ICICI Pru Group Superannuation Plan

ICICI Pru Group Superannuation Plan- An Overview

ICICI Pru Group Superannuation Plan is an annually renewable, non-participating, unit-linked group plan. Employers or superannuation trusts pay contributions invested in market-linked funds of ICICI Prudential Life Insurance Company Limited, a joint venture between ICICI Bank Ltd. and Prudential Corporation Holdings Ltd. The plan offers standard and "Plus" variants, providing flexibility to manage member retirement benefits. ICICI Prudential Life is among India's largest private insurers, known for strong claim settlement records and innovative group solutions.

Features of ICICI Pru Group Superannuation Plan

Below mentioned are some of the key features of this Life Insurance Plan:

• Premium Redirection (DC Schemes): Employers can change how contributions are invested at any time, without sticking to the original fund allocation.

• Automatic Transfer Strategy (ATS): For DC schemes, a predefined amount can automatically move from one fund to another on the 1st or 15th of every month, helping balance risk and returns over time.

• Comprehensive Capital Guarantee (CCG): At policy inception, DC scheme employers can opt for funds that guarantee capital protection when an employee leaves service (except under voluntary retirement).

• Flexible Contributions (DB and DC Schemes): Depending on scheme requirements and accounting standards, employers can pay contributions in one go or instalments. Even if contributions stop for a while, the policy stays active, and funding can be resumed later.

• Annuity Purchase Flexibility: Employers maintaining superannuation funds with multiple insurers can choose where to buy annuities for members. Otherwise, annuities are purchased from ICICI Prudential's Immediate Annuity plan (as per current regulations).

• Switching Between Funds (DC Schemes): Employers or members can freely move money between funds without charge, as long as each switch is at least ₹2,000.

Eligibility Criteria of ICICI Pru Group Superannuation Plan-

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Benefits of ICICI Pru Group Superannuation Plan

1. Assistance for Scheme Setup

    ICICI Prudential helps design superannuation solutions tailored to your organisation’s specific requirements. Their team works closely with employers to ensure smooth implementation and alignment with scheme rules.

2. Managing Investments

   You can choose from two investment options:

   • Unit-linked funds – Market-linked funds offering potentially higher returns with flexibility to decide your preferred asset allocation.

   • Endowment Fund – A conservative fund providing stable growth to your contributions.

3.  Death Benefit

   • For Defined Benefit (DB) schemes: Benefits are calculated as per the superannuation scheme rules and paid from the scheme account.

   • For Defined Contribution (DC) schemes: Benefits are the higher of

     • Member's account value, and

     • Guaranteed benefit (as per the minimum guarantees section).

   All claims are settled strictly as per scheme rules in consultation with the master policyholder. ICICI Prudential's liability is limited to the funds available under the policy. The policyholder may choose to pay higher benefits to members than what is payable under the plan, but the additional amount will need to be funded by the policyholder.

How Does the Plan Work?

Employers contribute premiums annually into the plan. Contributions are allocated to selected unit-linked funds, creating either individual member accounts (for DC schemes) or a standard scheme account (for DB schemes). The value of these accounts fluctuates based on the performance of the chosen funds. Loyalty additions are credited periodically, enhancing the corpus. On events like death, retirement, or policy surrender, the fund value is distributed as per the scheme rules.

What is Not Covered under ICICI Pru Group Superannuation Plan

Being a pure group superannuation plan with no life cover sum assured, there are generally no standard life insurance exclusions. Benefits are limited to the fund value, subject to market risk and investment performance. Specific exclusions may apply to optional riders if added.