The Namibian Broadcasting Corporation (NBC), in collaboration with I3 Consultants, is exploring a national reinsurance solution to address the long-term funding of post-retirement medical aid benefits.

NBC Director General Stanley Similo and senior leadership attended a consultation session today.

Under current auditing standards, entities such as the NBC are required to show that sufficient, dedicated funds are available to cover employees' post-retirement medical aid obligations.

The absence of such reserves has often affected audit opinions, as the national broadcaster – like many other state-owned enterprises – relies heavily on variable budget allocations from its sole shareholder, the Government.

The NBC and its actuaries and fund management partners at I3 Consultants are now pursuing sustainable avenues to safeguard medical benefits for retirees.

"That is why we started already in 2021 to look at means of how we can mitigate this, hence the meeting with I3. Our reality is that, as NBC, we will not be able to do it on our own. So the mainstream thinking is that SOEs, including the government, need to come together and say, 'How do we manage the issue of medical aid coverage beyond retirement and, most probably, before?" said NBC DG Stanley Similo.

The discussions are expected to include key national stakeholders, such as the Namibia Special Risks Insurance Association (NASRIA), NamibRe, and major medical insurance providers, to provide a uniquely Namibian framework for sustainable post-retirement medical care.

Mweneni Mungeyi is the Actuarial Consultant at I3 Actuaries & Consultants. He said, "The discussion around the table is about how one manages this liability, but managing is one thing, but the importance of this benefit to employees is also very important, so balancing needs to take place, so that is also where there is a real challenge because it is a benefit available to certain employees, so one needs to not just manage liabilities but also ensure your employees are covered."

According to the NBC, this initiative also aligns with the corporation's transition to the International Public Sector Accounting Standards framework.

The broadcaster provides post-retirement medical aid, but the absence of set accrual funds increases long-term liabilities; hence, the need for a viable reinsurance framework.