o perations of the unemployment insurance fund
DESCRIPTION
O perations of the Unemployment Insurance Fund. 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. Stated purpose/ objective of Fund - PowerPoint PPT PresentationTRANSCRIPT
OOperationsperations of the of the
Unemployment Unemployment
Insurance FundInsurance Fund
IndexIndex
• Transformation of the fund – getting the basics Transformation of the fund – getting the basics rightright
• What has the operation being doingWhat has the operation being doing
– As relates to its mandate of servicing public As relates to its mandate of servicing public
• Current and Future actions Current and Future actions
Processes and procedures required to support the stated purpose/ objective
Support structures & information systems/ technology
Process
Vision
Culture
Infrastructure OrganisationHuman
Resources
Stated purpose/ objective of FundProvide effective social safety net to unemployed workers
Structure, roles & organization interfaces
People practices, skills & competencies
Values, behaviour and attitudes required to enable vision
In transforming the Fund an holistic In transforming the Fund an holistic approach was adoptedapproach was adopted
Business transformation is a continuous Business transformation is a continuous processprocess
Currentstate
Future stateStrategic
vision
“It is not what the vision is, but what the vision does”.
(Peter Senge)
We are we?We are we?
Organ
isat
ional
re-c
onstru
ctio
n 36
month
s
Impl
emen
t law
Build pro
cesses
Instit. capacity
Realising
Phase 1
2002-2003
Phase 2
2003-2004
Pha
se 3
2005
-200
6
Current State
Future State
•Re-engineer•Build application•Investigation org struct.•Meet all commitments to clients•Strengthen capacity
•Implement new processes•Quick wins :org struct.•Improve service delivery
•Implemented law•Insolvent-to-solvent•Actuarial assessment•Integration to SARS•Extended coverage
Pillars on which turnaround is Pillars on which turnaround is basedbased
Information Technology Information Technology
Revised Legislation Revised Legislation
Institutional restructuringInstitutional restructuring
Sustainable Sustainable FundFund
Progress with re-structuringProgress with re-structuring
• In addition to implementing the legislation approved by parliament in 2002, the In addition to implementing the legislation approved by parliament in 2002, the fund successful extended coverage to all domestic workers in 2003. More than fund successful extended coverage to all domestic workers in 2003. More than 600 000 domestic employers were registered and more than half a million 600 000 domestic employers were registered and more than half a million domestic employees were registered on the funds database. Coverage was also 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 extended to all those employee employed by organs of state that are not defined as officials in terms of the public service regulations. as officials in terms of the public service regulations.
• The Fund continued the process of developing a new The Fund continued the process of developing a new blue print for the organisation by negotiating with key blue print for the organisation by negotiating with key stakeholders the mechanics of the new structure. stakeholders the mechanics of the new structure. This is intended to transform the organisation to This is intended to transform the organisation to deliver on its mandate of social protection to deliver on its mandate of social protection to unemployed workers. unemployed workers.
Legislative Legislative re-structuringre-structuring
Institutional Institutional restructuringrestructuring
• Creation of business applications to support Creation of business applications to support businessbusiness, during the last year the fund was , during the last year the fund was engaged in the development of its new business engaged in the development of its new business applications, that is expected to significantly applications, that is expected to significantly improve the control environment. improve the control environment.
Information Information TechnologyTechnology
PPP with SiemensPPP with SiemensPPP with SiemensPPP with Siemens
UIA 63 of 2002UIA 63 of 2002UIA 63 of 2002UIA 63 of 2002
UIF world class modelUIF world class modelUIF world class modelUIF world class model
2004/2005 was a challenging year in 2004/2005 was a challenging year in which the fund which the fund continued to continued to lalayy a firm a firm foundation for future growth.foundation for future growth.
Growth in investmentsGrowth in investments
2002/2003 2002/2003
2001 2001
- 255k d- 255k deficit
2,620,052 2,620,052 investmentsinvestmentsR R
20020033/200/20044
6,255,000 6,255,000 investmentsinvestments
Benefit ExpenditureBenefit Expenditure (R,000) (R,000)
Year Benefits (m)
1998 3 051 000
1999 2 984 000
2000 2 905 000
2001 2 838 073
2002/3 2 367 000
2003/4 3 282 000April 2004-Jan 2005 2 112 022
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.
Growth in Revenue (R,000)
FiveFive year revenue growth year revenue growth
2002/2003 2002/2003
2001 2001
20002000
2.72.7
2.82.8
4.34.3
R bnR bn
4.4.0808 20020033/200/20044
15 months
12 months
2004/2005 2004/2005
April 2004-Dec 20045.065.06
Registration of domestic Registration of domestic EmployersEmployers
600 000600 000 domestic employers registered. domestic employers registered.
