Please note – we are not currently receiving further feedback on Conversion Proposal, in order to allow us to review and make decisions in response to feedback received prior to the cut off time of midnight on 14 April 2021.
As a policyholder of either the Funeral Assistance Benefit Fund or the Increasing Assurance Benefit Fund (‘Funds’), we have already posted a personal letter containing important information and we are seeking your input on an important proposal regarding your benefits. Please contact us if you have not received your letter.
As a result of member feedback, we have developed a great concept that should benefit our members in the long term. But we need to know what you think. Please take the time to read through the proposal outlined below, ask questions, and make sure you understand what the proposal will mean for you if it goes ahead.
We’d also love to hear from you directly. You will have been separately mailed out a notice of the Outreach Program 2021. We have commenced the Outreach Program 2021. To find out where we will be next, please contact us so we can talk about the proposal with you in person. At this section of our website you can find the latest information about the proposal. You can also engage with head office staff if you have any questions or would like to provide any feedback.
Once you have had a chance to consider the proposal, please send us your feedback by completing the reply-paid feedback form posted to you. We can relay your preference to your local Lodge representative to help inform their vote when the time comes. This is a very important part of the process for us – as a membership-based organisation, your views are a key consideration for us. Unless we hear those views we can’t take them into account!
What’s the proposal?
We are considering the possibility of converting your interest in the FAB and IAB Funds into an interest in a managed investment scheme. This means your interest will change from insurance based to non-insurance based. As agreed at the Special Conference 2020, we intend to take a vote on this matter at the next moveable conference in the final quarter of 2021.
Under the current insurance-based benefit structure, we are regulated by the Reserve Bank and governed by the Insurance (Prudential Supervision) Act 2010. Amongst other things, this requires Society to maintain an insurer licence and a minimum amount of “solvency capital.” This means that Society must hold a certain amount of money in readily-accessible cash to pay-out insurance claims. Combined with the current low interest rates, these restrictions on how we invest have resulted in us being unable to give any appropriations or distribute operating surpluses for the past few years. If we keep the existing insurance-based structure, we do not expect to be able to do so for the foreseeable future.
We are not currently seeking money, and you cannot currently apply for or acquire an interest in the proposed managed investment scheme. If the proposed conversion is implemented, interests in the managed investment scheme will be made available in accordance with the Financial Markets Conduct Act 2013. Any feedback you provide us, will not place you under any obligation or involve any commitment on your part to acquire an interest in the managed investment scheme once it becomes available, or commit you to making any additional contributions.
Have your say
It is important to us that you are involved in this decision-making process and have an opportunity to provide your feedback. We encourage you to attend your local lodge meeting when this proposal is discussed. We will be in touch with the date and timing of your local lodge meeting. If you have any questions or comments before you provide your feedback on the proposal, please use the contact form below and we will respond, or call us on 0800 002 801 between 8am and 4pm Monday to Friday. Otherwise, once you are ready, please complete and return the reply-paid feedback form posted to you. If you have not received your feedback form, please contact us and we will send you another one.
Michael Ambrose, Chairman
To see how the proposed conversion may affect your current benefit, please refer to the document providing your Conversion Values as at 30 November 2020 included in your information pack for your anticipated before and after amounts as a result of the proposed conversion.
Additional information PDFs – FAQs April 2021