AS LEADERS IN GROUP LIFE BUSINESS,

Transcription

1 AS LEADERS IN GROUP LIFE BUSINESS, WE TAKE LIFE VERY SERIOUSLY. GROUP SUPERANNUATION PLAN Ver/Aug/200 th Birla Sun Life Insurance Company Limited, 5 Floor, Vaman Centre, Makhwana Road, Off. Andheri Kurla Road, Andheri (East), Mumbai Tel: Fax: Reg No 09. Insurance is the subject matter of solicitation.

2 Dear Group Policyholder, It gives us great pleasure to welcome you as client of the Birla Sun Life Insurance Group Superannuation Plan. In this booklet we have covered all the administrative guidelines to help you administer your policy and we have also covered Frequently Asked Questions, which you as the Group Policyholder are likely to face from members in administering the plan. ABOUT US Birla Sun Life Insurance Company Ltd. is a joint venture between Aditya Birla Group and Sun Life Financial, Canada. The Aditya Birla Group is one of the largest business groups in India. With a Group turnover in excess of Rs. 27,000 crore, it has a workforce strength of 72,000 and over 7 lakh shareholders. The flagship companies within the group comprise Hindalco, Grasim, and Indo Gulf. Good Corporate Governance and the highest levels of customer satisfaction are the corner stones of the group s philosophy. Sun Life Financial Inc is a leading international financial services organisation providing a diverse range of wealth accumulation and protection products to individuals as well as corporate customers. Tracing its roots way back to 87, today Sun Life Financial has operations in key markets like the United States, Canada, U.K., Japan, Hong Kong, China, Indonesia, Philippines, Chile and Bermuda. As of June 0, 2002, Sun Life Financial group of companies total assets under management were to the tune of USD 2 billion. Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippines (PSE) stock exchanges under ticker symbol SLC. We look forward to a mutually beneficial relationship and assure you the best of our services at all times. If you need any further information, please feel free to contact us at grouphelpline@birlasunlife.com Warm Regards ADMINISTRATION GUIDELINES We at Birla Sun Life Insurance, recognise your vital role in administering your Group Superannuation Plan. The administrative procedure mentioned herewith will help you to administer your plan more effectively and ensure better service from Birla Sun Life Insurance. We therefore request you to go through this document to familiarize yourself with the administrative processes. We are also glad to mention herein that in our ongoing endeavour to extend good services to our clients, we are issuing you a unique CIP/TPIN number. This will give you access to information on your Group policies with us, whenever and wherever Mario Braganza Head-Client Services and Underwriting you need it via the Internet.

3 CONTENTS FUNDS How is the Fund managed? What is Net Asset Value and how is it calculated? MEMBER ADDITIONS Can contributions be made foe employees who join the company after the policy has commenced? What is the Monthiversary Date? What is the premium Due Date? How do I inform the Insurance Company about new entrants? When will the new entrant be included in the policy? Do I get details of all the Members at anytime? What additional care do I need to take while submitting the data? Will we receive a rrenewal Notice at the end of a policy year? MEMBER EXITS AND CLAIM PROCEDURE What happens when the Member exits the group? What is the procedure to be followed in the case of death of a Member? Is there a time period within which the documents needs to be submitted? What will be the time taken for claim to be processed? Can a resignee transfer out his Equitable Interest in our funds? What is the procedure? Can a new employee transfer his Equitable Interest in his earlier Employer s Superannuation Trust to the new Employer s Superannuation Trust? Whom will the Claim Payment be made to? FREQUENTLY ASKED QUESTIONS Pg CHow is the Fund managed? The Fund will be managed on a unitized basis. Any contributions received from you (net of any fees and charges) will be converted into Units based on the Net Asset Value per Unit prevailing on the date of allocation of Units, and credited to your Account. FUNDS What is Net Asset Value and how is it calculated? The Net Asset Value per Unit in respect of each Birla Sun Life Insurance Fund is determined by the following formula: (Value of Fund s assets + Receivables + Accrued Income + Other Assets Provisions Other Liabilities) Number of units outstanding. The Net Asset Value will be calculated on every business day based on the value of the relevant Birla Sun Life Insurance Fund s assets at the close of the previous business day. Yes. You can remit contributions subject to the Rules of the Company s Fund for all the eligible employees who join the company before expiry of the policy year. These contributions have to be remitted as on the subsequent Monthiversary of his/her date of joining the Company. What is the Monthiversary date? The Monthiversary date is the date of every subsequent month corresponding to your Policy Commencement Date. E.g. If your Group Superannuation Policy has commenced on 5th March, the Monthiversary date in respect of your Group Superannuation Plan is 5th of every subsequent month. What is Premium Due Date? Premium Due Date is the date on which contributions towards the Members are payable by you. The date is same day of each following month/quarter/half year or year depending on the mode of contribution viz. monthly/quarterly/semi annual or annual. TERMS USED 0 MEMBER ADDITIONS Can contributions be made for employees who join the company after the Policy has commenced? How do I inform the insurance company about new entrants? In order to enable us to include the new entrants under your policy, you need to furnish complete particulars in respect of new

