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Corporate Pension

Employers are often required to provide gratuity or end of service benefits to their employees when they leave or retire from their service. Some organizations provide for these gratuity disbursements in their accounting books only but in reality utilize the provisions in their day to day operations. This can affect the employer’s cash flow, making it very difficult to withdraw cash from the business if more than one or two employees are to be paid off or if the amounts to be paid is substantial. These risks can be covered under the Group Pension Scheme and if designed properly, can even get a fair return on investment. If employees are made to participate in their pension funds, they can earn a decent return on their saving, and can cultivate a saving culture within the establishment, besides boosting the employee’s morale and increasing their loyalty.

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