Wednesday, May 24, 2017

LIFE AND SERIOUS ILLNESS COVER

LIFE AND SERIOUS ILLNESS COVER doesn’t stop bad things from happening …
It just makes them more manageable.

LIFE INSURANCE looks after your death … SERIOUS ILLNESS Insurance looks after your life.

Cancer can cost up to € 2,600 per month!

·         Average cost to patient and family of going through the cancer journey is €862 per month (rising to €1200 in some cases)
·         Average loss of income in €1,400
·         A third of working patients give up work
·         A quarter reduce their hours
·         64% changed their working practices in some way
“The stress of managing the cost was greater than the stress of having the Cancer”
Source – Irish Cancer Society 2015

Actual Out of Pocket Expenses

·         Average cost of travelling to appointments, parking/meals in hospital  €287 per month
·         Average cost of medicines and medical expenses was just over €300 per month
·         1 in 7 incurred costs from hospital stays; the average cost was €482 per month and could not be claimed back
·         Over a quarter paid Consultants’ fees at an average of €144 per month
·         €35% had GP’s fees of an average of €88 per month
Source – National Cancer Registry Ireland and Irish Cancer Society
What does cover cost you?
For a 40 year old couple, non-smokers, €200,000 life cover over 15 years will cost €32 per month (just over €1 per day)
Include €30,000 Serious Illness cover and the cost increases by just €20.00 per month.

For further information you can contact Michael on 086 844 0541, email info@mkfinancial.ie.

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, March 28, 2017

Hot Topic #28: Employers’ obligations to provide access to a PRSA


Which employers must offer PRSAs?
All employers are required to enter a contract with a PRSA provider to provide access to at least one Standard PRSA for all ‘excluded employees’.
An employee is considered an ‘excluded employee’ if
·         Their employer does not offer an occupational pension scheme,  or
·         They are included in an occupational pension scheme for death-in-service benefits only, or
·         They are not eligible to join the company’s occupational pension scheme or will not become eligible to join the scheme within six months from the date they began work there, or
·         They are included in an occupational pension scheme that does not permit the payment of additional voluntary contributions (AVCS) by the members.

Does an employer have to contribute to PRSAs on behalf of their employees?
Employers may contribute to employees’ PRSAs, but are not obliged to do so.

What must an employer do to provide access to a Standard PRSA?
An employer must
·         Enter into a contract with a PRSA provider. There is no charge for doing this
·         Notify ‘excluded employees’ that they have a right to contribute to a Standard PRSA
·         Allow the PRSA provider or intermediary reasonable access to ‘excluded employees’ at their workplace
·         Allow reasonable paid leave of absence, subject to work requirements, so that ‘excluded employees’ can set up a Standard PRSA
·         Make deductions from payroll at the request of employees and remit these to the PRSA provider (employers cannot charge for deducting and remitting contributions)
·         Advise employees in writing (normally on their payslip) at least once a month of their total contribution including the employer’s contribution, if any.

If an employer has a small workforce of less than five employees, is access to a Standard PRSA still necessary?
Yes, all employers, regardless of the size of their workforce, must provide access to a Standard PRSA if those employees fall into the category of ‘excluded employees’.

If an employer has a number of part-time, fixed-term contract and seasonal employees, is access to a Standard PRSA for these employees still necessary? Yes, all employees, whatever their status, must be given access to a Standard PRSA if they fall into the category of ‘excluded employees’.
Does an employer have to provide access to a PRSA even though there is an occupational pension scheme in place?
No, provided all employees – including full-time, part-time, seasonal, temporary, contract or casual employees – are eligible to join the scheme for pension benefits within six months of joining employment and the scheme permits the payment of additional voluntary contributions (AVCs).
Even if there is only one excluded employee, the employer must provide them with access to a Standard PRSA.

What about additional voluntary contributions (AVCs)?
If an employer has an occupational pension scheme that does not allow employees to make AVCs, they must make a Standard PRSA available, either as part of the existing occupational pension scheme (this requires an amendment to the scheme rules) or as a separate AVC scheme.

If an employer enters into a contract with a PRSA provider, must their employees who want a PRSA take it out with that provider?
No, an employee can go to any authorised PRSA provider, but an employer is not obliged to make deductions from payroll for that employee. If an employee goes to another provider, they make their PRSA contributions directly, by direct debit or cheque.

Does an employer have to give any advice to employees in relation to PRSAs? No, but the employer must allow their PRSA provider or intermediary reasonable access to their employees to brief them on PRSAs.

Does an employer have any responsibility for the investment performance of PRSAs?
If your employer provides you with access to a Standard PRSA, your employer is not responsible for the investment performance of your PRSA.

Does the on-the-spot fine regime apply to employers?
Yes, employers may be subject to an on-the-spot fine if (a) they fail to respond to a request by the Pensions Authority to furnish information about their provision of access to a Standard PRSA for ‘excluded employees’ and (b) they do not provide at least once a month a statement to employees showing employee contributions deducted and employer contributions paid in the previous month.

For further information you can contact Michael on 086 844 0541, email info@mkfinancial.ie or you can log on to the Pensions Authority website (www.pensionsauthority.ie)

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, March 14, 2017

Hot Topic #27: Pensions on separation and divorce


The pension entitlements of you and your spouse arising from occupational or personal pension arrangements may be affected by separation or divorce.
If you or your spouse have been in a pension arrangement for some time, pensions could be a very significant part of your family assets.
If you have children or other dependants, you should also consider what would happen were you or your ex-spouse to die.
Pension rights cannot be shared out without a court order - a separation agreement cannot share out pension rights.
You should bear in mind that you and your dependants may have benefit entitlements from both your own arrangement, and your spouse's arrangement.

Family Law
The Family Law Act 1995 sets out the treatment of pensions in cases of judicial separation...

Splitting pension benefits
In recognising the value of pension benefits on separation or divorce, the court may require a proportion of your pension benefits to be paid to your spouse...

Pension adjustment orders (PAOs)
The court may serve a binding order, known as a Pension Adjustment Order on the trustees or provider of a pension arrangement...

Designated benefit
Where the court decides to make a PAO in relation to retirement benefits...

Retirement benefits
Retirement benefits are benefits payable to the member of the pension scheme on retirement or earlier withdrawal of service...

Payment of designated retirement benefit
Payment of the designated benefit would generally commence when the remainder of the retirement benefit starts to be paid to the member spouse...

Contingent benefits
Contingent benefits are the benefits payable if a scheme member dies during employment...

Civil partners and qualified cohabitants
The Civil Partnership and Certain Rights and Obligations of Cohabitants Act, 2010 entered into force on 1 January 2011...

Impact of death of a non-member
If a non-member who has been granted a designated benefit under a PAO dies...

Impact of death of member spouse
If a member dies (prior to any decision to transfer the designated benefit to another scheme or policy)...

Access to information
You are not automatically entitled to receive personal information on your spouse's pension benefits, although this will be provided to you if he or she consents.

If you would like further information please contact Michael on 086 844 0541, email info@mkfinancial.ie or you can log on to the Pensions Authority website (www.pensionsauthority.ie)
  
Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland