Pensions are an essential part of an employee’s overall remuneration package and they are an important recruitment and retention tool, especially as certain positions become more difficult to replace. Pensions are also seen as a tax efficient way for employers to offer higher benefits to attract new or retain key employees, but as well as providing pension cover for employees, employers should also look at the benefits of providing cover for their employees in cases of sickness or injury.
Membership of the Construction Workers' Pension Scheme (CWPS) not only offers retirement packages for members but also brings peace of mind for employers as they are safe in the knowledge that their employees on site are covered, particularly in relation to Death in Service* and Sick Pay benefit which are included at very affordable rates.
Active member of CWPS are covered for Sick Pay benefit from the Construction Workers Sick Pay Scheme while absent from work due to illness or injury. This Sick Pay benefit is provided at a very low cost to employers of €1.27 per member per week and the cost to members is just .63c per week and is payable in addition to any benefits payable from the Department of Social Protection.
The Sick Pay Scheme also offers benefit to workers after just a 3 day waiting period as opposed to the current 6 day waiting period from the Department of Social Protection. When a member receives benefit from the Sick Pay Scheme, it does not affect their right to claim their benefit from the Department of Social Protection as the member can receive both payments. The current benefit payable from the Construction Workers Sick Pay Scheme is:
• Sick Pay benefit of €190.55 a week is payable to active members up to age 66 subject to qualifying criteria
• Sick Pay benefit is paid for a maximum of 50 days in a year
The Construction Workers Sick Pay Scheme is quite unique as it is self- funded and the trust is managed by an Independent Trustee company. This means that there are no underwriting conditions for members who are claiming benefit from the Sick Pay Scheme. This is important as workers in the construction industry may have difficulty getting cover with another provider, as they are considered a high risk category.
With such an affordable Sick Pay benefit, can you and your employees afford not to be members of the Construction Workers Pension Scheme?
*The current Death in Service benefit for active members of CWPS is:
• €100,000 plus the value of the member’s pension account is payable to next of kin
• €3,175 for each child under 18
Brigid Finn
CWPS Pension Administration Manager