Education Fees Protection

SCOTS COLLEGE INCORPORATED EDUCATION FEES PROTECTION POLICY

Background

a. Scots College will operate a Scheme which will maintain a fund of money to be known as the ‘Education Fees Protection Fund’ to be administered in accordance with the provisions of this Policy;

b. The purpose of the Scheme is to enable a Student to continue their education at Scots College if the Student’s Guardian dies or becomes disabled so as to be unable to pay fees, by payment of the amount of the Student’s tuition fees (and if applicable, boarding fees) from the Fund;

c. If a Guardian(s) is accepted to join the Scheme in accordance with the provisions of this Policy the Student will be entitled to receive the benefit of the Scheme in accordance with clause 13;

d. Scots College will use its reasonable best endeavours to maintain sufficient moneys in the Fund to meet claims under this Policy;

e. This Policy confers on a Student an entitlement to the benefit only of the Fund and only according to the terms and conditions of this Policy.

Policy

The Board of Governors of Scots College Incorporated will operate a Scheme to administer and maintain a fund to be known as the “Education Fees Protection Fund” on the following basis:

1 Interpretation

1.1 Definitions:

“Admission” means the time when a Student commences attendance at the College;

“Application” or “Application Form” means the Application to join the Scheme and refers to the Application Form attached in Appendix 1;

“Approved Documents” means the documents referred to in clause 6.1;

“Board” means the Board of Governors of Scots College Incorporated;

“Boarding Fees” means fees payable for accommodation at the College’s boarding house;

“Claim” means a claim made in respect of a Student on the occurrence of an event described in clause 13;

“College” and “Scots College” means Scots College Incorporated, and the school operated by Scots College Incorporated, and includes, where applicable, the Board;

“Commencement Date” means the 1^st day of January 2017;

“Disablement” means Permanent Disablement or Long Term Disablement;

“Domestic Student” has the meaning provided in section 2 of the Education Act 1989;

“Education Fees Protection Fund” means the fund established by clause 2 of this Policy;

“Fund” means the Education Fees Protection Fund referred to in clause 2.1;

“Guardian” means a natural person who has custody or responsibility of a current or prospective Student whether a parent of the Student or not, and who is accepted by the Board as a Guardian of a Student in accordance with the provisions of this Policy;

“Headmaster” means the duly appointed headmaster of the College, holding office from time-to-time;

“Long Term Disablement” means a condition by which a person is incapacitated by illness or accident and, as a result of that incapacity is completely unable to engage in the occupation or carry on the business he or she was involved in prior to becoming incapacitated and is disabled to such an extent that it is unlikely that he or she will be able to work in his or her occupation or engage in any other gainful employment for which he or she may be reasonably suited by education, training or experience for a period of one year or more;

“Permanent Disablement” means a condition by which a person becomes totally incapacitated by illness or accident and, as a result of that incapacity is unable to engage in the occupation or carry on the business he or she was involved in prior to becoming incapacitated, and it is unlikely that he or she will be able to work again in his or her occupation or engage in any other gainful employment for which he or she may be reasonably suited by education, training or experience;

“Policy” means this Education Fees Protection Policy;

“Previous Policies” mean all previous policies of the College regarding payment of fees after the death or disablement of a Guardian;

“Pre-existing medical condition” means any illness or injury of which the Guardian is aware, or of which a reasonable person in the Guardian’s circumstances ought to have been aware, for which advice (including awaiting test results), care, treatment, medication or medical attention has been sought, given, or recommended within the last 3 years, regardless of whether a medical diagnosis has been made;

“Scheme” means the operation by the Board of a scheme known as the “Education Fees Protection Fund” to be administered by the Board, subject to this Policy, to enable a Student at Scots College to continue his education in the event of the death or disablement of his Guardian or Guardians;

“Student” means a student who has commenced his attendance at the College;

“Tuition Fees” means fees payable in respect of a Student’s tuition as defined by the Board during the academic year.

