Life cover is something which you hope you will never need, but it is essential to give peace of mind to you and to your dependants. The Company has set up the RSA Life Trust to provide you with the security of life cover.
The Life Trust is offered to all new employees*.
The benefits are extended to:
* unless you have notified RSA that you have been granted Enhanced Protection or Fixed Protection by HM Revenue & Customs. If you have been granted HMRC protection, this would be invalidated by joining the Life Trust. Please contact the RSA Pensions Team for more information.
RSA Life Trust - Death in service (DIS)- giving you security through life insurance cover
Questions and Answers
Q1. What is the RSA Life Trust?
The RSA Life Trust provides a cash lump sum and, for some categories of member, a dependant's pension in the event of an employee's death in service. If you were to die whilst employed by the Company, payments would be made to your beneficiaries.
Q2. Who is eligible?
All current employees who are not currently active members of one of the Company's defined benefit pension arrangements (RIGPS, Sal, Bradford). Benefits payable to members of the defined benefit schemes are provided from a separate arrangement. However, if you are an active member of one these schemes, but earn more then £75,000 pa (pro rata for part time employees), some part of your Death in Service lump sum benefit would be payable from the RSA Life Trust.
Q3. What does it cost?
It is an employee benefit offered by the Company and currently you do not have to pay anything towards it unless the Company decides otherwise and notifies you of any other contributions required. The Company funds this benefit for 10 times of your salary (4 + 6, as set in the table below), however if you would like to be covered for more than this limit, you can always choose to purchase additional cover during the flexible benefits enrolment period (up to certain limits).
Q4. How is the Life Trust governed?
The Life Trust is governed by the RSA Life Trust Deed and Rules (a copy of which can be obtained from UK Pensions). Any summary of the benefits payable and is subject to the provisions of the Trust Deed and Rules, which will prevail in the event of any ambiguity.
The Life Trust is managed and administered by a Board of Trustee Directors. The status as a trust means that any money held by the Trustee for the purpose of providing the benefits is entirely separate from the assets of the Company. The Trustee Directors must make decisions in the interests of the members and, currently, lump sum benefits can be paid without a beneficiary being liable for inheritance tax.
Q5. What are the benefits?
The benefits are paid to your dependants and other beneficiaries in the event of your death. The benefits differ depending on whether or not you are a member of the RSA Pension Scheme with Fidelity. See table below:
|Employee Status||Benefits payable*|
|Members of the RSA Pension Scheme, provided by Fidelity.||Total of 4x rate of annual salary at date of death, plus 6x rate of annual salary which is broken down to provide a spouse's or dependant's pension, possibly as a lump sum.|
|Members of the RSARA pension scheme who were transferred into the 2002 Scheme in September 2004.||Total of 4x rate of annual salary at date of death plus spouse's pension calculated in accordance with the Rules of the RSARA Scheme.|
|Employees who have opted not to join the RSA Pension Scheme, provided by Fidelity.||Total of 4x rate of annual salary at date of death, plus 6x rate of annual salary which is broken down to provide a spouse's or dependant's pension, possibly as a lump sum.|
|Employees who have opted out of one of the Company's defined benefit pension arrangements and have chosen to be members of the RSA Pension Scheme with Fidelity instead.||Total of 4x rate of annual salary at date of death, plus 6x rate of annual salary which is broken down to provide a spouse's or dependant's pension, possibly as a lump sum.|
|Employees who have opted out of one of the Company's defined benefit pension arrangements and not joined the RSA Pension Scheme.|
|Employees who earn more than £75,000 per annum (pro-rated for part-time members) and who are members of the Company's defined benefit arrangements.||
Total of 4x rate of annual salary (in excess of £75,000, pro-rated for part-time members) at date of death, plus 6x rate of annual salary (in excess of £75,000, pro-rated for part-time members) which is broken down to provide a spouse's or dependant's pension, possibly as a lump sum.
* All benefits under the Trust are covered by an insurance policy and as consequence may be subject to limitation in certain circumstances. If this applies to you, you will be notified separately.
Benefits will be subject to any limits or conditions agreed between the Company and the Trustee from time to time. The Trustee may reduce any benefit payable by the amount of any tax or other fiscal liability that may become payable.
Q6. Who receives the benefits?
It is the responsibility of the Trustees of the RSA Life Trust to exercise their discretion to decide who receives the cash lump sum benefits in the event of your death. You are able to indicate your preferred beneficiaries by completing the Expression of Wish form. Yous should complete this now and update it if your personal circumstances change. Possible beneficiaries may include: your partner, spouse, children, parents, and any other person who you consider is financially dependent on you or a charity you support.
Q7. Can I select more than one beneficiary?
Yes you can select more than one beneficiary but you should indicate on your Expression of Wish from what proportion of benefits you would like paid to each.
Q8. Can I change my Expression of Wish form?
Yes, if your personal circumstances change and you need to update your beneficiaries you can complete a new Expression of Wish form. You must make sure you sign and date the form and it will then supersede any previous form.
Q9. How long am I covered by the RSA Life Trust?
You are covered until the earliest of your 75th birthday, or leave the Company, or retire from the Company. The Company's normal retirement age is 65 but you can request to work beyond this age.
Last review: 30/6/2014
Next review due: 30/6/2015