ANNUAL REPORT
Huge pay increases for medical schemes principal officers
Polmed’s trustees hike the pay packet of its principal officer by 64%, LMS’s allow almost tripling of remuneration
Trustees of the South African Police Service Medical Scheme (Polmed) and LMS Medical Fund approved massive pay rises for their principal officers in 2016, taking their remuneration to R9.4m and R9.7m, respectively, according to the Council for Medical Schemes’s 2016-17 annual report tabled in Parliament on Thursday. The council is a statutory body responsible for overseeing the medical schemes industry and safeguarding consumers’ interests but appears to have been powerless to stop Polmed’s trustees from increasing the pay packet of its principal officer by 64%, or preventing LMS’s board of trustees from almost tripling the remuneration of theirs. While the council can issue guidance on pay, the Medical Schemes Act lacks provisions that would give it the power to intervene directly. "Principal officers are appointed by boards of trustees," said council spokeswoman Elsabé Conradie. "The council is not part of the appointment process. Trustees must realise the importance of their role...
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