Income Continuance Plan
For the employees of National University of Ireland, Galway
Explanatory Booklet
2005
CONTENTS
Page
Foreword
Definitions
2
Object of the Plan
3
Plan Benefits
3
Plan Cost
6
Cover Conditions
6
General Conditions
7
Appendix
10
This Plan has been devised and is administered by:
Marsh Ireland Limited
Affinity Services
Spiddal
Co.Galway
Telephone 091 596265
The benefits are underwritten by:
Irish Life Assurance plc
Marsh Ireland Limited is regulated by the Financial
Regulator as an Authorised Advisor and as a
Mortgage Intermediary.
Irish Life Assurance plc is regulated by the
Financial Regulator.
FOREWORD
This booklet has been prepared to explain to
you, simply and concisely the various benefits of
the Plan. It is important to remember that this is
only an outline of the Plan and does not create or
confer any rights.
The full provisions are contained in a policy
issued by Irish Life Assurance plc and, in the
event of a dispute, the terms of the policy shall
prevail. Arrangements can be made to have a
copy of the policy for inspection at Marsh Ireland
Limited – Affinity Services, Spiddal, Co.Galway.
Tel. 091 596265.
The rates, terms and conditions of the contract
now being offered to you are far superior to
those that would be available to you as an
individual effecting this vital cover.
DEFINITIONS
For the purpose of this booklet the following definitions apply.
"The Plan"
is defined as the National University of Ireland, Galway Income Continuance Plan
"Member"
is defined as any full time academic, administrative or clerical employee of NUI,G who is under age 65.
"Renewal Date"
is defined as 1st January each year.
"Salary"
is defined as the Members’ Annual Salary on the last day worked prior to the end of the deferred
period
"Deferred Period"
is defined as 26 weeks in any 12 month period and/or 52 weeks in any four year period
"The Company"
is defined as Irish Life Assurance plc
"Total Disablement"
The Member is disabled if, in the opinion of the Company, he/she is, by reason of injury or
illness, unable to carry out the duties of his / her normal occupation and is not engaged in any other
gainful occupation.
"Partial Disablement"
The Member being disabled as above, but with the prior consent of the Company, resumes his/her
occupation in a reduced capacity at reduced earnings or takes up an alternative occupation at reduced
earnings.
Page 2
OBJECT OF THE PLAN
The object of the Plan is to provide an income during prolonged or permanent absence from work due
to incapacity as a result of sickness or accident.
PLAN BENEFITS
When will the income be paid?
The income will be paid monthly in arrears after you have been absent from work due to illness or
injury for either
(a) 26 weeks cumulative sick leave in a twelve month period
or
(b) 52 weeks cumulative sick leave in a four year period
whichever occurs first, and after you have satisfied the Company that you are disabled for the
purposes of the Plan.
What income will I receive if I am totally disabled?
The income payable under the Plan has been devised to complement your entitlement to State disability
benefit, NUI,G’s own sick pay arrangement and the ill-health early retirement pensions under the Pension
Scheme. The benefits payable are:
•
25% of Salary where the claim arises under (a) above;
•
75% of Salary less Social Welfare at the single person’s rate if applicable and less ill-health early
retirement pension entitlement, whether paid or not, under (b) above.
What income will I receive if I am partially disabled?
A proportion of the income will be payable if, following a period of receipt of benefit for total
disablement and, with the written permission of the Company, you resume your normal occupation
in a reduced capacity with reduced earnings or, you undertake some other occupation at reduced
earnings as a result of such disablement. The benefit payable in the event of partial disability must not
exceed the benefit payable in the event of total disability.
Page 3
For how long will the benefit be payable?
The benefit will be payable until the earliest of:
1. Disability ceasing
2. If while in receipt of benefit you re-engage in your normal occupation or engage in some other
occupation for profit or reward without the prior written consent of the Company
3. Death
4. You attain age 65
5. You reside for a period of more than six months outside Ireland and the United Kingdom
6. You cease to be a permanent employee of NUI,G for reasons other than early retirement on the
grounds of ill-health.
Does the disability income increase?
