Post-Retirement Medical Aid Actuarial & Buyout Services

The South African Nursing Council (SANC) is seeking a service provider to design, manage and execute a voluntary buyout programme for its Post-Retirement Medical Aid (PRMA) liability. The Council currently provides post-retirement medical aid benefits to 20 retired employees, representing a significant unfunded obligation. The most recent valuation was carried out as at 31 March 2026, and the Council requires an updated actuarial valuation in line with IAS 19 (Employee Benefits) to support the accounting and disclosure requirements for post-employment benefit obligations. The appointed firm must bring together actuarial, legal and negotiation expertise to deliver an end-to-end solution over a 12-month period.

The scope of work is divided into three phases. Phase 1 covers actuarial valuation and financial modelling: verifying and cleaning the PRMA beneficiary database (ages, dependants, medical aid options and subsidy tiers), performing the IAS 19 liability valuation, and developing an individual buyout pricing matrix with actuarially justified, financially sustainable and legally defensible settlement options, such as lump-sum payments. Phase 2 covers legal framework and strategy design: drafting a legal framework that complies with national employment and pension legislation and protects the Council from future liability or litigation, preparing individual Discharge and Settlement Agreements, and providing guidance on the tax implications of the buyout for beneficiaries, including applying for tax directives where necessary. Phase 3 covers stakeholder engagement and individual negotiations: producing plain-language communication materials, hosting collective briefing sessions (including working with unions or bargaining councils where appropriate), conducting sensitive one-on-one consultations with each former employee and their advisers or families without coercion, and facilitating formal acceptance, signed settlement agreements and the handover of verified payout schedules.

Key deliverables and indicative timelines are an Inception Report (2 weeks), an Actuarial Model with buyout matrices (6 weeks), Legal Toolkits including settlement agreements, consent forms and tax clearance templates (8 weeks), the Negotiation Phase with tracking of acceptance rates (16 weeks), and Final Close-out with signed agreements, final payout schedules and a close-out report (20 weeks). Payment is linked to accepted deliverables and milestones, and invoices must be valid, original and supported by the required evidence. Pricing must be a total all-inclusive price, with a pricing schedule per deliverable excluding VAT and a separate VAT line. Bidders must submit a valid Invitation to Bid, a Tax Compliance Status PIN or CSD number, proof of CSD registration, a Preference Point Claim Form and proof of specific-goals ownership, as well as written proof of registration as a Registered Service Provider (RSP) with the Actuarial Society of South Africa (ASSA) or another relevant regulatory body. Bids are evaluated in four phases: administrative compliance, mandatory requirements, functionality (minimum 70 out of 100) and price and specific goals, using the 80/20 preference point system under the Preferential Procurement Regulations 2022. Functionality is assessed on relevant experience (up to 15 points), key personnel qualifications including an actuary and a business analyst or equivalent (up to 35 and 20 points respectively), at least three client references no older than eight years (up to 10 points), and the quality of the proposed methodology (up to 20 points). Specific-goals points (maximum 20) are available for black, black women, black youth and disability ownership.

For the successful firm, the contract offers a structured, high-profile mandate within the public sector, with clear deliverables and milestone-based payment. It also provides an opportunity to build a track record in public-sector pension liability management, IAS 19 valuation, and sensitive individual negotiation. Interested bidders should review the Terms of Reference and bid documents carefully, confirm their compliance status and documentation before submission, and direct all enquiries in writing to the SANC Supply Chain Management team before the enquiry cut-off. Quotations must be delivered to the SANC tender box before the closing deadline, and remain valid for at least 60 days after closing.