This product is a retirement benefit scheme offered to a homogeneous group of people. The contributions that members pay towards the scheme are held in a central account called Deposit Administration fund which allows it to grow at a given guaranteed rate per annum. The account is guaranteed a minimum interest rate plus an annual bonus rate depending on the performance in the financial market and also the Corporation’s investment performance.
The Group Pension under Deposit Administration Plan ensures accumulation of contribution at an attractive rate of interest for generous lump sum benefits and monthly pension to the employees on retirement.
* As and when a member under the scheme retires, the total benefits i. e. contributions and interest are paid by debiting the account.
* Under Deposit Administration Plan the rates of contribution can be 5% of the employee’s gross monthly salary and a similar or other amount contributed by the employer.
* The minimum and maximum retirement age for the members of the scheme may range from as early as 50 years to as late as 65 years.