4 2 entrants once a month. These details have to be submitted a week in advance refer to Annexure 2) of the Monthiversary Due Date in the specified format..(for Monthiversary Reconciliation Form please refer to Annexure I) The complete data in respect of all entrants in the policythe Members (including existing Members) have to be submitted as on the Premium Due Date giving individual contribution particulars along with a cheque for the consolidated amount. (For sample Policy Account Statement please The following additional points have to be taken care of while giving particulars of new If an Employee Joining the Group has less than five calendar years to his or her Normal Retirement Date, then such a Member can choose any fund option by means of a written communication to BSLI. In case we do not receive any written When will the new entrants be included in communication, the contributions will be the Policy? invested in the most conservative fund at If the contributions in respect of that time. new entrants are received on the Moreover, an existing member can retain or Monthiversary Due Date, the same invest his fund in his existing (or any) fund will be credited to their respective accounts. Do I get details of all the Members at any time? Yes. Within 0 days of end of the Policy Anniversary, Birla Sun Life Insurance will provide a summary of each Member s Account Fund to the Policyholder with complete particulars in respect of each Member as at the end of the Policy Year. What additional care I need to take while submitting the data? option instead of transferring/investing it in the most conservative fund option if he/she has five or fewer than five calendar years to his or her Normal Retirement Date by means of a written communication to BSLI. If the Investment Fund Option with respect to the contributions of Member/s has not been furnished by the Policyholder /Member then under such circumstances the contributions received in respect of the said Member/s will be invested in the most conservative Fund being offered by BSLI at that time. Will we receive a Renewal Notice at the end of a policy year? You, as a Policyholder will be solely responsible for payment of Premiums in time on each Premium Due Date. Birla Sun Life Insurance may, as a measure of providing good service, issue Renewal Notices to you 5 days prior to the Annual Renewal Date. However, it will not be a contractual obligation on the part of Birla Sun Life Insurance to issue Renewal Notices. MEMBER EXITS AND CLAIMS PROCEDURE What is the procedure to be followed in case of death of a Member? Is there a time period within which the What happens when a Member exits documents need to be submitted? the Group? On exit of the Member from the Group in specified contingencies and subject to the Rules of the Fund, you are required to intimate the same to BSLI in the specified Claim Form. If the exiting Member is entitled to Superannuation Benefits then, subject to the Rules of the Fund, the amounts lying in the Account Fund of the Member (as on date of intimation of exit) shall be paid to the Group Policyholder. These payments are net of charges applicable, if any, to enable them to purchase Annuity in respect of the exit Member. In case the Member is entitled to commute his Superannuation Benefits, subject to the Rules of the Fund, then the amount on Commutation may be paid directly to the exited Member at the option of the Group Policyholder. (For Claim Form please refer to Annexure ) Upon the unfortunate death of a Life Insured while being a Member of the Group Policy, you are required to submit a claim form as above. All the above-mentioned documents have to be submitted within a period of 0 days from the date on which a claim arises in respect of a Member. However, failure to submit the documents within the above time will not invalidate the claim if the claim documents are submitted as soon as is reasonably possible. What will be the time taken for a claim to be processed? Birla Sun Life Insurance will process the claim for Superannuation Benefits within a period of seven working days from the date of

