Contribution Amount (Min.): Rs. 250 Account Balance at year end (min.): Rs. 2, 000 If subscribers wish to open both Tier I and Tier II account at the same time under National Pension Scheme SBI, then minimum investment amount is Rs. 1,500 Investors can contribute till they reach 60 years under National Pension Scheme SBI and can stay invested till they reach 70 years if they prefer Subscribers can annuitize 40% – 100% of the pension corpus under National Pension Scheme SBI Investors in National Pension Scheme SBI schemes can choose between three forms of investments: High Risk and High Returns that mostly invest in equities Medium Risk and Medium Returns that invest mostly in debt instruments Low Risk and Low Returns that only invest in debt instruments The investments are made in 8 pension funds: SBI Pension Fund DSP Blackrock Pension Fund Managers HDFC Pension Management Company ICICI Prudential Pension Fund Kotak Mahindra Pension Fund LIC Pension Fund Reliance Capital Pension Fund UTI Retirement Solutions Pension Fund LIC Pension Fund National Pension Scheme SBI account holders can, like other NPS subscribers, opt for two forms of investment: Active choice: Here investors can choose between the asset classes Auto choice: The default option that invests the money according to the persons age Subscribers can use the designated Points of Presence (POP) to pay their amounts under National Pension Scheme SBI or undertake any transaction. SBI is one of the POPs designated by PFRDA SBIPFPL charges an investment management fee of 0.01% pa to oversee National Pension Scheme SBI schemes Documents needed to open a National Pension Scheme SBI account are: Subscriber registration form duly filled Identity proof Address proof Age or date of birth proof Some Common Features of Pension Plans Pension plans are offered both as a traditional plan or as a market-linked insurance plan. While immediate annuity plans come only from the traditional variant, deferred annuity plans might be in any of the above-mentioned variants of traditional or unit linked plan Pension plans do not allow the policyholder to withdraw the entire accumulated corpus. The plans pay pensions from the corpus which can be received yearly, half-yearly, quarterly or monthly. Pension payments are the only benefits which accrue from the plans. However, the plans to allow the policyholder to withdraw a maximum of a 1/3rd portion of the corpus which is accumulated if the policyholder so desires. This withdrawal is called commutation and will not be subject to any tax under the provisions of Section 10(10A). The rest of the corpus which is paid as the annuity is taxable in the annuitants hands as it is treated as an income. The premiums which are paid for Immediate Annuity plans are tax-free under Section 80CCC while the death benefit paid in respect of Deferred Annuity plans will earn tax exemption under Section 10(10D) as is common with other insurance plans. Pension plans, both Deferred and Immediate Annuity plans, do not earn any bonus. Immediate Annuity plans can be taken on a joint life basis. This means that both the annuitant and the spouse would become eligible to earn annuity payments from the company. The annuitant will be called the primary annuitant while the spouse will be the secondary annuitant. First, annuity payments will be paid till the life of the policyholder who is the primary annuitant and post his death, the payments will be made till the lifetime of the spouse who is the secondary annuitant. While there is no death benefit option in the immediate annuity variety of pension plans, deferred annuity plans are eligible to have a death benefit. If the policyholder dies during the accumulation phase, a specified death benefit is paid to his nominee. This benefit depends on the company and the plan design offered by the company. The nominee has two options for dealing with the death benefit. The first option is that he takes the death benefit in one lump sum and chooses to use it as per his discretion. The other choice is to avail annuity from the proceeds payable on death. The nominee can avail annuity payments from the company on his own life without withdrawing the death benefit in a lump Pension can be availed under both plan options either in the monthly, quarterly, and half-yearly or annual mode as chosen by the policyholder. Applying For A Pension Plan From The Company: Online The company offers specific plans which are available online only. The customer only needs to log into the companys website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued Intermediaries: Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
