Process to transfer Pension fund from UK to India-SBI Life Annuity Plus pension scheme(QROPS)

SBI Life Annuity Plus pension scheme is an immediate Annuity scheme that can be purchased by investing lump sum amount (or by transferring overseas fund). The plan provides for annuity payments of a stated amount throughout the life time of the annuitant under various options for the type & mode of annuities.

The following Options are available under the plan:

1)    Type of Annuity

a)      Annuity payable for Life at a uniform rate.

b)      Annuity payable for 5, 10, 15, or 20 years certain and thereafter as long as the annuitant is alive.

c)       Annuity for life with return of purchase price on death of the annuitant.

d)      Annuity payable for life increasing at a simple rate of 3% P.A

e)      Annuity for life with a provision of 50% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

f)       Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant.

g)      Annuity for life with a provision of 100% of the annuity payable to spouse during his/her life time on death of annuitant. The purchase price will be returned on the death of last survivor.

           h) Life time Income with Annual with Annual increase of 5%
           i) Life time income with Balance capital Refund
           j) Lifetime income with capital refund in parts

Customer can choose any one of the above mentioned options.

Note: option once chosen cannot be altered.

Mode :

Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. Customer can opt any mode of payment of Annuity.

Features of the scheme:

a)      Premium is to be paid in a Lump sum( Pension fund transferred).

b)      Minimum premium-Calculated so that the annuitant can be paid minimum annuity as per
the mode chosen

c)      No medical examination Required

d)      There is no maximum limits for purchase price, annuity e.t.c .,

e)      Entry age: minimum 40 years completed & maximum 80 years completed.

f)       Age proof mandatory

Note: If purchase price is Rs 1.50 lakh or above, customer is eligible to receive higher amount of annuity due to available incentives.

Other Important features:

Ø  Paid up value:  This policy does not acquire any paid-up value.

Ø  Surrender value: This policy does not acquire any surrender value.

Ø  Loan                    : No loan will be available under this policy

                                                
QROPS:   QROPS stands for Qualifying Recognized Overseas pension Scheme

Any Individual enrolled with a UK pension scheme who either now lives overseas as an expatriate or is planning to leave UK over the next 12 months or any Indian who has returned to India can now transfer his / her existing pension provisions into a Qualifying Recognized Overseas Pensions Scheme (QROPS).

 In order to receive QROPS status, the scheme must be recognized as a pension scheme and should meet the rules of the jurisdiction that it is situated.

The scheme must be recognized and meet the Her Majesty's Customs & Revenue (HMRC) rules in the UK relating to how and when benefits can be taken, along with defined reporting requirements prior to the member becoming non UK tax resident.

The qualifying scheme must be outside the UK.

·    The local Jurisdiction will set out how the QROPS is structured. However, most QROPS are structured in a similar way to UK pensions, that is, a pension administrator (pension provider) manages the pension fund on the client’s behalf, and must be based outside UK.

 ·   Any UK registered Pension schemes can be transferred to a QROPS, as long as the terms of the said schemes permit transfer and the receiving QROPS provider is willing to accept it.

 ·   Any NRI/PIO who has a UK registered pension scheme or any Indian who has some accumulations into UK pension scheme can move their pension into a QROPS.

    Why should one think of Transferring pension fund   from overseas to India   ?

Because one can take pension income in Indian currency. Emerging economies like India tend to offer better returns/pensions than those offered by developed economies.

WHY SBI Life ?

SBI Life Insurance is a joint venture life insurance company between SBI, the largest state-owned banking and financial services company in India, and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26% of the capital. SBI Life Insurance has an authorized capital of ₹20 billion (US$330 million)and a paid up capital of 10 billion (US$170 million).

In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave the company a AAA/Stable/P1+ rating

NOTE: The service to the customers in transferring their pension fund will be given irrespective of the locations where ever they stay, like any part of India or Abroad.

FOR STARTING UP OF THE PROCESS CONTACT :

Anusuya .R

Financial Advisor

SBI Life Insurance Company Ltd, # 23, Yamuna Complex,

1st Floor, 7th Cross, Malleswaram,  

Bangalore: 560003.

