Aon Hewitt expatriate services Terms and Conditions for Assignment

Transcription

1 Aon Hewitt expatriate services Terms and Conditions for Assignment Provisions and conditions of services Information for organisations

2 Contents 1 General provisions Applicability Financial provisions General Provisions: services and payment In respect of the client/ employment agency In respect of the assigned development worker Employment Agreement/ Supplementation Agreement/ Assignment Agreement Definitions Development worker Partner Children Family members Employment agency Changes Approval of medical insurances Services and payment Article 1: Equipment allowance Article 2: Allowance for preparation costs Article 3: Medical examination Medical examinations Article 4: Vaccinations and malaria prophylaxis Article 5: Visas and permits Article 6: Airline tickets Air travel Article 7: Relocation and storage costs Reimbursement of relocation to the host country Reimbursement of relocation from the host country Lump sum instead of relocation Storage of household effects during the assignment Use of unused storage for relocation Maximum weight/ volume relocation in accordance with Articles 7.1 and Calculation of exemption amount for air freight: volume weight or chargeable weight Unavoidable costs One-time payment (lump sum) in accordance with Article Maximum volume of storage in accordance with Article Use of unused storage for relocation Article 8: Courses, education and training Article 9: Income supplementation Article 10: Pension allowance Article 11: Rent allowance or benefit Article 12: Security and surveillance costs housing Article 13: School fees of children Forms of education Cost that are eligible for reimbursement Cost that are not eligible for reimbursement Children remaining in the homeland Article 14: Travel and accommodation costs for Rest & Recuperation Article 15: Compensation basic health insurance premium (new) Article 16: Reintegration allowance Article 7: Consultation Consultation prior to the assignment

3 Consultation after the assignment Consultation with an expert in the field of foreign taxes Insurances Employee insurances Voluntary Insurance Unemployment Act (Werkloosheidswet, WW) Voluntary Insurance Sickness Benefit (Ziektewet, ZW) Disability Insurance (Arbeidsongeschiktheidsverzekering) Additional old-age pension Alternative for Aon and ANW Old-age insurance (Zwitserleven) Survivors insurance (Zwitserleven) Other insurances Health insurance worldwide including basic coverage Health insurance worldwide excluding basic coverage Dental insurance Accident insurance Extra flight insurance Professional Liability Insurance Transport and storage insurance Business travel insurance (emergency assistance) Business travel insurance with disability cover Additional package private insurances Annex Aon grading methodology Determination of monthly supplementation amount:

4 1 General provisions 1.1 Applicability This document is applicable to and inseparable from the 'Services Agreement'(SA). The SA is agreed between the client and Aon Hewitt (Aon) and its provisions are declared applicable in full, partially or in modified form to the assignments of the client. The SA therefore constitutes a valid framework agreement. The client and Aon conclude an Assignment Agreement for each assignment. The Assignment Agreement refers to the SA and specific details of the assignment are elaborated, including the personal data of the development worker, the period and place of the assignment, the position, the amounts of income supplementation and other variables. 1.2 Financial provisions General Claims and payments made on the basis of actual amounts. If possible, the assignment will be financially completed within two months of completion. All this is also dependent on when the last payment can take place Provisions: services and payment Services Services are offered as much as possible on the basis of firm agreements with third parties, such as travel agencies and international relocation companies Payment Payment to (or on behalf of) the development worker will take place on the basis of the actual costs and/or on the basis of agreed periodical allowances and one-time allowances (lump sums) In respect of the client/ employment agency Aon will not perform pre-financing of the costs van de assignment. All costs that are known at the start of the assignment are invoiced directly. The invoice will be sent per quarter. By default, an invoice is sent each quarter. Invoicing a client will take place per quarter at a fixed time In respect of the assigned development worker Payments of income supplementation, allowances, fees and concessions will take place each month at a fixed time: on the 25 th of each month. No advances on payments and allowances will be made Expense account Payment of declared costs will take place after approval of the expense account and on the basis of submitted receipts and/or invoices. An expense account must be received and approved by Aon on the 7 th of the month at the latest in order to be paid in the same month on the 25 th. 3