5 Claim Procedure receipt of the complete required forms including a Claim Form. Can a resignee transfer out his Equitable Interest in our fund? What is the procedure? Yes, if the rules of the transferee Trust and your Trust permit the same. The relevant Forms should be duly filled in and sent to BSLI. (For Claim Form for Transfer of Equitable Interest please refer to Annexure ) Resignation Superannuation Claim Form (Duly completed, signed & stamped by the Trustees) Form Complete YES NO Claim Amt= Accumulated Units * Unit Price (prevailing on the day of settlement) OR the Guaranteed amt, whichever is higher Retirement Death Can a new employee transfer his Equitable interest in his earlier Employer s Superannuation Trust to the new Employer s Superannuation Trust? (at the discretion of the trustees) 5 Yes, if the rules of the transferor Trust and your Trust permit the same. The relevant Form should be duly filled in and sent to BSLI. (For Claim Form for Transfer of Equitable Interest please refer to Annexure 5) Transfer of Equitable Interest Letter from the Trustees to BSLI with details of the transfer in addition to the claim form Fund Retained with BSLI (Deffered Benefits) Immediate settlement BSLI to send a written communication to the Trustees & Member On Vesting date, claim to be settled YES / to the member balance to Trustees for purchase of Annuity Commutation NO Claim Amount to Trustees for purchase of Annuity. Claim Amount to Trustees either to be paid wholly to the legal heirs or purchase of annuity Whom will the claim payment be made to? The claim payment will be made to the Group Policyholder. Discharge Receipt: An advance discharge receipt from the policyholder will be required in all cases where the benefits are to be paid. (For Discharge Receipt please refer to Annexure 6) Claim processed in 7 working days. Cheque with the Discharge Receipt sent to the Trustees. Discharge Receipt duly filled in to be sent to BSLI End

