Group Income. Review (01)

Transcription

1 Group Income Continuance Plan Review (01)

2 Member update The DCU Group Income Continuance Plan is exclusively available to DCU employees and the unique benefits that it provides are designed to meet your specific needs. The Plan is reviewed every three to five years to ensure that members continue to receive the best deal available. At the 2016 review, Cornmarket compared all insurers in the Irish market. DCU has decided to retain Friends First as the underwriter of the Plan, as they provided the most competitive rate and benefits for members. Here we cover the key changes to the Plan following the 2016 review. All changes will take effect from the 1st October 2016 and the revised terms are guaranteed until 1st October The Plan in Action Over 1,000* DCU employees are protected under the Plan. The comprehensive, tailored benefits that it provides are not available anywhere else. Since the 2011 Plan review, 100% of claims have been paid**. *Source: Cornmarket, August 2016 ** In respect of decisions made for claims notified 01/06/ /05/2016 (Source: Friends First, June 2016) 2

3 Tailored Benefits Disability Benefit of up to 75% of salary less any other income that you may be entitled to (e.g. half pay, Ill Health Early Retirement Pension, Temporary Rehabilitation Remuneration, State Illness Benefit) Specified Illness Benefit a once-off lump sum of 25% of salary paid in the event that you suffer any of the 39 Specified Illnesses covered (see page 7 for more information) NEW Partial Payment Specified Illness Benefit an additional benefit of 12.5% of salary or 15,000 (whichever is less) if you suffer one of the 10 less severe, but still life altering conditions covered under this benefit (see page 8 for more information). Pension Premium Protection Benefit 5% of your salary paid into a separate Personal Retirement Savings Account once a claim is in payment for more than 2 years. Death Benefit of twice your annual salary Important: You must be a DCU employee to be an eligible member of the Plan. If you leave DCU you must inform Cornmarket in writing, as you can no longer stay in the Plan and you will not be able to claim from it. 3

4 Claims Paid Since the 2011 review, 100% of claims have been paid* To date, the Plan has paid out over 4.7 million** in benefits to DCU staff and their families 24 members are currently receiving Disability Benefit from the Plan with an annual benefit of 500,000** Over 7777,000** has been paid out in relation to Death Benefit claims Over 172,000** has been paid out in relation to Specified Illness Benefit claims Most Common Disability Claims** Mental Health 34% Other Illnesses 28% Cancer 15% Back 13% Cardiac 5% Injury 5% *I n respect of decisions made for Disability Benefit claims notified 01/06/ /05/2016 (Source: Friends First June 2016). **Source: Friends First, June

5 Claimant s Story Shelly Barron, a DCU Group Income Continuance Plan claimant, tells us about her experience claiming from the Plan: If I wasn t a DCU employee and a member of the Plan, I wouldn t have anything now my home would be gone or I would be in very serious debt at this point. I never imagined I would need to claim from the Plan for something as simple as a fall and a broken arm. Because of my injury, I went from being in a full time job and in the gym three nights a week, to literally not being able to drive or do anything on my own. Since my accident happened in 2011, I ve had four surgeries. Although my injury is improving, I m still not fully recovered. Stress management plays an important role in the recovery from any illness, and having your income protected removes the burden of financial stress. Thanks to the Plan, I could continue to pay my mortgage, my credit union loans, my grocery and mobile phone bills, and TV, electricity and broadband costs. The cost of the Plan is a very small price to pay to ensure that your home and your standard of living are protected. Cornmarket were brilliant and made a huge difference to my situation when I needed to make a claim. Your income is the most important asset you have, particularly if you are the sole earner in the family. I would recommend everyone to avail of the option to be in this Plan, because you just never know what s around the corner. 5

6 Factors affecting the Plan since the 2011 review Certain key factors have impacted the Plan since the last review in There has been an increase in overall claims from 2011 to 2016 and, specifically, the changes to Public Sector sick pay arrangements have resulted in higher claims. These factors have resulted in a necessary increase in the cost of membership at this review, to ensure the long-term viability of the Plan. Change in cost of membership From 1st October 2016, the cost of membership will increase from 1.45% to 2.26% of gross salary. Your revised cost of membership will depend on the benefits that you are covered for under the Plan. your contributions to the Plan. On your payslip the gross amount appears, however the net cost to you will be significantly less. Here are some examples of the new weekly cost, after tax relief is applied: You receive tax relief on the Disability Benefit, Pension Premium Protection Benefit and Death Benefit elements of Benefit Old Rate New Rate Disability Benefit 0.85% 1.75% Pension Premium Protection Benefit 0.10% 0.10% Death Benefit 0.35% 0.28% Specified Illness Benefit 0.15% 0.13% Total Gross Rate 1.45% 2.26% Total net rate* 0.93% 1.41% *assuming you are paying income tax at 40%. Tax Relief Declared Earnings Monthly Gross Monthly Net 30, ** 50, *** 70, *** 110, *** **If you are paying income tax at 20% your net contribution will be 1.83% ***If you are paying income tax at 40% your net contribution will be 1.41% 6

