1. Compensation Fund
Annual Budgets

2. 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].

3. 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.

4. Compensation Fund Summarized Income Statement 28 February 2005:
Actual
R’000
Budget
Assessment Income
Investment Income
Other Income
Total Income

5. Compensation Fund Summarized Income Statement 28 February 2005:
Expenditure:
Actual
R’000
Budget
Claims:
Compensation
Medical

6. Compensation Fund Summarized Income Statement 28 February 2005
Employee related expenses:
Administration
Miscellaneous
8 814
9 849
Total Expenditure
Net Surplus

7. Compensation Fund Summarized Budget for 2005/06
Income
R’000
Assessments Income
Investment increase
Other income
Total Income
Expenditure
Claims:
Compensation
Medical

8. Compensation Fund Summarized Budget for 2005/06
Income
R’000
Employee related expenses
Administration
Miscellaneous
26 560
Total Expenditure
NET SURPLUS

9. 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.

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

11. Compensation Fund CLAIMS DIRECTORATE
Claims reported:
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

12. 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

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

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

15. 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

16. 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.