NATIONALTREASURY: SPECIAL PENSIONS
PRESENTATION TO THE PORTFOLIO
COMMITTEE ON FINANCE
21 AUGUST 2002
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CONTENTS
1. Purpose2. SP Boards and Administration3. Status on processing applications
and appeals4. Areas of Concern5. Actions instituted
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PURPOSE
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PURPOSE
To present a progress report to the Portfolio Committee on Finance on the Special Pensions process since the 3 April 2001 presentation.
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SPECIAL PENSIONS BOARDS AND
ADMINISTRATION
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SP BOARD
Appointed 1 January 2001 on full-time basis.
Appointed in consultation with political parties.
• Mr I Makopo (Chairperson)• Mr ZI Mthimunye (member)• Ms WR Ncame (member)• Mr CSA Setsubi (Member)• Mr SE Thokoane (member)
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SP REVIEW BOARD
• Ms Z Barmania (Chairperson) appointed 1 December 1998 on part-time basis,but commenced work in 1999. Resigned effective 14 August 2002.
• Mr ML Moloi (member) appointed 1 January 2001 on full-time basis.
• Mr M Walker (Actuary member) seconded from Negotiated Benefits Consultants (NBC) on a part-time basis.
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SP ADMINISTRATION
Mr T Magwaza (Chief Executive Officer) (Tel. 012 319 1098).
Mr M Lesufi (Assistant to the CEO) (Tel. 012 319 1098).
Regional offices:• Cape Town (Tel. 021 424 8220)• Durban (Tel. 031 327 0233)• P E (Tel. 041 585 1640)• Umtata (Tel. 047 532 5242)• Bisho (Tel. 040 639 1425)• Satellite offices: Polokwane (Tel. 015 297 7181) Mafikeng (Tel. 018 3842933)
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STATUS ON PROCESSING
APPLICATIONS AND APPEALS
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APPLICATIONS (SP BOARD)
PERIOD ENDING 16/08/2002
Total applications received 29 766
Adjudicated files 27 371
Approved 9 230
Declined 18 141
Awaiting adjudication as at 16/08/2002
2 395
Total applications received exclude 2 109 late applications
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APPEALS (SP REVIEW BOARD)
PERIOD ENDING 16/08/2002
Total appeals received 3 855
Finalised appeals 2 347
Approved 170
Declined 2 177
Awaiting review as at 16/08/2002 1 508
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AREAS OF CONCERN
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AREAS OF CONCERN
High rate of declined applications
• Apparent misunderstanding of the Act by applicants.
• Under 35s (younger than 35 years of age as at commencement date of the Act (1 December 1996)).
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AREAS OF CONCERN ... Continued
• Minimum service requirement (5 years full-time service).
• Definitions of “disability” and “dependant”.
• Information received from applicants not always complete in terms of the requirements of the Act and sometimes not reliable.
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• Investigations to verify information often prolong the adjudication process.
• This often necessitates requests for and acceptance of affidavits which could result in fraud.
Late applications
• The Act does not make provision for late applications.
AREAS OF CONCERN ... Continued
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ACTIONS INSTITUTED
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ACTIONS INSTITUTED
Administration efficiency
SP Inquiries Unit (Telephone/Walk-in)
• Combined with Pensions Administration Call Center in July 2001.
• Access to improved technology and working environment.
• Improved staff morale which led to improved customer service.
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ACTIONS INSTITUTED … Continued
Outreach Programme (Road shows)
Aims:
• Establish contact with stakeholders in the various provinces and/or regions.
• Inform stakeholders of progress and listen to and/or address their concerns.
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ACTIONS INSTITUTED … Continued
Outreach Programme (Research )
Aims:
• Gather information on applicants so as to facilitate processing of applications and appeals.
• Reach out to prospective beneficiaries of Special Pensions (those who are eligible for benefits but had not applied).
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ACTIONS INSTITUTED … Continued
Outreach Programme (Research )
Capacity:
• Establishment of a Research Unit is in progress (target date for full implementation is 2 September 2002).
• Mr CSA Setsubi will head the Research Unit.
• Appointed two Admin Assistants to the Research Unit.
• Seconded 2 staff from GEPF to the Research Unit.
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ACTIONS INSTITUTED … Continued
Outreach Programme (Research )
Pilot Project:
• A pilot project for the Research Unit will occur towards the end of September 2002 in Limpopo province.
• Roll out the research into other provinces in October 2002.
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SP BOARD
Some changes effective September 2002
• Mr I Makopo (Chairperson)• Mr ML Moloi (new member)• Mr ZI Mthimunye (member)• Ms WR Ncame (member)• Mr SE Thokoane (member)
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SP REVIEW BOARD
Some changes effective September 2002
• Vacant position (Chairperson).
• Mr M Matsobane (new member) seconded from GEPF on a part-time basis.
• Mr M Walker (Actuary member) seconded from Negotiated Benefits Consultants (NBC) on a part-time basis.
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SP ADMIN (September 2002)Mr T Magwaza (Chief Executive Officer)
(Tel. 012 319 1098).
Mr M Lesufi (Assistant to the CEO) (Tel. 012 319 1098).
Mr CSA Setsubi (Head: SP Research) (Tel. 012 319 1098).
Regional offices:• Cape Town (Tel. 021 424 8220)• Durban (Tel. 031 327 0233)• P E (Tel. 041 585 1640)• Umtata (Tel. 047 532 5242)• Bisho (Tel. 040 639 1425)• Satellite offices: Polokwane (Tel. 015 297 7181) Mafikeng (Tel. 018 3842933)
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ACTIONS INSTITUTED … Continued
Draft Amendment Bill 2002
Aims:
• To grant the Board discretion to condone late applications.
• To accommodate prospective beneficiaries of Special Pensions (those who are eligible for benefits but had not applied).
• To grant the Finance Ministry (via the CEO) authority to refer certain cases to the Review Board.
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QUESTIONS