The Gazette 1976

THE INCORPORATED LAW SOCIETY OF IRELAND GAZETTE APRIL 1976 VOL. 70 NO. 3.

SOCIETY RETIREMENT PLAN Mr. Gerald Hickey, Vice-President, presented the first report on the Society's Retirement Plan at the Summer Meeting of the Society in Tralee, 7th-9th May, 1976. It was decided that, as between an insurance-linked fund, and a self-invested fund, the self-invested fund would be the more appropriate one for the members. There was a 12% satisfactory return on investment. The contribution income of about £250,000 was igher than anticipated; this is expected to increase by 50% this year, and to double in 1978. From enquiries received, there are signs that there will be a further influx of members. Despite the fact that some members may have made previous personal arrangements, there is an undoubted tax advantage for all members who participate in the Scheme. Practitioners familiar with claims under the Civil Liability Act 1961 for compensation for loss of income will not be surprised to learn that, if a man in his early thirties earning £5,000 per annum, dies leaving a wife and two children, his dependents would need a lump sum of £80,000 in order to maintain their standard of living; it follows that many self-employed persons were unable to make adequate financial provision for their dependents. LIFE ASSURANCE PLAN In order to overcome this at minimum cost, the Society has incorporated a most attractive Life Assurance plan, as part of the Retirement Trust scheme devised for the members. This Plan has two major advantages:— (1) Because of the manner in which the Revenue Commissioners approve of the Plan, premiums are allow- abe in full against Income Tax within the statuory limit of £500 per annum or 5% of your relevant earnings if less. (2) Because the Plan is administered on a group basis, it enjoys the benefit of more competitive premium rates than would be available to an individual policy holder. Example: Let us consider the cost of a life cover for £10,000 for a man aged 33. Under the Law Society scheme, this life cover could be provided in the event of death before 65 years for a gross annual premium of £45. If a man paid tax at the standard rate of 38J%, the net cost would be about £28 per annum. If he paid tax at the maximum rate of 77%, the net cost would be reduced to just over £10 a year, or about 20p per week. It is not essential to contribute towards a Retirement Plan in order to be able to avail of the Life Assurance Plan only. As far as tax relief is concerned, the Retirement Plan and the Life Assurance Plan are two separate -ntities. Consequently, a member who is only interested in life assurance is quite free to join the Life Assurance Plan only, and will then qualify for the full tax reliefs on his premium within the statutory limits of £500 a year, or 5% of relevant earnings. INSURANCE AGAINST ACCIDENT OR SICKNESS The Company undertaking the Scheme reported that there had been a good response to the cover offered by the portion of the Plan, which provided a guaranteed income in the event of a member being incapable of following his normal occupation due to sickness or accident. One of the features is t hat if a solicitor should only be able, as a result of accident or sickness, to work only on a part-time basis as a solicitor, then he would nevertheless be entitled to a portion of the benefit. Concluding, Mr. Hickey emphasised that participation in the Scheme and the amount of contributions was confidential between the member and the Trustee. The Society or its officers had no access to information of a personal nature in regard to the Scheme.

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