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PENSION SICKNESS AND ACCIDENT
INSURANCE SCHEME
The Society was one of the professional bodies
which made representations to the Minister for
Finance with the object of improving the terms
on which self employed persons could provide for
their retirement. As a result the provisions of
Part VI of the Finance Act, 1958, were introduced.
These provisions secured two concessions. Firstly
certain life assurance companies were enabled to
accumulate contributions to their annuity fund
free of tax and as a result there was a marked
improvement in annuity rates. The second conces
sion permitted a self employed person to set off
within prescribed limits the full annual contribu
tion to retirement annuities as a charge against
gross income thereby obtaining full relief from
both income tax and sur tax.
That members who might wish to do so might
take advantage of these new concessions on the
most favourable terms the Council engaged the
services of Irish Pensions Trust Limited to analyse
and compare all the contracts available and as a
result a scheme was devised which gives preferen
tial terms to members of the Society. The scheme
also provides for the continued advice of the
consultants to all members who participate in it,
keeping them in
touch with any developments
which may occur and which may prove to be to
their advantage. It also provides for advice at
the retiring age as to the relative value at that
time of any options available in the light of the
circumstances then prevailing.
The scheme is composed of two main sections:
Section I: Personal Pension Policies
A member of the Society who is under the age of
seventy years is eligible to effect pension benefits
under this section. The most important feature of
the scheme is that a member is not committed to
maintaining premium payments each year at a
fixed rate determined at the outset. He may com
mence by making a single premium payment of as
little as £100 and this will secure for him a pension
payable each year from the attainment of the
normal pension age selected even if he pays no
further premiums. He may of course pay further
premiums or an intermittent series of
further
premiums and so secure increases in the pension.
The further premiums may be for varied amounts
but the minimum amount acceptable is £50. If a
member wishes, a particular premium may at any
time be applied to secure a pension on terms
different to those under the original contract and
accordingly a member may secure for himself
retirement benefits on the most favourable terms
available at the time of payment; this is important
in that different assurance companies may lead
with rates and policy conditions at different points
of time and a member is not committed for all
time to the assurance company which offers the
best terms initially.
Normally pensions are payable monthly com
mencing one month after attainment of the pen
sion age selected. The pension is payable for a
minimum period of five years and for so
long
thereafter as the member lives. Alternatively the
member may at the outset choose
to have his
pension payable either for a fixed period of ten
years and as long thereafter as he may live, or
throughout life without a period certain.
At any time before the pension payment starts
a member may decide to forego a part of the
pension payable on his own life in order to secure
a pension payable to his widow or other depen
dant should he pre-decease them after he com
mences to draw his own pension.
The member has a further choice in that the
contract may provide that in the event of death
before the attainment of pension age the total
premiums paid will be returned (a) without inter
est or (b) with compound interest at 4 per cent.
Naturally the pension in the former case will be
higher. Premiums returned on death under the
contracts are payable to the estate tax free.
Section 2: Sickness and Accident Insurance
A permanent non-cancellable sickness and acci
dent scheme has also been arranged. However
bad a members sickness record may prove to be
after he effects a policy the contract cannot be
discontinued by
the insurance company before
the agreed ceasing age (age sixty-five) nor may
the premium rate or policy conditions be varied.
This cover is intended for long illnesses and cases
where there is a permanent or very prolonged
break-down in health. Accordingly after the expiry
of an agreed period (which may vary from four
weeks to twelve months) a member continues to
be prevented by sickness or accident from carrying
on his normal or any alternative occupation he
will qualify for benefit under the scheme. Sickness
benefit will continue to be paid throughout the
period of total disablement right up to the age of
sixty-five years; moreover were the member to
' recover for example after three years benefit would
cease, but he would then be entitled to re-com
mence contributions at the rate formerly payable.
Consequently if a fresh claim were to be admitted
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