Our Group Pension Schemes help employers in funding the gratuity payment required by the Employment Rights Act 2008. It also allows employees to top up the pension benefit provided under the NPS. When the member retires, his/her account is used to provide retirement benefits in the form of a lump sum and an annuity. Cim Life offers both defined benefit and defined contribution schemes.

Benefits available under pension schemes
	Transferable pension upon completion of two years of service or more
	The benefit can either be paid as a monthly pension for life, or as a combination of a lump sum and a reduced pension
	An employee has three options when he/she leaves the company before retirement:
	1.	He/she can choose to defer the pension until retirement
	2.	He/she can transfer the value of the pension to another employer
	3.	He/she can transfer the value of the pension into a personal pension plan with an insurance company of his/her choice

Benefits for employers
	The scheme can be structured with premium rates that represent a very low percentage of the employer's payroll
	Premiums on registered schemes are regarded as a business expense, hence reducing the net cost to the employer
	The improved employee benefits package helps with recruitment and staff retention
	Surplus from investment in the scheme, can be used to reduce the employer's contribution

Benefits for employees
	Premiums paid on behalf of an employee are not treated as a benefit in kind and are therefore not taxable
	The lump sum benefit is tax free
	The retirement benefit is known in advance in the case of the Defined Benefit Scheme

Payment options available at retirement
	Joint life pension – an annuity is paid until the death of the last survivor
	Increasing annuity – the annuity paid increases by a predetermined percentage each year
	Guaranteed minimum pension – pension is paid for a guaranteed minimum period (normally 5 years)

Tax treatment of pension schemes
	Employer contributions are expenses for a company
	Pension benefits are taxed as income
	Death benefits are tax free
	A retirement lump sum is tax free up to Rs 1,500,000