ICICI Pru Group Suraksha Plus Superannuation Calculator

ICICI Pru Group Suraksha Plus Superannuation Calculator

ICICI Pru Group Suraksha Plus Superannuation (UIN: 105N148V03) is a non-linked, non-participating group savings product your employer can use to fund your superannuation (retirement) benefit. Unlike a unit-linked superannuation fund, your Scheme Account here grows at a guaranteed minimum floor rate declared by the insurer, plus any additional bonus/interest the insurer may declare - it carries no market/NAV risk. This calculator projects your Member Account Value, the tax-free lump sum you can commute at retirement, and your estimated pension.

How the Plan Works

• Employer Contribution: your employer contributes annually (and may carry forward an existing balance) into your Scheme Account under the group superannuation policy.
• Guaranteed Growth: your Member Account Value grows at a guaranteed floor rate for the full policy term, plus any additional annual bonus/interest the insurer declares - it is not linked to market NAV, so there's no downside from market swings.
• Assured Benefit Floor: the benefit paid at retirement is the higher of your accumulated Member Account Value or the Assured Benefit (broadly, the contributions received), so you're protected even in a low-interest scenario.
• At Retirement: as per Income-tax Rules governing approved superannuation funds, you can commute (withdraw as a tax-free lump sum) up to 1/3rd of the vesting benefit. At least 2/3rd must compulsorily be used to purchase an annuity, which then pays you a pension for life.

Projected Member Account Value

Your contributions are modeled as being paid at the start of each policy year (an annuity-due) and compounding at the guaranteed declared rate r until retirement:

$$MAV = B_0(1+r)^{n} + C \times \left(\frac{(1+r)^{n}-1}{r}\right) \times (1+r)$$

Here B_0 is your existing Opening Scheme Account Balance, C is your Annual Employer Contribution, n is the number of years from your current age to your chosen Retirement Age, and r is the guaranteed + declared rate you selected.

Assured Benefit and Vesting Benefit

$$\text{Assured Benefit} = B_0 + C \times n$$ $$\text{Vesting Benefit} = \max(\text{Member Account Value},\ \text{Assured Benefit})$$

From Vesting Benefit to Pension

$$\text{Tax-Free Lump Sum} = \text{Vesting Benefit} \times \frac{\text{Commutation \%}}{100}$$ $$\text{Annuity Corpus} = \text{Vesting Benefit} - \text{Tax-Free Lump Sum}$$ $$\text{Estimated Annual Pension} = \text{Annuity Corpus} \times \frac{\text{Assumed Annuity Rate}}{100}$$

The Assumed Annuity Rate you enter approximates the payout rate an immediate annuity would offer on the corpus at the time you retire - actual annuity rates depend on prevailing rates and the annuity option chosen at that time.

Other Plan Features

• Portability: the vested benefit belongs to you. If you change employers, it can typically be transferred to your new employer's superannuation scheme or another approved fund, subject to trust rules.
• Death Benefit: if you die before retirement, the full accumulated Member Account Value is paid out to your nominee.

Worked Example

A 30-year-old employee starts with no existing balance, and their employer contributes ₹60,000 a year at an assumed 7% guaranteed + declared rate, with retirement planned at age 58 (a 28-year term):

• Total Contributions Received over 28 years = ₹16,80,000
• Projected Member Account Value compounds to well above total contributions at 7% p.a., comfortably above the Assured Benefit floor
• At 33% commutation, roughly a third of the vesting benefit is paid out tax-free, and the remaining two-thirds purchases an annuity that
  • at an assumed 6% annuity rate - pays a pension for life

Enter your own contribution, ages, and assumptions above to see your projected numbers.

Disclaimer: This is an independent, illustrative calculator and is not affiliated with or endorsed by ICICI Prudential Life Insurance Company Limited. ICICI Pru Group Suraksha Plus Superannuation is a non-linked, non-participating group savings product - the actual interest/bonus rate is declared annually by the insurer and can differ from the rate assumed here. Refer to the official policy document and Benefit Illustration from ICICI Prudential Life before making any decision.