495 000495 000 details of employees recorded. details of employees recorded.
600 000600 000 domestic employers registered. domestic employers registered.
495 000495 000 details of employees recorded. details of employees recorded.
Overwhelming Public response Overwhelming Public response to campaign to campaign
InternetInternetInternetInternetFaxFax Labour Labour CentresCentres
Call Call CentreCentre
The inclusion ofDomestic workerswas a World firstfor the Department.
As at:As at: Domestic Domestic Employers Employers registeredregistered
Active Active Domestic Domestic Employers Employers registeredregistered
Active Active DistinctDistinctDomestic Domestic Employees Employees registeredregistered
29 February 200429 February 2004 592 522592 522 529 519529 519 484 959484 959
31 March 200431 March 2004 596 368596 368 531 404531 404 488 988488 988
30 April 200430 April 2004 599 278599 278 531 389531 389 489 948489 948
31 May 200431 May 2004 602 712602 712 533 933533 933 492 712492 712
30 June 200430 June 2004 605 712605 712 535 748535 748 493 904493 904
31 July 200431 July 2004 608 365608 365 534 416534 416 495 066495 066
31 August 200431 August 2004 611 022611 022 534 559534 559 495 076495 076
30 September 200430 September 2004 613 918613 918 534 666534 666 497 530497 530
29 October 200429 October 2004 616 583616 583 531 815531 815 498 100498 100
30 November 200430 November 2004 619 265619 265 532 827532 827 498 659498 659
31 December 200431 December 200431 January 200531 January 2005
620 699620 699623 074623 074
529 950529 950529 216529 216
498 927498 927498 210498 210
Registration of domestic Registration of domestic EmployersEmployers
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.
84%
16%
Compliance by domestic Compliance by domestic EmployersEmployers
As at:As at: Active Commercial Active Commercial Employers Employers registeredregistered
Active Active Distinct Distinct Commercial Commercial Employees Employees registeredregistered
31 January 200431 January 2004 419 753419 753 5 585 7115 585 711
29 February 200429 February 2004 421 378421 378 5 670 9435 670 943
31 March 200431 March 2004 427 938427 938 5 742 9425 742 942
30 April 200430 April 2004 431 762431 762 5 794 6965 794 696
31 May 200431 May 2004 437 484437 484 5 866 9945 866 994
30 June 200430 June 2004 441 944441 944 5 815 2745 815 274
31 July 200431 July 2004 445 367445 367 5 811 9615 811 961
31 August 200431 August 2004 449 424449 424 5 828 8355 828 835
30 September 200430 September 2004 453 525453 525 5 952 6235 952 623
29 October 200429 October 2004 455 851455 851 6 007 6946 007 694
30 November 200430 November 2004 458 368458 368 6 047 7596 047 759
31 December 200431 December 200431 January 200531 January 2005
457 594457 594469 491469 491
6 108 1506 108 1506 115 1166 115 116
Registration of Commercial Registration of Commercial EmployersEmployers
71%
29%
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.
Compliance by Commercial Compliance by Commercial EmployersEmployers
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%.
