The Public Servants Association (PSA) plans legal action to prevent the state from reducing the medical benefits of officials who retired before July 1992, the PSA said on Tuesday.
”The PSA is considering legal action to prevent the state as employer to reduce the medical benefits of pensioners who retired before 1 July 1992,” said Manie de Clercq, the PSA’s deputy general manager.
On November 4, 1993, the state and trade unions signed an agreement in which full medical assistance would be granted to those who retired or terminated their service, before July 1, 1992.
”The employer has now indicated that they are reneging from that agreement. Those people must be placed on a medical scheme with limitations,” De Clercq said.
”It is expected that affected members will from July 1, 2005, be placed on the Medihelp Plus option or be given the choice to join any other Medihelp option.
”The problem with this is that Medihelp Plus has a number of benefit limitations, such as for chronic medicine, non-chronic medicine, consultations, dental and a number of other services.
”This will mean that the state will reduce its own costs and place an additional financial burden on the affected members,” he said.
”It seems that the state is intent on reneging on the 1993 agreement which may result in pensioners who retired before 1 July 1992 losing some of their medical benefits.
”The PSA is investigating legal action to stop the State from acting to the detriment of affected members,” De Clercq said. ‒Sapa-AP