After the much talked about Unit Linked Insurance Plans (ULIPs), the public sector insurer, Life Insurance Corporation of India (LIC) is mulling over its decision to introduce group superannuation policies under the category of ULIPs. this new launch will be termed as superannuation plus.

The budget 2006-’07 showed some leniency on Fringe Benefit Tax (FBT). The employers are now exempt from paying FBT on contributions upto Rs 1 lakh (per employee) to an approved superannuation funds.

Prior to budget 2006-’07, the superannuation schemes were under the FBT umbrella because of which several corporates discontinued with the benefit to their employees in the form of superannuation schemes.

With relief provided in this budget, LIC intends to experiment with new superannuation plus schemes. However, it is waiting for Insurance Regulatory and Development Authority’s approval.

( http://sify.com)