1.2 In this Policy:

(a) clause headings are for reference purposes only;

(b) references to any person shall include that person’s executors, administrators and successors.

Governance of the Scheme

2 Establishment and maintenance of the Scheme

2.1 The Board shall operate a Scheme which will maintain a fund of money to be known as the ‘Education Fees Protection Fund’ to be administered in accordance with the provisions of this Policy and to be funded from the revenue of the College.

2.2 The purpose of the Scheme is to enable a Student to continue their education at the College if the Student’s Guardian dies or becomes disabled so as to be unable to pay fees, by payment of the amount of the Student’s tuition fees (and if applicable, boarding fees) from the Fund.

2.3 The Board shall use its reasonable endeavours to ensure that the amount of money held in the Fund is sufficient to make payment of all claims against the Scheme for benefits under this Policy from time to time.

3 Accounting for funds

3.1 Equivalent cash resources of the Scheme shall be kept in a Board-approved bank account or placed on a Board-approved interest bearing deposit. Any interest earned shall be credited to the Scheme’s account.

3.2 The College’s annual financial statements shall report on the Scheme’s account and investment accounts in terms of applicable Financial Reporting Standards or generally accepted accounting practice.

3.3 If the balance held in the Scheme’s account is considered by the Board to be more than is required to meet the liability from time to time, based on actuarial advice, the Board may agree that the excess balance be used for other College activities as determined by the Board and confirmed at the next meeting of the Board.

4 Payments from the Fund

4.1 The Board shall authorise payment from the Fund of:

(a) Direct expenses of administering the Scheme; and

(b) Payments for Tuition Fees and, where applicable, Boarding Fees for Students entitled to receive benefits according to the terms of this Policy.

5 Governance of the Scheme and Management of the Policy & Fund

5.1 Governance of the Scheme and management of the Fund shall be the responsibility of the Board and in respect of such responsibilities the Board’s decision is final.

5.2 The Board retains the right to delegate. However, the following shall remain the sole responsibility of the Board and as such cannot be delegated:

(a) any changes to this Policy;

(b) any changes to Approved Documents under clause 6 of this Policy;

(d) approval of applications to commence Guardianship per clause 12 below;

(e) approval of the granting of a benefit under the Scheme to a Student, in the event of the death or disablement of a Guardian.

5.3 The investigation of claims by or on behalf of a Student to receive a benefit under the Scheme is delegated to the Finance and Risk sub-committee of the Board, who shall report their findings to the Board at its next meeting.

5.4 The Board delegates to the Headmaster responsibility as follows:

(a) ensuring that in each case, the Application Form is properly completed and signed by the Guardian(s) concerned and that all relevant information is provided;

(b) maintaining records of those Students who receive a benefit under the Scheme in the event of the death or disablement of a Guardian of the Student;

(d) reporting to the Board any application made by or on behalf of any Student or family to receive a benefit under the Scheme;

(e) ensuring the Scheme and accounting for the Fund meets all accounting and audit requirements, and making reports as required by the Board;

(f) dealing with any enquiries from Guardians;

(g) observation of all requirements relating to privacy matters in accordance with the College’s Privacy Policies.

5.5 The Headmaster may delegate in writing any of responsibilities referred to in clause 5.4 to senior College staff as appropriate. The Headmaster shall remain accountable to the Board for the management of the Scheme and the Fund.

5.6 The Board’s Secretary shall maintain a record of the Board’s decisions and actions in relation to the Scheme, and those of any Board sub-committee, including, but without limitation, all correspondence with Guardians, applications for benefits under the Scheme, medical and all other evidence required to support a claim under the Scheme and the Board’s decisions concerning applications to commence Guardianship.

6 Approved Documents

6.1 The Board has approved:

(a) This Policy;

(b) The Application Form attached as Appendix 1

6.2 The Board may approve amendments to these documents from time to time

Commencement, Transition, Continuation, Previous Policies.

