Parliament Standing Committee of Finance. CEO Goolam Aboobaker

Transcription

1 Parliament Standing Committee of Finance CEO Goolam Aboobaker 1

2 Agenda LEGISLATIVE MANDATE GOVERNMENT COMPONENT FUNDS ADMINISTERED VISION / MISSION / GOALS / VALUES BUDGET CORE OPERATIONS THE NDP AND GPAA GPAA AND THE SA ECONOMY 2

3 Legislative Mandate 3

4 Legislative mandate

5 Government Component 5

6 GOVERNANCE STRUCTURE Minister of Finance Chairperson GEPF BOT GPAA CEO NT Director General

7 GPAA S ADMINISTRATION FRAMEWORK GEPF 93% GPAA Budget GPAA ADMINISTRATION & SERVICE LEVEL AGREEMENT NATIONAL TREASURY 7% GPAA Budget

8 GPAA FUNCTIONS Client Communication Investment Administration Fund & Agency Finance Management Employee Benefit Administration Legal & Governance Administration ICT Services

9 GEPF FUNCTIONS Board Secretariat Strategy and advisory services Manage the SLA with Service Providers Investments and Actuarial Legal & Compliance Governance

10 NT FUNCTIONS Risk Committee Programme 7 Manage the SLA with GPAA Budget Vote Shared Legal Services Shared Audit Committee Programme 7 - Policy and legislation Entities Governance and Advisory

11 Funds Administered 11

12 FUNDS AND SCHEMES CURRENTLY ADMINISTERED Government Employees Pension Fund (GEPF) in terms of the (GEP) Law of 1996 Temporary Employees Pension Fund (TEPF) in terms of the (TEPF) Act 75 of 1979 Associated Institutions Pension Fund (AIPF) in terms of the (AIPF) Act 41 of 1963 Post-Retirement Medical Subsidies as provided for and regulated by Public Service Co-ordinating Bargaining Council (PSCBC) Military Pensions in terms of the Military Pensions Act 84 of 1976 Injury on Duty payments in terms of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 Special Pensions in terms of the Special Pensions Act 69 of 1996 Other and VIP funds 12

13 GPAA Administered Funds, Client Count Funds Member Type Member Count Total GEPF GEPF Members National Treasury s Programme 7 GEPF Pensioners GEPF Spouses GEPF Orphans Medical Military IOD VIPs Special Pensions AIPF AIPF Members AIPF Pensioners AIPF Spouses TEPF TEPF Members TEPF Pensioners 252 TEPF Spouses 140 GPAA Total Members Administered

14 GPAA Regional Office Footprint

15 Vision, Mission & Goals 15

16 FIVE STRATEGIC GOALS VALUES Part 2 VISION / MISSION / GOALS / VALUES VISION MISSION To be the leading and preferred fund benefits administrator. To effectively and efficiently administer fund benefits on behalf of our clients and stakeholders. The GPAA vision will be realised by achieving increased levels of the following key areas: Client focus Focus on our clients shall be through consultation, setting service standards, increasing access, providing information, ensuring courtesy, transparency, redress and value-added services. Timeous Benefit Payments Excellence Our operational excellence is demonstrated by results that reflect sustained modernisation and improvement over time, improvement in all areas of importance, and performance at a level that is at, or superior to,. best in class benefit and fund administrators Modernised System driven Organisation Client Satisfaction Commitment We pledge to create an efficient and well-managed environment for the administration of benefits and funds. Sustainable Organisation Integrity Our focus on how we put our principles, values and what we believe is right into action. Integrity is putting your values into action - Robin Siemens. Stakeholder Satisfaction Employee Satisfaction Interdependence Our interdependence is the dynamic of being mutually and physically responsible to, and sharing a common set of principles with, all our clients and stakeholders. Professionalism The expert skills, competence, and character displayed by GPAA Human Capital. Transparency Our observed degree of clarity, openness, measurability, and verifiability in law, regulations, financial management, agreements and / or practice.

