Important Reminder – Payment of premiums at this time

Firstly, we hope that you enjoyed a blessed and safe Easter weekend. The circumstances in which we find ourselves have highlighted the importance and value of those closest to us and so we hope you managed to enjoy meaningful time with them over the long weekend.

The extension of the lockdown is going to make the coming weeks and months even tougher for many schemes, and so we wanted to remind you of the options that are available to them in terms of their risk premiums and cover.

  • Employers are able to reduce the salaries they actually pay staff and/or the contributions they make to their retirement funds, whilst continuing to pay full risk premiums and in so doing, ensure their people remain fully covered. This allows companies to impact their cash flow meaningfully, by reducing their salary bill and/or fund contributions, but keep everyone fully covered when they really need it.
  • Employers are able to reduce salaries, fund contributions and risk premiums proportionately, but this will impact the cover their people enjoy.
  • Employers are able to stop paying risk premiums for a temporary period if they have stopped paying salaries, and the insurer will consider allowing them to reinstate cover without reapplying pre-existing exclusions and with taking previously underwritten cover into account. This is on condition that there is still a link between employer and employee during this period and that the scheme remains compulsory when reinstated.

Please note that we need to be notified in every event where an employer is implementing any of the abovementioned options. This is critical to ensure that there are no delays or misunderstandings should a claim arise.

If you have any questions in this regard or in general at this time, please do not hesitate to contact us, you can do so by replying to this email. 

Thank you and regards,
The TSA Team

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