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WA MUTUAL BENEFIT FUND
AS AT OCTOBER 2006
NOTIFICATION OF CHANGES TO INSURANCE ARRANGEMENTS PREVIOUSLY FUNDED THROUGH WA CONSTRUCTION INDUSTRY REDUNDANCY FUND
Insurance coverage has until recently been provided to workers in the WA construction industry in relation to-
- Death and permanent disability occurring in travel between home and work (Journey Cover)
- Expenses for ambulance or emergency transport when sick or injured (Ambulance Cover)
- Expenses of your estate arising from your death (Funeral/Death Cover)
- Leisure Travel Cover.
All expenses of provision of that coverage were met, without charge to beneficiaries, through the WA Construction Industry Redundancy Fund.
Recently introduced Federal Government legislation will deny FBT-exempt status to employer redundancy contributions if they are used to meet expenses of insurance coverage expenses and other benefits, beneficial to the Construction Industry, that were previously met by the Fund. The Fund is amending its Trust Deed in order that your redundancy contributions to the Fund will be FBT-exempt. The result is that the expenses of the insurance coverage, previously provided free of charge to your workers will no longer be able to be paid by the Fund.
New coverage for Journey and Leisure Covers and JLT (WA Construction Industry) Discretionary Trust Ambulance and Death Covers has been put in place with WA Construction Industry Redundancy Fund Ltd and the JLT (WA Construction Industry) Discretionary Trust. However the cost of this replacement coverage, following expiry of existing policies effected by WACIRF Ltd, must now be met on a ‘user pays' basis. Enclosed with this notice is a DISCLOSURE STATEMENT from JLT (WA Construction Industry) Discretionary Trust that outlines the terms of the new coverage ("JDT").
YOUR WORKERS WILL ONLY BE ENTITLED TO MAKE CLAIMS under these new JDT coverage arrangements IF YOU ARE MAKING a $10 per week CONTRIBUTION separate and additional to any contributions you make to the Redundancy Fund. YOU MUST ALSO HAVE SIGNED A CONTRIBUTION AGREEMENT (enclosed with this notice - it must be SIGNED by an authorised proprietor, director or partner of your business and RETURNED to WA Construction Industry Redundancy Fund Ltd).
There will be some continuing limited coverage for BTA members, until expiry of present policies effected by WACIRF Ltd, for Death (until 31/7/2003), Journey (until 8/8/2003) and Leisure Travel (until 8/8/2003). UNLESS YOU ARE CURRENTLY MAKING THE NEW JDT CONTRIBUTIONS FOR YOUR WORKERS there is no continuing cover for Ambulance/Emergency Transport.
Each $10 contribution will attract a GST levy of $1.00. There will be one monthly Contribution Statement issued for redundancy contributions and a separate monthly Contribution Statement issued for the JDT contributions (each in a similar form to those presently issued by the Redundancy Fund relating to redundancy contributions). YOU MUST PROVIDE US WITH 2 SEPARATE CHEQUES - ONE MADE PAYABLE TO "THE MUTUAL BENEFIT FUND" and ONE MADE PAYABLE TO "WACIR (NO 2) FUND for the amounts the subject of each of those Contribution Statements - a single cheque for redundancy contributions and JDT (Mutual Benefit Fund) contributions CANNOT BE ACCEPTED as that will put contributions to the Redundancy Fund at risk of not being FBT-free.
If you are not presently contributing for insurance coverage you should speak to us about doing so as the contribution offers valuable employee benefits at substantial commercial saving against ordinary market cost for similar cover.
MM Rzepecki -- November 2003
Chief Executive Officer
WA Construction Industry Redundancy No.2 Fund
Insurance Contribution Agreement Form