17 Corporate Achievements versus Strategic Objective 2013/14 Prog. Quarter 4/ Annual Performance 1 94% of benefits were paid within 60 days and 89% of queries were resolved within 2 days as required by law. 94% of the SLA was complied with in fulfilment of the Administration Agreements with the National Treasury. 2 93% of benefits were paid accurately and 77% were paid within 60 days of receipt. 95% of the SLA was complied with in fulfilment of the Administration Agreements with the Government Employees Pensions Fund % of the queries received from clients were acknowledged and 86% were resolved within 7 days. We are developing a methodology to measure customer satisfaction clients attended the roadshows and prospective retirees were reached through GPAA s Education and Outreach Programmes. 4.1 A number of projects were managed under the Project management Office and led to a number of improvements including a number of renovations and the relocation to enhance client service experience % of tenders were concluded within 120 days as required by National Treasury Regulations. 90% of invoices were paid within 30 days as directed by the President and Cabinet. 4.3 The Senior Management Organisational Structure has been approved by the Minister of Finance and the non-sms structure is under review to meet the Department of Public Service and Administration s requirement. Performance management has improved and compliance is at 95%. 4.4 Various strategies have been implemented including the establishment of the Risk Management Committee chaired by an external chairperson. GPAA has a functional Hotline to report fraudulent case and a number of awareness initiatives have been implemented. 4.5 The Legal services two-days Query Complaints/Requests (QCR) turnaround was at 89%and 97% QCR were resolved within 7 days % of the ICT SLA was complied with in fulfilment of the Administration Agreements with the GEPF and National Treasury. 5 2 Regional Offices are under way in Limpopo and Free State 277 Agreements have been formalised to implement e-channel at employer departments. The recruitment of 25 CLOs to improve service delivery have almost been finalised

18 Budget 18

19 GPAA Budget Audited Outcomes Adjusted appropriatio Medium-term expenditure estimate n Description R 000 R 000 R / / / / / /17 Admin fees 481,348 1,003,095 1,289,60 1,151,21 1,008,97 522, Other income 261 Total revenue 481,609 1,003,095 1,289,60 1,151,21 1,008,97 522, Compensation of employees 272, , , , , ,306 Goods and services 200,347 Capital Expenditure 13,309 Modernisation - 204,398 14,559 13, , , ,857 75,688 92,195 97, , , , , ,922 15,025

20 NT Programme 7 Budget MILITARY ADMIN AUXILIARY SERVICES CIVIL ADMIN AUXILIARY SERVICES Government Pensions Administration Agency 2015 Adjusted Estimates Programme 7 inputs March /15 Origional Budget Actuals as at 21 July Available Budget Business Inputs 2014/15 Adjusted Budget R 000 R 000 R 000 R 000 R 000 R PFMI PARLIAMENTARY AWARDS OTHER PENEFITS INJURY ON DUTY GOV CONTR TO MEDICAL SCHEMES UNITED KINGDOM TAX SPECIAL PENSIONS POLITICAL OFFICE BEARERS PENSION BENEFIT RSA PRESIDENT Civil Pensions and Contributions to Funds MIL PENSIONS EX-SERVICE MEN

21 Core Operations 21

22 Benefit Administration Value Chain

23 Support Services

24 NDP Implementation Capable State 24

25 Building a capable State To professionalise the public service A purely administrative approach should be adopted for lowerlevel appointments, with senior officials given full authority to appoint staff in their departments. Managing the career progression including convening panels for recruitment, performance assessment and disciplinary procedures. 25

26 CLIENT INTERFACE Service Channels Call centre Regional offices in all nine provinces Satellite client office in Durban, Johannesburg; Port Elizabeth; Mthatha, Phuthaditjhaba, Thohoyandou. Other channels : , twitter, fax, SMS. Client Liaison Officers (CLO) deployed in all regional offices to act as liaison between employer departments, members, pensioners, beneficiaries and the GEPF.

27 EMPLOYER INTERFACE Regional Office Network supports Employer liaison and education. Client Liaison Officers (CLO) and Client Service Agents (CSA) are deployed at employer departments to facilitate speedy processing of exit documents. Employer training and induction on GEPF HR Forums

28 CLIENT OUTREACH & COMMUNICATION Quarterly Newsletter for Clients Community Roadshows Mobile Offices Retiring Member Campaigns Pre Retirement Workshops Pensioner Groups Exhibitions (Rand Easter; Pretoria and Royal Shows) National & Community Radio Talk Shows.

