The NZPFU Protect Income Protection Insurance scheme has been a huge success ensuring those that are sick or injured and qualify for the protection no longer have the stress of lack of sick leave or income while being treated and recovering.

It is also a massive success for FENZ as it has saved millions in sick leave costs.

The considerable number of claims has meant a considerable amount of income and other benefits paid out to our members.  We cannot disclose the details publicly,  but the amount paid out in claims has exceeded the premiums paid.

As a result,  there has had to be some changes to the policy.  These are detailed below.

It is still a gold standard policy with a far lower waiting period and very high maximum weekly income threshold when compared to other insurances.  For firefighters in particular, it is very difficult to access income protection outside of this group policy and members have reported higher premiums with longer waiting periods and having to jump through medical hoops to be accepted.

• All members of the NZPFU are eligible to be covered by the NZPFU Protect income Protection policy.  

• For NZPFU members whose positions are covered by the NZPFU collective employment agreement,  the premium is paid by FENZ to the insurer without any deduction from the member. 

• For NZPFU members whose positions are not covered by the NZPFU collective agreement,  FENZ will reimburse the insurance payment, or any other income protection insurance premium, up to $50 a week.

If you are a NZPFU member but are not a member of the NZPFU Protect Income Insurance policy join now! Why wouldn’t you – free income protection insurance.

To join go to Resources and then the NZPFU Income Protection tab to download the relevant documentation that is then provided to the NZPFU via wellington@nzpfu.org.nz.

If you are not sure if you are currently a member of the NZPFU Protect Income Protection scheme,  email the NZPFU via wellington@nzpfu.org,nz to check.

The policy adjustments effective 4pm 1 September 2026 are:

1. The current waiting period of 7 days for an injury and 14 days for an illness will now be a 30-day waiting period for both injury and illnesses. 

• The income protection insurance is designed to benefit those with medium to long term injury and illness.  It was not intended for cases where only a very short period of time off work is needed.
• There has been a marked increase in members claiming income protection for injuries/illnesses that only impact their ability to work for a very short period of time. .  We have also had reports that FENZ management are requiring NZPFU members to claim income protection in cases where the member would not usually need to claim it, or where the member should be able to access return-to-work duties.   
• For those injured or ill there will be a waiting period of 30 days, before the income protection applies.  Members with injury or illness that is likely to require more than 30 days off work are still encouraged to make the claim so that the payments can be made promptly after the 30-day waiting period.
• Most injuries are covered by ACC so this will only affect the top-up. 
• Where the member is sick or has an injury not accepted by ACC then they will have to use sick leave for the 30 days. 
• Remember – if FENZ/ACC has refused to cover an injury or illness you think should be covered as a work-related injury then please contest it.  The NZPFU has access to expert lawyers to assist with ACC Reviews for occupational diseases and injuries.
• If presumptive legislation passes, occupational cancers will also be covered by ACC,  and again this waiting period change would only affect any top up. 

2. The maximum weekly benefit will remain at $3000 per week but the income replacement will reduce from 100% to 90%.

• The insurer calculates the average weekly benefit based on the members gross FENZ income for the 12 months prior to the injury/illness.  The gross payment (capped at $3000 a week)  is made to the claimant,  who is responsible for any usual outgoings from their wages including tax.
• Currently a member is currently paid 100% of that average weekly wage up to $3000 gross a week.   That will change to 90% but the cap remains at $3000 gross a week.   
• For those where the average income was higher than the $3000 threshold, they are unlikely to see any change.   For example, if the claimant’s gross weekly wage was calculated at $3500 at the 100% rate they would have received the maximum $3000 gross a week and at 90% would still be receiving the maximum $3000 gross a week income protection payment.
• For those earning less than the $3000 gross threshold they will receive 90% of their average weekly earnings.  For example, if the claimant’s gross average weekly wage was calculated at $2500 per week, the new weekly income protection payment would be $2250 gross. 
• This change will only affect new claims.    Those already receiving 100% of their weekly wage as an income protection payment (prior to 1 September 2026) will continue to do so.

3. Where the Member is granted income protection while an ACC/FENZ decision to decline cover is reviewed or appealed, a 30% tax adjustment will be withheld by the insurer to reflect the tax treatment of ACC benefits. 

• A member can be granted income protection weekly payments while a decision by ACC or FENZ to refuse cover of that injury or illness is being reviewed or appealed.  When ACC/FENZ  cover is eventually won, the Member is required to pay back to the insurer any ACC or FENZ reimbursement paid for that period of the injury/illness. 
• The problem is that ACC/FENZ only pay the net amount and the member does not have the full gross amount to pay back the insurer.  
• This has been costly for our policy and was never the intention for the insurer to be out of pocket.  It is a very important part of the cover for the member to be able to access income protection while we take a review or appeal a decision to decline.  These legal processes can take months and without the income protection cover the member would have to rely on paid or unpaid sick leave throughout this period.  This change to the policy ensures the member can still receive the income protection while the case is pending, but is not left in the situation where they have to find more than was reimbursed.  
• When the Member is reimbursed from ACC/FENZ for the backdated period (once the claim is deemed or determined to be accepted) full calculations will be done. If the insurer has withheld more than the tax paid, then the balance will be paid to the member.

The policy and schedule effective 4pm 1 September 2026 is available for download on the NZPFU website.  Click on Resources and then the NZPFU Income Protection tab for all information on the policy and to join the scheme.

In unity,
Wattie Watson
National Secretary