5 The development worker may send an expense account digitally, attaching the scanned receipts. The original receipt of a cost item higher than 750 should be posted by the development worker. In some cases, Aon can also request receipts of cost items lower than Employment Agreement/ Supplementation Agreement/ Assignment Agreement During the assignment period, an agreement should be concluded with the development worker stating that he/she will perform work abroad during the term of the SA. This could be an agreement that is concluded with the client or an agreement that is concluded with an employer in the developing country. 1.4 Definitions Development worker The person who has entered into an agreement with an organisation based in the Netherlands or in the host country for performing work in the host country Partner The term partner means a person with whom the development worker shares a common household and with whom the development worker: is married; or is in a registered partnership; or has entered into a notarised partnership contract or has entered into a cohabitation contract that is registered with a Dutch consular officer Children The term children means: children up to 21 years for whom the development worker and/or the partner have a legal duty to maintain and who are actually part of the joint household of the development worker and his/her partner. Children are also considered to be: acknowledged adoptive children. Not considered as children: foster children Family members The partner and children Employment agency The organisation through or by whose mediation the assignment of the development worker has been concluded. 1.5 Changes The employment agency is obliged to report to Aon, immediately and without being asked, any changes in the personal and cohabitation circumstances, the employment situation or other changes that are of interest for the supervision of the assignment in writing. 1.6 Approval of medical insurances For acceptance of the following insurances (section C.), prior medical approval is required: - health insurance - emergency business travel insurance - disability insurance 4

6 Aon can provide information on check-up requirements and inspection bodies. The check-up should not have taken place earlier than six months prior to the date of the insurance. Aon should be in possession of the findings of the medical examiner prior to the effective date. In the statement, the medical examiner should indicate whether or not the person is suitable to be assigned. If the medical examination for the assignment has taken place earlier than six months prior to the start date of the insurance, in principle the person must undertake a new medical examination. If a previous inspection is not older than twelve months and to the knowledge of the person in question no change has taken place in his/her state of health, then a signed health certificate stating that there has been no change in health status since the last inspection will suffice. The signed health certificate should be attached to the positive medical examination results. 5

7 2 Services and payment In the Articles below, the services and payment are described. 2.1 Article 1: Equipment allowance The equipment allowance is a one-time allowance for equipment that the development worker purchases for himself/herself and for accompany family members in preparation for his assignment and that is not eligible for reimbursement. (Examples are: medicine chest, mosquito net, tropical wardrobe, furnishings for the home in the developing country.) The allowance is a lump sum: the expenditure does not need to be justified. The client determines the level of the equipment allowance. Advice Aon Amounts for an assignment of at least one year. a. The development worker is single or is considered as single: * for the development worker 1,180 b. The development worker has a financially dependent partner: * for the development worker 1,180 * for the partner 480 c. The development worker has a partner who is also a development worker in the meaning of the Aon Terms and Conditions for Assignment: * for both development workers jointly an allowance of 1,660 d. Per child Article 2: Allowance for preparation costs The allowance for preparation costs is a one-time allowance for the following costs that the development worker incurs for himself/herself, as well as for the accompanying partner and child(ren): a. all travel expenses to and from the employment agency and all other travel and postage costs in connection with the preparation for the assignment, including: medical examinations, vaccinations, training courses, visas, interviews with Aon, the trip to the airport in the homeland, the trip from the airport in the host country to the place of work; b. the costs of passport photos, translations and legalisation of diplomas, Certificate of Good Behaviour. The allowance is a lump sum: the expenditure does not need to be justified. The client determines the amount of the allowance for preparation costs. 6

8 Advice Aon * for the development worker: 215 * for his partner: 85 * per child: Article 3: Medical examination This Article concerns medical examinations prior to, during and after the end of the assignment. The examination performed is in accordance with set protocols for examinations in the tropics. A positive result for the medical examination may be a condition for acceptance for certain insurances. Aon has a collaborative arrangement with the following specialised inspection bodies: - Havenziekenhuis Travelclic - Mondial Aon provides for the offsetting of the examination costs with the body/bodies and monitors the receipt of the findings of the medical examination. The client may choose another inspection body, but only in consultation with and permission of Aon Medical examinations Expense accounts Reimbursement of the costs of the necessary medical examination prior to the assignment, for the development worker and (if applicable) for his/her family members Medical examination during the assignment Reimbursement of the costs of a medical examination during leave in the Netherlands. The employment agency will indicate the frequency. (For example, an interim inspection every two years.) Medical examination at the end of the assignment As in paragraph Article 4: Vaccinations and malaria prophylaxis Reimbursement of the costs of the necessary vaccinations and malaria prophylaxis prior to and during the assignment, for the development worker and (if applicable) for his/her family members. Aon has a collaborative arrangement with a specialised inspection body/bodies that can administer the vaccinations and prophylaxis during stays in the Netherlands. Aon has a collaborative arrangement with the following specialised inspection bodies that can also administer vaccinations and prophylaxis: - Havenziekenhuis Travelclic - Mondial 7

9 2.5 Article 5: Visas and permits Reimbursement of the necessary costs of visas and permits for the assignment (such as: residence permit, work permit) and inevitable costs incurred in obtaining these documents (such as: travel and accommodation costs, postage costs). Aon provides reimbursement for the actual costs incurred by the development worker. 2.6 Article 6: Airline tickets Reimbursement and arrangement of air travel. Aon has a collaborative arrangement with the following specialised travel agencies with NGO rates. - Raptim - Multatuli Aon arranges the offsetting of the costs with the travel agencies Air travel Arrival at the start of the assignment Reimbursement of the costs of the outward journey for the development worker and (if applicable) for his/her family members at the start of the assignment. Air travel expenses are reimbursed up to the economy class flight costs, by the shortest route to and from the homeland and in accordance with the usual discounts (such as the NGO discount). For a child younger than 2 years, the costs of a so-called baby ticket are reimbursed (no own seat) Return flight from host country to homeland during the assignment Reimbursement of interim return flights from the host country to the homeland (such as for leave, visiting the employment agency, reuniting with family members left behind). The client determines the frequency. Further as in paragraph 1. If the development worker chooses to book a flight locally, then Aon will arrange the reimbursement of the costs to the development worker Return journey after the end of the assignment As in paragraph 1 If the development worker chooses to book a local flight, Aon will arrange the reimbursement of the costs of the development worker. 2.7 Article 7: Relocation and storage costs Reimbursement of and the brokerage activities regarding relocation and storage of household effects. Aon has a collaborative arrangement with the following specialised international relocation companies: - KHZ - Voerman 8

10 Aon arranges the offsetting of the costs with the relocation companies. These relocation companies also coordinate moves from one foreign country to another and arrange the storage of household effects. Relocation and storage arrangements. The client determines the exemption amount and other limits. Below the Article, you will find advice from Aon Reimbursement of relocation to the host country Reimbursement of the relocation of household effects to the developing country at the beginning of the assignment. The client determines the scope of the exemption amount (volume or volume weight) Reimbursement of relocation from the host country Reimbursement of the relocation of household effects from the developing country to the homeland (or another country) at the end of the assignment. The client determines the scope of the exemption amount (volume or volume weight) Lump sum instead of relocation A one-time allowance (lump sum) as an alternative to the relocation in accordance with paragraph 1 and paragraph 2. This choice can be made for both the relocation at the start of the assignment and the relocation at the end of the assignment. The client determines the scope of the lump sum Storage of household effects during the assignment Reimbursement of the storage of household effects during the assignment until three months after the assignment. The client determines the scope of the exemption amount (volume) Use of unused storage for relocation If no goods are given in storage or if the household effects are of a smaller volume than the storage exemption amount, then the saved storage costs during the temporary storage (custody fee) are used for the transportation to and/or from of household effects that exceed the exemption amount. This option cannot be used if a choice has been made for a lump sum in accordance with paragraph 3 of this Article. The client determines the maximum duration of the build-up of storage savings. Advice Aon Exemption amount and amounts for an assignment of at least one year Maximum weight/ volume relocation in accordance with Articles 7.1 and For each single development worker - by air freight a volume weight (see explanation below) of 300 kg; or 9

11 - by sea freight a capacity of 3 m For each development worker and his/her partner - by air freight a volume weight of 400 kg; or - by sea freight a capacity of 4 m For reach child - by air freight a volume weight of 100 kg; or - by sea freight a capacity of 1 m Packaging - The volumes and weights referred to above include packaging The costs of packaging materials are reimbursed: - in the Netherlands: the actual costs incurred; - in the host country: the actual costs incurred to a maximum amount of 114 per m3, respectively 100 kg Calculation of exemption amount for air freight: volume weight or chargeable weight The exemption amount for sea freight are given in cubic metres, the exemption amount for unaccompanied air freight are given in kilograms. During transport by air, however, account should be taken of the volume or chargeable weight. For transport by air, it is not only weight that is important but also volume. The international transport world uses the I.A.T.A. standard to determine the chargeable weight for air freight. According to the I.A.T.A. standard, there is a minimum charge for 1 m3 of at least 167 kg, even if the actual weight is often lower. This means specifically that assigned weight (the exemption amount) should be divided by 167 kg to determine the gross volume for air freight. Example: For an exemption amount of 300 kg: 300 kg : 167 kg = 1.8 m3. This is the maximum volume for a weight of 300 kg. Depending on the composition of the consignment (for example, if a lot of light goods are sent the volume will increase), the actual weight of the goods that can be sent by air may decline. To illustrate: 100 kg of diapers takes up more space than 100 kilo of books Unavoidable costs * If unavoidable costs (such as import duties) are payable, the costs actually incurred are eligible for reimbursement insofar as they relate to the import of goods up to a maximum weight or volume as referred to above, on the understanding that the amount to be reimbursed will not exceed 1, One-time payment (lump sum) in accordance with Article 7.3 The one-time payment in accordance with Article 7.10 is: * per single development worker: 1,800 * per development worker and his/her partner: 2,400 * per child: Maximum volume of storage in accordance with Article m3 10

12 Use of unused storage for relocation The maximum duration of the build-up of storage savings amounts to 36 months. 2.8 Article 8: Courses, education and training Reimbursement of costs associated with attending courses, training, education, conferences, etc.. Aon may reimburse the costs of the assignee or directly pay the institution giving the course. Aon also provides reimbursement of the associated travel and accommodation costs. 2.9 Article 9: Income supplementation The monthly payment of income supplementation to the development worker. The income supplementation is a net addition to the local salary that the development worker receives from his employer in the developing country or from the employment agency. The income supplementation may consist of a uniform amount, but it can also be built-up from several allowances, such as childcare allowances and partner allowance. Amounts may also be deducted, such as an own contribution for housing costs or a contribution towards the premium for healthcare insurance. The income supplementation can be adapted to the level of cost of living (KLO) in the host country. Aon used the KLO index of the United Nations for this. The client determines the amount of income supplementation. Aon can advise on this. The supplementation model of Aon can be used, which consists of, among other things, four scales and a model for adjusting the level of the cost of living in the host country. See the ANNEX for the Aon supplementation model. Concurrent with the payment or as part of the income supplementation, certain allowances may be paid to the development worker if ordered, such as: pension allowance (Article 10), rent reimbursement (Article 11), household security and surveillance costs (Article 12) Article 10: Pension allowance If the client chooses a pension allowance instead of supplementary pension insurance, this monthly allowance is paid as part of the income supplementation. The client determines the level of the pension allowance. See the ANNEX for advice on the level of the pension allowance. Advice Aon The pension allowance amounts to 20% of the NET calculation basis of the income supplementation. 11

13 2.11 Article 11: Rent allowance or benefit 1. Reimbursement of the rent of the housing in the developing country. Only the basic rent is eligible for reimbursement. Basic utilities like gas, water and light are for the account of the development worker. There are several reimbursement options: a. Aon pays the monthly rent (the actual amount) simultaneously with the payment of the monthly supplementation. b. Aon pays monthly a fixed allowance, which in principle is not linked to the level of the rental amount. c. The tenant is obliged to pay the rent for longer periods (such as 6 months or 1 year) in advance. Aon compensates the amount on the basis of an expense statement from the development worker. 2. Reimbursement of the costs of an own home at the work location. 3.. At the request of the client, Aon will deduct a monthly amount from the income supplementation, as an own contribution to the costs of housing. Advice Aon The own contribution amounts to 3% of the calculation basis of the income supplementation. The rent is usually highly dependent on the location and size of the household. The allowance for housing costs of a house owned in the developing country amounts to 250 per month Article 12: Security and surveillance costs housing Reimbursement of security and surveillance costs of the housing in the developing country. The following costs will be reimbursed. a. the wage costs of a night watchman or a subscription to alarm services; b. the costs of installing, among other things, an alarm system, extra locks, gates and fences. There are several options for reimbursement of periodic costs: a. Aon pays a reimbursement of the wage costs or the subscription together with the monthly supplementation. b. Aon pays a fixed allowance each month, which in principle is not linked to the level of the monthly costs Article 13: School fees of children Reimbursement of school fees for children of the development worker who reside in the developing country. On the payments referred to in this Article, a personal contribution of 10% will be withheld Forms of education For children from 4 years the costs of the following forms of education are eligible for reimbursement: 12

14 - Primary education - Secondary education - Further education in the language and culture of the homeland. Reimbursement of the costs of regular daytime classes (excluding higher academic or vocational classes) or a contribution towards these costs if these children reside with the development worker in the host country and attend education in the same city in the host country or in the immediate vicinity ( region ) thereof or take part in written education that is intended to replace or supplement regular daytime classes Cost that are eligible for reimbursement a. registration and tuition fees; b. examination fees; c. the costs of prescribed materials, except for educational toys; magazines; computers and accessories; sports training, including sportswear; school uniforms; d. the costs of board and lodging in a boarding school in the immediate vicinity ( region ) Cost that are not eligible for reimbursement a. educational toys; b. magazines; c. computers and accessories; d. sports training, including sportswear; e. school uniform; f. transportation costs between home and the educational facility Children remaining in the homeland If Children remain in the homeland in order to attend Primary or Secondary School the costs of board and lodging in a boarding-house or with relatives are eligible for reimbursement (the actual costs of education in the homeland are not eligible for reimbursement). Advice Aon The employment agency determines the level of the payment or contribution. Maximum amount per type of education. Maximum amount eligible for reimbursement of all costs incurred together with the education followed per child and per school year, before deduction of the personal contribution: - Primary education : 8,250 - Secondary education : 11,000 Personal contribution: 10% Reimbursement in accordance with Article (own language and culture, in addition to regular education): A one-time annual amount ( lump sum ) for: - Primary education level 1 and Primary education level 3 to 8 1,375 - Secondary education 1,650 The personal contribution in accordance with Article 16.3 is already processed in these lump sums. 13

15 Reimbursement / contribution for board and lodging as referred to in Articles 16.2.d and e. The costs of lodging with relatives or acquaintances are reimbursed to a maximum of 450 per month Article 14: Travel and accommodation costs for Rest & Recuperation The purpose of Rest & Recuperation (R&R) is to provide the development worker (and, if applicable, his/her family members) with the opportunity to take a rest and recuperation break elsewhere if this is not possible at the work location and the immediate vicinity, due to danger or other circumstances. At the request of the employment agency, the development worker is entitled to the following provisions for periodic leave outside the work location: a. Transport from the work location to the R & R location b. Reimbursement accommodation plus breakfast c. Meal allowance for lunch and dinner The employment agency determines where and when the R&R leave is taken, as well as the frequency and level of the payment and allowance. See Article 6.1, Air travel for the services or reimbursements for air travel. Advice Aon It is recommended that R&R is not included standardly in the agreement with the development worker, because conditions at the work location can change during the assignment period. Provisions a. The leave usually takes up to 5 business days, excluding travel time. b. There are periods of at least 8 weeks between leaves. c. Reimbursement of the travel expenses to a leave location in the region. In the event of staying at an A location (see below), one of the leaves may be taken in the homeland. d. Reimbursement of the reasonable costs of accommodation and breakfast (middle-range hotel) for a period up to 7 nights per R&R leave in the region. For leave in the homeland, no accommodation costs are reimbursed. e. A meal allowance of 11 per family member per day during leave in the region (maximum of 8 days, which compares to 7 overnight stays). f. If the travel time for the leave in the region exceeds 2 days, vice versa, no holidays need to be taken for the extra travel time. Ratings of R&R locations - A locations At A locations, there is a permanent situation of danger and unrest. There is a latent threat of a (civil) war. For security reasons, one is permanently bound to stay at the work location, even on weekends. The unsafe situation and/or the extreme working conditions cause an increased risk of excessive stress. - B locations At B locations, it has been unstable for a longer period, but there is no immediate threat of war. The infrastructure provides ample opportunity to evacuate. The leisure facilities are very limited, because travel is unsafe. One is permanently bound to stay at the location, even on weekends. The unsafe situation at the location causes an above-average risk of stress compared to a regular assignment. 14

16 Extreme working conditions, such as a natural disaster, can also be grounds for a B rating Article 15: Compensation basic health insurance premium (new) An allowance to compensate for premiums for the basic health insurance for which Dutch development workers remain liable in the Netherlands during an assignment. The allowance may be claimed once a year at the end of the calendar year (or at the end of the assignment). Advice Aon The reimbursement contribution amounts to 105 for each full calendar month Article 16: Reintegration allowance The reintegration allowance is a contribution towards the costs at the end of the assignment (of at least 1 year). The reintegration allowance is paid as a lump sum at the end of the assignment. The employment agency determines the level of the reintegration allowance. Advice Aon The level of the allowance amounts for each month of the assignment to: * 118 per development worker; * 167 for the development worker and partner jointly; * 25 for each child Article 7: Consultation Consultation prior to the assignment During the consultation prior to the assignment, Aon informs the development worker about the services and insurances that are applicable to the assignment and the formalities related thereto. This interview is free with a Terms and Conditions for Assignment package, including supplementation Consultation after the assignment During the consultation after the end of the assignment, Aon informs the development worker about the formalities in connection with returning to the Netherlands, such as formalities in respect of social provisions. This interview is free with a Terms and Conditions for Assignment package, including supplementation Consultation with an expert in the field of foreign taxes A consultation with an expert in the field of taxes during the period that one works abroad. A consultation can take place prior to, during, or after the assignment takes place. Aon has a collaborative arrangement with AWVN ( algemene werkgevers vereniging Nederland). Aon ensures the offsetting of the conversation costs with the experts. The client may choose a different expert. 15

