Group Critical Illness Scheme

Transcription

1 Group Critical Illness Scheme Summary Adobe Systems Europe Limited (the Company) has established a Scheme to provide a tax free lump sum in the event of either an employee, or their child being diagnosed with an insurer defined Critical Illness. The level of benefit for employees is two times Basic Salary, subject to a maximum benefit of 500,000. For a child the level of benefit is the lesser of this amount or 20,000. The Scheme has been established with Canada Life, although the insurer may alter at any time in the future. The cost of the Scheme will be met by the Company, although employees will be subject to a benefit in kind tax on the premium paid by the Company. A summary of the main provisions of the Scheme is given below, but nothing contained within the summary will override the Terms & Conditions of the Insurance Policy in force. Membership All UK employees (excluding those who were previously employed by Macromedia) who were employed with the Company before 31 December 2008 are eligible for membership. Employees hired on or after 1 January 2009 are not eligible. Opt Out If you meet the eligibility criteria, you will automatically be included in the Scheme, unless you decide to opt out. To opt out, you would need to complete the attached form. Once you have opted out, you will no longer be eligible for cover under the Scheme both immediately and at any time in the future. That is, once you have opted out, you will not be able to opt back in. The policy covers both members and their children, which is currently defined by the insurer as an employee s natural or legally adopted children who are aged more than 30 days but less than 18 years old. Benefits The purpose of the Scheme is to provide a tax-free capital sum to an employee if he or she suffers an insurer defined Critical Illness, or if any of the employee s children suffer an insurer defined Critical Illness. The lump sum benefit payable is salary related, and subject to certain insurer imposed maxims and conditions. The lump sum benefit will be calculated as follows: i) Member s benefit: two times basic salary, subject to a maximum benefit of 500,000, payable if the employee suffers a listed Critical Illness. ii) Child s benefit: 20,000 (or the amount applicable under (i) if less), payable if any of the employee s children suffer a listed Critical Illness. The benefits will become payable following acceptance by the insurer of a bona-fide claim. In connection with this, employees should be aware that medical evidence and any other

2 information required by the insurer will, as of necessity, have to be produced before payment of any claim can commence. Canada Life s standard pre-existing condition exclusions apply including related conditions. Cessation of benefits Eligible employees will be covered from the first of the month following the date of joining Adobe and cover will cease upon the earlier of the following: Upon receipt and acknowledgement of a valid Opt Out form by the HR Department of Adobe Systems Europe Limited. Termination of employment. Upon reaching the age of 65 Medical evidence Medical evidence may be required by the insurer when a member joins or when benefit increases. The current level of salary which triggers the requirement is 75,000 benefit. You will initially be asked to complete a medical form if this applies to you. In the event of your incapacity, the benefit will only be payable so far as the Company has effected insurance to cover it. If you do not complete the underwriting requirements, or the insurer is not willing to cover any additional benefits following underwriting, your benefits will be restricted accordingly. If you are absent from work due to illness or injury on the day that your cover, or any increase in cover, is due to begin, you may not be eligible for that cover until you return to work. Taxation In the event of a claim, the capital sum paid to the employee is free of tax under current tax regulations. However, there is a liability to tax on the value of the premiums that Adobe pays on the employee s behalf. Membership of the Scheme will be stated on the employees P11D Return and will, therefore, be subject to UK Income Tax. The rates may change upon renewal and review of the Scheme, which currently takes place in January, and each member will be informed of the cost alterations as they occur. Amendment or discontinuance of the Scheme The Company reserves the right to amend or discontinue the Scheme at any time. Employees will be notified of any amendment that affects them, or if the Scheme is to be discontinued.