29 DATA IMPROVEMENT INITIATIVES Data Quality Improvement Project Appropriate technology and systems to support the service delivery improvement plan Data improvement and business process enhancements Negotiate Employer draft SLA and Memorandum of Understanding (MOU) with applicable stakeholders

30 Current Structure 30

31 CURRENT STRUCTURE HIGH LEVEL CEO EXCO COO CFO CIO Head: Corporate Services Head: Legal Head: Risk and Fraud Management MANCO Benefit Administration and CRM Fund and Agency Accounting ICT Systems and Infrastructure HR, Facilities, Training, Communication Governance and Legal Services Risk and Fraud Management

32 GPAA Employment and Career Development (NDP) 32

33 GPAA Permanent Staff 31 March 2014 Occupational Bands Male Female Total African Coloured Indian White African Coloured Indian White Top Management Senior Management Professionally qualified and experienced specialists and midmanagement Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents Semi-skilled and discretionary decision making Unskilled and defined decision making Total Employees with disabilities

34 GPAA Contracted Staff 31 March 2014 Occupational Male Female Total Bands African Coloured Indian White African Coloured Indian White Top Management Senior Management Professionally qualified and experienced specialists and mid-management Skilled qualified workers, junior management, supervisors, Semi-skilled and discretionary decision making Unskilled and defined decision making Total

35 Empathy toward Disability (NDP) Employment of disabled and impaired persons 7 Disabled and impaired persons are employed at GPAA GPAA facilities are impaired and disabled friendly Entrances have wheelchair ramps Lift at head office First in queue for disabled and impaired clients at service centres A policy in walk-in centres 35

36 Building Institutional Capability 36

37 GPAA & Enabling Milestones (NDP) Ensure that skilled, technical, professional and managerial posts better reflect the country's racial, gender and disability makeup. Broaden social cohesion and unity while redressing the inequities of the past. 37

38 MODERNISATION PROGRAMME AIMS TO: Be the vehicle for delivering GPAA s strategic Goals Improve business processes and governance Invest in improved infrastructure (ICT) and facilities Improve customer service, outreach and education Improve employer Departments interface and reporting Enhance employee capabilities Forge strategic alliances with all current and future partners To function as part of the Financial sector rather than in a bureaucracy Remove as many manual processes as possible to reduce fraud Supply members, pensioners and beneficiaries with secure internet access to personal data

39 MODERNISED DESIRED STATE 2016 AND BEYOND Satisfied customers and clients Modernised efficient administration Mutual beneficial relationships with stakeholders Satisfied Efficient and effective Employees Business Process Management Mutual beneficial partnerships with employer communities Modernised Operation Efficient Funding Model Excellent Customer Experience Multi Channel Menu State of the Art Call Centre 1st Pension payments within 30 Days Exit Process Automation Automated Processes Integrated Systems On-Line Management Information External Integration Lower Operational Costs Flexible Administration Engine Increased System Availability Key Account Management Costing Model SLA Compliance Complaints turnaround time reduced Trust Relationship Culture of Excellence (Top down) Efficient Organisational structure State of the Art Building Performance Management by strategic objectives Skills development and replenishment Instilled GPAA values 1st Time right submissions to GPAA Concluded and managed formalised agreements Joint member awareness programmes 39

40 THE GPAA STRATEGY HOW THE MODERNISATION APPROACH WILL ENABLE DELIVERY AGAINST GPAA STRATEGIC OBJECTIVES GPAA s 5 Strategic Goals 1 Satisfied customers and clients 2 3 Modernised and efficient administration Mutually beneficial relationships with stakeholders 4 5 Mutually beneficial partnerships with employer communities Satisfied, efficient and effective employees Reduce human intervention in the execution of simple, bulk & repetitive tasks Increase client compliance to GPAA s requirements through the introduction of effective controls. Leverage more on new & existing technological solutions to enhance the delivery of services to GPAA clients across the value chain Provide simple access to standard & consistent information and GPAA processes Enhance human capabilities to focus on the delivery of professional & efficient services Re-channel GPAA s human capital to focus on educating members, employers and beneficiaries and thus increasing GPAA s visibility to it s Client base

41 RECAP OF THE GPAA MODERNISATION DRIVERS THE KEY GPAA S MODERNISATION SHIFTS From To From Push To Pull Multi page static forms Static forms Single page dynamic forms Paper / Manual Single page integrated dynamic forms Human intensive manual processes, non-value adding activities Gate Keeping Automated workflow processes, value adding only Risk Engine Manual data capture Digitization Scanning Noncompliance Risk Managed Targeted automated analysis and compliance Manual paper channels Limited validation 3 rd Party Data Paper processing & data capture Digital/Self service channels Electronic channels Manual form completion 3 rd party validation Pre-population / Verification

