The Trustee, in consultation with the Board, has in place a Group Life Insurance Policy available to members.
If you are a member with a Compulsory Account and you die before you become entitled to any benefit from the Fund or before the normal retirement age, the Trustee will pay an insured benefit (provided that you are covered by insurance). The insured benefit will be paid as a lump sum equal to 100% of your annual earnings for 12 months as at 31 December before your date of death or the date in which you were admitted as a member to the Fund, whichever is the later.
For an Insured Benefit to be paid, a member must have been under the age of 60 at the time of their death and have made mandated contributions within 180 days of death. As at the date of this Members Information Handbook, mandated contributions are “employer and employee compulsory contributions”.
The Board and the Trustee are reviewing this aspect and dependant on what insurance policies are available, may seek to extend this term. Any changes will be communicated to members.
On death, a member may leave a substantial benefit to be paid. This will be payable to a spouse or the dependents or the personal representative of the deceased. A Legal Personal Representative is the executor of a will or the administrator of an estate, if there is no will. In most cases the Trustee will pay to the Legal Personal Representative who will then be responsible for distribution in accordance with the law.
The Trustee and the Board strongly recommend that all members make a will to record their wishes as to the distribution of all their assets.
Additional Insured Benefits
As at 1 July 2015, the following claims can be made under the Group Life Insurance Policy:
- Terminal Illness Benefit.
Where a member has been diagnosed by a Medical Practitioner as having an illness which is likely to result in the death of the member within twelve (12) months of diagnosis a Terminal Illness benefit is payable . The Insured benefit payable is the same as the insured death benefit as noted above.
- Dismemberment and Major Burns Benefit
When an accident results in any losses listed below within 100 days of the date of such accident. The insurance benefit paid will be the lesser of the amount set out in the schedule below or an amount equal to the member’s Death benefit payable. If more than one loss listed in the schedule below results from accident, the schedule is applicable to only that loss for which the greater amount is provided.
“Major Burns” means third degree burns (full thickness skin destruction) to at least 20% of the body surface as measured by the rule of nine (9) of the Lund and Browder Body Surface Chart.
“Loss” when used in reference to hand or foot means complete severance through or above the wrist or ankle joint, when used with reference to eye, means the irrecoverable loss of the entire sight thereof, and when used with reference to thumb and index finger, means complete severance through or above the metacarpophalangeal joints and losses has a corresponding meaning.
- Major Burns $50,000
- Loss of both hands $50,000
- Loss of both feet $50,000
- Loss of the entire sight of both eyes $50,000
- Loss of one hand and one foot $50,000
- Loss of one hand and the entire sight of one eye $50,000
- Loss of one foot and the entire sight of one eye $50,000
- Loss of one hand $25,000
- Loss of one foot $25,000
- Loss of entire sight of one eye. $16,250
- Loss of thumb and index finger of either hand $12,500
A Dismemberment and Major Burns Benefit shall not be paid if a Death Benefit or a Terminal Illness benefit is payable in respect of the member as a result of the same accident and shall not be payable in respect of a loss that is the result of:
- The member deliberately injuring himself / herself or attempting to do so; or
- The member participating in any criminal act; or
- Any loss covered under this policy that occurred before the member’s insurance commenced under this policy.
The payment of Dismemberment and Major Burns Benefit in respect of a member shall not in itself result in the termination of membership of the relevant member, or result in any reduction of other benefits under the Policy in respect of that member.