Yes. After you have been in receipt of income from the Plan for 12 consecutive months, the income
under the Plan will increase annually by the lesser of the rise in the Consumer Price Index or 5% per
annum compound.
Page 4
PLAN COST
How much does the Plan cost?
1.20% of Salary. This rate is guaranteed until 1st February 2007. Assuming tax relief at 42c in the Euro,
the net cost to you is 0.70% of Salary.
Salary
Monthly Premium
Net Monthly Premium
‹40,000
‹40.00
‹23.33
‹50,000
‹50.00
‹29.16
‹60,000
‹60.00
‹35.00
Do I get tax relief on the premiums paid?
Yes. Tax relief is now provided automatically if you are making your contributions through your Salary.
PRSI relief will also be granted at the appropriate rate.
Do I pay tax on the Benefit when it is paid?
Yes. Benefits will be taxed under the PAYE procedure in the normal way.
COVER CONDITIONS
Who is eligible to join?
All permanent fulltime academic, administrative and clerical employees of NUI,G under age 65 are
eligible to join.
How do I become a Member and from when does the cover apply?
Application forms are available from your Personnel Department. This should be completed and
returned to
Marsh Ireland Limited – Affinity Services
Spiddal
Co.Galway
Tel 091 596265
To facilitate Members joining a shortened form has been agreed with the Company. You may be
requested to produce further medical evidence as is required by the Company. In these circumstances
cover will not apply until the Company has accepted you as a Member and issued written terms of
Membership. In certain cases they may apply special terms or decline to offer cover.
Page 5
Will evidence of health be required as my cover increases?
Once you have been accepted for Membership your cover will increase automatically as your Salary
increases without the need for further evidence of health, subject to the overall maximum benefit
limits.
GENERAL CONDITIONS
Will benefits be paid if I suffer injury or illness outside of my place of employment?
Yes. The plan provides cover on a 24 hour a day basis up to age 65 provided you are resident in the
Republic of Ireland, United Kingdom, Channel Islands or Isle of Man. If you reside elsewhere, the
consent of the Company must be obtained.
Are all accidents and illnesses covered?
Yes, except if disability arises from any of the following causes:
• Arising as a result of war or similar risks
• Arising from wilfully self-inflicted injury or illness
If I am in receipt of benefit do I still pay premiums?
No. When the deferred period is completed and a claim is paid no premiums are payable until the claim
ceases.
Will I be covered if I return to work after benefit has ceased?
Yes. Once you have been duly accepted by the Company for an amount of benefit they cannot restrict
the cover on account of subsequent medical history.
What happens if I am absent from work?
If you are absent from work through illness or injury and in receipt of pay, premiums will be deducted.
If your pay ceases so that deductions cannot be made you will remain covered for a maximum period.
This maximum period will be the period between the day pay ceases and the completion of the
deferred period. Outstanding premiums will be recovered on return to work or if a claim is paid.
Page 6
What happens if premiums are not paid?
If premiums are not paid, cover under the Plan ceases. It is the responsibility of the Member to ensure
premiums are deducted or otherwise paid. Failure to deduct premiums does not create a liability on
NUI,G whose duty is to account for premiums actually deducted.
What happens if I am on maternity leave?
Your cover will continue for the duration of your paid maternity leave.
What happens if I take unpaid Parental or Maternity Leave?
If you take unpaid parental or maternity leave, your cover will continue automatically without charge,
subject to a maximum of 18 weeks in any one year. Premiums in respect of this period will be waived
and deductions will recommence on return to work.
If you take parental leave for longer than 18 weeks in any one year, your cover under the Plan
will cease.
What happens if I go on career break?
You are not on cover whilst on career break as there is no Salary to protect. You can rejoin the
Plan automatically on return to work if your career break is for up to 6 months and your deductions
recommence immediately.
If the career break is for longer than six months you must complete an application form to rejoin the Plan.
What happens if I leave NUI,G?
Cover ceases immediately on leaving the employment of NUI,G. You may wish to consider seeking
similar cover on your own behalf or through your new employer.
What is the maximum benefit payable under the scheme?