17 3 Insurances Aon can arrange the following insurances for the development worker and/or his/her family members. Aon arranges the registration and deregistration, the implementation of changes and the offsetting of the insurance premiums. For nonlife insurances, Aon arranges for the settlement of claims. In respect of provisions that are administered by recognised insurance companies and bodies in the Netherlands, the terms used by these companies and bodies apply directly between the development worker and his/her family members and the insurer / body and no other or further rights can be derived with respect to Aon. The above explicitly implies that the development worker, in accordance with the terms of the insurance company/ body, must ensure timely notification of circumstances that could justify grounds for payment under the policy, (sometimes) at the risk of forfeiting all rights. Exit insurances It may happen that a development worker only returns to his homeland after the expiry of his/her Employment Agreement, or that the relocation of the household effects will only take place at a later stage. The development worker can therefore terminate the insurances on a date that (for a limited period) is later than the final date of the assignment. 3.1 Employee insurances Below, you can find information about employee insurances. These may only be concluded for employees. It is possible to choose different insurance bases: the combination WW/ZW, disability insurance and supplementary pension. Aon advises using one and the same bases Voluntary Insurance Unemployment Act (Werkloosheidswet, WW) The voluntary insurance WW insures the development worker against the financial consequences of unemployment. This insurance can only be concluded for assignees from the EEA and Switzerland. The conclusion of this insurance is in principle only possible in combination with the voluntary insurance ZW (see C.2. below). Only if one can demonstrate by an Employment Agreement that the salary is paid in the event of illness in accordance with Dutch legal standards, can the WW be concluded without the ZW. There is a statutory maximum for the insured amount. In 2012, this maximum wage is per day, which is equivalent to a gross monthly salary of 4,172 (excluding holiday pay.) For further information: see Voluntary Insurance Sickness Benefit (Ziektewet, ZW) The voluntary insurance ZW gives a development worker who is unable to work as the result of illness or disability, the right for a period of up to 2 years to receive a wage replacement benefit of up 70% of the insured basis, until reaching the age of 65. The benefit amounts to 100% during maternity leave. This insurance can only be concluded for assignees from the EEA and Switzerland. It is possible to conclude this insurance without concluding the voluntary insurance WW. There is a statutory maximum for the insured amount. In 2012, the maximum wage is per day, which is equivalent to a gross monthly salary of 4,172 (excluding holiday pay). For more information: see 16

18 3.1.3 Disability Insurance (Arbeidsongeschiktheidsverzekering) This insurance is an alternative to the Dutch Work and Income (capacity to work) Act (WIA) and the Fully Disabled Persons Income Scheme (IVA) and insures the development worker against the financial consequences of disability. There is a waiting period (personal risk) of 2 years. The disability benefit (up to 75% of the insured salary) therefore commences after 2 years of illness or disability and runs until the maximum age of 65. The insurance has a risk of war coverage. The development worker requires a prior medical certificate to be accepted for this insurance * Additional old-age pension a. Additional old-age pension for the Dutch assignees b. Additional old-age pension for foreigners (third-country nationals) 3.2 Alternative for Aon and ANW Old-age insurance (Zwitserleven) Old-age insurance is an alternative for the State pension (Algemene Ouderdomswet, AOW) and gives the insured the right to a basic old-age pension from the age of 65 years. In addition, this insurance entitles financially dependent children to an orphans pension if the insured dies during the assignment. The old-age insurance can be concluded for the development worker, his/her partner, and children of 15 years and older. If the development worker has a partner, he/she needs to conclude this insurance in combination with Survivors insurance (see below) Survivors insurance (Zwitserleven) Survivors insurance is an alternative for the Surviving Dependants Act (Algemene Nabestaandenwet, Anw) and entitles the holder to a survivors'pension for the surviving partner. Survivors insurance can be concluded for the development worker and his/her partner. A partner is only considered as a survivor if one is married, has entered into a registered partnership, or a notarised partnership has been concluded. This insurance should be concluded in conjunction with the old-age insurance (see above). 3.3 Other insurances Health insurance worldwide including basic coverage Health insurance abroad including basic coverage is intended for the development worker and his/her family members who are not obliged to take out insurance in the Netherlands during the assignment. It is a complete health insurance with worldwide coverage and medical evacuation. The excess is 220 per adult per calendar year. The insurance has risk of war and terrorism coverage. A medical certificate is required in advance for acceptance with regard to this insurance Health insurance worldwide excluding basic coverage Health insurance excluding basic coverage is intended for the development worker and his/her family members who remain in the Netherlands during the assignment and therefore are obliged to have a Dutch health insurance. 17

