Operations of the Unemployment Insurance Fund

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Operations of the Unemployment Insurance Fund
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Index

• Transformation of the fund getting the basics
  right
• What has the operation being doing
• As relates to its mandate of servicing public
• Current and Future actions

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In transforming the Fund an holistic approach was
adopted
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Business transformation is a continuous process
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We are we?

• Implement new processes
• Quick wins org struct.
• Improve service delivery

Future State
Organisational re-construction 36 months
Realising
Build processes Instit. capacity

• Re-engineer
• Build application
• Investigation org struct.
• Meet all commitments
• to clients
• Strengthen capacity

• Implemented law
• Insolvent-to-solvent
• Actuarial assessment
• Integration to SARS
• Extended coverage

Implement law
Phase 3 2005-2006
Current State
Phase 2 2003-2004
Phase 1 2002-2003
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Pillars on which turnaround is based

• Information Technology
• Revised Legislation
• Institutional restructuring

Sustainable Fund
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Progress with re-structuring

• Creation of business applications to support
  business, during the last year the fund was
  engaged in the development of its new business
  applications, that is expected to significantly
  improve the control environment.

Information Technology
PPP with Siemens

• In addition to implementing the legislation
  approved by parliament in 2002, the fund
  successful extended coverage to all domestic
  workers in 2003. More than 600 000 domestic
  employers were registered and more than half a
  million domestic employees were registered on the
  funds database. Coverage was also extended to all
  those employee employed by organs of state that
  are not defined as officials in terms of the
  public service regulations.

Legislative re-structuring
UIA 63 of 2002

• The Fund continued the process of developing a
  new blue print for the organisation by
  negotiating with key stakeholders the mechanics
  of the new structure. This is intended to
  transform the organisation to deliver on its
  mandate of social protection to unemployed
  workers.

Institutional restructuring
UIF world class model
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2004/2005 was a challenging year in which the
fund continued to lay a firm foundation for
future growth.
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Benefit Expenditure (R,000)
As part of its turnaround the fund was able to
contain expenditure in an attempt to return to
financial health and create the financial
strength needed to bring about lasting change.
For three quarters of the new financial year this
trend sustained improvement has continued.
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Growth in Revenue (R,000)
April 2004-Dec 2004
5.06
15 months
4.3

• 2004/2005

4.08

• 2003/2004

• 2002/2003

12 months
2.8
R bn

• 2001

• 2000

2.7
Five year revenue growth
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Registration of domestic Employers
600 000 domestic employers registered. 495 000
details of employees recorded.
Overwhelming Public response to campaign
The inclusion of Domestic workers was a World
first for the Department.
Fax
Labour Centres
Call Centre
Internet
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Registration of domestic Employers
As at Domestic Employers registered Active Domestic Employers registered Active Distinct Domestic Employees registered