6 6 FREQUENTLY ASKED QUESTIONS The Group Superannuation Plan is offered to your Employer to provide retirement benefits for its eligible employees. The Plan provides for a Fund that will help your company buy you an Annuity on your retirement from employment. Mentioned below are the salient features of the Plan, which you, as a member of the plan, would like to know.. Who is eligible to join the Group Superannuation Plan? All the employees or one or more categories of employees selected by your Employer for providing the Superannuation benefit are eligible to be members of this scheme. 2. How much does my Employer contribute to the Plan? Your employer would make a contribution amounting to not more than 5% of your annual basic salary or as provided in the Rules of the Superannuation Fund.. What happens to the Contribution? The contribution when received by us from your company(net of any fees and charges) is converted into units based on the Net Asset Value per Unit prevailing on the date of allocation of Units and credited to your Account. A Member-wise Account is maintained representing the number and value of units. This contribution is invested in any one of the six Fund options viz, Fixed Interest Fund, Bond Fund, Gilt Fund, SecureFund, StableFund & GrowthFund, as opted by you / the Trustees of the Fund.. What is Net Asset Value and how is it calculated? The Net Asset Value per Unit in respect of each Birla Sun Life Insurance Fund is determined by using the following formula: (Market/Fair value of Scheme s investments + Current Assets + Accrued Income - Current Liabilities - Provisions) Number of Units outstanding. The Net Asset Value will be calculated on every business day based on the value of the relevant Birla Sun Life Insurance Fund s assets at the close of the previous business day. 5. What choice do I have regarding the investment of my contributions? You have an option to choose one of the six Investment Funds that are currently being offered by us. The six funds are: Fixed Interest Fund For clients looking for safe and steady returns. Bond Fund For clients looking for investment only in Corporate Bond Gilt Fund For clients looking for investment only in Government Securities Secure Fund If you are looking for low (For switch over form please refer to risk and stable returns. Annexure 7) Stable Fund If you are comfortable with a moderate level of risk in exchange 7.What benefits do I get? for an opportunity to earn higher returns. On the Vesting Date of the policy i.e. the Growth Fund If you are looking for day on which the payment is due, the enhanced long term performance and are accumulated value of the units in the comfortable with volatility of the markets. chosen fund will be utilised for purchasing an Annuity from any licensed Annuity Five years before the retirement date, provider including BSLI. Alternatively, you unless specifically communicated by you, may choose to commute part of your BSLI will transfer your fund to the Fixed Account Fund (No. Of Units accumulated * Interest fund or to the most conservative NAV on vesting date) provided that the Fund then being offered by BSLI under commuted value does not exceed: this policy. One-third of the total Account Fund if you are eligible to receive any gratuity 6. Can I change my fund option? from your Employer. At the inception of the policy, the The commuted value of one half of such contribution received in respect of you is Account Fund in any other case. invested in a Fund that has been selected In that event only the remainder of your by you / The Trustees, as provided in the Account Fund shall be utilised for policy, and will continue to remain in that purchasing an annuity. Fund until the first anniversary of the You must inform the Trustees in writing at policy. least three months before the Vesting Date After the first anniversary of the policy, you about your decision to commute part of the Account Fund. may exercise the option of two free switches in each policy year. This free 8. When are the benefits payable? switch can be exercised at any time during The benefits are payable to you on the the policy year. Other than two free Vesting Date of the policy as described switches, each switch of funds if exercised below subject to Rules of the Fund during one policy year will attract a fee of 0.75% of the value of the fund. i) On Your Retirement: The change in the Fund option will be If you retire on the day of your attaining made effective on the Monthiversary date the Normal Retirement Age the Vesting immediately following the month in which Date will be the date on which you we have received your request for change. retire from the service of your Employer. 7

7 8 ii) On your retirement after Normal Retirement Date: You may, with the consent of your Employer remain in service after the Normal Retirement Date in which case the Vesting Date will be the actual date of retirement. (Subject to the Rules of the Fund). iii)on Your Resignation: On your leaving the services of your Employer, the Vesting Date would be the date on which you cease to be employed with your Employer. You may have an option to defer the Vesting Date till the Normal Retirement Date, had you continued in service, subject to the Rules of the Fund. iv)on Termination of your service: If your service is terminated before the Normal Retirement Date, the Vesting Date would be either immediate or the Normal Retirement Date as elected by you. (Subject to the Rules of the Fund) If your service is terminated on account of fraud or any misconduct or if you leave the service in anticipation of such termination, your entitlement for benefits would be subject to the Rules of the Fund. v) On retirement due to disability: If you retire from the service due to ill health or incapacitation, the Vesting Date will be the date on which you cease to be employed with your Employer. You may have an option to defer the Vesting Date till the Normal Retirement Date, had you continued in service, subject to the Rules of the Fund. vi)on Death: The date of death would be the date of vesting of annuity. 9. Can I appoint a beneficiary to receive the benefits in case of my death? Yes. You can obtain a form of Appointment of Beneficiary from your Trustees and file it with them duly completed. The appointment of the beneficiary should be in writing signed by you and attested by two witnesses. 0.Whom can I appoint as my beneficiary? You may appoint your spouse or child/children or in their absence any of the dependents as a beneficiary or beneficiaries. You may revoke or change the beneficiary, without the consent of the beneficiary, by filing a written notice with your Employer or Trustees at any time before the Vesting Date. In case the beneficiary is a minor, you must appoint a person who is major and capable of giving a legal discharge to your Employer or Trustees..How is the Claim lodged? The claim is lodged by the Trustees with BSLI. The payment towards the benefits will be made to the Trustees. The Trustees will purchase the annuity on your behalf in accordance with the Rules of the Fund. All the payments, whenever due are made In the event of your joining the services of the present Employer, and the present Employer is willing to transfer to the Trustees of the Fund in India and in your Account Fund from a Indian Rupees only. Superannuation Fund of the previous Employer to this Fund, the same will be 2.When should I communicate about the received and accounted in this Fund amount I have chosen to commute? subject to the Rules of this Fund. You will have to inform the Trustees of the In the event that you leave the present Fund that you have elected to commute part of your Account Fund at least months before you cease to be employed with your Employer..Can I borrow, assign or withdraw my benefits under the policy? The benefits under this policy are strictly personal hence you cannot borrow, withdraw or assign the benefits under this policy..can I withdraw from Membership? As long as you are employed with your current Employer you cannot withdraw from the Membership. However, closure of or amendments to funds will only be done with the Policyholder's consent. 5.Can I withdraw the contribution made in respect of me? You cannot withdraw the contribution as long as you are employed with your current Employer. 6.Can I transfer the fund on my exit or entry into the scheme? Employer you may get the value of your Account Fund transferred to the fund of the new Employer subject to the Rules of this Fund and that of the transferee fund. 7.Do I have any access to information about my policy? You have access to all the information on your policies whenever and wherever you need it through our web site Every client is given a CIP Number and TPIN (password) along with a User guide. This enables them to log on to the website and view the transaction details of their policy, track NAV details, and compute the rate of return for a selected fund. And all this desired information is now available at the click of a mouse! 9

