Rule 307 requires trustees to provide annuities by entering into an insurance scheme with the Life Insurance Corporation or another insurer, or by accumulating contributions per beneficiary and buying an annuity at retirement, death or incapacity, with an exception for irrevocable pension trusts under listed bank and financial institution statutes.
307
Rules 2026 · Rule 307
Scheme of insurance or annuity (approved superannuation fund)
Rules 261-310
The rule (sub-rule 1). To provide annuities for the beneficiaries, the trustees (a) enter into a scheme of insurance with the Life Insurance Corporation of India or any other insurer under section 2(58), or (b) accumulate the contributions for each beneficiary and purchase an annuity from the Corporation or another insurer at the time of the employee's retirement or death, or on becoming incapacitated before retirement.
Exception (sub-rule 2). Sub-rule (1) does not apply to a fund set up under an irrevocable trust with the sole purpose of paying pension or family pension in accordance with rules or regulations made under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980, the State Bank of India Act, 1955, the State Bank of India (Subsidiary Banks) Act, 1959, the National Bank for Agriculture and Rural Development Act, 1981, the Industrial Development Bank of India Act, 1964, the Export-Import Bank of India Act, 1981, the Industrial Reconstruction Bank of India Act, 1984, the Small Industries Development Bank of India Act, 1989, or the National Housing Bank Act, 1987.