Your benefit cannot exceed the lesser of:
1. 75% of your Salary as paid by your employer less:
a) any amount of Salary, earning, profit, reward or remuneration which you are in receipt of
from your normal occupation or any other occupation or business
and
b) the Ill-Health Early Retirement Pension entitlement calculated on the normal basis as set
down by your employer, irrespective of whether or not you are receiving this amount
Page 7
and
c) an amount equal to the State Disability Benefit payable to a single person, if entitled
and
d) any benefit you are receiving under the Social Welfare Act other than sickness, disability or
treatment benefits payable to you under the Social Welfare Acts
and
e) any benefit you are entitled to under any other insurance against accident or sickness or
other similar arrangement (where appropriate such an amount will be annualised)
and
f) any annualised amount awarded by an arbitration tribunal or court of law or agreed
settlement sum or ex gratia payment attributable to loss of earnings arising out of any action
relating to your disablement.
or
2. The maximum income continuance benefit – currently ‹100,000 per annum
What is the claims procedure?
Three months prior to the end of the deferred period you should contact Marsh Ireland – Affinity
Services who will provide the necessary forms. Initially you will be required to complete a claim form
and your Doctor should complete the initial Medical Certificate, free of expense to the Company. You
should also note the following:
a) Admittance of a claim is subject to the Company being satisfied based on medical evidence
received, that you are totally disabled from following your normal occupation
b) You may as often as required be asked to undergo a medical examination with an appropriate
specialist, assessment by an occupational therapist or any other assessment or tests to include the
taking and testing of blood, urine or other samples. Where you refuse to undergo, or fully comply
with these requirements, then no claim will be payable.
You may also be asked to undergo medical rehabilitation with a view to being rehabilitated back to
your normal occupation.
The Company may also arrange for one of its Health Claims Advisors to call to you at your home
address, either before any decision is made to admit the claim, or while the claim is in payment.
While your claim is in payment, you may also be invited to attend a vocational consultant to explore
other possible career options. The Company will meet the cost of these referrals.
c) It must be emphasised that information required by the Company as outlined above must be dealt with
fully and promptly. Undue delay, or failure to produce such information, may invalidate your claim.
d) In the event of you failing to follow the advice of your own or any qualified medical practitioner all
benefits payable or being paid under the Plan shall cease.
Page 8
APPENDIX
Summary of ill-health (early) retirement pension benefits for employees of National University of
Ireland, Galway.
1. Gratuity
Pensionable Salary x 3/80ths x Pensionable Service
(Maximum – 1 1/2 Pensionable Salary)
2. Pension
Pensionable Salary x 1/80th x Pensionable Service
(Maximum – 1/2 Pensionable Salary)
3. Eligibility
5 years actual Pensionable Service
4. Definition of Pensionable Salary for Pension Purposes
Pensionable Salary has been defined as Actual Salary for those employed prior to 1/4/1995.
Pensionable Salary has been defined as Actual Salary less State Pension for those employed after
1/4/1995.
5. Pensionable Service
Grant of Added Years
To determine "pensionable service" for the purpose of calculating benefits in respect of ill-health
retirement the period of actual pensionable service is enhanced by the grant of added years in
accordance with the following procedure:
a) With actual pensionable service between 5 and 10 years, the grant of added years will be the
equivalent of actual service, the amount of added years not to exceed the difference between the
staff Member’s age at retirement and age 65
b) With actual pensionable service between 10 and 20 years the grant of added years will be the
more favourable of:
I. A number of added years equal to the difference between actual service and 20 years,
the added service not to exceed the difference between the staff Member’s age at retirement
and age 65, or
II. 6 2/3rd years, the added years not to exceed the difference between the staff Member’s age
at retirement and age 60
c) With actual pensionable service greater than 20 years, the grant of added years will be 6 2/3rd
years, the added years not to exceed the difference between the staff Member’s age at retirement
and age 60 years.
Page 9
Income Continuance Plan
For the employees of National University of Ireland, Galway
2747 (09-05)
Explanatory Booklet
2005
Marsh Ireland Limited is regulated by the Financial Regulator as an Authorised Advisor
and as a Mortgage Intermediary.
Irish Life Assurance plc is regulated by the Financial Regulator.