Employee Benefits
The Group employs over 15 000 staff – with over 11 000 of these in a permanent full-time capacity, and the rest as either permanent part-time, flexitime, contract or casual employees.
TFG offers an extensive spectrum of employee benefit schemes totalling more than 80. Most of these are made available only to the group’s full-time employees as they entail longer-term commitments and processes that are only appropriate for full-time permanent employees. The group strives continuously to improve, enhance or enlarge this offering.
A summary follows of some of the key initiatives.
Medical Aid
TFG Medical Aid Scheme is an inhouse subsidised medical scheme designed to best suit the needs of most employees. Membership of a medical scheme is voluntary except for employees at a grade where they qualify for a car allowance. The scheme has approximately 2 800 principal members but covers approximately 5 900 lives as members’ dependants are entitled to benefits.
The scheme is administered by the Metropolitan Health Group and is fully compliant with the Medical Schemes Act. The board of trustees of the scheme is responsible for all aspects of its operations, which are reviewed by both the TFG medical aid audit committee and external auditors.
The accumulated funds ratio of the scheme at 31 December 2010 was 50,29% which is well in excess of the officially required minimum of 25%, but not excessive for a small inhouse scheme that will be subject to greater volatility than the norm as a result of sporadic large claims.
The high claims experience of the scheme necessitated average increases of 14,8% and 14,5% respectively for the two benefit plans available for 2011, compared to 19,5% and 15% for the previous year.
Employees based in Namibia may elect to join a medical scheme that is similarly funded by the group.
All permanent staff of the RCS Group are required to become members of a medical plan of their choice offered by Discovery Health.
Retirement fund
All permanent staff of the group’s wholly-owned subsidiaries are required to join TFG Retirement Fund. Despite the volatility of financial markets the fund achieved an overall performance return of 13,2% during its financial year. The total market value of the assets of the fund at 31 March 2011 was R2,98 billion, which is R0,28 billion higher than the figure for the previous year.
Pensioners were awarded an increase of 6,5% effective from 1 January 2011, which is in line with the pensioner increase policy of the fund to award at least inflationary increases, subject to affordability.
Apart from retirement benefits, the following are provided by the fund:- A funeral benefit of R10 000 on the death of the principal member or her/his spouse and a lesser benefit on the death of a dependent child.
- A death benefit of four times annual salary as well as the member’s gross equishare is made available to provide benefits to dependants and beneficiaries in the event of death in service. Where the death is accidental, a further benefit of twice annual salary is payable.
- In cases of disablement, an insured disability benefit is provided to qualifying staff members, equating to 75% of pensionable salary earned at the time of becoming disabled. This is payable until attainment of normal retirement age (subject to continued disablement), after which the normal retirement benefit becomes effective.
Employees of RCS Group are not members of TFG’s Retirement Fund but receive comparable benefits from the Liberty Life Provident Fund.
Where required, employees of subsidiaries trading outside South Africa belong to umbrella funds that comply with the legislation of the relevant country.
Educational Assistance
To assist employees with tertiary education costs for their children on an annual basis, TFG offers a low-interest educational loan which is payable over a two-year period.
Sponsorship
Employees of TFG who wish to further their education in a field that relates to their career may apply for the benefit of sponsorship which amounts effectively to the refunding of certain levels of educational costs. Once sponsored on this basis, employees are required to achieve the relevant qualification in order to qualify for a full refund. Currently 849 of those employees receiving sponsorship are previously disadvantaged individuals, representing 85,6% of the total number sponsored.
The group also offers sponsorship of a one-year intensive retail diploma which is provided by UNISA. Sponsorship amounting to R165 000 was provided during the review period for this purpose.