Implementation of the Special Pensions Act (As Amended)

1
Implementation of the Special Pensions Act(As
Amended)

• UPDATE TO PORTFOLIO COMMITTEE ON FINANCE
• 10 November 2006

2
Purpose

• To brief the Committee on the implementation of
  the Special Pensions Amendment Act (Act 69 of
  1996 as amended)

3
Overview of Activities

• Setting up technical infrastructure to implement
  new benefits.
• National Awareness Campaign
• Developing Partnerships
• Pro-Active Research Project

4
Infrastructure For New Benefits

• IT Systems
• Forms
• Applications procedures and required
  documentation.
• Testing
• Training of regional staff.
• Training of call centre and walk in centre staff.

5
New Benefits

• Funeral Benefits
• Spouses Pension
• Orphans Pension
• Section 7 (Reconsideration of decisions)

6
Challenge

• Error in the Act.
• Schedule of benefits for persons in over 65
  category erroneously copied to 50 to 65 category.
• In process to correct the error.
• Exploring opportunity to reduce gap between 50 to
  65 and over 65 category.

7
National Awareness Campaign

• Established dedicated SP Call Centre (Toll Free)
• Produced and distributed Information Newsletter
  (5 languages)
• Conducted Road Shows in all Provinces
• Regional staff conducted Mini Road Shows.
• Established Regional Partnerships with political
  organisations.
• Conducted Training workshops for partners.

8
Road Shows - 2006

• Umtata 15 May
• Bisho 17 May
• Port Elizabeth 19 May
• Cape Town 1 June
• Bloemfontein 8 June
• Mafikeng 21 June
• Polokwane 5 July
• Durban 20July
• Gauteng 26 July
• Mpumalanga 4 August
• Northern Cape 9 November

9
Content of Road Shows

• Background and purpose of the Act.
• Qualification and disqualification criteria
• Information on the resolution passed w.r.t. the
  under 35s.
• Statistical Overview (No of applications
  received, paid etc)
• Information on Board and Review Board

10
Content of Road Shows

• Overview of Amendments to the Act.
• Overview of Application process.
• Overview of factors which cause delays in
  processing applications.
• Attempts to defraud Special Pensions
• Partnerships with political organisations.

11
Road Shows Key issues

• Dissatisfaction with the fact that the
  qualification criteria were not changed. (Under
  35s)
• Enquiries as to progress with regard to the
  implementation of the (under 35) resolution.
• Complaints against non approval of applications.
• Qualification criteria.
• Delays in processing of applications.

12
Partnerships
13
Purpose

• To create a better understanding and good working
  relationships between stakeholders and SP
  Administration.

14
Specific Objectives

• Link between SP Administration and existing and
  potential beneficiaries.
• To resolve problems faced by existing and
  prospective beneficiaries.
• To identify and eradicate all forms of fraud and
  corruption in relation to the Special Pensions
  Act.

15
Stakeholder Training

• Purpose
• To enable political organisations and other
  partners to inform their members of the Act and
  to assist them to complete their application
  forms correctly.

16
Stakeholder Training

• Understanding the Act.
• Understanding the application process.
• Verification of applications.
• Distribute application forms.
• Setting up partnerships Roles and
  responsibilities.

17
Pro-Active Research Project

• An attempt to pro-actively identify persons who
  potentially qualify for benefits under the Act,
  but who have not applied as yet.

18
Pro-Active Research Project

• Collected lists of potential beneficiaries from
  various sources e.g.
• NPA
• Centre for Study of Violence and Reconciliation.
• SA Heritage Research Agency.
• Freedom Park Trust
• WITS Archives
• SANDF
• National Archives
• ANC Database
• Robben Island Museum

19
Pro-Active Research Project

• Treason trialists
• Political prisoners
• Disappeared and presumed dead.
• Deaths in detention
• Persons who died in exile (ANC)

20
Pro-Active Research Project

• Counter Intelligence files
• Security files
• SAP murder of anti apartheid activists.
• Banned persons.
• NPA exhumation project.

21
Pro-Active Research Project

• Total of 37 800 names.
• Average of 50 appear on Special Pensions
  database.
• Potential overlaps.
• Many persons on list may not qualify.
• 5000 to 7000 potential beneficiaries
  (conservative estimate) who will not be reached
  by closing date.

22
Statistical Overview
Rec Approved Not Approved Out standing
Applications 38 909 16 868 (43) 21 030 (54) 1 011 (3)
Review applications 6 909 900 (13) 3 299 (48) 2 710 (39)
23
Statistical Overview - 2006
Rec Approved Not Approved Out standing
New Applications 2 309 241 116 1248
Review applications 285 122 26 137
Spouses pensions 163 100 22 41
Orphans 1 0 0 1
Funeral benefits 130 105 10 15
Section 7 (reconsideration) 29 11 1 21
24
Financial Overview (R million)
Year Benefits paid Operational expenses
1996 0.7 1.4
1997 151.7 5.3
1998 95.9 5.5
1999 102 9.2
2000 121 7.9
25
Financial Overview (R million)
Year Benefits paid Operational expenses
2001 338.7 5.9
2002 272.9 6.8
2003 215.1 9.4
2004 275.4 6.3
2005 251.3 8.8
2006 127.7 2.8
Total R1.95 billion R69 million
26
Financial OverviewAverage Expenditure Per Annum
Benefits Operations
R177,5 million R6,3 million
27
Key Challenges
28
1. Obtain Applications Before Closing Date.

• Appeal to political organisations.
• Preparing final radio advert.
• Continue our efforts to find beneficiaries or
  surviving relatives of persons on our lists.
• Will be seeking approval to prepare application
  forms for persons on Pro-Active list.

29
2. Increased Applications

• Applications being submitted without supporting
  documentation.
• Persons who clearly do not meet criteria as set
  out in the Act are applying.
• Need to increase capacity to screen and process
  applications.
• Will redesign the adjudication process after
  dissolution of Boards Allow for increased
  capacity.

30
3.Fraud

• Scorpions arrests in Eastern Cape.
• Fictitious/exaggerated biographies.
• False claims to being surviving spouse or
  dependants.
• Continuing investigations.
• Engaging SIU to clean up database.
• More structured verification process.

31
4. Review Board Backlog

• Need to increase capacity of Review Board even
  further.
• Will be outsourcing preparation of decisions to
  law firms approved by Review Board.
• Will redesign adjudication process after
  dissolution of Review Board.

32
5. Human Resources

• High workloads with limited capacity.
• Low staff morale, most staff on contracts.
• Increased staff turnover.
• High rate of resignations anticipated as
  contracts reach expiry date.

33
Key Projects

1. Processing applications.
2. Communication and Client support
3. Addressing the Review Board backlog
4. Preparation for the dissolution of the Board and
   Review Board.
5. Correction of errors in the schedule of the Act.

34
Concluding Remarks

• Appeal to PCOF to facilitate the implementation
  of the Resolution passed with regard to the Under
  35s.

35
Thank You !!!

• Donovan John Jurgens
• CEO Special Pensions
• On Behalf of the Special Pensions Board.