NECSA PENSIONER DAY

Date

Presented by: Dr Dieter Tillwick

Chairperson: Pensioner Committee

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Major Personnel Changes the Past Year Major personnel changes over the past year: 1. Mr Fred Botha the MSC chairperson (11years) and member (6 years)

retired and chaired the last MSC meeting Jul 18 A new MSC chair has not as yet been elected 2. Mrs Petra Grundling the Necsa HR representative for pensioner

matters retired end Sep 18 after serving pensioners for 32 years Necsa HR for pensioner matters will now be provided by

Anita Wright, Lebogang Boikhutso and Mpotseng Maruping 3. Dr Anthony Jackson the PC member retired Oct 18 after 18 years Co-opted Petra Grundling on PC Oct 18 for election today 3. Mr Andre Coetsee the MSC PV Union member for 15 years has

retired Nov 18 Co-opted Andre Coetsee on PC Apr 18 for election today 5. Dr Themba Tyobeka elected co-opted member on PC the 2 years Co-opted as PC Member Oct 18 for ratification today

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Members of Pensioner Committee Years Service/Experience 1 Chairperson Dieter Dr D Tillwick 5 + 4 experience 2 Treasurer Willie Mr W G de Kock 3 3 Secretary Mike Mr M Britton 5 4 Member Buzz Mr B Leuner 4 5 Member * Andre Mr AS Coetsee 1 + 15 experience 6 Member + Themba Dr T Tyobeka 2

7 Co-opted Ria Mrs R van Greunen 2 8 Co-opted * Petra Mrs P Grundlingh - + 32 experience 9 Resigned Jaco Dr A Jackson 18 * Election today and + ratification today

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Meetings during the Year

No Meeting Date 1 MSC (attended D Tillwick and M Britton) 12 Apr

1 PC 18 Apr 1 Pensioner Forum (PF) (All PC members) 18 Apr

Breakfast DH CEO Mr Jonathan Bromberg (D Tillwick) 28 Jun

Ad Hoc (MSC) (attend D Tillwick, A Coetsee, M Britton) 13 Jul

2 MSC (attended D Tillwick and A Coetsee) 19 Jul

2 PC 25 Jul 2 Pensioner Forum (PF) (All PC members) 25 Jul

3 MSC (attended D Tillwick and B Leuner) 18 Oct

3 PC 24 Oct 3 Pensioner Forum (PF) (All PC members) 24 Oct

1 Annual Pensioner Meeting 7 Nov

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Matters Addressed at PF & PC Meetings 1. PSG services as the medical consultant 2. PSG support services to the PC (e.g. On Necsa site, pensioner wellness

days, Annual Pensioner Day and communication) 3. Discovery and Fedhealth medical option and plan changes 4. Low cost medical plans 5. Pensioner assistance and services by Necsa Anita Wright, Lebogang

Boikhutso and Mpotseng Maruping 6. Replacement of MSC chair 7. PC composition 8. Improvements of Necsa webpage for pensionners 9. Finances 10. Pensionner matters (e.g. Communication and Necsa web page) 11. Risk Register of the PC

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Pensioners Deceased last 1 Oct 17 – 30 Sep 18 No Description

1 Members on Discovery (Retirees) 24 2 Member on Fedhealth (Retirees) 0 2 Members cash option ? 4 Continuation Member on Scheme

(i.e. spouse of deceased Principle Member) 45

Total 69 The PC expresses their sincere condolences with the family members who lost a loved one.

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Pensioner Medical Scheme Statistics Oct 2018 No Description of Pensioners Principle

Member Spouse Adult Dependant

Child Dependant

1 Pensioner retired < 1990 -26 176 -4 32 0 1 -1 2

2 Pensioner retired > 1990 -20 585 -2 304 0 16 0 12

3 Retrenched pensioner – cont. 0 1 0 1 0 0 0 0

4 < 10 years service (10% pa) 0 4 0 3 -2 0 0 0

5 Pelchem +8 24 +7 21 +2 4 +3 3

6 NTP +2 20 +2 16 +4 4 +1 3

7 Cash option -7 84 0 31 0 0 0 0

8 Fedhealth 0 6 0 2 0 0 0 3

Total -50 900 +3 410 +4 25* +3 23

Total on Discovery/Fedhealth -33 1243 Red No. changes from 2017/18

• Not subsidised

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PRMA Subsidy Calculation 2019

Discovery Health Essential Core* & Comprehensive** Rates (R) CPI Escalated (R) Beneficiaries Subsidy 2005 2018 2019

