what can they do

dave030445

Googlewhacker wrote: »

Post 31, when you first mentioned Insurance payout, its not actually clear who the insurance is for from your post


Post 46, when you actually state it is for you. You then go and quote the same poster again having a go at them a bit later in the thread.

The person did not know that the insurance was for you when they made that statement.

Glad I can help :rotfl:

If all you want to do is pick fault with what i write can you please go away and thats putting it nicely.

Emmzi

Dave, sorry if you feel people aren't being helpful but it's all a bit vague!

As an HR person I'm astonished there is an insurance cover that will pay out to the employee for over 2 years; more astonished you are only now discussing it when you have been off work for so long. It is very unusual, so people will rightly be confused!

Personally, with no return to work date in sight, I would have dismissed you on capability grounds ie you are not fit to fulfil the terms of your contract; so in answer to the original question, that is what you employer could do. You are very fortunate.

Once you have a clear idea of what will be payable to you, the type of insurance policy, and how long it will be paid for, I would post on the benefits board to get a view of how your other income may be affected.

dave030445

Emmzi wrote: »

Dave, sorry if you feel people aren't being helpful but it's all a bit vague!

As an HR person I'm astonished there is an insurance cover that will pay out to the employee for over 2 years; more astonished you are only now discussing it when you have been off work for so long. It is very unusual, so people will rightly be confused!

Personally, with no return to work date in sight, I would have dismissed you on capability grounds ie you are not fit to fulfil the terms of your contract; so in answer to the original question, that is what you employer could do. You are very fortunate.

Once you have a clear idea of what will be payable to you, the type of insurance policy, and how long it will be paid for, I would post on the benefits board to get a view of how your other income may be affected.

Hi the insurance policy pays out untill A im well enough to go back to work or B for the rest of my life. Not sure why its taken so long to sort this out.

Googlewhacker

dave030445 wrote: »

If all you want to do is pick fault with what i write can you please go away and thats putting it nicely.

No I was trying to help but you had a go at a poster and I merely backed him by proving that you were wrong to.

You've still not explained why it has taken 2.5 years for the company to tell you about this insurance (3rd time I have mentioned this!)

And if you don't know have you asked why it has taken so long and whether there is any chance of getting any of the pay backdated (but if it does you may have to pay some benefits back)

dave030445

Googlewhacker wrote: »

No I was trying to help but you had a go at a poster and I merely backed him by proving that you were wrong to.

You've still not explained why it has taken 2.5 years for the company to tell you about this insurance (3rd time I have mentioned this!)

And if you don't know have you asked why it has taken so long and whether there is any chance of getting any of the pay backdated (but if it does you may have to pay some benefits back)

I think its better to agree to differ here cause this is going off topic. And i dont know why its taken so long(3rd time I have mentioned this!) but this is the first time HR have been to see me. And no it cant be back dated

Googlewhacker

dave030445 wrote: »

I think its better to agree to differ here cause this is going off topic. And i dont know why its taken so long(3rd time I have mentioned this!) but this is the first time HR have been to see me. And no it cant be back dated

OK, is that them telling you it can't be back dated or have you double checked with someone in the know, it mabe worth checking if it is the former.

Savvy_Sue

dave030445 wrote: »

Hi sue
I’m not getting the employer's insurance scheme yet, I been asked by HR if I would like to applied for it. If I do qualify for this it will pay out about £1600 do I have to pay tax on this money. And you say topped up my benefits could you tell me what benefits I would still get at the moment I’m on ESA CTC CC thanks for your help.

£1600 how often, per month? I can't see why it wouldn't be counted as part of your taxable income, so it would depend what your total taxable income is.

I'm not at all clear at what point your employer stopped paying you, I presume they did for you to move onto benefits, but you'd have thought that would have triggered the insurance situation a bit sooner.

However: what you need to do is find out which of those benefits are means-tested. Then you need to find out what the savings and regular income limits are on them. Then you'd know whether an additional £1600 however often would be enough to stop them or not.

dave030445

Savvy_Sue wrote: »

£1600 how often, per month? I can't see why it wouldn't be counted as part of your taxable income, so it would depend what your total taxable income is.

I'm not at all clear at what point your employer stopped paying you, I presume they did for you to move onto benefits, but you'd have thought that would have triggered the insurance situation a bit sooner.

However: what you need to do is find out which of those benefits are means-tested. Then you need to find out what the savings and regular income limits are on them. Then you'd know whether an additional £1600 however often would be enough to stop them or not.

Hi Sue thanks for that it is about £1600 per month, that is all the taxable income we have. Ive not been on this insurance before, i didnt know anything about it till the HR lady told me about it on Monday. The benifits im on at the mo are ESA CT CTC do you think these would change many thanks for everybodys help so far.

zzzLazyDaisy

Okay, I haven't read all the posts since I last visited this thread, so I apologise in advance if I am repeating what others may have said. But since OP is still seeking information, these are my comments. Some of which *may* be helpful.

Some employers have a PHI policy which pays out if an employee has been absent from work through illness after a given period of time. Usually what happens is that this insurance kicks in at the point that the company sick pay expires. It is paid to the employer, not direct to the employee, and is used to fund the employee's continued sick pay. There will normally be something in the employee's contract of employment or employee handbook about this.

When the benefit is paid to the employee, and for as long as the employee remains on the payroll, it is subject to tax and NI in the normal way.

Re benefits. This payment when paid through the payroll* (see note below) does not affect contributory benefits, so contributory IB/ESA will continue to be paid in full. I do not understand why OP is on means-tested ESA, as he worked for 13 years before becoming ill, and so had enough contributions to get contributory ESA.

However, for means tested benefits it is assessed in the same way as any other income. So the income would need to be declared and all means tested benefits would be reviewed. I am not an expert in benefits, but certainly any mean-tested benefits would be reduced, or disappear altogether.

*Some employers, after a period of time, seek to terminate the employment and have the PHI paid directly to the employee, either as a monthly payment, or as a lump sum. This is a matter for negotiation between the employer, the employee and the insurer. Often the employee will get a reduced payment to take account of the fact that when paid direct to the employee, the payment is not then subject to tax and NI. However, at that point, the rules normally consider these payments in the same way as ill-health retirement pensions, which means that any contributory IB/ESA would be reduced accordingly.

One final point - the PHI payment does not kick in automatically. The employer must apply for it. If for some reason this has been overlooked, then the insurer will not normally back-date the payments. However, if this is a contractual right for the employee, then the payments to the employee should be backdated, even though the employer cannot reclaim the payments from the insurer. The two issues are completely separate.

My advice to OP would be to ask HR for a copy of the rules of the PHI / extended sick pay scheme and copies of the employee handbook/contract so he can find out exactly what the terms and conditions of this payment are, and particularly what the trigger event is.

dave030445

HI thanks for all that great info its very kind of you to spend all that time writing that.
I was placed on the income ESA because i didnt have enoght money coming in to live on. Do you think that this insurance is a good thing why is the company trying to push me to take it. And not like other people have said and let me go.