Loss of earnings insurance, think about it!
What is this insurance?
Loss of salary insurance is an optional, nominative insurance policy covering only members of the personnel employed by CERN. This insurance compensates for the reduction in salary foreseen by the CERN Staff Rules and Regulations in the event of non-occupational illness or accident.
In application of Article R II 4.13 of the Staff Rules and Regulations of CERN1, in the event of leave due to illness, the employee is entitled to receive the full salary for the first 12 months (365 calendar days), after which the salary is reduced to two-thirds for 18 months (548 calendar days). Thereafter, no further payment is made after 30 months’ absence.
Below is a schematic summary of these measures:
Zone “A” : Covered by the Staff Regulations and Staff Rules
Zone “B” : Covered by the optional insurance
The loss of earnings insurance is designed to compensate for any reduction in salary that exceeds the period of coverage provided by CERN. This ensures that salary continuation is guaranteed for a period of 36 months.
It should be noted that no indemnities are paid by the insurer until the end of a twelve-month waiting period from the date of affiliation.
How does it work?
A collective loss of earnings insurance policy has been contracted by the Staff Association with UNIQA. This insurance is available exclusively to employed members of the personnel (Staff members, Graduates and Fellows) who are also members of the Association.
Once subscribed, the insurance policy is administered without the need for any additional administrative formalities. The member of the personnel continues to receive their full salary, with the benefits being paid directly by CERN.
A 12-month waiting period is applicable to all new policyholders, whereby no benefits are paid until 12 months have elapsed from the date of enrolment. A policyholder who has not taken out loss-of-earnings insurance for a period of one year will be required to undergo a new waiting period when they subsequently re-enroll for insurance later. (This may occur, for instance, in the event of an unpaid leave.)
The contract is terminated in one of two ways: firstly, when the policyholder is no longer remunerated as an employed member of personnel; secondly, following the termination of the contract by the insured or by the insurer due to non-payment of the premium. A t2 month advance notice period is required for termination by the insured party.
How much does it cost and how do I subscribe?
The requisite contributions are calculated as a percentage of the base salary and are due for a full calendar year, deducted from the January remuneration payment. The prevailing contribution rate is 0.24% of the annual base salary. Should an individual join the scheme during the year, the premium remains unchanged.
To subscribe, please complete and sign the subscription form and return it to the secretariat of the Staff Association (email: Staff.Association@cern.ch).
[1] During any 36-month period, leave due to illness is paid at full rate for 365 calendar days, then at two-thirds for 548 calendar days. However, full salary is paid for the entire period of leave caused by an occupational illness or accident.
