Cir. 01/2025 Changes to the AHCPS Income Continuance Plan & Group Life Policy

Cir. 01/2025

To Branch Secretaries

Changes to the AHCPS Income Continuance Plan & Group Life Policy

Dear Branch Secretary

The Executive Committee recently met to discuss changes to the AHCPS Income Continuance Plan (ICP). By way of background, the current contract was entered into in early 2020 for a five-year term and is up for renewal in February 2025. The contract for this group scheme was sourced by our partners in Cornmarket who act as broker on our behalf and the underwriter is New Ireland Assurance. This policy provided the product to us at 0.57% of gross salary and as it is a permanent health benefit product it attracts tax relief at an individual’s marginal rate of tax, usually 40% for our members. This is very advantageous as not all such policies attract tax relief.

In recent months whilst commencing the renewal process of the policy the Executive received concerning feedback from members regarding service issues with New Ireland Assurance. The Officials raised this with Cornmarket who in turn raised this directly with the Underwriter. The Executive Committee decided that it would not be renewing the product with New Ireland. Separately to this New Ireland are not quoting for new business or ICP renewals in the Irish market.

The Executive has reviewed the quotes provided by Cornmarket and has selected a new Income Protection Policy. This new policy will be provided by Irish Life who will act as Underwriter. Previous to New Ireland, Irish Life was the provider, so we are in effect returning to them in 2025.  As with all insurance policies, the marketplace has changed significantly in the 5-years since our last renewal and the best quote we have received for the new policy is 1.04% gross. As it is a permanent health benefit product, it attracts tax relief at an individual’s marginal rate of tax, usually 40% for our members as already outlined. This new policy will last for 4 years as opposed to 5 for our last renewal. It attracts 2 additional benefits over the life of the policy with a Heart Matters check-up and Pink & Blue Power cancer screening for members of the scheme.

Irish Life will also be the provider for our Group Life Policy where the cover extends a benefit of double an individual’s salary in the event of death in service. We are glad to report that the cost of this policy is reducing from 0.48% to 0.45% in the New Year. The policy again attracts tax relief at an individual’s marginal tax, usually 40% for our members thereby reducing the cost involved.

Further information will issue early in the New Year on the policy changes.  Should any members have any queries please do not hesitate to contact us.

Please circulate this message to all members. A copy of this circular will be available on our website at www.ahcps.ie

Best regards

Ciaran Rohan (General Secretary)