Implementation of the Special Pensions Act (As Amended) UPDATE TO PORTFOLIO COMMITTEE ON FINANCE 10 November 2006

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

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

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.

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

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.

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.

Road Shows 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

Content of Road Shows Background and purpose of the Act. Qualification and disqualification criteria Information on the resolution passed w.r.t. the under 35’s. Statistical Overview (No of applications received, paid etc) Information on Board and Review Board

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.

Road Shows – Key issues Dissatisfaction with the fact that the qualification criteria were not changed. (Under 35’s) 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.

Partnerships

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

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.

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.

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

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.

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

Pro-Active Research Project Treason trialists Political prisoners Disappeared and presumed dead. Deaths in detention Persons who died in exile (ANC)

Pro-Active Research Project Counter Intelligence files Security files SAP murder of anti apartheid activists. Banned persons. NPA exhumation project.

Pro-Active Research Project Total of names. Average of 50% appear on Special Pensions database. Potential overlaps. Many persons on list may not qualify to 7000 potential beneficiaries (conservative estimate) who will not be reached by closing date.

Statistical Overview RecApprovedNot Approved Out standing Applications (43%) (54%) (3%) Review applications (13%) (48%) (39%)

Statistical Overview RecApprovedNot Approved Out standing New Applications Review applications Spouses pensions Orphans1001 Funeral benefits Section 7 (reconsideration)

Financial Overview (R million) YearBenefits paidOperational expenses

Financial Overview (R million) YearBenefits paidOperational expenses TotalR1.95 billionR69 million

Financial Overview Average Expenditure Per Annum BenefitsOperations R177,5 millionR6,3 million

Key Challenges

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.

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.

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.

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.

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.

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.

Concluding Remarks: Appeal to PCOF to facilitate the implementation of the Resolution passed with regard to the Under 35’s.

Thank You !!! Donovan John Jurgens CEO Special Pensions On Behalf of the Special Pensions Board.