29 February 2004 592 522 529 519 484 959
31 March 2004 596 368 531 404 488 988
30 April 2004 599 278 531 389 489 948
31 May 2004 602 712 533 933 492 712
30 June 2004 605 712 535 748 493 904
31 July 2004 608 365 534 416 495 066
31 August 2004 611 022 534 559 495 076
30 September 2004 613 918 534 666 497 530
29 October 2004 616 583 531 815 498 100
30 November 2004 619 265 532 827 498 659
31 December 2004 31 January 2005 620 699 623 074 529 950 529 216 498 927 498 210
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Compliance by domestic Employers
Of the 529 216 active employers, an estimated
444 303 (84) employers have sent in their
declarations, whilst 84913 (16) employers have
still not sent in their declarations.
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Registration of Commercial Employers
As at Active Commercial Employers registered Active Distinct Commercial Employees registered
31 January 2004 419 753 5 585 711
29 February 2004 421 378 5 670 943
31 March 2004 427 938 5 742 942
30 April 2004 431 762 5 794 696
31 May 2004 437 484 5 866 994
30 June 2004 441 944 5 815 274
31 July 2004 445 367 5 811 961
31 August 2004 449 424 5 828 835
30 September 2004 453 525 5 952 623
29 October 2004 455 851 6 007 694
30 November 2004 458 368 6 047 759
31 December 2004 31 January 2005 457 594 469 491 6 108 150 6 115 116
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Compliance by Commercial Employers
Registered SARS active 298 984, not declaring
95557 (32), declaring 203427(68) Registered UI
active 170 507, not declaring 41799 (24.50),
declaring 128708 (75.50) Of the 469491 active
employers, 332135 (71) have sent in declarations
whilst 169 879(29) have still not sent in their
declarations.
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Claims Processing for Jan 2005
A total of 52957 claims were received in
January 2005, 44048 were finalised. Claims in
process of being finalised for the month is
therefore 8909.The value of the overpayments
raised represents 0.91 of the benefits
paid. With reference to processing volumes, 5
centres make up almost 56.43 of the total claims
processed these are KwaZulu Natal with 15.99,
Western Cape with 9.72, Gauteng South with
11.58, Germiston with 8.38 and Free State with
6.8.
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Trend of claim payments
Month Received Approved Value of overpayments raised Number of payments to beneficiaries Amount paid to beneficiaries Value of payments that were cancelled due to beneficiary failing to report for collection or starting work
Dec-03 32 378 39 060 R 2 655 708.78 227 126 R 190 486 298.52 R 7 423 495.55
Jan-04 48 659 37 968 R 3 060 837.40 209 531 R 174 652 473.53 R 8 115 188.27
Feb-04 52 209 41 858 R 3 284 338.15 207 474 R 180 455 347.75 R 7 714 368.29
Mar-04 58 229 45 290 R 2 311 652.08 259 626 R 220 123 586.74 R 8 812 656.46
Apr-04 52 263 36 529 R 2 336 962.27 215 481 R 184 163 202.63 R 8 037 806.03
May-04 63 867 49 536 R 2 697 228.33 224 740 R 196 101 184.95 R 8 424 297.43
Jun-04 60 906 50 046 R 3 150 737.84 233 891 R 206 149 157.37 R 9 350 625.87
Jul-04 62 503 54 172 R 3 699 152.97 241 204 R 215 831 455.83 R 8 892 582.70
Aug-04 55 529 47 247 R 2 399 651.76 267 255 R 233 578 365.07 R 8 944 538.89
Sep-04 54 744 47 267 R 2 259 039.59 216 453 R 193 610 331.68 R 9 110 869.64
Oct-04 59 272 51 862 R 2 393 845.41 229 281 R 204 115 028.14 R 8 368 255.83
Nov-04 55 604 47 679 R 2 319 483.15 276 625 R 246 432 381.63 R 8 628 988.49
Dec-04 41 590 37 194 R 1 768 740.37 237 045 R 209 970 051.10 R 9 294 048.02
Jan-05 52 957 44 048 R 1 770 553.13 218 586 R 192 972 163.25 R 8 949 629.29
Feb-05 58 176 50 006 R 2 149 852.54 210 260 R 194 633 667.10 R 7 862 733.69
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Number of payment by benefit type
Unemployment Illness Maternity Adoption Dependants Grand Total
Received 489122 29390 62554 52 27017 608135
Approved 402835 24053 59252 49 21046 507235
86.03 81.8 94.7 94.2 77.8 AVG 86.9
Number Paid 2196491 152484 183549 236 22382 2 555 142
Amount Paid 1.682 b 113. 5 m 242.1 m 355.9 188 5m 2.227 b
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Breakdown of domestic claims processed Breakdown of domestic claims processed Breakdown of domestic claims processed Breakdown of domestic claims processed Breakdown of domestic claims processed Breakdown of domestic claims processed Breakdown of domestic claims processed Breakdown of domestic claims processed