42 MODERNISATION KEY SUCCESSES PROJECT SPECIFIC echannel (online submission of exit documentation): Currently 315 employers representing more than 80% of membership have adopted it. Outreach: Mobile units have been deployed to all provinces providing rural GPAA clients with access to services. Eleven specialised vehicles to support the mobile units have been procured. Retiring Member Campaign (RMC): Resulted in a reduction in the turnaround time from 57 days to about 20 days for exit to date paid. Senior Management Service (SMS) organisational structure: The entire organizational structure has been completed and is undergoing approvals. A capacity model will be used for the process of redeployment and retraining of staff in the new structure. Core Business Process Mapping: 90% of the core business processes have been mapped (as is) and 50% are currently being re-engineered (to be). The to-be business processes have now been validated against the Solution Design. Call Centre Optimization: A hosting solution for the call centre and a new location have been acquired and now new call centre functionality to improve responses is being implemented. Implementation of the Technical Architecture Design: The partner has been appointed and key work-packages are in a process of being implemented. Key infrastructure has been acquired and is being hosted on-site in the revamped data centre. Focus has shifted to implementing the solution design.

43 GEPF Membership 43

44 GEPF Membership African White Coloured Indian Unidentified

45 GEPF Pensioners and Spouses African White Coloured Indian Unidentified Total Pensioners Spouses

46 1 400 GEPF Orphans African White Coloured Indian Unidentified Total 60

47 ADMINISTRATION COSTS The five year administration costs plan for GEPF is stated below. 2010/ / / / / / /17 GPAA with CAPEX and Modernisation R387m 485m 528m 1003m 1289m 1151m 1008m % increase 12% 6% 33% 24% 4% 3% Total accounts GEPF and NT 1,848,128 1,848,129 1,848,130 1,848,131 1,848,132 1,848,13 3 1,848,134 Capex & Modernisation Excluded R R R R R R Capex & Modernisation Included R R R R R R The administration costs are growing significantly in the last two year due to modernisation gaining momentum. The 2014/15 budget has been approved by the GEPF board.

48 BENCHMARKED ADMINISTRATION COSTS Units of administration Rand/ per member per month Standalone Umbrella Specialised Retirement Preservation corporate annuity funds SA R R R R R International RGM R R R R N/A International Reference Group (Intl RGM) includes data from UK, Canada, France, Germany and Australia and a study of the major administrators in Chile.

49 Fighting Corruption 49

50 GPAA & Critical actions (NDP Item 3) Steps by GPAA to professionalise the public service, strengthen accountability, improve coordination and prosecute corruption. 50

51 Fighting Corruption (NDP) Deterrence Fraud hotline Disciplinary measures Anti-Corruption Policy Framework Protection of Whistle-Blowers Prevention Data Security Implementation of Prevention Strategies Stakeholder Collaboration (Public and Private Sectors) Education National Client awareness campaigns and newsletters Workplace ethics training 51

52 Procurement Policies (NDP) Government s procurement policies blur the line in matters of corruption, and the state procurement system has become overly bureaucratised (NDP). To Address this GPAA has: Reviewed SCM Policy and delegations Increased access to opportunities by distributing Bid documents to suppliers without charges Manage the corruption risk by purchasing via committees at low and high cost level. Promoted SMME and BBBEE companies by rotating suppliers and granting preferential points during evaluation. Included declarations from supplier and staff members at all bidding processes. 52

53 Economy 53

54 Economic influence by Pensioners being paid on time 54

55 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Payment of Annuities vs Collection of Contributions The total received contributions can be expected to increase by 8.25% during 2014/15 to 56.6 billion, and total benefits payments can be expected to increase by 21.57% during 2014/2015 to 63.7 billion. Contributions received and Paid per month from April 2010 to March 2014 and projections until March Actual Contributions Received at month end Total Actual Benefit Payments Difference per m or Q 55

56 Supporting Government s Pension Reform Process Commitment to least cost administration services Treasury interaction GEPF NT Increased and modernised Capability to attract greater administration volumes GPAA DPSA Encouraging higher savings percentage per capita Assurance to Pensioners and members Pensions reform research 56

57 THANK YOU Enquiries: CEO Goolam Aboobaker Tel: