NZ RAILWAYS STAFF WELFARE TRUST - GROUP LIFE PLAN
Underwritten by AXA New Zealand

The New Zealand Railways Staff Welfare Trust Group Life Plan provides money to any member when people covered by the Plan die. Participation by members is voluntary but entry is available to Group A members only.

Note – the Plan does not replace any entitlement that may be available under other Trust benefits.

Cover available
- $11,000.00 payable on the death of any person over the age of nine (9) years covered provided the policy has not ceased due to age qualification or policy cancellation.
- $2,000.00 for children who die before reaching the age of 10 years provided the policy has not been cancelled.

Cover restriction
In the first twelve months payment is only available if the person covered dies because of an accident. Once the person has been covered for at least 12 months payment will apply if death occurs from any cause.

Who can be covered?
Under the plan any member is able to include persons within his/her family (see definition of family members) under his/her policy. The Trust member must be included before any family can be covered.
Family can be the member’s -
Spouse/partner, children, father, mother, brother, sister, grandfather, grandmother, grandchildren, great grandchildren, brother’s spouse, sister’s spouse, brother’s children, sister’s children.
In addition a member’s spouse/partner’s family covering the same categories listed above can also be included.

Age qualifications
There is no minimum age to be eligible to join the plan. The maximum age for a person to be accepted is, however, 79 years of age.
Cover ceases on the person’s 80th birthday unless that person has died previously or their cover has already been cancelled.

Entry procedures
Persons seeking to participate in the plan will be admitted from the first day of the month following acceptance of the completed application by the Trust. Members who have already joined the plan will be able to add other eligible family to their policy - entry in this case will be from the first day of the month following acceptance of the completed application for the additional persons. The “cover restriction” detailed earlier in this paper will apply to persons included in a member’s policy after their initial application to join has been accepted and actioned by the Trust.

Following acceptance the Trust will issue a certificate confirming acceptance to participate and the certificate will show the names of all family persons covered together with the date coverage commences. A replacement certificate will be issued when additional family persons are included to show the amended list of family persons covered.

Beneficiary of Grants
The Trust member will receive the payment following the death of any family covered under the member’s policy. Should the Trust member die the payment will be made to the person who has been nominated by the member as the beneficiary on his/her death. If there is no nominated beneficiary or no nominated beneficiary alive at the time of the member’s death the Trust will make the payment once it has established who is handling the estate of the member.

Within the application form a Trust member will be able to nominate an alternative beneficiary to receive the payment should the first beneficiary not be alive to accept the payment if and when it becomes payable.
Members will be able to register with the Trust any change the member may wish to make to any nominated beneficiary and will also be able to apportion the grant to a number of beneficiaries if desired. Forms for this purpose will be supplied by the Trust once the initial application to participate has been accepted. Forms will also be available on request.

Premium rates
The Trust will supply members with details of the premium rates that apply to cover individuals under the Group Life Plan on request. If you require this information or an application form send an email to the Trust.

Premiums will be collected by payroll deduction for Group A members that will then be passed to the Trust for delivery to the underwriter. An authority to deduct premiums from the payrolls form part of the documentation required to be completed.

For Group B members premiums are to be paid into the Trust’s bank account by automatic payments on the 1st day of the month. Members will be supplied with automatic payment authority forms for this purpose once an application to participate has been accepted. Again premiums received will be passed to the underwriter.

Alterations to premium rates
Premium rates can be amended in two ways namely -
- as persons move from one age group to the next; or
- a general increase in premium rate applying across the whole group - any
such change would be influenced by the underwriter.
Changes, if any, in the premium rates will occur on 1 August each year.

Claims procedures
On the death of any person covered under the Group Plan the Trust is to be provided with details of the death and other information required by the underwriter. The Trust will pay half the capital sum available after suitable verification of the death to the eligible beneficiary with the balance once the necessary documentation is supplied. The capital sum will be in addition to any standard Trust Death Benefit under the Benefit Schedule that may be due. The Trust will be responsible for initiating the claim to the underwriter for reimbursement of the moneys paid by the Trust to the beneficiary.

What happens after the death of the Trust member?
If the Trust member participating in the Group Life Plan, which includes other named family people, dies the Trust will seek to have one of those named take responsibility for the payment of any policy’s premiums required by the plan in respect of surviving persons named therein. Once suitable arrangements to receive the required premiums are in place the plan will continue. It will not be possible for a person who is NOT a member of the Trust to seek to have further family added to the coverage that exists at the death of the original Trust member. Should no person named in the plan be prepared to take responsibility for the policy after the death of the person previously holding that responsibility the policy will be cancelled by the Trust.

What happens if the Trust member ceases to be a Trust member?
The existing policy can continue provided the former Trust member makes suitable arrangements for the continued payment of the premium (usually by automatic payment to the Trust’s bank account). Again no further family members can be added to the coverage. In the event of the former Trust member dying while the plan is still active similar procedures as outlined in the previous section of the document will apply. When a Group A member continues membership of the Trust after leaving the employment of KiwiRail Ltd or another recognised employer, payment for future premiums by automatic payment to the Trust’s bank account.

What happens if participation in the Plan ceases?
If participation is cancelled there is no refund of premiums already paid. If participation ceases for a person named in a policy reaching 80 years of age there is no refund of premiums already paid.
Where participation is cancelled for any individual person covered under any particular policy then ongoing premiums, if any, will be adjusted to recognise that the cancelled participation of the individual person concerned.
Should the premiums required to support policies covered under established plans be NOT received by the Trust by due date, the Trust may take action to cancel those policies affected. The Trust will be required to forward notification of the action being taken to the person responsible for payment of the premiums at the last known address.

Information
Any member wishing further information or application forms etc should contact the Trust’s office in Wellington - telephone (04) 4983043 or FREEPHONE 0800 806 444. Alternatively please fill out our application form.