The Fund is established by the Defence Act, Act 42 of 2002 and is operated in accordance with General Regulations, Chapter XV as promulgated. The Fund is specifically exempted by the Registrar of Medical Schemes from registering as a Medical Scheme and is therefore exempted from the Medical Schemes Act.
The membership of the fund consists of the following categories:
- Active membership (17 500 principal beneficiaries)
- Contributing members (57 500 members) – These are actively employed uniform personnel who contribute to the fund and will qualify for membership at exit date or retirement
- Deferred members who have exited the Defence Force prior to the age of 60 and will become active members at the age of 60
- The Fund operates on a pre–funded basis with active uniformed members contributing whilst in active service. Deferred members contribute through a debit order system on a monthly basis until the age of 60.
- The South African Military Health Services (SAMHS) of the Defence Force is the preferred health service provider to the beneficiaries. Where such required services cannot be delivered through the SAMHS structure, a written pre–authorisation must be obtained from military medical practitioners for the services to be rendered by private healthcare providers.