230 likes | 365 Views
UNEMPLOYMENT INSURANCE FUND. BRIEFING FOR PORTFOLIO COMMITTEE CAPE-TOWN 1 ST JUNE 2004. UNEMPLOYMENT INSURANCE FUND. This new act is a product of an extensive research and an inclusive consultative process dating as far back as 1994.
E N D
UNEMPLOYMENT INSURANCE FUND BRIEFING FOR PORTFOLIO COMMITTEE CAPE-TOWN 1ST JUNE 2004
UNEMPLOYMENT INSURANCE FUND • This new act is a product of an extensive research and an inclusive consultative process dating as far back as 1994. • Stakeholders who participated were drawn from the academia, labour, business, ILO, the public and other government departments.
PROCESSES INFORMING THE ACT • Minister of Labour’s Five Year Plan 1995 • Labour Market Commission Report • Stakeholders Forum of 1996 • Report of the Ministerial Task -Team • DoL’s Position Paper • Second Stakeholders Forum 1998 • Public Representations • Minister of Labour’s 15 Point Plan 1999
PROCESSESS INFORMING THE ACT CONT’ • Detailed input from ILO. • Detailed input from National Treasury.
OBJECT OF RESTRUCTURING THE FUND • To develop a new policy on Unemployment Insurance Coverage and the design of an institutional framework, to deal with both the administrative and legislative short-comings of the fund.
KEY ASPECTS OF THE NEW LEGISLATION • Coverage • Compliance and Enforcement Measures • Discrimination • Entitlement to Benefits • Benefit regime • Actuarial inputs
KEY ASPECTS OF THE NEW LEGISLATION • Employer-employee Database
COVERAGE • Learnerships • Public Servants • Company Directors & Members of a CC • Migrant Workers
COMPLIANCE AND ENFORCEMENT • Compliance Orders • SARS • Interest and penalties • Suspension of a contributor.
ENTITLEMENT TO BENEFITS • Ordinary Unemployment benefits • Illness benefits • Maternity benefits • Adoption benefits • Dependent’s benefits
AFFORDABLE BENEFIT REGIME • Sliding scale • Top up
ACTUARIAL EVALUATION • Actuarial inputs • Actuarial database • Annual actuarial evaluations
EMPLOYER-EMPLOYEE DATABASE Duty of the COMMISSIONER. • Maintain databse of Information to be supplied by employers • Feedback to employers
CHANGES IN CLAIM PATTERNS • Number of claims increased significantly from August 2003 onwards. • Claim patterns appear to be changing • Period taken to apply - average increased from 45 to 75 days • Period to approve claim – average increased from 30 to 37 days • Expect more IBNR claims to emerge in the future due to the additional delay • Major reason for the increase in outstanding claims reserves