THE NATIONAL UNIVERSITY OF IRELAND, GALWAY VOLUNTARY LIFE

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					THE NATIONAL UNIVERSITY OF IRELAND, GALWAY VOLUNTARY LIFE ASSURANCE PLAN

EXPLANATORY BOOKLET

2006

WHO'S WHO

For Employees of:

National University of Ireland, Galway.

This Plan has been designed by

Mercer Human Resource Consulting Charlotte House Charlemont Street Dublin 2

The Benefits are underwritten by

Friends First Friends First House Cherrywood Business Park Loughlinstown Dublin 18

Information:

Triona Lydon, Administrative Officer, The National University of Ireland, Galway,

CONTENTS

Page

INTRODUCTION

1

DEFINITIONS

2

GENERAL INFORMATION

3

JOINING THE PLAN

4

PAYING FOR BENEFITS

5

DEATH IN SERVICE BENEFITS

6

LEAVING SERVICE

7

FURTHER INFORMATION

8

INTRODUCTION
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
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College. It is constituted by the 15 January 1975 IPT Retirement Benefits Trust Declaration and
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General Rules and Subscriber’s Agreement Form dated 2 April 1993 and Special Rules dated 30 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.

DEFINITIONS
The following terms were used throughout the Booklet will have the following meanings: College: National University of Ireland, Galway Normal Pension Date:
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Your 65 birthday Pensionable Salary:
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The annual rate of salary/wages (which is pensionable) as determined on 1 May in each year. Trustees: Irish Pensions Trust Limited Dependants: (a) (b) (c)

Your spouse; Your children under 18 or who are in full-time education or apprenticeship or who are mentally or physically handicapped; Any person who is financially dependent upon you

Beneficiaries:

Dependants together with other relatives either by blood or marriage

GENERAL INFORMATION
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The Plan commenced on the 1 May 1993. It is approved as an Exempt Approved Scheme under Chapter I Part 30 Taxes Consolidation Act 1997. In order to comply with the Revenue Commissioners requirements for approval of the Plan is 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.

JOINING THE PLAN
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You are eligible to join the Plan on the 1 May after you are: A. B. C. member of College Staff a member of a College pension scheme; and under age 65

Before a claim is admitted, the Assurance Company will require sight of your birth certificate. Completion of a form agreeing to make the appropriate annual contributions under the Plan is also required. 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)

you join the Plan within one month 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.

(b)

What Happens If I Do Not Join Now? On applying for membership one month after becoming a member of staff, you will be asked to submit such evidence of health as the Assurance Company may require.

PAYING FOR BENEFITS
Who Pays? You are required to contribute at the rate of 0.904%. (effective 1st May 2009) of your Pensionable
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Salary as at the preceding 1 May. Contributions will be deducted from your salary and will cease on your Normal Pension Date or earlier withdrawal from service.

Tax Relief

Contributions made by you to the Plan will qualify for full relief for income tax and PRSI 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.

DEATH IN SERVICE BENEFITS
Before Normal Pension Date
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There will be an amount equal to 3 times your Pensionable Salary as at the 1 May coinciding with or immediately preceding the date of your death. This amount will be used to make provision for your Beneficiaries or 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 approximately 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.

LEAVING SERVICE
Death benefit ceases if you leave service before normal pension date.

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. Your contributions to the Plan will qualify for full tax and PRSI 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 1997. It is established under irrevocable trust and its assets are entirely separate from those of the Company. 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 - 2005 and any subsequent amendments.

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.

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.

FORMS

THE NATIONAL UNIVERSITY OF IRELAND, GALWAY VOLUNTARY LIFE ASSURANCE PLAN
Full name: Mr/Mrs/Ms ___________________________________ Address: ______________________________________________ Department: _______________________________________ Occupation (Full Details) ____________________________ Date of Birth: __________ Staff No: ___________ Position: _______________ (For staff use only) Salary (€

)

If you have changed your doctor within the last year, please also give name and address of your previous doctor. MEDICAL STATEMENT Failure to disclose all material facts could render your assurance void. Material facts are those which an insurer would regard as likely to influence the assessment and acceptance of a proposal for insurance. If you are in doubt as to whether certain facts are material, such facts should be disclosed. Please tick as appropriate 1. Have you been absent from work through illness or Injury for more than 2 weeks in the last 3 months? ____ Yes ______ No 2. Have you ever had an ailment or condition which ____ Yes ______ No Required medical, surgical or psychiatric treatment or are you currently taking any prescribed medicine or drugs (Common colds and influenza may be ignored)

3. Have you received medical advice, counselling, treatment or ____ Yes ______ No had a blood test in connection with AIDS or an AIDS related condition, or have you any reason to believe that as a result of your lifestyle you might be exposed so such a disease? 4. Have you ever misused drugs or been addicted to alcohol? ____ Yes ______ No 5. Has any insurer refused to insure your life or health on normal terms ____ Yes ______ No If you have answered YES to any of the above questions give details as follows: Nature of Illness/Injury________________________________________ Date and duration __________

DECLARTION AND APPLICATION I consent to Hibernian Life Assurance seeking information from any doctor who at any time has attended me and from any Insurance Office to which at any time a proposal for insurance on my life and/or against disability, accident or sickness has been made and I authorise the giving of such information. I an actively at work on today’s date (or capable of being actively at work) I herby apply to join the National University of Ireland, Galway Voluntary Life Assurance Plan, and agree to bound by the Rules of the Plan. I authorise deductions from my earnings in respect of any contributions required from me under the rules of the Plan. I declare that the statement made above including any statements written at my request in a questionnaire completed or to be completed by a medical examiner in connection with this Medical Statement and signed by me are true and complete. Signature: _________________________________________________ Date: _______________________