Transfer your UK Pensions to LIC's New Jeevan Shanti QROPS (Qualifying Recognised Overseas Pension Scheme) in India.

Transfer your UK Pensions to LIC's New Jeevan Shanti QROPS in India, which is a Non-Linked, Non-Participating, Individual, Single Premium, Deferred Annuity Plan. 

 

Snapshots :

> This QROPS is a single premium plan wherein the Policyholder has an option to choose on Single life annuity.

> The Annuity rates are guaranteed at the inception of the policy & Annuities are payable post deferment period & on completion of age 55(after UK Pensions get transferred)  throughout the life time of Annuitant(s).

ANNUITY OPTIONS:

The Annuityoptions available are:

Option 1: Deferred annuity for Single life

 

3. Benefits

  Option

Benefits Option 1

During Deferment Period & before required HMRC QROPS age of 55:

• On survival of the Annuitant, nothing shall be payable.

• On death of the Annuitant, Death Benefit as defined below shall be payable to nominee(s

 

After Deferment Period & after required HMRC QROPS age of 55 :

 • The annuity payments, as per the chosen mode, shall be made in arrears for as long as the Annuitant is alive.

• On death of the Annuitant, the annuity payments shall cease immediately and Death Benefit as defined below shall be payable to nominee(s

Maximum Age at Entry : 79 years (Last Birthday)

 Minimum Vesting Age : 55 years (Last Birthday)

 Maximum Vesting Age : 80 years (Last Birthday)

 Minimum Deferment Period : 1 year

Maximum Deferment Period : 12 years subject to Maximum Vesting Age

 

Annuity Mode	Monthly	Quarterly	Half-yearly	Annual
Minimum Annuity	Rs -1000 per month	Rs -3000 per quarter	Rs - 6000 per half-year	Rs - 12000 per annum

 

MODE OF ANNUITY PAYMENT :

The modes of annuity available are yearly, half-yearly, quarterly and monthly. The Annuity shall be payable in arrears i.e. the annuity payment shall be after 1 year, 6 months, 3 months and 1 month from the date of vesting of Annuity depending on whether the mode of annuity payment is Yearly, Half yearly, Quarterly and Monthly respectively.

 

 

6. Incentive:

The following incentives are available under this plan:
i. Incentive for higher QROPS Fund transfer by way of increase in the annuity rate is as under 

For Rs - 1000/- Purchase price (in `)
5,00,000 to 9,99,999	10,00,000 to 24,99,999	25,00,000 to 49,99,999	50,00,000 to 99,99,999	1,00,00,000 & above
1.50	2.10	2.45	2.60	2.70

 

A rebate of 2% by way of increase in the annuity rate shall be applicable for policies purchased as QROPS(Qualifying Recognised Overseas Pension Scheme).

 

7. Reduction in annuity rates :

For annuity payment frequencies other than yearly mode, reduction by way of decrease in annuity rate shall be applicable. The reduction is as under:

Mode	Percentage Reduction in  (Yearly) annuity rate
Half-yearly	2 %
Quarterly	3%
Monthly	4%

 

8. Illustration:

Purchase Price :` 10 lakh (excluding applicable taxes)

Age of Annuitant at entry :45 years (Last Birthday)

Deferment Period :12 years

Annuity Amount Payable for various annuity payment modes (`)
Annuity Option	Yearly	Half Yearly	Quarterly	Monthly
Option 1: Deferred annuity for Single life	1,20,700	59,143	29,270	9,656

 

For death benefit under above options, please refer details above.

OPTIONS:

Options available for payment of Death Benefit:

The Annuitant will have to choose one of the following options for the payment of the death benefit to the nominee(s).The death claim amount shall then be paid to the nominee(s) as per the option exercised by the Annuitant and no alteration whatsoever shall be allowed to be made by the nominee(s). This option has to be exercised by Annuitant at the proposal stage. However, this option can be subsequently modified by Annuitant(s) during his/her life during the currency of the policy.

·      Lumpsum Death Benefit: Under this option the entire Death benefit shall be payable to the nominee(s) in lumpsum.

·      Annuitisation of Death Benefit:  Under this option the benefit amount payable on death shall be utilized for purchasing an Immediate Annuity from the Corporation for nominee(s) effective from the date of death of the annuitant. The annuity amount payable to the nominee(s) on the admission of death claim shall be based on the age of nominee(s) and immediate annuity rates prevailing as on the date of death of Annuitant . This option can be opted for full or part of the benefit amount payable on death. However, the annuity payments for each nominee(s) shall be subject to the eligibility conditions of the annuity plan available at that time and then prevailing Regulatory provisions on the minimum limits for annuities. In case the eligibility conditions of the annuity plan available at that time are not met or the benefit amount payable on death is insufficient to purchase the minimum amount of annuity, then the said amount shall be paid as a lumpsum to the nominee(s).

