10Member to effect endowment assurance policy

10 Member to effect endowment assurance policy

10.1 When a person becomes a member he or she must effect with an approved life office an endowment assurance policy on his or her life, or, if the member is not less than 50 years of age or has an unassurable life, a pure endowment policy, for such amount as, having regard to his or her age, is obtainable at an annual premium equal to the contributions payable by the University and the member as provided in this Statute in respect of his or her salary at the time when the person becomes a member.

10.2 A policy referred to in subsection 10.1 is to be expressed to mature at the member's prescribed age, and the member has a discretion to determine whether the policy will or will not provide for participation in any surplus that may be distributed by the life office from time to time by way of reversionary additions to the sums assured under participating policies.

10.3 In the case of a person who, when he or she becomes a member, is not less than 50 years of age or has an unassurable life, he or she may elect that, in lieu of the effecting of a policy on his or her life, the contributions under section 12 in respect of the member are to be held and accumulated by the Council with power to invest them in securities authorised by law for the investment of trust funds.

10.4 If a member has made an election under subsection 10.3, the moneys held by the Council and any securities representing any such moneys, together with the income from those moneys or securities, are, for the purpose of this Statute, to be treated as nearly as possible as if they were a life assurance policy effected on the life of the member for the purposes of this Statute.