Just a quick, but important, note on behalf of my colleagues within Jelf Employee Benefits who are responsible for Group Life cover.
They have asked me to remind our followers that changes to Group Life policies will take hold post the 6th April this year. If you take no action, there could be an impact on your insured benefits, and the main concern could be the potential liability if your scheme does not reflect legislative change.
This all follows the changes to benefits as a result of Pensions Simplification (also known as A-Day) in 2006. A tranistional period allowing schemes to continue to take advantage of a notional earnings cap will come to an end on the 5th April this year.
Questions that you should consider if you operate a Group Life policy are:
- Do your scheme rules need to be updated to reflect the employment contract expectation of group life benefits?
- Do you want to insure full benefits, i.e. above the Notional Earnings Cap?
- Are you aware of any members who have been granted Primary or Enhanced Protection?
- Do your scheme rules reflect post A-Day legislation?
- Are your life assurance benefits insured in the most tax efficient manner?
If you are in any doubt on the above, then I suggest you contact Chris Ford, Director of Group Risk Chris.Ford@jelfgroup.com
Best regards
Steve
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