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PRESENTATION TO PORTFOLIO COMMITTEE

PRESENTATION TO PORTFOLIO COMMITTEE. 18 March 2008. Acting Director- General: Mr Les Kettledas. Index. I. Unemployment Insurance Fund II. Compensation Fund. Unemployment Insurance Fund STRATEGIC PLAN & MTEF BUDGET 2008-2011. Presentation outline. Part A Overview Strategic Perspective

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PRESENTATION TO PORTFOLIO COMMITTEE

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  1. PRESENTATION TO PORTFOLIO COMMITTEE 18 March 2008 Acting Director- General: Mr Les Kettledas

  2. Index I. Unemployment Insurance Fund II. Compensation Fund

  3. Unemployment Insurance FundSTRATEGIC PLAN & MTEF BUDGET 2008-2011

  4. Presentation outline • Part A • Overview • Strategic Perspective • Part B • Strategic Outputs for 2008/09 • Part C • Performance Review • Part D • Budget information • Strategic Priorities

  5. Part A: Overview

  6. Overview • Core function • The collection of contributions and the provision of short term cash benefit on a monthly cycle to registered workers that become unemployed. • Main products • Unemployment benefit • Illness benefit • Maternity • Adoption benefit • Dependants benefit • Administration • UIA No 63 of 2001 - Administration • UCA No 4 of 2002 - Collection

  7. UIF Strategic Perspective • Vision • Mission • Objectives

  8. Vision To be a sustainable organisation providing effective short term financial relief to qualifying contributors & their dependents Mission • To provide short-term insurance benefits to qualifying contributors through; • Effective and efficient administration; • Ensuring accessibility of services to all stakeholders

  9. 4 balanced Strategic Objectives • Financial: To obtain clean audit opinion • Stakeholders: To increase stakeholder awareness and support of the Fund • People: • To recruit and retain competent staff • Processes: • To enhance the quality of service to our clients

  10. Part B Strategic Outputs for 2008/09

  11. Medium Term Output Targets • Clean audit opinion • Improve contribution collection from employers • Improve compliance by employers • Reduction of losses to the Fund • Improve financial and operations management and reporting • Increase stakeholder awareness and support for the Fund • Entrench UIF as a safety net against unemployment hardships • Educate stakeholders about their rights and obligations • Build relationships with stakeholders • Recruit and retain competent and caring staff • Develop a multi-skilled and competent workforce • Recruit and retain competent staff • Develop and implement a succession plan • Enhance quality of service to our clients • Optimal use of technology. Define and automate processes • Improve operational efficiency • Enhance IT systems

  12. Part C: PERFORMANCE REVIEW2007/08 PERFORMANCE REVIEW ACHIEVEMENTS

  13. 2007/08 STRATEGIC REVIEW • 4 STRATEGIC PRIORITIES ADOPTED • Investment in infrastructure to boost service delivery • Improve financial sustainability of the Fund • Building a sound institution based on good governance • Increase emphasis on performance management not just finance

  14. 2007/08 REVIEW : Achievements • Investment in infrastructure to boost service delivery • Document management system implemented • Awareness campaign reaching 20+ million

  15. 2007/08 : Achievements • Improve financial sustainability of the Fund

  16. 2007/08 : Achievements • Building a sound institution based on good governance • Implemented • Risk management strategy and function • Corporate governance framework

  17. 2007/08 : Achievements • Increase emphasis on performance management : EMPLOYERS

  18. 2007/08 : Achievements • Increase emphasis on performance management : EMPLOYEES

  19. 2007/08 : Achievements • Increase emphasis on performance management: BENEFITS

  20. 2007/08 : Achievements • HUMAN RESOURCES MANAGEMENT • EMPLOYMENT EQUITY SR 13 TO 15: 12 POSTS

  21. 2007/08 : Achievements • HUMAN RESOURCES MANAGEMENT • EMPLOYMENT EQUITY SR 9 TO 12: 74 POSTS 62 FILLED

  22. Part D: Budget Information • MTEF Budget 2008 • Strategic priorities

  23. Economic classification: MTEF 2008

  24. MTEF 2008 GROWTH TRENDS:SURPLUS - OVER R16 bn OVER 3YRS • Total MTEF growth in Rand (bn) Surplus • 2007/08 3.82 • 2008/09 5.33 • 2009/10 5.91 • 2010/11 5.75

  25. MTEF GROWTH TRENDSREVENUE – year on year + 11% • MTEF 2008 growth trend in Rand (bn) • Revenue increase • 2007/08 10.087 • 2008/09 11.342 +1.255 • 2009/10 12.463 +1.121 • 2010/11 13.663 +1.200

  26. MTEF GROWTH TRENDSBENEFITS & RESERVES – Rands (bn) BENEFIT RESERVES (yr) • 2007/08 3.9 1.4 • 2008/09 3.7 1.2 • 2009/10 4.3 1.2 • 2010/11 4.9 1.9 • Average benefit growth of 14% per year. • Actuary sourced estimates.