19 This insurance with worldwide coverage and medical evacuation supplements the Dutch basic health insurance. One should claim costs from the basic coverage from the Dutch health insurance. Other costs can be claimed from the health insurance worldwide (to the extent that these are covered). The excess is 907 per household per calendar year. The insurance has risk of war and terrorism coverage. A medical certificate is required in advance for acceptance with regard to this insurance Dental insurance Dental insurance can only be concluded by adults (dental costs of children under 18 years are covered by the health insurance). To be eligible for payment, the teeth must be in good condition in advance (at own expense). The good condition statement (a statement issued by your dentist that indicates that your teeth are in good condition) may not be older than 6 months prior to the effective date of the insurance Accident insurance Accident insurance entitles the holder to a benefit in the event of death or permanent invalidity as the result of an accident. The insurance has risk of war and terrorism coverage. In case of death: Assignee and partner 75,000 In case of invalidity: Assignee, partner and children maximum 150, Extra flight insurance In the case of mortal danger or death of a family member in the 1 st or 2 nd degree, this insurance gives the development worker and his family the right to payment of a flight to the country where the family member in question is located Professional Liability Insurance Medical This insurance can be concluded for the development worker with a medical profession. The coverage includes court costs and any claim arising from the practice of the profession Non-Medical This insurance can be concluded by non-medical personnel who, due to the nature of their profession, could be held responsible for the existence of bodily injury to others. Examples are: physics teacher, woodwork teacher. The cover includes the court costs and any claim arising from the practice of the profession Transport and storage insurance This insurance insures against damage to household effects during the relocation to the host country and back and damage to goods stored during the assignment. - for the outward journey: 28,750, including transport costs of 3,750; - for the return journey: 25,

20 The insured value in the case of storage within the Netherlands, as referred to in Article 7.5., is 37,500 at the most Business travel insurance (emergency assistance) Inclusive basic insurance This comprehensive travel insurance is normally concluded by those who are assigned in the field of emergency assistance. Generally, one is employed by the employment agency. The insurance coverage includes the following: medical expenses (including emergency dental treatment), luggage, death resulting from an accident ( 10,000), cash and cheques, and additional flight travel insurance. The insurance has risk of war and terrorism coverage. The business travel insurance inclusive basic coverage is concluded for those who during the assignment are not obliged to have health insurance in the Netherlands. The cover of the medical expenses is therefore a complete health insurance including medical evacuation. There is no excess. A medical certificate is required in advance for acceptance with regard to this insurance Exclusive basic insurance The cover is the same as the business travel insurance, including basic coverage provided that this insurance is concluded by those who remain obliged to hold health insurance in the Netherlands during the assignment and who therefore must have Dutch health insurance. The medical coverage abroad of the emergency assistance package is therefore a supplement to the basic Dutch health insurance. One should declare costs covered by the basic coverage from the Dutch health insurance. Other costs can be declared under the business insurance (to the extent they are covered by this policy). Medical evacuation is covered. There is no excess. The insurance has risk of war and terrorism coverage. A medical certificate is required in advance for acceptance with regard to this insurance Business travel insurance with disability cover This travel insurance includes the following covers: medical expenses, capital distribution at death or invalidity as the result of an accident, baggage, legal aid, and personal liability. The maximum term of this insurance is 365 days. Important! This insurance can only be concluded if you hold basic Dutch health insurance. Medical evacuation is covered. There is no excess. The insurance has risk of war and terrorism coverage Additional package private insurances Website: COVER DESCRIPTION EXPAT INSURANCE PACKAGE PERSONAL LIABILITY INSURANCE Premium 70 Premium 75 Premium 80 Liability per insured event: persons (injury) and property 1,000,000 1,500,000 2,500,000 19

