Pension Funds

A pension/superannuation is a contract for a fixed sum or index linked to be paid regularly to a person, typically following retirement from service. There are many different types of pensions, including defined benefit plans, defined contribution plans and hybrid plans. The terms retirement plan and superannuation refer to a pension granted upon retirement of the individual. Retirement plans may be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. The pensions are can also be provided to family members in the event of the pensioner's death. The contribution towards this nest egg for life after retirement starts while the person is working and some part of the income goes into this fund for utilisation when the time comes. Superannuation/Pension in the Indian Scenario is paid under a Defined Contribution Plan where the employer and employee contributes 15a fixed percentage% of their salary.