7 Commencement

7.1 Subject to adoption of this Policy by resolution of the Board, this Policy shall commence on the Commencement Date.

8 Transition to the Scheme

8.1 The Board may resolve to transfer any funds held in respect of one or more Previous Policies to the Scheme, subject to any requirements necessary to ensure that any benefits accrued to Students under one or more Previous Policies are preserved.

9 Continuation of the Scheme

9.1 The Scheme will continue in effect:

(a) until revoked by resolution of the Board; or

(b) until total claims against the Fund at any time exceed the total sums of money held in the Fund.

10 Revocation of Previous Policies

10.1 Subject to clause 8.1, the Previous Policies are revoked on the Commencement Date, to the extent that such Previous Policies had not already been revoked before the Commencement Date.

10.2 Reasonable notification of the adoption of this policy shall be made to Guardians of Students.

11 Variation of Policy

11.1 The Scheme and this Policy may be amended or varied by resolution of the Board.

11.2 Reasonable notification of any substantial Variation of this policy shall be made to Guardians of Students.

Operation of the Scheme

12 Application to join the Scheme

12.1 Any Guardian(s)

(a) The Student reaches 19 years of age, or

(b) The Student ceases to attend the College, whichever is the earlier.

13 Payment from the Fund following death or disability of Guardian

13.1 Subject to the limits in this Policy, a Student will be eligible to have their Tuition Fees paid from the Fund, in the event of the death or Permanent or Long Term Disablement of a named Guardian.

13.2 Subject to the limits in this Policy, a Student will be eligible to have their Boarding Fees (if applicable) paid from the Fund in the event of the death or Permanent or Long Term Disablement of a named Guardian.

13.3 When a named Guardian dies or suffers Permanent Disablement, the Student will receive the benefit of clauses 13.1 and 13.2 until either:

(a) The Student reaches 19 years of age, or

(b) The Student ceases to attend the College, whichever is the earlier.

13.4 When the named Guardian or the survivor of them where more than one Guardian is named suffers Long Term Disablement, the Student will receive the benefit of clauses 13.1 and 13.2 until either:

(a) The Student reaches 19 years of age, or

(b) The Student ceases to attend the College, or

(c) the Board is satisfied on such medical evidence and advice as the Board may reasonably consider necessary that the Guardian is potentially able to return to his or her occupation or engage in any other gainful employment for which he or she may be reasonably suited by education, training or experience; whichever is the earlier.

14 Benefits limited to the fees charged to Domestic Students

14.1 Where a Student becomes entitled to have their Tuition Fees paid from the Scheme, the maximum amount that shall be paid by the Scheme in any academic year shall be limited to the Tuition Fees charged for a Domestic Student in that academic year.

15 Identification of Guardian

15.1 The Guardian(s) named in the Application Form shall be the Guardian(s) in respect of whom the named Student is entitled to receive the benefit of the Scheme.

15.2 For the avoidance of doubt, and subject to clause 17

(a) If one Guardian is named, then on the death or Disablement of that Guardian the Student may receive the benefits of the Scheme as provided in clause 13 above,

(b) If two Guardians are named, then on the death or Disablement of either those Guardians, the Student may receive the benefit of the Scheme as provided in clause 13 above.

15.3 A maximum of two persons can be named as the Guardians of any one Student at any time.

16 Assessment of a claim

16.1 A claim for a Student to receive the benefits under the Scheme in the event of the death of a Guardian must be accompanied by a certified copy of the New Zealand death certificate.

16.2 On receipt of a claim by the Board for a Student to receive the benefits under the Scheme based on the Disablement of a Guardian, the Board shall be entitled to require evidence, including independent medical or other professional assessment on terms stipulated by the Board, to satisfy the Board that the Guardian suffers a Long Term Disablement or a Permanent Disablement. In this clause, “evidence” shall include reports and advice obtained from the Guardian’s personal doctor or general practitioner to support the claim, to which the Guardian, by applying to join the Scheme, consents.

