The LIPS Directors have spent the last year working hard to deliver the best support to the LIPS scheme and membership. Below we have outlined the latest developments.
Annual Report It is with great pleasure to announce that BDO Corporate Finance (Middle East) [the registered auditor] has completed the 2009 year audit, and that we can now release the LIPS 2009 annual report. To access your report PDF please click HERE for download . Please note the report was written earlier in the year and there have been many developments since then, that are now included in this email and on the LIPS website.
LIPS Investment Strategy LIPS have had numerous questions concerning the investment of the LIPS funds. It has always been the case and still remains, that the LIPS Directors are the sole decision makers in how the LIPS funds are invested. Acuma have only ever been the broker of the funds, facilitating the transactions requests from the LIPS Directors.
In the annual report , you will be pleased to see, the decisions made by the LIPS Directors achieved steady returns over the past 2 years and have beaten major stock indices.
Investment Broker We decided in the interest of the LIPS members, that we terminate our relationship with Acuma as a broker and fund administrator. Acuma had approached LIPS with the goal of obtaining our member contact list in order to market their services to you. The LIPS Directors did not feel this was appropriate and therefore refused Acuma’s request. Our member’s privacy is held in the strictest confidence. LIPS is now sourcing a new broker to facilitate the transfer of funds to the LIPS scheme with Royal Skandia.
Administration To maintain continuity of the LIPS Administration, it was decided that LIPS would retain Daniella as the in-house administrator. For more information on Daniella Williams, our qualified chartered accountant and her credentials, please visit www.lipsek.org , the details of which will be updated in the near future.
Temporary office for payment facilities EPC and Signature have kindly offered to provide a temporary facilitiy for making LIPS membership fee payments in person. All administration as indicated above is done in-house and EPC and Signature are just facilitating the collection of the fees until salary deductions mentioned below are implemented. If you prefer for your convenience, you may place your cheques in FC424 as in the past.
Salary Deductions We are waiting for the final approval to implement salary deductions for payment of LIPS membership fees. As soon as the green light is received (hopefully by the end of May), you will all be advised via email and a salary deduction authorisation form will be provided for you to complete.
LIPS Benefit Payout
Our first LIPS claimant has been receiving benefits for the past 5 months. His testimonial will be available at www.lipsek.org in the near future.
Thanks for supporting LIPS and as usual if you have any questions please email
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Kind regards,
The Directors - Emirates Loss of Income Protection (LIPS) "By Emirates Pilots… For Emirates Pilots" www.lipsek.org
LIPS News Update - March 2010
In this March update, we would like to highlight recent queries associated with potential claims, by LIPS members whom have been unfortunate enough to have experienced medical issues.
Claims
A claim involves the submission of the required LIPS claim form (provided to an applicant for completion upon request) and associated supporting documentation to the LIPS committee.
As of 8th March 2010, there have been no claims made by any LIPS member. There has never been a claim form submitted, and no LIPS member has ever been refused payout.
One member is in the process of completing the necessary claim process and the LIPS committee stands ready to review this application, once the form and documents have been submitted.
Members Who Suffer Temporary Loss of License
We have a small number of members who have temporarily lost their GCAA pilot medical as a result of a medical condition that has not caused the permanent loss of license. This is an unfortunate situation; the LIPS board sympathizes with members involved and is offering what support we can, in keeping with published LIPS rules available HERE .
The LIPS rules state that a claim may be approved if a permanent (not temporary) medically related loss of license decision is issued by GCAA. To put it simply; LIPS pays out when the Emirates Airline insurance scheme payout is approved by Emirates Airline.
According to the LIPS Rules, members who have not suffered a permanent loss of license are not eligible for payout.
We are working with Emirates Human Resources to protect all LIPS members interests in seeing what can be done to protect a pilot’s income under a temporary loss of license. However, under the current Rules, we need to be clear that a temporary loss of license will not include a payout. A payout can only occur following what has been deemed by the GCAA to be a permanent loss of GCAA license. Protection for Pilots who are forced to Switch to Longer-Term Ground Duties
We have members who are in the unfortunate position of being unable to fulfill flying duties approaching one year, and who have been informed by the GCAA it will still be a number of months before their case can be reviewed. Time is either required for medical procedures to be undertaken (for example an artery stent) or for an extended evaluation to occur (for example, following head injury).
These pilots may be offered ground instructor positions while waiting this period. Some have asked the LIPS board what happens if, following this period, they suffer a permanent loss of GCAA license.
The LIPS board is pleased to announce that members in this situation, as long as LIPS monthly contributions continue to be paid, will be covered and will be eligible to make a claim at a later stage. Even if they were forced to become ground instructors.
Important things to remember;
To date, there has never been a claim made by any LIPS member.
There is one member who is in the process of completing a claim form and gathering the necessary supporting documentation. Once this required information has been received by the committee, the claim will be reviewed and processed, according to the Rules.
No LIPS funds can or will be paid out without a completed claim form and associated documentation being submitted.
LIPS directors are volunteers and as such have no financial interest in withholding or releasing funds.
As Directors, our function is to look after the interest of all LIPS members. We strive to protect those members who have valid claims, as well as those members who have deposited their funds with LIPS, not made a claim, and who rely on us to be fair and follow procedures according to published Rules in order to ensure funds are protected and available should they need to make a valid claim in the future.
Kind regards,
The LIPS Directors
Capt. Garrie Don Capt. Andy Bell Capt. Paulo Pereira Capt. Roger Hall
Do I Need Income Protection?
What would happen if you were unable to work due to illness or disability? Would you be able to maintain the standard of living that you have come to enjoy?
When you live and work abroad, the security of those you care about depends upon your ability to work and earn a regular income protected as there is no assistance from the state to fall back on. Regrettably, the likelihood of being unable to work due to an illness or injury is greater than you might think.
With advances in modern medicine, you’re more likely to survive a serious illness than die from it, so income protection cover is now as important as life insurance.
Here are some statistics to back up this statement;
– In 2003, 95,821 people aged between 25 and 64 died in the UK*
– In the same year, more than 1.6 Million people aged between 25 and 64 had been unable to work for more than two years**
Protect your salary.
The LIPS plan will provide you with a regular monthly income when an illness or injury prevents you from working.
*Source: Office of National Statistics, Abstract of Statistics 2003 Edition.