·      In Installment:  Under this option the benefit amount payable on death can be received in installments over the chosen period of 5 years instead of lumpsum amount. This option can be exercised for full or part of the Death Benefit payable under the policy. The amount opted by the Annuitant (i.e. net claim amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

The installments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum installment amount for different modes of payments.

If the Net Claim Amount is less than the required amount to provide the minimum installment amount as per the option exercised by the Annuitant(s), the claim proceed shall be paid in lumpsum only.

For all the installment payment options commencing during the 12 months’ period from 1st May to 30th April, the interest rate applicable for arriving at the instalment amount shall be annual effective rate not lower than 5 year semi-annual G-Sec rate minus 2%; where, the 5 year semi-annual G-Sec rate shall be as at last trading day of previous financial year.

Accordingly, for the 12 months’ period commencing from 1st May, 2022 to 30th April, 2023, the applicable interest rate for the calculation of installment amount shall be 4.84% p.a. effective.

For example, if this option has been exercised for the Net Claim Amount of Rs. 10,00,000/-, the amount of each instalment payable in advance for installment payment options commencing during the 12 months’ period beginning from 1st May, 2022 to 30th April, 2023, shall be as below:

Amount of each installment for `10,00,000 Net claim amount (Payable in Advance)
Specified number of years	Yearly	Half-Yearly	Quarterly	Monthly
5	2,19,338	1,10,965	55,810	18,677

PLAN PURCHASED VIA TRANSFERRING UK PENSION AS QROPS (QUALIFYING RECOGNISIED OVERSEAS PENSION SCHEME :

This plan can be purchased as QROPS, through transfer of UK tax relieved assets subject to listing and terms and conditions prescribed by HMRC (Her Majesty Revenue & Customs) such as:

i.               Minimum Vesting Age shall be 55 years.

ii.             If the policy is cancelled during the Free Look Period,the proceeds from cancellation shall only be transferred back to the fund house from where the money was received.

iii.           Subject to specific Plan features including Minimum Annuity as specified in Para 4, all other terms and conditions of HMRC shall also apply as applicable from time to time.

 

SURRENDER OPTIONS :

For QROPS cases, the surrender provisions shall be further subject to any specific provisions regarding procedures as per Rules and Regulations of the HMRC.

LOAN OPTION :

The Policy loan shall be allowed at any time after three months from the completion of policy (i.e. 3 months from the date of issuance of policy) or after expiry of the free-look period, whichever is later. Policy loan shall be available during as well as after deferment period subject to terms and conditions of the corporation in this regard.

The maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount and shall be subject to maximum of 80% of Surrender Value.

The loan interest rate for all the loans commencing during the 12 months’ period from 1st May to 30th April, shall be compounding half-yearly rate not exceeding 10 year G-Sec Base/Par yield p.a. compounding half-yearly plus 300 basis points. The 10 year G-Sec Base/Par yield shall be as at last trading date of previous financial year. The calculated interest rate shall be applicable for full term of Loan.

For the loan sanctioned during the 12 months’ period commencing from 1st May, 2022 to 30th April, 2023, the applicable interest rate is 9.50% p.a. compounding half-yearly for entire term of the loan.

Any change in basis of determination of interest rate for policy loan shall be subject to prior approval of IRDAI.

FREE LOOK PERIOD :

1.   For the policy has been purchased as QROPS as detailed above:

The proceeds from cancellation shall only be transferred back to the fund house from where the money was received.In case of QROPS, above provisions shall be further subject to any specific provisions regarding procedures as per Rules and Regulations of the HMRC in this regard.

SUICIDE :  

The policy shall be void if the Annuitant  (whether sane or insane at the time) commits suicide at any time within 12 months from the date of commencement of risk. In such case, an amount which is higher of 80% of the Premium paid or Surrender Value shall be payable. The Corporation will not entertain any other claim.    

 

PROHIBITION OF REBATES U/S 41 OF INSURANCE ACT, 1938 :

A)  No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

B)  Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakh rupees. 

 

To know in detail about the benefits or amount of pensionable service, the transfer value payment of   UK pension pot will buy in the receiving pension scheme in India & also to know more about the options, pension schemes available in India to get your UK(United Kingdom) pensions transferred, I wish to schedule a free, no obligation telephone consultation to discuss ways I can help yourself and any of your colleagues who has accumulated pension fund in UK(United Kingdom) . I can also be reached with the following contact details.

 

Mr Ravi Kumar. Sr. Financial Consultant: LIC Of India, Civil Station East Branch (C-B-5-603), Ground Floor, Oriental Bldg, MG Road, Bangalore -560 001, Karnataka, India.

 

Cell:     +91 9844519872, 

Email:  ravi.sampige@gmail.com