1. As you are aware, the Department of Public Service and Administration has implemented a new medical aid scheme for government employees (including educators) with effect from 1 July 2006 known as the Government Employees Medical Scheme (GEMS).
2. In order for this medical scheme to be implemented, an agreement was signed with organised labour on 22 June 2006 in which the following principles of the new medical scheme were highlighted:
  • The purpose of implementing GEMS is to ensure greater accessibility to medical cover by providing affordable medical cover to all employees, especially lower-income earners.

  • The medical subsidy will be aligned with the new tax structure.

  • The enrolment of employees with GEMS will be encouraged.

  • Cost-effective medical cover for employees will be ensured through GEMS over the long term.

  • The medical subsidy will be effectively administered.

  • The implementation of GEMS will encourage the recruitment and retention of professionals and employees with scarce skills.

3. All employees newly appointed from 1 July 2006 must belong to GEMS in order to receive an employer's subsidy with regard to their medical cover.
4. Employees who are appointed on contract for a continuous period of at least 12 months, will also qualify for membership of GEMS.
5. An employee appointed by the State before 1 July 2006 and who received the employer's subsidy on 30 June 2006 in respect of a registered medical scheme shall continue to receive the employer's subsidy of 66.6% of the medical contributions, subject to a maximum of R1014,00 per month, provided that the employee remains a member of a registered medical scheme.
6. Employees who, without a break in membership, transfer from one medical aid fund to another other than GEMS after 1 July 2006, will retain the subsidy from the State which was paid to them prior to 1 July 2006.
7. If an employee is on unpaid leave, his/her department shall continue to pay the employer's subsidy to the employee's medical scheme as long as the employee pays his/her contribution.
8. Due to the fact that the signed Resolution was only received on 22 June 2006 and the salary month of July 2006 closed off on 30 June 2006, the requirements of Resolution 1 of 2006 will only be implemented on Persal with effect from 1 September 2006.
9. This implies that any employee newly appointed from 1 July 2006 who is a member of any medical scheme other than GEMS will erroneously receive an employer's medical contribution, which will be recovered from 1 September 2006.
10. An employee who is a member of a medical aid fund and who wishes to transfer to GEMS, must note that prior notice of termination of membership must be given to the present fund and that in some instances, a notice period of 3 months is required.
11. A full breakdown of the employer's medical assistance with regard to GEMS is spelt out in the attached Annexure A.
12. You are requested to bring the content of this minute to the attention of all staff members.


SIGNED: J.H. HURTER
HEAD: EDUCATION
DATE: 2006:11:09

Annexure A  (size: 6 KB)