M +91  9980927393
Email:  qropstoindia@gmail.com

Qualifying Recognised Overseas pension Scheme (QROPS).: UK Pensions Transfer to a QROPS in India

Qualifying Recognised Overseas pension Scheme (QROPS).: UK Pensions Transfer to a QROPS in India: Lic’s Jeevan Akshay is the only “Qualifying recognized overseas pension Scheme”(QROPS) available in India as of now for transferring pe...

Credit card limit determining factors

Click on the link below, to know complete details of Pension fund transfer from UK to LIC’s Jeevan Akshay V1.

http://qropstoindia.blogspot.in/2012/10/lics-jeevan-akshay-qrops-pension-scheme.html?spref=fb

The spending limit or the credit limit is a function of the borrower's income and usage. The crucial factor that determines it, though, is sourcing of information about you by credit card companies.The companies do the sourcing in two ways--through income documents that you submit, such as the salary slip and the income tax return, and surrogate methods such as your association with a brand, a merchant outlet or a premium club.

SOURCING THROUGH INCOME DOCUMENTS

When sourcing is done through income or tax documents, the card issuer usually uses a multiplier with the gross monthly income. That multiplier can be 2.5/3 times the gross salary depending upon the person's risk appetite and the credit policy of the bank or the credit card company.However, the limit is not based on just the gross monthly salary. It can be tempered by your credit bureau report and the number of loans you are servicing. The card company usually figures out your fixed monthly obligations such as home/personal loan equated monthly instalments, or EMIs, and deduct the amount from the monthly salary.  

For instance, if a person is getting Rs 1 lakh salary in hand, of which 20-30 per cent is spent on basic monthly needs, the card company will check how much of the remaining amount is spent on other monthly obligations such as EMIs. It will also take into account the debt-burden ratio, which is total of all EMIs divided by the monthly gross salary. The credit card limit can be a proportion of the debt-burden ratio.

NON-INCOME BASED SOURCING

In this case, the credit limit is fixed on the basis of the 'billed value'. If you are a frequent shopper at a particular merchant outlet, a frequent flier with an airlines or a member of a premium club, you will be offered credit cards, mostly co-branded, against these spendings. In such a case, the value of your annual spending will determine the limit. 

If you are being offered a co-branded card of a merchant outlet, it means the issuer has taken account of your spending trends. If you are spending Rs 1 lakh annually at a merchant outlet, the issuer will use a multiplier to arrive at your income and accordingly set the borrowing limit.However, as with the income sourcing method, banks and credit card companies will use the credit bureau report to check if the credit limit offered is within the borrower's repayment capacity.

Can the credit limits differ if the documents are different? Yes, if the information is sourced from different documents.  

"When an agent approaches you for a credit card while you are standing in the queue of a merchant outlet, he will not ask for your income documents. The credit limit in such a case will be based on your spending pattern," says Sanjay Patel, managing director and CEO, Equifax Credit Information Services.

TIME FACTOR

Time can be another deciding factor. If you had been issued a card in, say, 2006 or 2007, it is possible that your credit limit is higher than for the card that you have been issued recently."This could be because during these years the credit policy of the bank might have changed due to the financial crisis in 2008-09 that hit many banks and financial institutions, forcing them to be more cautious with credit disbursals," says Sanjay Patel of Equifax.  

CREDIT LIMIT REVISION 

It's subjective. Most banks make you eligible for this after 6-18 months, depending upon their credit policy.They take a two-way view-how you have behaved on their own books, that is, if you have paid loans on time, and your overall credit report.Based on these assessments, they will decide on increasing your credit limit, which can be a minimum of 1.25-1.5 times your existing credit limit. The companies keep assessing the increase in revenue to the rise in risk due to the upward revision of the limit. 

So, the next time you are offered a credit card with lower credit limit than on the existing one, it is likely that sourcing of information has been different, or banks have become more cautious with credit disbursal.  

Disclaimer: The information given above are the result of personal readings of related genuine documents and personal understanding of the subject matter. However, this blog is not responsible for any error or inaccuracy in the same

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