The cost of paying HIV/Aids benefits for retirement funds may double by the
year 2005, and treble by 2010, Deane Moore, Metropolitan Employee Benefits`
marketing actuary, says.
Speaking at a Council on Education in Management conference this week, Moore
warned that collaborative initiatives are needed to reduce the negative
impact of the rampant HIV/Aids epidemic on the South African workplace.
Translating the cost of HIV/Aids to retirement funds into rand terms, he
says a typical manufacturing company with full responsibility for increases
in the cost of so-called risk benefits (medical aid, group life and
disability cover) would have to add some 15 percent to its remuneration
budget for 2005. Alternatively the risk benefits would have to be
halved.