DOMESTIC CLAIMS as _at_ December 2004 DOMESTIC CLAIMS as _at_ December 2004 DOMESTIC CLAIMS as _at_ December 2004   DOMESTIC CLAIMS PAID as _at_ January 2005 DOMESTIC CLAIMS PAID as _at_ January 2005 DOMESTIC CLAIMS PAID as _at_ January 2005 DOMESTIC CLAIMS PAID as _at_ January 2005
REGION Number of claims received from domestic workers Amount paid   REGION Number of claims received from domestic workers Amount paid  
Pretoria 3 295 956042.6   Pretoria 3551 1030935  
Johannesburg 2 761 859942.4   Johannesburg 2763 860777.6  
Durban 3 989 997469.9   Durban 4297 1081284  
Pietermaritzburg 994 181754.5   Pietermaritzburg 1043 192299.2  
East London 737 155196.7   East London 781 166213  
Port Elizabeth 1 399 337695.9   Port Elizabeth 1546 374977.5  
Cape Town 1 371 497879.6   Cape Town 1440 527140.5  
Bloemfontein 2 276 405189.5   Bloemfontein 2534 453974.7  
Kimberley 1 132 211506.1   Kimberley 1218 228434.8  
George 479 115830.4   George 497 120143.4  
Germiston 2 661 647592   Germiston 2796 690266  
Mpumalanga 3 020 629531.5   Mpumalanga 3219 675017.9  
Limpopo 944 180098.8   Limpopo 1041 199813  
North West 602 107910.1   North West 607 109016.3  
  25 660 6283640     27333 6710293  
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Processing of domestic claims per region showing
movement from December 2004 to January 2005
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Domestic Amount paid per region showing movement
from December 2004 to January 2005
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Turnaround time for claims processing in 2003
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Turnaround time for claims processing in 2004
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Performance against Key performance Indicator
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How have we performed?
Adoption Death Illness Maternity Unemployment
0.00855073 4.442599 4.832809 10.2862 80.42983877
Days To apply 2003 58.37 46.17 21 37.02 82.26
2004 32.15 26.10 7.57 11.55 62.05
Days To approve 2003 145.44 117.26 101.32 70.42 36.36
2004 106.10 107.05 87.53 56.15 26.86
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Call centre trends
  Calls Received Calls answered Calls abandoned Service level Abandon rate Average time in queue (seconds)
Nov-03 37961 34966 2959 82 8 23
Dec-03 25034 23615 1331 85 5 16
Jan-04 35524 33795 1709 85 5 15
Feb-04 34160 32992 1138 90 3 10
Mar-04 36228 33705 1796 85 5 16
Apr-04 25076 23745 1330 85 5 14
May-04 31482 30068 1414 86 4 14
Jun-04 26902 25126 977 87 4 12
Jul-04 27410 25806 1574 85 6 14
Aug-04 25964 24959 1005 89 4 11
04-Sep 24201 23131 1049 88 4 12
04-Oct 28414 27099 1232 86 4 13
04-Nov 29086 28115 938 89 4 10
04-Dec 17023 16563 456 93 3 9
05-Jan 28015 26232 1659 82 6 18
05-Feb 33318 32228 1006 91 3 9
Average 28832 27328 1371 86.47 4.67 13.8
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UIF CALL CENTRE
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High level Siyaya work flow
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Adjudication of claim employee on database
Application response
Channels
New UIF Business Process
Enters id Number into Siyaya, system Search's
for previous claim
If the client is found on the Database, a claim
can be registered
Pay schedule
Access Siyaya
Client Correspondence Database
Siyaya requests clerk to verify tombstone details
Once verified, Siyaya applies Business
rules Claim approved based on Declaration or
rejected If approved Siyaya prints pay dates as
per schedule or if rejected refusal notice
Labour centre official
Walk-In
Refusal notice
Full audit trail of user actions
Exception reports For risk management
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Future work Programme

• Grow database
• Implement CRM
• Operationalise SIYAYA
• Improve service delivery
• Communication and education

April 2006

• 100 of all approved claims are paid within 28
  days

April 2006

• Crm upgraded customer care line

April 2006
April 2005
Siyaya operational
80 of registered employers submit their
declarations
April 2006
100 of benefit claims are paid Electronically
utilising Mzansi and Teba bank channels
Way forward 2005-2006