An income protection plan has been developed exclusively for employees in further and higher education in response to changes in the ill health retirement rule under the Teachers Pension Scheme.
Healthcare insurance broker, Burke Ford Healthcare, put together the package after realising the impact of changes made to the system in 1997. As a result of these, ill health retirement benefits are only granted to members who are considered “permanently incapacitated to teach”.
The plan, offered by Burke Ford Healthcare in conjunction with UNUM is the first in the UK to offer preferential underwriting terms and rates based on voluntary group membership.
As a result, the company claims it can offer a substantial reduction in UNUM’s standard premium rates.
For example, a lecturer who is 35 years old next birthday, non-smoker with a salary of £25,000 and £12,500 benefit ending at age 60 would pay £15.78 each month outside of the scheme, whereas with Burke Ford the premium drops to £10.25.
Neil Redman, managing director of Bruce Ford Healthcare, said: In addition to changes in the ill health retirement rules, prohibitive cost-sharing measures introduced as part of the same pension changes have effectively removed any likelihood of being offered early retirement.”