16.3 Following the acceptance of a claim by the Board in the case of Long Term Disablement of a Guardian of a Student, the eligibility of the Student to receive benefits under this Policy will be reviewable at 6-monthly intervals.

17 Certificates and declining coverage

17.1 If a Guardian’s death occurs in circumstances where a New Zealand death certificate is not issued, then the College may require that a notarised copy of the death certificate be provided.

17.2 In the case of Disablement of a Guardian, the College may decline benefits to the named Student unless independent medical or other professional assessment of the guardian is carried out by medical health practitioners qualified and currently registered to practice in New Zealand.

17.3 In any circumstances, the Board shall be entitled to decline benefits to a named Student if the College, having made reasonable enquiries, reasonably doubts the authenticity of any certificate required by this Policy, or if the Board is unable to verify information in a certificate or other form provided to the Board.

18 Start of coverage

18.1 On the death of the Guardian, the Board must be provided with a copy of the death certificate within 90 days of the death occurring. Where a copy of the death certificate is not supplied within that time, the Board may choose to decline to approve coverage under the Scheme.

18.2 On the Disablement of a Guardian, the Board must be provided with a copy of a medical certificate within 30 days of the disability occurring. Where a copy of the medical certificate is not supplied within that time, the Board may decline to approve coverage under the Scheme.

18.3 If the death or disablement of a Guardian occurs after the close of term and prior to the commencement of the next College term, the Board shall waive the fees from the beginning of that next term.

18.4 If the death or disablement of a Guardian occurs during the College term the Board shall waive the fees apportioned on a day to day basis from the date of death or disablement.

19 Students not covered in some circumstances

19.1 A Student will not receive the benefit of the Scheme in relation to the death or Disablement of a Guardian:

(a) if that Guardian dies or become disabled from a condition of which they had reasonable knowledge at either:

(i) the time when the Guardian completed an Application Form; or
(ii) the time of admission of the Student to the College,
whichever is the earlier; or

(b) If the Guardian makes an incorrect declaration on any form or document that the Guardian is required to complete before admission of the Student, or under the Scheme; or

(c) the death or Disablement of the Guardian results from an unlawful act in which the Guardian has participated

19.2 A Student may, at the unfettered discretion of the Board, receive the benefit of the Scheme in relation to the death of a Guardian in circumstances where the death is self-inflicted.

19.3 A Student will not receive the benefit of the Scheme if that Student’s Tuition Fees or Boarding Fees are in arrears when a Guardian dies or becomes disabled, except at the discretion of the Board.

19.4 A Student shall not be entitled to receive the benefit of the Scheme in circumstances where that Student’s Guardian has died or suffered disablement and such death or disablement is due to any event whether acts of god, including earthquakes, fires, wars, riots, civil commotions, epidemics or any other event whatsoever, which has the effect of increasing the average death rate, or the average rate of Permanent or Long Term Disablement of Guardians beyond twice the average rate for death or Disablement for the last 5 years as certified by an Actuary. Nothing shall prevent the Board from approving or granting benefits under the Scheme as it considers just and equitable in all the circumstances, provided that for any one event referred to above, all Students seeking to rely on the benefit of this Policy shall be treated on a pro rata

20 Benefits limited to the Fund and not transferable

20.1 Nothing in the Scheme provides for a benefit to a Student, or a Guardian, other than the benefit of the Fund administered by the College from time-to-time, provided that where claims against the Fund exceed the amount held in the Fund, Students with a valid claim against the Fund as determined by the Board shall be treated on a pro rata

20.2 Where the amount held in the Fund is not sufficient to meet claims against the Fund;

(a) The College shall not be obliged to add to the Fund; and

(b) The College shall make the benefit of the Fund available to Students pro rata; and

(c) Students shall have no further claim against Scots College pursuant to the Scheme once the amount of the Fund has been exhausted.

20.3 Under no circumstances does the Scheme entitle any Student or Guardian to receive payment of any cash from the College.

20.4 The benefits accruing to one Student under this policy from time-to-time may not be transferred to another Student.