Claims Processing for Jan 2005Claims Processing for Jan 2005
Trend of claim paymentsTrend of claim payments
Month Received Approved
Value of overpayments
raised
Number of payments
to beneficiari
esAmount 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
Number of payment by benefit Number of payment by benefit typetype
Unemployment Illness Maternity Adoption Dependants Grand Total
Received 489122 29390 62554 52 27017 608135
Approved 402835 24053 59252 49 21046 507235
86.0386.03 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
Monthly trends on applications and approvals
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05
Received Approved
Breakdown of domestic claims processed
DOMESTIC CLAIMS as @ December 2004 DOMESTIC CLAIMS PAID as @ 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
Processing of domestic claims per region Processing of domestic claims per region showing movement from December 2004 showing movement from December 2004
to January 2005to January 2005
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
Dec-04 3 295 2 761 3 989 994 737 1 399 1 371 2 276 1 132 479 2 661 3 020 944 602
Jan-05 3551 2763 4297 1043 781 1546 1440 2534 1218 497 2796 3219 1041 607
PretoriaJohannes
burgDurban
Pietermaritzburg
East London
Port Elizabeth
Cape Town
Bloemfontein
Kimberley
GeorgeGermisto
nMpumala
ngaLimpopo
North West
Domestic Amount paid per region Domestic Amount paid per region showing movement from December 2004 showing movement from December 2004
to January 2005to January 2005
0
200000
400000
600000
800000
1000000
1200000
Dec-04 956042.6 859942.4 997469.9 181754.5 155196.7 337695.9 497879.6 405189.5 211506.1 115830.4 647592 629531.5 180098.8 107910.1
Jan-05 1030935 860777.6 1081284 192299.2 166213 374977.5 527140.5 453974.7 228434.8 120143.4 690266 675017.9 199813 109016.3
PretoriaJohannes
burgDurban
Pietermaritzburg
East London
Port Elizabeth
Cape Town
Bloemfontein
Kimberley
GeorgeGermisto
nMpumala
ngaLimpopo
North West
Average period from unemployment to application and to approval by region and section - 2003
RegionAdoption Dependants Illness Maternity Unemployment Total Adoption Dependants Illness MaternityUnemployment Total
Bloemfontein 106.50 53.00 36.45 37.23 75.42 69.29 114.00 144.28 125.50 80.61 46.38 58.53 Cape Town 28.94 55.63 21.22 31.31 84.27 69.46 174.61 121.81 134.47 99.37 73.84 83.14 Durban 37.40 43.29 20.16 36.52 85.72 77.57 88.40 102.91 80.29 48.60 20.74 28.40 East London 533.00 36.80 11.72 23.07 72.01 64.24 65.00 113.13 97.06 51.59 26.78 36.18 George - 50.83 22.53 42.28 92.32 80.72 - 106.75 87.73 61.86 37.54 45.02 Germiston 91.40 63.26 26.13 59.18 85.07 78.87 203.20 93.70 88.82 46.16 22.90 30.87 Johannesburg 77.00 42.11 19.14 45.79 75.08 67.11 125.86 121.85 108.19 60.07 35.99 45.03 Kimberley - 60.88 17.01 27.41 83.08 73.33 - 94.58 89.49 55.42 20.02 29.85 Mmabatho 22.33 39.85 7.29 14.71 76.70 69.15 118.67 170.06 132.74 116.48 61.91 71.49 Pietermaritzburg - 41.01 22.76 31.21 80.09 71.28 - 100.35 74.82 49.68 19.57 29.75 Pietersburg/Polokwane - 32.10 15.13 19.88 82.57 75.25 - 200.73 118.13 99.32 49.56 59.77 Port Elizabethe 1.00 50.11 20.59 36.25 84.64 74.91 200.67 118.84 90.89 55.78 31.10 40.00 Pretoria 77.00 41.81 13.27 33.27 76.53 66.15 126.20 128.47 110.75 77.27 46.58 56.32 Witbank 43.33 42.87 23.80 37.66 92.79 85.11 66.33 86.93 75.77 44.25 15.98 22.74 Grand Total 58.37 46.17 21.00 37.02 82.26 73.20 145.44 117.26 101.32 70.42 36.36 45.94
Average period unemployment to application Average period application to approval
Turnaround time for claims Turnaround time for claims processing in 2003processing in 2003
Average period from unemployment to application and to approval by region and section - 2004
RegionAdoption Dependants Illness MaternityUnemployment Total Adoption Dependants Illness MaternityUnemployment Total
Bloemfontein 1.00 29.87 7.16 11.36 58.52 49.10 164.00 129.22 110.43 69.97 36.50 50.29 Cape Town 10.75 - 8.17 9.58 77.73 61.41 133.75 96.90 92.27 61.40 30.01 39.53 Durban 64.67 27.33 8.56 12.18 50.97 44.46 86.33 95.49 73.95 43.97 18.99 26.80 East London 1.00 19.19 4.69 11.65 64.46 56.17 47.50 118.24 89.47 57.19 33.00 41.05 George 1.00 35.27 7.19 9.15 77.87 64.62 35.00 100.42 75.35 55.94 30.10 36.89 Germiston 83.75 27.91 6.76 11.97 56.48 47.87 59.25 83.62 75.40 38.27 12.91 21.33 Johannesburg 55.00 28.43 7.95 15.93 61.51 50.28 74.43 101.00 87.15 46.09 20.07 29.57 Kimberley - 28.18 12.04 11.51 65.34 56.78 - 71.81 75.77 48.20 14.34 22.33 Mmabatho - 26.47 2.27 4.69 54.30 48.10 - 175.23 147.57 117.68 65.89 75.90 Pietermaritzburg - 23.34 6.18 11.84 57.69 49.61 - 100.70 70.98 48.47 17.76 27.96 Pietersburg/Polokwane100.00 23.00 11.02 7.40 74.06 66.40 82.00 144.07 104.16 77.01 33.80 42.45 Port Elizabethe 3.67 21.16 8.01 13.59 70.06 60.26 94.33 120.34 103.61 65.23 39.55 47.40 Pretoria 26.67 21.60 5.20 10.76 56.50 45.94 110.17 116.81 93.73 64.35 33.68 43.00 Witbank - 22.06 8.11 13.16 62.90 56.81 - 83.92 67.26 39.74 15.52 21.13 Grand Total 32.15 26.10 7.57 11.55 62.05 52.64 106.10 107.05 87.53 56.15 26.86 35.62
Average period unemployment to application Average period application to approval
Turnaround time for claims Turnaround time for claims processing in 2004processing in 2004
Below 6 weeks Above 6 weeks
0 10 20 30 40 50 60 70 80
Bloemfontein
Cape Town
Durban
East London
George
Germiston
Johannesburg
Kimberley
Mmabatho
Pietermaritzburg
Polokwane
Port Elizabethe
Pretoria
Witbank
Target indicator 2004
Performance against Key Performance against Key performance Indicatorperformance Indicator
How have we How have we performed?performed?
