BENEFITS APPLICABLE TO PENSIONERS

Transcription

1 1 of 6 BENEFITS APPLICABLE TO PENSIONERS (Where reference is made in this document to the male gender, the female is included) 1. SPOUSE S INSURANCE SCHEME The Spouse s Insurance Scheme provides life insurance upon the death of the member s spouse. Until the member reaches age 65, the spouse of a member enjoys life cover equal to twice the member s annual pensionable amount; where after the sum insured reduce by 25%. Over and above the life cover, a member s spouse enjoys disability cover up to age of 60. A conversion option may be exercised upon the death of the spouse or leaving of service by the member. Contributions to the scheme are prescribed by the underwriter and collected from the member monthly. The member pays the full premium. The return is payable to the spouse. (Definitions of pensionable amount and spouse may be found at the end of the document.) 2. GROUP LIFE INSURANCE SCHEME The Group Life Insurance Scheme provides life insurance upon the death of the member. At the age of 65 the life cover, of five times the annual pensionable amount, reduces by 25%. The return is payable to dependants as indicated on the nomination form (attached) or as named in a valid will. Contributions to the scheme are determined from time to time by the underwriter and collected monthly, as agreed with the retired staff member. The University contributes 40% of the premium linked to membership.

2 2 of 6 No disability benefits are included in this Scheme. 3. MEDICAL AID SCHEME 3.1 General conditions with regard to membership of the medical scheme A member or any of his/her dependants may not simultaneously be a member of the US medical scheme and any other registered medical scheme or claim for the same service from two medical schemes simultaneously If a member dies the member s dependants who, at the time of the member s death, are registered as dependants, will be offered the choice of continuing as members of the medical scheme. The registered spouse of the employee/pensioner or, if applicable, the oldest registered dependant may be regarded as being the main member of the medical scheme. The main member will in this case qualify for the appropriate contribution by the Council. If a spouse who became a member in this manner remarries, the Council s contribution will cease. The Council s contribution with regard to the dependants is continued in such situations Employees with a medical disability will be treated as employees until they retire on pension from the service of the University, where after the rules applying to pensioner members will apply. 3.2 Cancellation of membership Pensioner members who resign from the US s medical scheme will not be able to reregister as members of the US s medical scheme. 3.3 Determination of Council contributions to the medical premiums after retirement A main member who was employed by the US before 1 September 1997 or who was appointed between 1 September 1997 and 31 May 2002 and who has on retirement 20 years of unbroken service will on retirement receive the Council contribution for himself/herself and his/her adult dependant for life. In the case of any further dependants, the rules of the medical scheme will determine the period, for which the Council contributions will be payable.

3 3 of A main member who was appointed between 1 September 1997 and 31 May 2002 and who on retirement has fewer than 20 years of unbroken service will receive the Council s contribution only for the same number of equivalent years of unbroken service. The Council s contribution with regard to himself/herself and his/her dependants will remain constant and thus not be adjusted according to increases in contributions, medical cost-inflation or any other norm A main member who entered the service of the US on 1 June 2002 or thereafter will not be entitled to any Council contributions with regard to the medical scheme If a main member retires on pension from the service of the US before the age of 60, the Council contribution to the medical premiums will decrease by 0,25% for every month that the member leaves the service of the US before the age of The particular marker option the Council decides on to use as the basis for the calculation of its maximum contribution, the particular option under the medical scheme in which the main member participated at the time of retirement and the number of his/her dependants will determine the monthly contributions of the Council to the pensioner with regard to the medical scheme If the number of the main member s registered dependant s decreases after retirement, the Council s contribution to the medical premium will be decreased accordingly The Council s contribution to the medical premium after retirement will be linked to the persons of the main member and his/her dependants. If a change in the marital state of the main member after retirement results in an increase of his/her dependants, the additional dependants may be accepted for membership by the medical scheme, but will not qualify for any Council contribution to the member s medical contribution When children reach the age of 21 years, their continued membership will be determined by the rules of the medical scheme.

4 4 of 6 (Definitions of dependant and child may be found at the end of the document.) 4. FUNERAL COVER Members of the Medical Aid Scheme enjoy funeral cover with payment of a minimal premium. The benefit amounts to the following: 4.1 principal member and spouse R15 000,00; 4.2 children between the ages of 14 and 21 years R15 000,00; 4.3 children older than 6 but younger than 14 years R7 500,00; and 4.4 children younger than 6 years R3 750,00. The Council makes a contribution to the premium on the same basis as for the medical aid scheme. 5. ADMED INSURANCE PLAN Membership of the Admed Insurance Plan may be continued after retirement. Comprehensive cover with regard to hospitalisation is not provided for in all medical scheme options, and can result in a financial shortfall. The purpose of this insurance plan is to finance some of these shortages. The Council makes a contribution to the premium on the same basis as for the medical aid scheme. 6. EXEMPTION FROM COMBINED TUITION FEES The Exemption from combined tuition fees is granted to retired personnel subject to certain conditions of service. Refer to: Exemption-From-Combined-Tuition-Fees-at-Stellenbosch-University.pdf

5 5 of 6 7. DEFINITIONS Unless the context indicates otherwise, the following terms have the following meanings: 7.1. Child A member s child, stepchild or legally adopted child (including the child of a member s common-law spouse) younger than 21 years who is not self-supporting, and who is not a member or a dependant of a member of any other medical scheme Dependant (for purposes of the Medical Aid Scheme) i) A member s spouse who is not a member of another medical scheme. ii) The member s unmarried child, who is not a member or dependant of a member of another medical scheme, is not self-supporting and is younger than 21 years. iii) The member s spouse living with the member and who, on application to the Medical Aid Scheme and subject to such conditions as may be prescribed with regard to such a dependant, is recognised by the Medical Aid Scheme. iv) A member s unmarried child who is not self-supporting, is older than 21 years, studies full-time at an educational institution approved by the Medical Aid Scheme and who, upon application to the Medical Aid Scheme, is recognised as an adult dependant. v) A member s unmarried child, who is not self-supporting, is older than 21 years, and who, because of a mental or physical illness or a similar cause, upon application to the Medical Aid Scheme and subject to such conditions as the Medical Aid Scheme may prescribe, is recognised as an adult dependant by the Medical Aid Scheme. 7.3 Cost of employment The total cost of employment to the employer which includes all cash remuneration, benefits and all contributions to benefit funds. Compulsory statutory employer contributions and leave are not included in the cost of employment. 7.4 Pensionable amount As a rule, 75% of the total annual cost of employment. It can, however, as a result of the process of gradual phasing in for a specific individual at retirement be more or less than 75%.

6 6 of Spouse i) A person who is legally recognised as being married. ii) A person who lives with another person and intends to continue living together with them and who, reasonably judged, according to the facts of the relevant case, can be accepted as a partner in a permanent cohabitation relationship. DV0403-Benefits Applicable to Pensioners (January 2011)