Group Benefits
An individual choosing to contract through Highveld PFS is given the option of joining any of the following group schemes:
- Medical Aid Fund
- Provident Fund
- Income Protection Plan
MEDICAL AID FUND
Highveld PFS offers three group medical aid schemes, namely Discovery Health, Momentum Health and Medihelp. When joining there will be no underwriting, waiting period or penalties. These funds will be tax effectively structured as part of your income. In addition, contributions to Keyhealth will also be allowed as tax effective structuring.
Discovery Health
This new generation medical aid scheme distinguishes between hospital related expenses and non-hospital expenses (day-to-day care), but provides cover for both, depending on a variety of scheme options that one can choose from.
For hospitalisation coverage there is a choice of either selecting the Executive plan, which offers extensive hospital benefits at 300%, Classic plan, provides hospital benefits at 200% of Discovery Health rate, Essential provides hospital benefits at 100% of Discovery Health rate and the Coastal is unlimited within the network of coastal hospitals also at 100% of Discovery Health rate.
The extent of coverage for non-hospital expenses is determined by the member’s selection of any of the hospital plans and a neatly structured medical savings account that forms part of the medical premium. Member who suffer from chronic conditions are catered for in various ways under the different health plans.
Discovery also offers a loyalty programme called Vitality that rewards generously on the basis of a healthy life style
Medihelp
Momentum Health offers the same new generation scheme benefits as Discovery but with a wider variety of options to suit the individual needs of contractors and consultants.
Within the product range of Access, Custom, Incentive and Extender options, members have the freedom to select Associated hospitals to reduce premiums further.
Non-hospital related expenses (day-to-day care), will be paid from the medical savings account. In addition a basic health platform also reduces initial costs. Chronic cover is unlimited according to the Chronic Disease List (CDL), which forms part of the Prescribed Minimum Benefits (PMBs). Chronic benefits are subject to registration and approval.
The wellness rewards programme offered by Momentum Health is called Multiply.
Momentum Health
Momentum Health offers the same new generation scheme benefits as Discovery but with a wider variety of options to suit the individual needs of contractors and consultants.
Within the product range of Access, Custom, Incentive and Extender options, members have the freedom to select Associated hospitals to reduce premiums further.
Non-hospital related expenses (day-to-day care), will be paid from the medical savings account. In addition a basic health platform also reduces initial costs. Chronic cover is unlimited according to the Chronic Disease List (CDL), which forms part of the Prescribed Minimum Benefits (PMBs). Chronic benefits are subject to registration and approval.
The wellness rewards programme offered by Momentum Health is called Multiply.
Please note that the above merely provides a summary of the different plans available on Discovery and Momentum Medical Schemes. For full details of the benefits payable, contact our offices. |
PROVIDENT FUND
As part of a comprehensive retirement planning available to all contractors and consultants, Highveld PFS has registered the Highveld PFS. Members select monthly contributions to the Fund voluntarily, which can also be changed, as the contractor’s financial needs change. The contribution constitutes 10% of what is known as a Fund Salary. The Fund Salary is used to determine the benefits of the Provident Fund, which include:
Life and Disability Cover (Optional)
- If this option is selected, a member receives 3 times the annual Fund Salary as a death benefit. This benefit is paid out to beneficiaries at the death of the principal member.
- Disability cover of 75% of Fund Salary is paid out monthly until 60 in the case of total disability, and includes an annual inflation increase.
- The benefit becomes payable 1 month after the date of disability.
Pension Builder
- If life and disability cover are selected, a percentage (currently 72.26%) of the monthly contribution towards the Provident Fund is paid into the Retirement Investment.
- If life and disability cover are not selected, 95% of the monthly contribution towards the Provident Fund is paid into the Retirement Investment. The remainder is paid to the scheme administrator for administration costs.
Provident Fund Options
- A member may select to have no Life and Disability Cover, which means a greater direct contribution to the Retirement Investment on a monthly basis. This may have a significant influence on the retirement value.
- Freedom of Investment Choice with the selection of any combination of the available investment portfolios:
Growth Portfolio
Equity based
Allan Gray Global Balanced Fund
Inflation Targeted Portfolio
Equity based
Retirement On Line (ROL) Inflation Targeted Fund
Capital Secure
Multi Manager Fund
Metropolitan Smooth Bonus Fund
Capital Secure
Money Market
ROL Money Market
- Relatively young members of the Fund use the Growth Portfolios. It is equity based and therefore a risk portfolio with high growth potential. Returns are not secure and dependent on market fluctuations.
- One of the Capital Secure funds is a multi-managed fund by Metropolitan, while the other is a Money Market fund managed by Sanlam. Members who plan to retire in the next 10 years and who would like to receive growth without placing their capital at risk use these portfolios.
Other Provident Fund Information
- Provident Fund contributions are deductible from your taxable income.
- One of the advantages of a Provident Fund, when compared to a Pension Fund is that the entire accumulated pension can be paid in a lump sum at retirement. (In the case of a Pension Fund only one-third can be paid in a lump sum.)
- The lump sum payment at retirement is taxable, due to the fact that the contributions were tax deductible throughout the period of contribution.
RETIREMENT AND ESTATE PLANNING
In addition to the Provident Fund, Highveld PFS offers comprehensive Retirement and Estate Planning to its contractors and consultants free of charge.
This planning includes:
- A comprehensive analyses of a client’s existing portfolio
- A Retirement Needs Analyses
- Comprehensive retirement planning calculations (pre- and post-retirement)
- Continuous reporting on portfolio performance
Highveld PFS makes use of qualified and independent investment advisors (free of charge to contractors) to assist in the planning process. Retirement planning is structured tax effectively and with the clients’ best interests at heart.
INCOME PROTECTION PLAN
The Highveld PFS Income Protection Plan is offered exclusively to all Highveld PFS contractors and consultants, free of charge.
This uniquely developed Accident and Illness Plan has, amongst others, the following scheme rules:
- It will cover 75% of your average income to a maximum of 75% of R20 000.00 per month.
- There is a 7-day waiting period, following an accident and a 14-day waiting period, following an illness.
- Payment will be backdated to date of incident, following the prescribed waiting period.
- There is a maximum claim period of 3 months per incident.
- An Insurance Company offers extended Income Protection, for a 12 or 24-month period, at minimal costs.
- There is exclusion on all pre-existing conditions for 365 days (1 year).
- A general exclusion of coverage for any illness contracted within the first 3 months after joining Highveld PFS is applicable.
- Any legitimate claims must be submitted to Highveld PFS in writing, within 7 days of claimable date.
- Supporting medical documents are to be submitted in the prescribed format and access to medical practitioners is to be granted.
Company
- Contract between Company & HPFS for the service of the Contractor/Consultant
- Invoice submitted to Company for Total Cost to Company
- Company pays HPFS total amount indicated on the VAT invoice without any deductions
Highveld PFS
- Service Contract between HPFS & Contractor/Consultant
- Structuring of Remuneration package
- HPFS pays net salary after deductions within 24 hours
- Contractor’s personal tax return is taken care of at no extra charge