I have a doubt. My employer took annuity system for payment of service gratuity to employees on retirement or resignation.
As our employer paying annuity monthly or yearly, can the service provider pays any interest on the balances at the time of repaying the accumulated gratuity.
Summary: In an annuity system, the gratuity corpus is converted into a lifelong income stream. You generally do not receive interest on the balance; instead, you receive fixed annuity payments. If you chose an annuity option with a "Return of Purchase Price," your original corpus will be returned to your nominee upon your death, but it will not grow through interest. You are only eligible for interest if your employer delayed the initial transfer of your gratuity to the insurer.
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