The government is planning to start a post-retirement medical insurance scheme (PRMIS) for civil servants, teachers and the disciplined forces.
The State Department for Public Service is seeking a consultant to conduct an actuarial study on what it will take to form the scheme and how much members will contribute.
“The objective of this study is to ascertain actual financial requirements that may include start-up capital to establish the PMRMIS,” says the state department in a tender document.
“The study must also determine membership and contributions for principal members during their working life or one off-payment at retirement.”
The development comes at a time when the Department of Pensions at Treasury says it receives an average of 20,000 new claims annually.
Treasury is currently servicing dues of about 300,000 pensioners registered at the department of pensions. This means that the pool of retiring government employees is bulging.
The State’s contributory scheme will see members pool resources to guarantee them continued access to health care upon retirement.
The study will guide the criteria for eligibility and determine the amount to be contributed in each category and the benefits, which include inpatient, outpatient, dental, optical, emergency evacuation and overseas care.
Members will have to contribute money that will allow the scheme to meet their health bills without grinding to a halt.
“The actuary should develop an actuarial model that projects the expected healthcare expenditure of members from the time they reach retirement age up to the death of the member,” says the State Department.
The consultant will also consider modalities of how members who have already reached 55 years and above and those who have already exited the service can join the scheme.
The available options to guide in onboarding those above 55 years include employer contribution or increasing contributions of young members to cushion the older ones.