Although many PSEU members feel that they will never need the Protection the plan provides, sadly our experience has been that even the healthiest of people can suffer unexpected illness or indeed a serious accident. This is why membership of the plan is so vital for members.
Your sick pay arrangements provide for the payment of full salary for up to 183 days in any 12 month period and 50% of salary thereafter subject to a maximum period of payment of full and half pay of 365 days in any consecutive 4 year period.
If at the point of making a claim you do not wish to retire and so do not apply for Early Retirement Pension (ERP) the plan will pay out a full 75% of salary for up to 2 years. If you do retire subsequently and an ERP is paid retrospectively to the end of the deferred period, the additional benefit must of course be refunded.
The PSEU Income Continuance Plan seeks to ensure that between your Ill Health Early Retirement Pension, any Social Welfare benefit, and the Plan, you will receive a gross income of 75% of your pre-disability salary should you suffer a long term illness.
To be eligible to apply for membership of the PSEU Plan you must be: 1) Under age 65; and 2) A member of the PSEU; and 3) Either: (a) A permanent member working full time; or (b) Part time and working on average not less than 20% of the normal working week; or (c) A temporary member who is working full time or on contract for at least 12 months duration.
Claims under the plan will be paid if Friends First, the plan’s insurer, is satisfied that because of injury or illness you are unable to carry out your normal job.
Less than you may think, as you can see from the example to the right. The plan is exclusively for members of the PSEU and has been designed to be affordable for every member.
The PSEU Income Continuance Plan is remarkably good value because it’s negotiated on a special group rate and costs significantly less than buying the same cover on an individual basis. The contribution rate is currently just 0.71% of salary (i.e. your basic salary plus any other earnings taken into account for sick pay and superannuation purposes). Deductions are made at source for your convenience and full tax and PRSI relief reduces the cost even further. For example, assuming tax relief at 41% and PRSI relief of 6%, the net cost is just 0.38% of your salary.