Proposed AAMBF Changes 2016

Australian Air Pilots Mutual Benefit Fund
bwm85
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Proposed AAMBF Changes 2016

Postby bwm85 » Sat Apr 2 2016, 03:23

G'Day All,

With the closing date to vote for the 2016 AAPMBF rule changes fast approaching, I am keen to hear peoples opinions regarding what is proposed.

Proposals 1 & 3 appear to be simple language amendments designed to clarify the intent of existing rules related to regaining one's class 1 medical and pregnancy. Essentially an evolution of the document designed to combat grey areas. Proposal 2 however, appears to be a more significant structuring change that has the potential to affect your salary continuance amounts should you be unfortunate enough to lose your Class 1 Medical.

Frustratingly the AAMBF has packaged these proposed changes into a single YES or NO vote, potentially forcing respondents to vote in favour of one change even though they are in disagreement with another.

For me personally, Proposal 2 is of significant concern as whilst I do not stand to gain significant advantage from the current system, I would receive slightly more money on salary continuation than my actual salary as I sit about 10% below one of the current thresholds. My current salary is enough to cover my current living expenses and I have always viewed what I would receive over and above my current salary as the financial means that would allow me to afford the additional medical expenses that would likely be incurred en-route to regaining my Class 1.

My suggestion regarding Proposal 2 would be that they instead introduce additional thresholds e.g. $50k, $75k, $100k, $125k etc, as it would prevent a person on $60k a year from earning the equivalent of $100k on salary continuation whilst still helping compensate for the likely increase to their living expenses as they try to recover from a disability. Proposal 3 then ensures that there is sufficient monitoring by the AAPMBF regarding a members obligation to make every effort to regain their Class 1 Medical

You may have a different interpretation of these changes and or a differing view; either way I would be very keen to hear them.

Cheers,

Brenton
Matt Nielsen
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Re: Proposed AAMBF Changes 2016

Postby Matt Nielsen » Sat Apr 2 2016, 10:03

Hello Brenton,

I did make a post about the changes a while ago... yours is the first comment :)

You're quite right, the current round is mostly about making things a little easier to understand. There will be lots of these types of changes over the coming couple of years as we try and modernise and simplify the rule set.

I take your point regarding the ballot being for all the rules changes at once... it's a bit of a 'fan favourite' around the coffee table. I can assure you, we are listening but in most cases, there will never be a situation where rules will be balloted individually. For the most part, changes will have consequences for the operation of a rule that require all of the changes to succeed or fail together. In this case, they were assessed as being largely non-controversial and suitable for a single vote.

As for your point regarding the second proposal, it is primarily a fairness issue. I guess the hope is that the Members look at the 'bigger picture' with regards to a balance between benefits, fairness and the longevity of the Fund. I am sure you can see that a situation where a pilot earns more than double his normal income on Monthly Payments versus a long serving member who might only receive a fraction wouldn't satisfy those elements. The AAPMBF is primarily about preserving your Capital Benefit in the event of a Permanent Loss... Monthly Benefits are very much a secondary (and arguably tax inefficient) function of the Fund.

Ideas about product changes are always welcome. Don't wait until the ballot to come up with ideas... write to us and do it early. I can assure you, every enquiry and email find its way to the monthly Board meetings. Remember, each one of the Directors is a Member too so we all have a vested interest in making sure the rules are as good as they can be.

Please feel free to be in touch directly should any of you have further queries or ideas as to how you want to see things develop.

oh... there's a new website coming... keep an eye out (no monthly contribution payments as yet but I am assured they are coming).



Matthew Nielsen

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