The Trustees of RAAF Welfare Trust Fund (RWTF) administer the RWTF Group Life Insurance and Low Cost Loans Scheme (RWTFGLI). The scheme, which is open to all PAF members on full-time duty who make a fortnightly contribution (by allotment) of $1, has two components:

• In the event of the death of a financial member of the scheme, subject to certain exclusions, a lump sum payment (currently $12,000) is paid to that member's next-of-kin, as recorded on the member's PREs; and

• At the sole discretion of the Trustees and depending upon availability of moneys, to provide low cost loans to financial members of the scheme.

The death benefit is not payable in the following circumstances:

• Death by suicide within 13 months of becoming a financial member of the scheme; or

• Within two years of becoming a financial members of the scheme, death arising from AIDS or suicide while infected with the AIDS virus; or

• Claims arising from the death of any former member of the scheme who for whatever reason, had ceased to contribute to the scheme prior to the time of death; or

• Exclusion with special consideration. Claims arising from the death of any financial member of the scheme while within an actual war or combat zone or death arising from injuries sustained while in such a zone. In all such cases a death benefit will be paid to the next of kin of a financial member as recorded on a members PREs, in accord with the Fund's ability to pay, provided always that an amount of such payment does not exceed $12,000.

It has come to the attention of the Trustees that the construction of the special consideration clause detailed above may give rise to an ambiguity. The intention was that the next of kin of a financial member who died, while within a war or combat zone or from injuries while sustained in such a zone, could not claim a benefit. Notwithstanding, consideration would be given to a payment from the Fund subject to moneys being available in the Fund. However, the inclusion of the second sentence in the special consideration clause could give rise to an interpretation that payment would be made without exception as long as the member was financial.

The Trustees propose to delete the exclusion with special consideration and in its place insert the following clause:

'Claims arising from the death of any financial member of the scheme while within an actual war or combat zone or death arising from injuries sustained while in such a zone'.

Additionally, the Trustees propose to add a further clause as follows:

'Members serving in a war or combat zone may, on return from such a duty, request a refund of contribution for the period served in that war or combat zone. Notwithstanding any refund of contributions that may be made, members will remain eligible for any other benefit of the scheme during the period of service in a war or combat zone'.

The underwriter of the RWTFGLI does not provide cover for death arising from injuries sustained in a war or combat zone and for the RWTF to do so on its own accord would contravene insurance industry regulations. RWTFGLI members should note that the Trustees have a continuing power to provide benefits to all next of kin regardless of how and where the death of a RAAF member occurs.

The proposed changes are simply to clarify the rules to ensure that no ambiguity exists and to extend to members who serve in a war or combat zone the opportunity to apply for a refund of contributions with no effect on other elements of the scheme, e.g. the membership qualification time for loans.