NATIONAL TREASURY BRIEFING TO THE JOINT STANDING COMMITTEE ON DEFENCE ON SPECIAL PENSIONS

Transcription

1 NATIONAL TREASURY BRIEFING TO THE JOINT STANDING COMMITTEE ON DEFENCE ON SPECIAL PENSIONS Presenter: Stadi Mngomezulu Deputy- Director General: Corporate Services 16 November 2012

2 CONTENT Introduction Beneficiaries of Special pensions Benefits Special Pensions activities Special Pensions Board and Review Board Appeal Board Special Pensions Structure Application process 2

3 INTRODUCTION 1996: Special Pensions Act promulgated, giving effect to section 189 of the Constitution. Objective: To provide for the payment of special pensions to persons who made sacrifices or served public interest in the establishment of the democratic constitutional order. 1998: Applicants now receive monthly pension from the age of 35, as opposed to 50 / 60. Also included terminally ill persons. 2003: To accommodate late applications. i.e. applications that were received after 1 December

4 INTRODUCTION 2005: New benefits were introduced: monthly spouse pension; monthly orphans pension; funeral benefit; 31 December 2006 as a closing date for all applications. 2008: Amendment were introduced: Extend the right to a pension to persons 30 years of age, but not yet 35 years on 1 December 1996; Extend surviving spouses & orphans pensions and funeral benefit to certain persons; To regulate the administration of the Act; To amend Schedule 3 of the Act and provide for matters connected therewith. 4

5 BENEFICIARIES OF SPECIAL PENSIONS A beneficiary is person would have met all statutory requirements of the Special Pensions Act. The Act recognises the following beneficiaries: A person applying in his own right, this would be a person who is a South African citizen or entitled to be a South African citizen, who was engaged full-time in the liberation struggle prior to 2 February 1990; Spouse to the deceased pensioner; 5

6 BENEFICIARIES OF SPECIAL PENSIONS Child of the deceased pensioner or spouse that was receiving a monthly benefit; Dependant of the deceased pensioner or spouse; A child or dependant who became an Orphan as result of the death of the pensioner and/or spouse; A dependant may be a parent, sibling, niece, nephew, adopted child in respect of whom a deceased person was legally liable for maintenance and if the applicant (dependant) was at the time of death of the deceased, dependant on the deceased for maintenance. 6

7 BENEFITS Special Pensions monthly membership 31 October 2012: years of age : years of age : years and above : 331 Orphans : 58 Widows : Total monthly annuitants :

8 SP ACTIVITIES SP activities since inception Total number of application received : Total applications approved : Total application declined : Total Late Applications : Dormant applications : Applications in process (Various stages) : NB: Due to the age restriction within the Special pension Act - before the 2008 Amendment, most of the under 35 beneficiaries opted for NSF, there is beneficiaries under the NSF programme. 8

9 SP ACTIVITIES SP activities for Under 35 s Total number of applications received from Jan Dec 2010 : 9924 Total number of application processed : 9874 Of the rejected due to age (< 30 > 35) : 3440 Incomplete applications at verification : 41 Turnaround time of processing a complete under 35 application is on average 90 days, improved from an average of one year in the past. 9

10 Special Pensions Board and Review Board The Special Pensions Board was established in terms of section 15 of the Act, and was accountable to the Minister. The Board was dissolved by the Minister in February 2007 in terms of section 27(1). A Review Board was established in terms of section 28 of the Act and was also dissolved in May 2007 in terms of section 27(1). The definition of Board and Review Board were respectively deleted by section 23 (e) and 23 (j) of Amendment Act, No 13 of Subsequently the Board was replaced by the Administration and the Review Board was replaced by the Appeal Board in terms of section 8AA(1). 10

11 APPEAL BOARD The Appeal Board (AB) was established in terms of section 8AA(1) of the Act; The AB consist of three members and was appointed by the Minister of Finance; and The AB may confirm, set aside or vary the decisions of the designated institution. 11

12 SPECIAL PENSIONS STRUCTURE The administration is managed by the Director /Senior Manager: Special Pensions; The Director : Special Pensions reports to the Chief Director: Programme 7; The Special Pensions structure consist of the following sections: Political Verification and Research; Adjudication panel; Appeal panel; Payments and Secondary benefits; Clientcare and Records management 12

13 APPLICATION PROCESS 13

14 THE END» Thank you» Questions? 14