GROUP INCOME PROTECTION SCHEME
LEAFLET FOR EMPLOYEES
SPECIMEN WORDINGS FOR EMPLOYER'S ASSISTANCE
You will want to tell your employees about this valuable benefit.
We feel sure these specimen wordings will provide you with a sound basis for you to create your employee communication.
Ø The wordings provide a framework, rather than starting with a blank sheet.
Ø You will have your own view on the level of detail suitable for your employees.
Ø You will want the communication to reflect your corporate style.
There are a number of sections in the leaflet which need to be "tailored" to fit and describe your Scheme basis.
Note the paragraphs with dotted lines (...... ) and square brackets ([ ]), these show details are needed or a choice of wording.
(Incapacity Definition A - Insured Occupation Cover)
04/2013
This Leaflet and many other documents are available to download from our website:
http://unum.co.uk/downloads/
unum.co.ukUnum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
Registered Office: Milton Court, Dorking, Surrey RH4 3LZ
Registered in England 983768
Unum Limited is a member of the Unum Group of Companies / / / Unum. Milton Court,
Dorking, Surrey RH4 3LZ
01306 887 766 TEL
01306 881 394 FAX
**THE XYZ COMPANY LIMITED**
GROUP INCOME PROTECTION SCHEME
We are pleased to tell you about the Income Protection Scheme starting ...... 201..
Loss of income because of illness or injury is a serious problem to an individual, their family and to the Company. The Scheme protects you and your family if you are ill for a long period, by paying a portion of your income.
The benefits are insured by Unum Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Entry is automatic for all permanent employees ordinarily working in the UK who:
( ) have attained age ....
( ) have completed .... months of service with the Company * select and enter as required
( ) are members of one the Company’s pension arrangements.
You join on the [day / "Renewal Date" after] * select for Daily or Annual Entry
you meet these requirements.
If you are absent from work due to illness or injury on the day your cover or an increase in cover is due to begin, you may not be eligible for that cover until you return to active work in your usual occupation.
Employees working overseas may be eligible. You will be advised if this applies to you.
Medical Evidence may be needed by Unum when you join or when your benefit increases. You will be told if this applies to you. In any event, benefits are only payable insofar as the Company has been able to obtain cover and at a premium the Company considers reasonable. The Company is not liable for the benefit in the event that cover is refused by Unum or any conditions or limitations are applied by Unum.
The Benefit [ is up to 75% of your Salary.]
[ is up to 75% of your Salary less an amount equal to the Long-term State Incapacity Benefit, calculated at the date you became incapacitated.]
[ is up to 75% of your Salary less an amount equal to the State ESA basic plus ESA wrac, calculated at the date you became incapacitated.]
[ is calculated at the date you became incapacitated as the lesser of:
(a) 50% of your Salary, or
(b) 75% of your Salary less an amount equal to the Long-term State Incapacity Benefit.]
* your Benefit Basis
'Salary' means your basic annual salary, exclusive of additional emoluments
OR 'Salary' means your basic annual salary, plus your additional emoluments over the last 12 months to a maximum of 20% of basic annual salary
OR 'Salary' means your basic annual salary, plus the annual average of your additional emoluments over the last 3 years
* your Salary Basis
[and is set each "Renewal Date" or on the date of joining service if later]. * if Annual Increases
[The Long-term State Incapacity Benefit is £5,270 for the year April 2013 to March 2014.]
[The State ESA basic is £3,728 and ESA wrac is £1,479 for the year April 2013 to March 2014, making the total deduction £5,207 per annum.]
Benefit is paid monthly in arrears [and increases after each year # by .... %. * escalation rate
# by .... % limited to the rise in the Retail Prices Index if less.
# by the rise in the Retail Prices Index, limited to a maximum of 12 %.]
Occasionally it is necessary to limit the benefits. You will be told if this applies to you.
The benefit may be reduced by any other income you get because of incapacity, excluding state benefits.
The Company is only obliged to make benefit payments to you to the extent that it has received payment from Unum for that purpose. If the Company has paid salary and/or benefits which are later covered by payments from Unum, the Company will retain those payments to the extent already paid for the period.
If you are receiving benefits under the Scheme you are no longer entitled to any salary, bonus, sick pay, or any other benefit which you receive by virtue of your employment (except for the benefit under the Scheme) and the Company is entitled to appoint another person to perform your duties until you return to work.
[Pension scheme membership continues when you are receiving benefits so your pension and death benefits are maintained.] * if appropriate to the scheme
Benefits start to be paid after you are incapacitated for ...... consecutive weeks. Earlier periods of the same incapacity may mean the benefit is paid sooner.
Benefits cease on the earliest that
(a) you are no longer considered to be incapacitated, or
(b) you are no longer a member of the scheme (including ceasing to be an employee)
(c) your death, or
[(d) you reach your ....th birthday] or
[(d) you reach your State Pension age (that applied when you were first incapacitated)]
[(e) you having received benefits for (x) years.] * if limited benefit applies
Incapacitated means A below unless you are required by your terms of employment to hold a licence or certificate. Where a licence is only issued when you meet certain medical standards, then incapacitated means B below. (The term 'licence' does not include a licence to drive ordinary cars, vans or motorcycles.)
Incapacitated means Unum is satisfied that you are unable, by reason of your illness or injury, to perform the material and substantial duties of your usual occupation.
Also you are not following any occupation, except where proportionate benefit is payable. / Incapacitated means Unum is satisfied that you are unable, by reason of your illness or injury, to perform the material and substantial duties of your usual occupation, and you are unable to follow any gainful occupation with any employer for which you are reasonably fitted by reason of training, education or experience.
Also you are not following any occupation, except where proportionate benefit is payable.
Partial incapacity means you can do your job part-time or do another job on a full-time or part-time basis. The benefit is reduced in proportion to your loss of income.
Recurring incapacity within 52 weeks of going back to work means benefits restart immediately.
Cover ceases if you leave service.
The Cost of the Scheme is paid by the Company.
Taxation, according to the present practice of the Inland Revenue:-
(a) We pay the benefit to you as part salary continuation and it is taxed under PAYE and National Insurance is deducted.
(b) You are not taxed on the insurance premiums we pay for you.
Third party rights, you have no rights under the insurance policy except that as a member you may seek redress directly against the insurer in the event of a claim for benefit provided the insurer’s appeals process has been followed and a final decision letter has been issued.
We hope to always continue the Scheme but may change or stop it if we think it's necessary. Benefits being paid at the date of any change will not be affected.
This leaflet is a summary of the Scheme, covering all the basic details. If you have any questions, please contact [Company Contact].
Note: Although every effort has been made to ensure the accuracy of this leaflet the Scheme's legal documents prevail in the case of any dispute.