7 Improvements to the Plan The following improvements to Plan benefits will be effective from 1st October Specified Illnesses Benefit now covers more illnesses The Specified Illness Benefit cover has expanded to now cover 39 conditions as listed below. The illnesses marked at the 2016 review. These illnesses are covered once the date of diagnosis is after 1st October were introduced 1. Alzheimer s disease before age Aorta graft surgery 3. Aplastic Anaemia 4. Bacterial Meningitis 5. Balloon Valvuloplasty 6. Benign Brain Tumour 7. Benign Spinal Cord Tumour 8. Blindness 9. Cancer 10. Chronic Lung Disease 11. Coma 12. Coronary artery surgery 13. Creutzfeldt-Jakob Disease 14. Deafness 15. Encephalitis 16. Heart attack 17. Heart structural repair 18. Heart valve replacement or repair 19. HIV infection 20. Kidney failure 21. Liver Failure 22. Loss of hands or feet 23. Loss of Independent Existence 24. Loss of speech 25. Major organ transplant 26. Motor neuron disease before age Multiple sclerosis 28. Multiple system atrophy 29. Paralysis of limbs 30. Parkinson s Disease before age Pre-Senile Dementia before age Primary Pulmonary Hypertension 33. Progressive Supranuclear Palsy 34. Pulmonary Artery Surgery 35. Rheumatoid Arthritis 36. Stroke 37. Systemic Lupus Erythematosus 38. Third degree burns (covering 20% of the body s surface area, or 50% of the surface area of the face) 39. Traumatic head injury Please contact Cornmarket for the policy definition of each Specified Illness and its pre-existing conditions. 7

8 Improvements to the Plan NEW Specified Illness Benefit Partial Payment A further 10, less severe, but still life-altering conditions will be covered under an additional Partial Payment Specified Illness Benefit. The benefit you would receive is 12.5% of salary or 15,000, whichever is less. 1. Brain abscess drained via craniotomy 2. Carcinoma in Situ 3. Carotid Artery Stenosis 4. Cerebral arteriovenous malformation 5. Coronary Angioplasty* 6. Ductal Carcinoma in situ Plan contributions waived for an extended period of time for Unpaid Maternity, Parental, Adoptive & Carer s Leave If you take unpaid leave under more than one of these categories (for example a period of unpaid maternity leave, followed by unpaid parental leave), then you are not required to pay any Plan contributions for an extended period of time. This has increased: From To 30 weeks 34 weeks 7. Low level prostate cancer with Gleason score between 2 and 6 8. Serious Accident Cover 9. Surgical removal of one eye 10. Third Degree Burns covering 5% to 19% of the body s surface area or 25% to 49% of the face s surface area * Please note: Coronary Angioplasty has been moved from the main Specified Illnesses category to the Partial Payments category at this review. Please contact Cornmarket for the policy definition of each Specified Illness and its pre-existing conditions. 8

9 Other Changes to the Plan Pension Premium Protection Benefit is reduced to 5% for new claims Up to now, after a claim was in payment for more than 2 years, a further 10% of the salary that your Disability Benefit is based on would be paid into a separate Personal Retirement savings Account (PRSA). This will not change for existing claimants. However for new claimants admitted from 1st October 2016, the amount of Pension Premium Protection Benefit will be 5% of salary. Important information about making a claim (i) Claims can take up to 3 months to process from the date that the claim form is received, until the decision is made. It takes time to gather the necessary medical evidence and information such as details of salary and sick leave from employers, to assess the amount of benefit due. Therefore, it is vital that you contact us as soon as you become aware that you will need to make a claim. (ii) A claim for Specified Illness should be submitted as soon as possible after the date of diagnosis. 9

10 We re here to help you You re in good hands Cornmarket s Claims Team is dedicated to representing you in all interactions with the insurance company. We pride ourselves on getting claims paid for members. Our team is specialised, experienced and easy to talk to. We do all we can to help in a member s time of need. We provide a vital hand-holding function from start to finish of the claims process. We re here to help you. Should you need to make a claim, you can rest assured that your claim will be dealt with in the efficient, professional and sensitive manner that you deserve. To talk to us today, call us on (01) or spsclaims@cornmarket.ie. 10

11 This review is designed as a quick reference only to the main enhancements arising from the 2016 Plan review. The master policy document (708218) is definitive in all matters of interpretation and entitlements to benefits. The Death Benefit is provided under Group Life Assurance Plan No issued by Friends First. This is a Defined Contribution Scheme for the purposes of the Pensions Act It is designed to qualify as an exempt approved scheme under Chapter 1 of Part 30 of the Taxes Consolidation Act 1997 and is established under Trust with formal Rules. All benefits payable under the Plan are provided by means of one or more insurance policies with Friends First plc. The Revenue Approval number is SF The Pensions Authority register number is PB Members of the Plan may request a copy of the policy document from Cornmarket Group Financial Services Ltd. The information herein is based upon our current understanding of Revenue law and practice as at September We re here to help you To speak to a member of our team about a query or a claim: DCU Review 9-16 Phone: (01) Queries: spsadmin@cornmarket.ie Claims: spsclaims@cornmarket.ie 12 Cornmarket Group Financial Services Ltd. is regulated by the Central Bank of Ireland. Cornmarket is part of the Great-West Lifeco group of companies, one of the world s leading life assurance organisations. Friends First Life Assurance Company is regulated by the Central Bank of Ireland.