Compensation Fund Annual Budgets

Compensation Fund Annual Budget Process: Compensation Fund – Schedule 3 Entity Budget to be submitted to Executive Authority at least 6 months before the start of the financial year [exemption granted by EA 1 month]. Budget must be submitted to the Executive Authority through the Accounting Authority. May not budget for the deficit and may not accumulate surpluses unless prior approval from National Treasury [exemption NT].

Compensation Fund Annual Budget Process continued Program description per activity vote 17. Accident Insurance: Administration – The Commissioner, and employees of the Fund are remunerated out of the State Revenue Fund, and the expenditure is reimbursed out of the Compensation Fund. Contribution to the Compensation Fund – Contribution by the state to the Compensation Fund for administration costs in respect of injuries while on duty by employees by the state. Medical Expenses – Medical expenses of employees by the state (excluding non-civilian staff of the services departments) who sustain injuries on duty.

Compensation Fund Summarized Income Statement 28 February 2005: Actual R’000 Budget Assessment Income 2 310 346 2 250 563 Investment Income 450 234 407 713 Other Income 188 016 239 220 Total Income 2 948 590 2 897 496

Compensation Fund Summarized Income Statement 28 February 2005: Expenditure: Actual R’000 Budget Claims: 1 676 160 1 734 482 Compensation 736 558 528 148 Medical 939 602 1 206 334

Compensation Fund Summarized Income Statement 28 February 2005 Employee related expenses: 119 095 143 061 Administration 103 282 167 220 Miscellaneous 8 814 9 849 Total Expenditure 1 907 351 2 054 612 Net Surplus 1 041 239 842 884

Compensation Fund Summarized Budget for 2005/06 Income R’000 Assessments Income 2 800 300 Investment increase 420 908 Other income 241 630 Total Income 3 462 838 Expenditure Claims: 2 070 650 Compensation 870 051 Medical 1 200 599

Compensation Fund Summarized Budget for 2005/06 Income R’000 Employee related expenses 146 743 Administration 190 788 Miscellaneous 26 560 Total Expenditure 2 434 741 NET SURPLUS 1 028 097

Compensation Fund CLAIMS DIRECTORATE Mission: To compensate employees for disablement caused by occupational injuries/diseases sustained/contracted out of and in the course of their employment or their dependants for death resulting from such injuries/diseases and to pay the reasonable medical expenses incurred.

Compensation Fund CLAIMS DIRECTORATE Backlog Strategy: Developed and implemented Teams set up to work on old claims 41% finalised

Compensation Fund CLAIMS DIRECTORATE Claims reported: 222 725 Some are for previous years 22% finalised in 90 days since they had all the information Most of the complete claims come from Provincial COIDA managers and big hospital groups as per the collated claims project

Compensation Fund CLAIMS DIRECTORATE Decentralisation Enquiry System developed, tested and ready for roll out to the Provincial Offices To be rolled out after Provincial staff training on the system Pilot for temporary claims will be in KZN from Quarter 2

Compensation Fund CLAIMS DIRECTORATE New Policies on Occupational Diseases Approved: 1. Work Aggravated Asthma 2. Upper Airways disorder

Compensation Fund CLAIMS DIRECTORATE New Policies still under discussion Respiratory impairment Pneumoconiosis Loss of Vision Needle Prick Injuries and HIV/AIDS

Compensation Fund CLAIMS DIRECTORATE Communication Communications Officers appointed New posters, pamphlets and exhibition developed and distributed to all Provinces Campaign on Return of Earnings submission is being aired on radios and TVs

CHALLENGES 2005/2006 BPR: Successful tenderer to be appointed. Streamlined processes. Structure Staff establishment Finding solutions for delays in processing of claims. Claims enquiry system decentralized to Provisional Office of DOL. Develop strategy to maximize communication with all stakeholders.