Medical Aid Subsidies for Pensioners

Background

Prior to the conclusion of a National Collective Agreement, with regard to medical aid benefits which came into effect on 1 July 2003, continuing members (post retirement) were subsidised on a 65% Council contribution based on the Gold option of the Global Health Medical Aid Scheme.

It must be noted that the only medical aid scheme available to erstwhile Durban Council Employees (pre 1 July 2003) was Global Health which provided 3 options viz, Platinum, Gold and Silver.

Principles upon which the Post Retirement Subsidy is based

Upon retirement, an ex-employee who opts to continue to belong to medical aid, without a break, will continue to enjoy the same subsidy benefit he / she enjoyed whilst an employee.

Consequently, ex-employees of the Council who retired on or prior to 30 June 2003, are subsidised on a 65% (payment by Council) : 35% (payment. by the pensioner) based on the Gold option of Global Health.

The only options open to these retirees are those provided at the time of their retirement, viz, Platinum, Gold and Silver. However, should a continuing member wish to down grade to the Silver option (from either Gold or Platinum), the subsidy to he paid by the Council will he limited to the present employee/employer subsidy ratio i.e. 60% (by the Employer) and 40% (by the Pensioner) of the full contribution required by Global Health to belong to the Silver option.