PF Retirement Benefit Plan

A provident fund is a type of future security fund where the employees of the organization deposit a certain portion of their salary and the employer contributes another portion with this savings. According to the PF rules of the organization, the employees get provident fund benefits at the time of retirement or at leaving the job. The Provident Fund Retirement Benefit Plan of Sonali Life Insurance Company is such a scheme where Sonali Life manages this fund under combined rules of provident fund and insurance. As a result, the employer does not have to burden about managing the provident fund and on the other hand the employees will get additional life insurance coverage. GENERAL INFORMATION OF THE PLAN: Policy Holder: Every permanent employee of the organization will be a Policy Holder. Number of policyholder: Minimum 5 permanent employees. Entry age in insurance: 18-54 years. Retirement age: Retirement age will be 60 years. Term of insurance: Minimum 6 years and maximum 42 years. Rider Options: Rider can be included subject to additional premium paid. Sum Assured or Risk coverage: For those aged within 18-48 years at the date of commencement of insurance, the sum insured will be 5 times of the annual basic / total salary at joining date of insurance and for those aged 49 years and above, the sum insured will be 3 times of the annual basic / total salary. Though, the sum assured depends on whether the provident fund is part of the basic salary or part of the total salary. Premium: Premium payable on monthly basis. Minimum 11% of salary will be considered as premium. Advantage of an Employer: • Hassle free Fund Management and additional Insurance coverage for employee. • No additional expense for Provident Fund and Insurance management. • The mandatory government rules of provident fund are automatically complied. • Loyalty of employees are increased towards organization by combined benefits of Provident Fund and Insurance. • No additional burden on employer to payment at maturity or at leaving the job from organization. • Control over employees can be established by the combined rules of Provident Fund and Insurance. Advantage of Employees: • Every single employee will be considered as individual policyholder. • Getting death coverage without extra fees. • Getting market competitive return on contributed fund. • In every financial year (FY) maximum tax rebate facilities. • An employee can transfer/surrender his fund on/before its maturity as per HR rules. • Personal investment can also add with this fund. • In case of death of employee, his/her family will get maximum fund value or sum assured whichever is higher. • On maturity, an employee will get total Fund Value. Required Documents for enrollment of the policy: * HR Manual of provident fund structure with rules and regulation of the employer organization. * Board abstract of said provident fund of the employer organization. * Memorandum of Understanding (MOU). * Each employee’s fulfilled proposal form with required documents. * Check issued by the employer company in favor of Sonali Life Insurance Company Limited for payment of premium. * Monthly Employee’s Salary Sheet with deducted amount of provident fund and other data.