Saral Pension yojana
In order to understand the essence of Saral Pension Yojana, it is imperative to know what Saral Pension is. The basic premise underlying this pension plan is that members of an organization are vested with a share of the company’s profits. The amount of profit contributed by the employer is invested in various plans run by the fund so that the benefits of the pension and the contributions of the employees are balanced. This is one of the most common plans that are offered by Indian employers to their employees. Even though it offers a good number of advantages for the employees, not many people are aware of its importance.
As far as the history of Saral Pension Yojana is concerned, it was introduced nearly four decades ago. Since then, it has gone through a lot of changes and amendments. In fact, over the last few years, the plan has received a lot of modifications and additions. The latest addition to this scheme is the inclusion of the Life Insurance Policy into the list of options that can be chosen from.
The Saral Pension Yojana scheme was first introduced by the Central Excise and Customs Department (CEFC) as an effective and economical method for encouraging young and dynamic professionals to take part in the public service. The CECD believed that those employees who were able to devote their entire life to the service of the government or public sector should receive a suitable pension. They also wanted the employees to contribute to the growth of the economy and thereby contribute a lot to the country’s prosperity as well. This resulted in the introduction of the plan to Saral and other leading companies. This scheme has since gained a lot of popularity among companies all over India.
As of today, the scheme offers three main benefits to its members. The first is the Post Retirement Benefits. This plan enables the company to make a contribution towards the pension of the retired employee. The second is the Group Benefit Plan and this is basically meant for the employees working in a limited company. The third is the Individual Voluntary Arrangement (IVA) and this is applicable to employees who do not prefer any of the above plans.
One of the main reasons behind the success of the scheme is the Life Insurance that it offers to its members. Life Insurance basically protects the interests of the employer on the basis of his employees’ life. So the employer buys insurance for his employees that will ensure that the money he invests in the scheme will not go down the drain in case any of his employee dies. The entire amount is paid directly to the beneficiary and the benefit lasts for a certain period of time. In case the life of the employee ends before the maturity of the scheme, then the whole amount is refunded to the employer.
This scheme has proven to be very useful not only for the employers but also for the employees. The main advantage is that this scheme is not limited and does not restrict itself to a particular area. It covers all the people belonging to all sections of the society and thus, it provides a very broad option for all kinds of people. Hence, you can see that Saral Pension Yojana is indeed a very good option that you should consider when planning your future finances.