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Mutual Benefit Fund

Committees & Funds   >   Mutual Benefit Fund

NZALPA’s Members have access to the Pilots’ Mutual Benefit Fund and ATC Mutual Benefit Fund which are both excellent loss of medical support.

 

“If you have had your medical certificate suspended or disqualified, please ensure you have informed the Insurer, MBF and NZALPA as soon as possible”

 

Mutual Benefit Fund – Medical Suspension Support

 

The Mutual Benefit Funds are not an insurance scheme – they are contributions funds that support pilots and controllers if their medical certificate is suspended or cancelled for medical reasons.

 

Pilots' MBF

 

The Pilots' MBF allows for loss of licence cover of up to 5 x gross base salary to a maximum capital benefit of $600,000.  MBF costs are currently $7 per $1000 of cover.   

 

The Fund primarily provides regular fortnightly income to pilots who lose their licence for medical reasons. Over the course of a year, the Fund typically pays benefits to between 75 and 100 pilots. The benefit level is determined mainly by a pilot’s income earned over the last 12 months. Over the last year the average time a pilot received a benefit from the Fund was 9 months.  

 

Each year typically around two or three pilots sadly lose their licence permanently. In which case those pilots receive a capital benefit payout of the difference between what their assessed maximum cover is and the disability benefits they have received from the Fund. 

 

Most NZALPA CEAs contain company contributions to the Fund. If a pilot elects to select the full maximum coverage they are eligible for, the company contribution can be topped up by the pilot to get a higher amount of cover. Alternatively, a pilot can elect to select reduced cover, taking advantage of the available company contribution only. Please refer to your NZALPA CEA or contact NZALPA Medical & Welfare representatives to confirm the levels of company contributions. 

 

MBF can sit alongside any other existing Life Insurance, Disability Insurance, or other Insurance programmes that you currently participate in (or that you may wish to arrange such as GLI or GDI). If the member has Group Disability Insurance (also through NZALPA) then the monthly disability benefit payable by the MBF will be reduced by the amount of GDI benefit received.

 

What are the benefits of joining Pilots MBF? 

  • Financial protection in the unexpected event of a loss of medical until medical is returned – for example the MBF may ‘top-up’ a member’s income to 90% of their income prior to the suspension of their medical certificate if ACC or sick pay falls short of this level. 
  • A Capital Benefit which is a lump sum payment for members who have permanently lost their licence up to 5 x gross base salary.  The Capital Benefit (if ultimately paid out to the member) is reduced by the amount that is paid out as a disability benefit.  

 

ATC MBF

 

The ATC MBF is compulsory for all air traffic controllers employed by Airways NZ. It provides a capital benefit of up to 4 x pay (excluding overtime and responsibility loading). There is no death cover - however this is provided through the Airways Superannuation Plan or can be obtained through NZALPA as per above.  A combination of the death cover from Airways and NZALPA is often a good idea.

 

What are the benefits of joining Controllers MBF?

 

  • Financial protection in the event of a loss of medical certificate until your medical is reinstated – for example the MBF may ‘top-up’ a member’s income to 100% of their monthly benefit entitlement if ACC or sick pay falls short of this level.
  • A portion of the capital benefit is initially paid out fortnightly until either the medical certificate is regained, or it is determined that reinstatement is highly unlikely, in which case the remaining balance of the capital benefit is paid out.
  • Advice and assistance from the Fund’s medical advisers to regain your medical fitness.

 

How do you join MBF?

Go to the website:

 

Pilots - http://www.pilotsmbf.org.nz

 

Controllers - http://www.atcmbf.org.nz

 

Click ‘Apply for Cover’ or ‘Join Now’ and complete the relevant forms.

 

If you have any queries or issues when filling out the form, the MBF office staff can be contacted on 0800 745 623 or +64 4 478 3632 or via the respective website.