3 Group Critical Illness Scheme Opt Out Form Adobe Systems Europe Limited To be completed by member Only complete this form if you do not want to benefit from membership of the Adobe Systems Group Critical Illness Scheme I, hereby confirm that I do not wish to participate in the Critical Illness Scheme. Please take this form as confirmation that I wish to opt out of the Scheme and authority to exclude me from the Scheme accordingly. By opting out of the Scheme, I note the following. 1. I will not be eligible for any benefits under the Scheme. 2. I will not be eligible to re-join the Scheme at any time in the future. 3. I will not be compensated in lieu of this benefit. Signed. Date. Full Name... Employee Number Effective Date To be completed by Adobe Systems Europe Limited We, Adobe Systems Europe Limited, hereby acknowledge receipt of your election to opt-out of the Group Critical Illness Scheme. We confirm that you have been excluded from the Scheme with effect from and you will not be eligible to re-join the Scheme. Signed. Date. Full Name... Position

4 Group Critical Illness Scheme 1. Introduction This leaflet provides an outline of the Company s Group Critical Illness Scheme provided to you as part of your benefits package. The purpose of the benefit is to provide you with a tax free lump sum in the event of either an employee or their child being diagnosed with an insurer defined critical illness. Your membership of the scheme is automatic, and you will not be required to contribute toward the cost, although employees will be subject to benefit in kind tax on the premium paid by the Company The benefit is insured through a Group Critical Illness policy, and the insurer of this policy will determine the circumstances under which payment is made. In the event of a claim, it is the wording of the insurance policy that will apply at that time, not that which is outlined in this leaflet. 2. Who is included? All UK employees (excluding those who were previously employed by Macromedia who were employed with the Company before 31 December 2008). Employees hired after 1 January 2009 are not eligible. 3. When Can I Join? You will automatically join the Scheme on the day you join the Company, provided you are actively at work in your normal occupation. Actively at work means that you have: Not received medical advice to refrain from work and are actively following your normal occupation. You are working your normal number of hours required by your contract of employment, either at your normal business address or at a location which you are required to travel for business. You will be regarded as actively working if fully capable of doing so were it not for either a leave of absence previously authorised by the Company or the requirement for actively working falls on a day that you are not contracted to work. You must be Actively at work at commencement of cover and for all increase in benefit whilst a member of the policy. To opt out, you would need to complete the attached form. Once you have opted out you will no longer be eligible for cover under the Scheme and at any time in the future. 4. What benefit will I receive in the event of a claim? The full level of Members benefit payable is 2x basic salary, subject to a maximum benefit of 500,000, payable if the employee suffers a listed critical illness. The full level of Children s Benefit is the lesser of 2x salary or 20,000. Child is defined as an employee s natural or legally adopted children who are aged more than 30 days but less than 18 years.

5 5. When will I receive a benefit? Benefit will become payable following acceptance of the claim and completion of a 14 day survival period. Core plus additional illness (excluding permanent total disability) are covered. Please refer to the policy document for exact definition of illnesses covered. 6. What exclusions apply under the Scheme? Canada Life s standard pre-existing condition exclusions apply including related conditions. 7. What happens if I travel abroad? Whilst there are no restrictions under the policy, you will need to notify the Company if you are travelling to any countries that the Foreign and Commonwealth Office is advising against. The Company will need to check with the insurer if cover can still be provided. 8. How are benefits paid? Benefits are paid to you by the Company and are tax free. There is a liability to tax on the value of the premium that Adobe pay on your behalf. Membership of the Scheme will be stated on the employees P11D Return and will therefore be subject to UK income tax. The rates may change upon renewal and review of the Scheme and you will be informed of the cost alterations as they occur. 9. Can I still be covered if I leave the Company? Your membership of the Scheme will cease on the day you leave the Company s service. 10. Third party rights? The Critical Illness policy is a contract between the Company and the insurer. The contract has been set up so that there are no direct or indirect contractual rights on any third parties, and that includes employees who are covered under the policy. However, in the event of a declined claim (where the Company does not challenge the decision) the insurer s contract allows the specific right for an individual member to seek redress and challenge the decision via the Ombudsman. 11. Changing or Ceasing the Scheme? The Company reserve the right to change or cease the scheme at any time, as future circumstances any require. 12. Further information If employees have questions about this document or Adobe s policy on critical illness insurance, please contact Human Resources. October 2012