8 TERMS USED BIRLA SUN LIFE INSURANCE COMPANY LIMITED Monthiversary Reconciliation Form (to be completed by the policyholder on each monthiversary) Group: The group of employees covered by this policy. Member: All permanent full time Employees of the policyholder covered under this plan. (The term member & employee are used interchangeably). Beneficiary: The person(s) nominated by you to receive benefits in the event of your unfortunate death. GROUP POLICY NUMBER / PLAN NAME OF THE POLICY HOLDER DETAILS OF NEW MEMBERS / SPOUSE IN THE FOLLOWING FORMAT MEMBER ID FIRST NAME MIDDLE NAME Policyholder: The Employer - Company in whose name the policy is issued. SURNAME Units: Unit is the means used to measure and record the Policyholders participation in a Birla Sun Life Insurance Fund to which the Contribution has been directed. MONTHIVERSARY DATE SEX CATEGORY 0 Rules of the Fund: Rules of the Superannuation of the Company constituted under the Trust Deed for payment of benefits under this policy. MEMBERSHIP RECONCILIATION DETAILS PARTICULARS As on Previous Monthiversay Add: New Members Less: Member Exits NO. OF MEMBERS DESIGNATION DATE OF BIRTH (DD/MM/YYYY) DATE OF JOINING (DD/MM/YYYY) MTLY SALARY/ COVERAGE AMOUNT Note: Claims, If any to be filed in the prescribed Claim Form separately DETAILS OF MEMBER/SPOUSE EXITS MEMBER ID NAME OF THE MEMBER WE CERTIFY THAT ) The particulars in respect of all the members to be covered are correct as per our records. 2)The date of birth of members have been verified by us. )None of the above members was absent on sick grounds on the Monthly Processing Date I.e Date of Commencement of coverage details of any employee absent from work on sick grounds on Monthiversary date to be given seperately giving nature and duration of sickness) WE AGREE That the Life Insurance Coverage on the life of above members will start only after acceptance of risk by Birla Sun Life Insurance. DATE OF CESSATION OF MEMBERSHIP REASON FOR CESSATION OF MEMBERSHIP DATE: PLACE: FOR AND ON BEHALF OF POLICYHOLDER REGISTERED OFFICE: st Floor, Ahura Centre, 'B' Wing, Mahakali Caves Road, Andheri (E), Mumbai Tel.: / Fax: