Salary protection plan

Salary protection plan

by GRA

The enhanced Salary Protection Plan which was introduced on the 1st July 2015 is a properly structured plan dovetailing with all the new Public Service Pay Arrangements. The Plan will provide a member with income in the event of loss of earnings when absent from work due to illness or injury off duty. The Plan provides replacement income of 75% of total pensionable salary. The benefit may be paid for up to 30 years. The total cost of the plan qualifies for tax relief.

In the event of a member absent from duty due to illness or injury off duty his/her rostered pay (approx. 22% of basic pay) ceases immediately. Basic pay and rent allowance (if applicable) reduces to less than 50% of normal pay after 13 weeks accrued sick leave and after 26 weeks accrued sick leave reduces to pension rate of pay. This is nil with less than 5 years’ service and approx. 33% of normal pay with 20 years’ service.

When is benefit paid?
Benefit is paid after 13 weeks (non— critical illness) or 26 weeks (critical illness)

What is the benefit?
75% of *Salary less any other income for example State Illness Benefit, Temporary Rehabilitation Remuneration etc.

For how long is benefit paid?
For as long as you are on sick leave or early retired, ceasing when you reach the time when you would have normally retired had you continued on working which may be up to 30 years.

Does the benefit increase during payment?
Yes — benefit increases during payment by 3% per annum or increase in consumer price index whichever is less.

What is the cost?
1.29% of *Salary which qualifies for tax relief given as “top line” deduction by Garda Pay hence net cost is 0.77% (based on 40% tax)..

* Basic + Roster + Rent + any other pensionable allowances.

Explanatory leaflet and application form from Cornmarket Tel. 01 408 4000.

The success of the Plans depends on your support. The premium of 1.29% has a greater likelihood of reducing as more members join this Plan.

Contact Cornmarket for further information

Cornmarket Liberties House,
Christchurch Square, Back Ln,
Dublin 8.
Tel. 01 408 4000.