ICICI Pru Group Unit Linked Superannuation Plus Calculator

ICICI Pru Group Unit Linked Superannuation Plus Calculator

ICICI Pru Group Unit Linked Superannuation Plus (UIN: 105L200V02) is a group scheme your employer sets up to build a retirement (superannuation) benefit on your behalf. Your employer contributes annually into a superannuation fund maintained in your name, invested across the plan's unit-linked fund options. What sets the "Plus" version apart from a plain group superannuation plan is that it credits Loyalty Additions to your fund every policy year from Year 6 onwards - extra units added on top of market growth, sized as a percentage of your fund value at that time. At retirement, part of the accumulated fund value is paid to you as a tax-free lump sum and the rest is compulsorily used to buy an annuity that pays you a pension for life. This calculator projects your fund's growth

• with and without the Loyalty Addition boost - the resulting tax-free lump sum, and your estimated pension.

How the Plan Works

• Employer Contribution: your employer contributes a fixed amount each year into your superannuation fund account, invested across the plan's unit-linked fund options, with free switching between funds.
• Fund Growth: being unit-linked, your fund's value depends on the actual performance of the underlying funds. Since future market performance can't be known in advance, this calculator - like the insurer's own Benefit Illustration - shows what your fund could look like at the two investment rates mandated by IRDAI for illustration purposes: 4% p.a. (conservative) and 8% p.a. (optimistic).
• Loyalty Additions (the "Plus" benefit): from the 6th policy year onwards, the plan credits a Loyalty Addition to your fund every year - a percentage of the fund value at that time - which itself then compounds along with the rest of the fund in subsequent years.
• 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 accumulated fund value. At least 2/3rd must compulsorily be used to purchase an annuity, which then pays you a pension for life.

Projected Fund Value

Contributions are modeled as paid at the start of each policy year and compounding at the illustration rate r for that year. From policy year 6 onwards, a Loyalty Addition equal to a fixed percentage l of the fund's value is credited at the end of the year:

$$F_{y} = (F_{y-1} + C)\times(1+r)\times(1+l)$$

Here F_y is the fund value at the end of policy year y, C is your Annual Employer Contribution, r is the illustration rate you selected (4% or 8%), and l is the Loyalty Addition rate (applied only for y >= 6, and 0 otherwise). The projected fund at retirement is F_n, where n is the number of years from your current age to your chosen Retirement Age. The calculator also computes the same projection with l = 0 throughout, so the Loyalty Addition Boost - the difference between the two - is shown as its own figure.

From Fund Value to Pension

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

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

• Fund Switching: employers or members can switch between the plan's fund options at no extra charge, typically subject to a minimum switch amount.
• DC Scheme Flexibility: for Defined Contribution schemes, employers can redirect future contributions across funds, or run an Automatic Transfer Strategy, without disturbing the existing fund value.
• 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 fund value - including all Loyalty Additions credited so far - is paid out to your nominee.

Worked Example

A 30-year-old employee's employer contributes ₹60,000 a year to their superannuation fund, with retirement planned at age 60 (a 30-year term) and the 8% illustration rate:

• Total Employer Contributions over 30 years = ₹18,00,000
• Fund Value Without Loyalty Additions compounds at 8% p.a. on the contribution stream
• From policy year 6 onwards, annual Loyalty Additions push the fund higher year after year, so the Projected Fund Value at Retirement exceeds the no-loyalty figure by the Loyalty Addition Boost
• At 33% commutation, roughly a third of the fund 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. Being unit-linked, all projected figures - Fund Value, Loyalty Addition Boost, Tax-Free Lump Sum, and Pension - are non-guaranteed and depend on actual market performance and the investment rate you choose. The Loyalty Addition rate used here is illustrative and not a reproduction of the insurer's official benefit illustration. Refer to the official policy document and Benefit Illustration from ICICI Prudential Life before making any decision.