21 PERSONAL POSSESSIONS Premium 3.50 per 1,000 sum insured. Damage to personal possessions due to e.g. fire, storm, burglary, explosion or water. Minimum sum insured 10, Maximum sum insured 200,000 - Tenant interest 2,500 - Salvage costs Cost - Debris costs Maximum 7,500 ANNUAL TRAVEL INSURANCE Premium 85 per person per year (children until the age of 18 years included) Unanticipated costs, including: - funeral or cremation costs on location 3,500 - transportation costs for the remains Cost - rental of an equivalent motor vehicle Maximum sum insured 1,250 - telephone and internet costs Maximum sum insured Total sum for all the costs Maximum 35,000 - Luggage per insured Maximum sum insured 2,500 (maximum 5.000,- for all insured) - Valuables per insured Maximum sum insured 500 (maximum 1,000 for all insured) - Cancellation costs/ termination fee per travel/ Maximum sum insured 3,000 rental per policy - Medical costs, secondary Cost - Assistance 24 Hours per day Cost - Winter sports, underwater sports and world cover Insured ACCIDENT INSURANCE Premium per person 0.90 per 1,000 sum insured Adults (above the age of 18years) - Accidental death Minimum sum insured 5,000 Maximum sum insured 250,000 - Accidental permanent disablement max. Minimum sum insured 5,000 Maximum sum insured 250,000 Children (until the age of 18 years) - Accidental death Minimum sum insured 5,000 Maximum sum insured 75,000 - Accidental permanent disablement max. Minimum sum insured 5,000 Maximum sum insured 150,000 LEGAL ASSISTANCE INSURANCE Premium 75 Premium 95 Premium 125 Maximum sum insured 15,000 20,000 25,000 - World cover for loss due to damage to body or property, penal cases; - Disagreement on repair or tail agreements regarding the motor vehicle of the insured; - Disagreement on transportation agreements regarding a (vacation) travel; - There is also coverage for disagreement on legal issues regarding labour insurance agreements, social insurance agreements or contractual agreements; 20

22 INSTRUMENTS AND VALUABLES INSURANCE Premium 5 per 1,000 sum insured. Maximum sum insured 20,000 Loss due to every occurred event during the insured period, purchase or appraisal value of the insured instruments/valuables unless the loss occurred due to gradual (weather) influences, scratches or dents due to erroneous or insufficient adaptation, repair, cleaning or restoration. EXTRA AIR TRAVEL INSURANCE Premium 35 The costs of air travel relating to the return to the country of residence concerning peril of death or death of a relative by blood or by affinity in the first or second degree, who are not 75 years of age, due to an accident or a life threatening disease. Maximum sum insured 4,

23 4 Annex 4.1 Aon grading methodology Determination of monthly supplementation amount: The development worker is graded according to the ANNEX i ('Standard list Aon scales'). The net calculation basis associated with the grading is the basis for the calculation of the income supplementation. There are 4 scales, increasing in severity. The age reached during the calendar year determined the step as of 1 January. The net calculation bases according to the Standard list of Aon scales are derived from the scales and periodicals of the BBRA (the salary scale of the Dutch government). This BBRA amount is then notionally deduced from deductions equal to current statutory deductions for employees in the Netherlands, such as deductions under the SV legislation and income tax legislation, and a fixed portion of the premium for the additional pension. After application of these notional deductions, the remaining net calculation basis applies to the adoption of the monthly income supplementation. These amounts are included in the column Supplementation group 2. In the column Supplementation group 3 the calculation bases are included for single earners. In these calculation bases, the General Tax Credit has been included that partners who immigrated do not receive. In the column Supplementation group 3, the calculation bases are included for single parents. In these calculation bases, the Single Parent Tax Credit and the Additional Single Parent Discount have been included that single parents who immigrated do not receive Calculation income supplementation: The calculation basis determined in accordance with I.A. is raised or lowered depending on the following components: 1. Reduced by an amount for 'cost of living in the Netherlands'(indexing part) of 567. If the calculation basis is based on the minimum wage, then the indexation amount is Increased by an amount to be determined per country for 'local cost of living'(temporary correction). This amount is determined on the basis of tables determined by the United Nations. 3. If the development worker has a partner whose net monthly income is not higher than 593, the development worker receives a partner allowance of 40% over the temporary correction. Even with a calculation basis that is based on the minimum wage, the partner allowance is derived from a temporary correction that is based on an indexation part of Increased by child allowance. 22

24 For each child, the development worker is entitled to a child allowance that is equivalent to a percentage calculated on the temporary correction as mentioned under II.A.2. This percentage is: - for children to 11 years 20% - for children from 12 to 20 years 40% Even with a calculation basis that is based on the minimum wage, the child allowance is derived from a temporary correction that is based on an indexation part of Reduced by an amount for housing costs. The amount for housing costs amounts to 3% of the calculation bases. If the calculation basis is based on the minimum wage, then no deduction will take place. 6. Increased by holiday allowance. The holiday allowance is 8% of the gross amount on which the calculation basis is derived. The gross amount thus calculated is recalculated back to a net amount whereby the fiction is used as serve as the gross wages for the usual wage tax and other compulsory deductions in the Netherlands. Besides the above elements, other optional deductions (contributions to premiums for health insurance) and allowances (allowance for additional pension) are also included in the calculation examples Local salary The amount obtained by applying the calculation referred to under II, the local net salary to which the development worker is entitled is deducted. The difference is thus the income supplementation. 23

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