Principal Member (PM)* 100% 585 1227 1287 Spouse* 100% 379 793 832 Child (< 21 years)* 100% 244 512 537 Non chronic PM* ATB/MSA 80% of R354 283 593 622 Current chronic PM** 80% top-up: - PM 330 705 739 (before 1 Jan 2015 and get no ATB/MSA) - Spouse 269 562 589

- Child 47 100 105 Additional (retired before 1 Jul 1990) 80% of R136 109 227 238

CPI Inflation (%) pa and Cumulative 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3.60 5.80 9.00 3.50 6.30 3.50 5.69 5.47 5.97 5.92 4.60 6.12 5.06 4.91 3.60 9.61 19.47 30.82 39.07 43.93 52,12 60.44 70.02 80.09 88.37 99.90 110.01 120.33

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Necsa PRMA Liability 31 March 2017

Assumptions life expectancy after 65 years:

• Male 17.2 years

• Female 21.4 years

Description Necsa Pelchem NTP Liability in million R Total

Pensioners mR 353 mR 27 mR 20 mR 400 Active in service mR 82 mR 18 mR 10 mR 110

No of Members Total Pensioners 920 19 22 961 Active in service 255 60 32 347

Discovery Health

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• Discovery average plan increase for 2018 are 9.2%

• Increase in pensioner subsidies is based on the September CPI of 4.91%

• It will thus be more problematic to keep up with the cost of medical care

• The subsidies are payable by Momentum

• We appreciate it that Necsa continues to honour their obligation in paying these subsidies

• Please ensure that your plan option is the most suitable and affordable. PSG has sent out letters to members who are probably not on the right plan

• Use the consulting services of Necsa and PSG who are available here today and the next few days at Necsa

Communication

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The Postal deliveries are not satisfactory and continuous improvements must be made to communicate with the 816 pensioner principle members: 1. www.necsa.co.za Necsa website under drop down menu “About Us”, click

Pensioners. Which contains following information: (i) All information which had to be posted, (ii) AGM presentation and minutes (iii) Terms of Reference of Pensioner Committee (iv) Necsa, PSG and PC contact details (v) Discovery and Fedhealth 2019 updated plans and prices (vi) Wellness feedback (vii) All PSG news flashes and health awareness tips

2. SMSs (~ 700), e-mails (~ 500) and letters (~ 200) were sent to pensioners to contact PSG (Lynette Fourie) or Necsa (Anita Wright, Lebogang Boikhutso and Mpotseng Maruping) for information and assistance with plan option selection

Please communicate change in addresses, telephone and cell phone numbers and e-mail addresses to Anita or upload on Necsa web page

PSG Consultant

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1 We would like to thank PSG for their work this during this year 2 Many thanks to PSG for supporting this Annual Pensioner Day

with the great lunch to follow as well as finger lunches at PF and PC meetings

3 Presentations will follow later by PSG on: • Discovery Health and Fedhealth changes and options, • Gap Cover, and • General Medical matters

4 The cash option members should please note that PSG is not your consultant but you can complete a Third Party consent form to appoint PSG as your consultant

PC Saving Plan (in Rand)

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Description Credit Debit Balance Balance 30 Sep 2017 84 753 Interest 6 120 Contributions from new pensioners 500

Bank costs 37 Administration cost (farewell J Ehlers) 2322 Balance 30 Sep 2018 89 014 Notes: 1 Mr Willie de Kock prepared the financial statements 2 Once off contribution by new pensioner members > R100 3 This is a safety net for any future costs to maintain PRMA benefits 4 I appeal to all pensioners who have not made a contribution to do so

Algemeen en Dankie 1. From 1 July 2018 the Group Life Insurance rate is R1.78 per R 1 000

2. Necsa representatives John Nkwana and staff for their support

3. PC members for their work and contribution

4. Necsa for the making this Annual Pensioner Day possible

5. PSG for the lunch today and Nerine Brink, Lynette Fourie, Kays

Mokgothu, Buhle Mtumbe, Mari Smit for their services and support

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Dankie/Thank You for Your Attendance

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Geseënde Kersfees en ń voorspoedige nuwe jaar! We wish you good health

over the festive season and the year ahead!

Disclaimer: The PC has taken care that all information provided in this presentation is true and correct, However, the PC shall not be responsible for and therefore disclaims any liability for any loss, liability, damage (whether direct or consequential) or expense of

any nature whatsoever which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of or reliance upon any information provided in this presentation.