  27. MTEF GROWTH TRENDS ADMIN EXPENDITURE: Average 9% over 3 years • MTEF 2008 Admin growth in Rands (m) • Admin Increase • 2007/08 945 • 2008/09 1,114 +169 • 2009/10 1,137 + 23 • 2010/11 1,200 + 63

  28. MTEF 2008: GROWTH IN SUPPORT OF STRATEGIC PRIORITIES • Enhancing quality of service to our clients – • Reducing paper trail through development of IT solutions • Implement updated standard operating guide • Improve benefit value to clients • Input to social security review forum • Obtaining clean audit report - improving revenue management: • Implement Debt & Compliance Management strategy: compulsory declarations

  29. MTEF 2008: GROWTH IN SUPPORT OF STRATEGIC PRIORITIES • Obtaining clean audit report - improving revenue management: • Improve debt collection through outsourcing of debt collection services and application for court orders. • Increase stakeholder awareness and support: • Advocacy & awareness campaigns through • Media campaigns • Stakeholder meetings • Promotional material • Obtaining clean audit report – Curbing fraudulent transactions – • Implement bank verification strategy.

  30. MTEF 2008: GROWTH IN SUPPORT OF STRATEGIC PRIORITIES • Recruiting and retaining competent staff by providing resources for • Training & workshops facilities • Bursaries • Learnerships • Implementation of a work place skills plan • Enhance quality of service to clients through the optimal use of technology by: • continuously maintaining and enhancing the Fund’s management systems • Undertaking a special project to improve the quality of the Fund’s declaration database • Implementing an integrated management information system for siyaya

  31. Benefit Improvement - impact on surplus: R1.9bn over three years • Proposal under consideration: • Impact of Change of IRR from a minimum 38% to 45% and a maximum 60% to 65% on estimated surpluses: • 2008/09 R544m • 2009/10 R622m • 2010/11 R713m • Assuming claim expenditure will increase on average by 14.66%

  32. Financial achievements as at 31 December 2007

  33. Financial achievements as at 31 December 2007: Budget vs Actuals

  34. COMPENSATION FOR CCUPATIONALINJURIES AND DISEASES ACT, 130 OF 1993 AS AMENDED (COIDA)

  35. VISION AND MISSION • MISSION To provide compensation for occupational injuries, diseases and the rehabilitation of employees and deliver continuous value to all stakeholders

  36. VISION AND MISSION • VISION To develop and implement solutions to provide quality and accessible services according to standards as set in consultation with stakeholders, whilst maintaining the Fund’s liquidity.

  37. STRATEGIC OBJECTIVES • Efficient social safety net • Financial viability of the Fund ensured • Effective cash and investments management • Management reforms and restructuring of the Fund are effected • Enhance quality and access to COIDA services and information • Effective data and information management ensured

  38. SPECIFIC OUTPUTS-(2007/08) Reforming Management and restructuring the Fund through the following initiatives; • Establishing an automated Integrated claims and revenue management system • Refocusing the fund for better service delivery • Developing and implementing an advocacy, communication and marketing strategy • Improving turn-around time for claims settlement • Improving collection and access to services

  39. ACHIEVEMENTS • 84% Reduction in backlog claims • New imaging system Implemented • Elimination of cheque payment method • Improvement in Revenue Collection • Communication Strategy in place

  40. CHALLENGES The following strategic outputs were not achieved in the reporting year; • Policy on Early Return to Work not finalised • Claims Turn-Around time still remains a challenge • Slow progress in the implementation of IT hampers our finalisation of the Integrated claims and revenue Systems

  41. FINANCIAL INFORMATION

  42. FINANCIAL INFORMATION CONTINUED….

  43. STATISTICS ON CLAIMS OPENED SINCE 2000 TO OCTOBER 2007

  44. MEDICAL PAYMENTS BY FEBRUARY 2008

  45. NUMBER OF MEDICAL ACCOUNTS PAID BY FEBRUARY 2008

  46. TTD PAYMENTS BY FEBRUARY 2008

  47. TTD PAYMENT TOTALS BY FEBRUARY 2008

  48. NUMBER OF PENSION PAYMENTS BY FEBRUARY 2008

  49. TTD PAYMENTS BY FEBRUARY 2008

  50. PD LUMP SUM PAYMENTS BY FEB 2008

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