Conference Report 2016

CENTRAL EXECUTIVE COMMITTEE REPORT
lIfE ASSuRANCE SChEmE
GARDA SIOChANA mEmbERS AND SPOuSES
lIfE ASSuRANCE SChEmE
Pay Codes 151/115
The GRA Life Assurance Scheme since its inception in
1968 has proven to be one of the most innovative and
successful schemes of its type. The impact of collective
bargaining power for a specific group of workers
culminates in significantly enhanced terms and
conditions as compared to what might be achieved on an
individual basis. Tempted by the cumulative premiums of
our membership the insurers are disposed to offering
extremely keen terms in order to avail of the business.
The scheme for our membership has proven to be a
resounding success in terms of the security it provides
for our membership and the unrivalled premium to benefit
ratio. To obtain a similar degree of cover on an individual
basis on the open market a member can expect to pay a
much inflated premium.
To become members of this scheme, members must join
at the earliest opportunity and be members of a
recognised Garda staff association for the duration of
cover until retirement. Thereafter, members may retain
cover up to 70 years of age. As with all Group Schemes
one cannot opt out and later re-enter the Scheme, as such
a scenario would prejudice the ethos of the collective
bargaining power of such a scheme which relies on
consistency of rules and diversity of membership.
The Association through its broker, PenPro, endeavours
to obtain the maximum benefit for our members. The
Scheme has been renewed from 1 April 2015 for a three
year period. When renewing any group protection
scheme, insurers take into account the number of
members, gender mix, and most particularly the average
age of the membership and the claims paid out versus
premiums paid in. As there were no new recruits in the
last number of years, there have been no new entrants to
the scheme, and therefore the average age of the
membership has increased. However, on the plus side,
the claims paid in 2014 was quite good compared with
previous years, see claims table on next page, allowing
for the negotiation of increases in benefit for serving
members in the 40 to 50th birthday (€35,000 increase)
and 50th to 60th birthday (€25,000 increase) age
categories and for retired members in the 60th to 65th
birthday (€15,000 increase) age category. The cost has
remained unchanged.
Benefits/Cost (to apply from 1.4.2015 to 31.3.2018)
Serving Members
Age Next Birthday Benefit Net Cost
20th – 40th Birthday €350,000 €5.10 per week
40th – 50th Birthday €260,000 €5.10 per week
50th --60th Birthday €250,000 €5.10 per week
Retired Members Scheme
50th – 55th Birthday €175,000 €32.50 per month
55th – 60th Birthday €150,000 €32.50 per month
60th – 65th Birthday €100,000 €32.50 per month
65th – 70th Birthday €10,000 € 2.00 per month
The Association is also pleased to advise you of the
following benefits:
• Death cover for children of members aged under 21
years is €7,500
• If a serving member loses a limb or eye or is paralysed as
a result of an accident, a benefit of €15,000 is payable.
• Trainee Gardaí are included for €30,000 Life
Assurance cover for their first 32 weeks, increased to
€60,000 for the next 32 weeks, at no cost to the
Trainee.
Tax Relief
Part of the scheme for Serving Members is approved by
the Revenue Commissioners and this allows 80% of the
premium to qualify for tax relief at the members’ marginal
rate of tax. The tax relief is given as a top line deduction
by Garda pay. The tax relief passes on real savings to
members as illustrated below:
Premium
Weekly
Gross premium €7.50
Premium eligible for tax relief €6.00
Less tax relief @ 40% €2.40
Net premium: €5.10
Deduction Code – Payslip
As the tax relief is given on part of the premium Garda
Pay need to operate two deductions on your payslip as
follows:
GRA Life A Code 7115 €6.00
GRA Life B Code 6151 €1.50
82 Garda Representative Association