NATIONAL UNIVERSITY OF IRELAND GALWAY VOLUNTARY LIFE ASSURANCE PLAN MAY 2012

Transcription

1 NATIONAL UNIVERSITY OF IRELAND GALWAY MAY 2012

2 Who s Who For the Employees of; National University of Ireland, Galway. This Plan is administered by; Mercer South Terrace Cork. The Benefits are underwritten by: Friends First Friends First House Cherrywood Business Park Loughlinstown Dublin 18. Information; Ms Triona Lydon, Pensions & Investments Officer The National University of Ireland, Galway Galway Mercer (Ireland) Ltd, trading as Mercer, is regulated by the Central Bank of Ireland Friends First Life Assurance Company Limited is regulated by the Central Bank of Ireland

3 CONTENTS 1. Introduction Definitions.3 3. General Information Joining the Plan Paying for Benefits Death in Service Benefits Leaving Service Further Information.9 MERCER i

4 1 Introduction The National University Ireland, Galway Life Assurance Plan (the Plan ) has been established by the College to provide a lump sum benefit in the event of your death. The Plan is set up under irrevocable trust which means that its assets are held separate to those of the College. It is constituted by the 15 th January 1975 IPT Retirement Benefits Trust Declaration and General Rules and Subscriber s Agreement Form dated 2 nd April 1993 and Special Rules dated 30 th April 1998 (the Trust Deed and Rules). The purpose of this booklet is to give a summary of the main provisions of the Plan. Exact details of the Plan are to be found in the Trust Deed and Rules which take precedence in the event of any conflict with this Booklet. The Trust Deed and Rules may be inspected by arrangement with the Trustees. The lump sum benefit being provided under the Plan is in addition to the benefits to which you are entitled under the College s pension schemes. MERCER 2

5 2 Definitions The following terms are used throughout the Booklet will have the following meanings: College: National University of Ireland, Galway Normal Pension Date: Your 65 th birthday Pensionable Salary: The annual rate of salary/wages (which is pensionable) as determined on 1 st May in each year. Trustees: Irish Pensions Trust Limited Dependants: (a) Your spouse / Partner as defined by the Civil Partnership Act 2010 (b) Your children under 18 or who are in full-time education or apprenticeship or who are mentally or physically handicapped; (c) Any person who is financially dependent upon you Beneficiaries Dependants together with other relatives either by blood or marriage MERCER 3

6 3 General Information The Plan commenced on the 1 st May It is approved as an Exempt Approved Scheme under Chapter I Part 30 Taxes Consolidation Act In order to comply with the Revenue Commissioners requirements for approval of the plan, in certain exceptional circumstances it may be necessary to limit the benefits of certain members. You will be notified if this applies in your case. The lump sum benefits are secured under an assurance contract and is subject to you satisfying the Assurance Company with regard to your health, attendance-at-work and any other requirements. You will be advised if any restrictions apply to your benefits as a result. MERCER 4

7 4 Joining The Plan You are eligible to join the Plan on the 1 st May provided you are: A. a member of College Staff B. a member of a College pension scheme; and C. under age 65 You will need to complete a form agreeing to make the appropriate annual contributions under the Plan. Before a claim is admitted, the Assurance Company will require sight of your original birth certificate. Membership of the plan is not a condition of employment. Why Should you Join Now? You will be automatically covered by the Assurance Company without any form of medical evidence provided: (a) (b) you join the Plan within three months of becoming eligible member of the College staff and complete the declaration of the Application Form; and at least 70% of the eligible employees are included in the Plan. What Happens If I Do Not Join Now? On applying for membership three months after becoming a member of staff, you will be asked to submit such evidence of health as the Assurance Company may require. MERCER 5

8 5 Paying for Benefits Who Pays? You are required to contribute at the rate of 0.683% of your Pensionable Salary as at the preceding 1 st May. Contributions will be deducted from your salary and will cease on your Normal Pension Date or earlier withdrawal from service. This rate applies from 1 st May 2012 and will be reviewed from time to time. Tax Relief Contributions made by you to the Plan will qualify for full relief for income tax purposes provided your total contributions (to this or any other pension arrangement) do not exceed the age related limits set down by the Revenue Commissioner. Your contributions will be deducted from your salary each week or month. This procedure, which has been agreed by the Revenue Commissioners, will permit you to immediately receive the maximum tax relief. MERCER 6

9 6 Death in Service Benefits Before Normal Pension Date An amount equal to 3 times your Pensionable Salary as at the 1 st May coinciding with or immediately preceding the date of your death will be payable in the event of a valid claim. This amount will be used to make provision for your Beneficiaries or will be paid to your estate in such proportions as the College will decide, subject to a maximum imposed by the Revenue Commissioners that the amount payable in cash sum form (from this or any other pension arrangement) is no more than 4 times your annual rate of basic salary from the College plus a refund of your own contributions. Any balance of the death benefit remaining would be applied to provide pensions for any one or more of your Dependants as the College should decide. The cash sum is free of income tax and in most cases Capital Acquisitions Tax. Benefit Assignment As the purpose of the Plan is to supplement the lump sum benefit payable under the College s pension arrangements, the benefit is non-assignable and cannot be used as collateral. MERCER 7

10 7 Leaving Service Death benefit ceases if you leave service before normal pension date. MERCER 8

11 8 Further Information How will my benefits be taxed? Under current legislation, pensions, including Dependants pensions, are liable to tax in the same way as wages / salaries under the PAYE system. Cash sums taken instead of pension, and lump sums paid on death, are normally free of income tax up to certain limits as set out by the Revenue Commissioners. Your contributions to the Plan will qualify for full tax relief subject to the Revenue limits. Can my benefits under the Plan be used to obtain a loan? No. You can neither use your benefits for this purpose nor assign them to a third party. If you attempt to do so you may lose your right to benefits. How is the Plan constituted? The Plan is approved by the revenue authorities as an exempt approved scheme under Chapter I, Part 30 of The Taxes Consolidation Act It is established under irrevocable trust and its assets are entirely separate from those of the College. The Plan is governed by a Trust Deed and is administered by the Trustees according to the Rules. The Trust Deed and Rules are technical, legal documents which this booklet aims to summarise clearly. If any difference of interpretation should arise the formal documents, which are available for inspection, must be followed. Are my benefits subject to external control? Your benefits under the Plan are subject to maximum limits imposed by the Revenue Commissioners and to the requirements of the Pensions Act 1990 as amended. Your death benefits could also be subject to a Pension Adjustment Order in the event of judicial separation or divorce. Further information about the operation and impact of Pension Adjustment Orders may be obtained from the Pensions Board. MERCER 9

12 Can the Plan be changed or discontinued? Yes the College and the Trustees can amend the plan at any time. The College may also discontinue the plan at any time. You will be informed in other event. Application Forms Application forms are available from the following website address: Mercer Financial Services Ltd, trading as Mercer, is regulated by the Central Bank of Ireland. Registered Office: Charlotte House, Charlemont Street, Dublin 2. Registered in Ireland No Directors: John Deegan, Joseph Grogan, Paul O'Faherty.

13 Mercer (Ireland) Limited South Terrace Cork Mercer Financial Services Ltd, trading as Mercer, is regulated by the Central Bank of Ireland. Registered Office: Charlotte House, Charlemont Street, Dublin 2. Registered in Ireland No Directors: John Deegan, Joseph Grogan, Paul O'Faherty.