AdoptionAdoption DeathDeath IllnessIllness MaternityMaternity UnemUnemploymploymentent
0.008550730.00855073 4.4425994.442599 4.8328094.832809 10.286210.2862 80.4298387780.42983877
Days To Days To apply apply
20032003 58.3758.37 46.1746.17 2121 37.0237.02 82.2682.26
20042004 32.1532.15 26.1026.10 7.577.57 11.5511.55 62.0562.05
Days To Days To approveapprove
20032003 145.44145.44 117.26117.26 101.32101.32 70.4270.42 36.3636.36
20042004 106.10106.10 107.05107.05 87.5387.53 56.1556.15 26.8626.86
Call centre trendsCall 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
0
5000
10000
15000
20000
25000
30000
35000
40000
Calls Received 37961 25034 35524 34160 36228 25076 31482 26902 27410 25964 24201 28414 29086 17023 28890
Calls answered 34966 23615 33795 32992 33705 23745 30068 25126 25806 24959 23131 27099 28115 16563 27406
Calls abandoned 2959 1331 1709 1138 1796 1330 1414 977 1574 1005 1049 1232 938 456 1351
Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 04-Sep 04-Oct 04-Nov 04-DecAverag
e
UIF CALL CENTREUIF CALL CENTRE
Full audit trail of useractions
Channels New UIF Business Process Applicationresponse
Call Centre•Employer wishes to Register•Employer wishes to Declare employees•Unemployed worker wishes to claim
Acc
ess
Siy
aya
Employer/EmployeeDatabases are
updated
UI 54
Agent
Cli
ent
Co
rres
po
nd
en
ce
Dat
abas
e
Tel
Fax
UI 32 / 33 a
Notice of Amended details
Call in
Walk-In
Post
Self-help WWW
Labour centre official
Exception reportsFor risk management
Registration of employer, declaration of employees, payment of contributions, Claims
Receipt issuedFrom AR
INCREASING FOCUS ON SERVICE DELIVERYINCREASING FOCUS ON SERVICE DELIVERY
High level Siyaya work flowHigh level Siyaya work flow
Application clerk will:
Search for the claimant on the databaseIf the claimant cannot be found, clerk will register claimantIf found the clerk can register a claim in terms of the five benefit typesThe clerk will enter a date of applicationThe clerk will allocate a pay pointThe system will print a pay schedule for the chosen pay point, andthe applicant will be told when to report next if necessary.Siyaya sends a trigger to AXS-ONE to create the vendor and liability forpayment to be executed as per the agreed schedule.
PROCESSING OFFICE
Declarations
Capture U19
amendments
Claims
Finalise
Registry
Record claim
Illustration of claim processing in the event of the clientbeing located on the database enabling immediate claim
processing
Illustration of claim processing in the event of the client not beinglocated on the database requiring back office processing
Applicant arrives atLabour Centre
Help DeskThe main function of reception will beto screen client to check if recorded onthe database, there can be 2 outcomes
Yesdirect applicant to
Nodirect applicant tocase management
Application clerk will take theapplication manually and thenrefer to the back office forprocessing because certaininformation is outstanding thatprevents immediate processing
Payschedule
RefusalNotice
Payschedule
RefusalNotice
Full audit trail of useractions
Channels New UIF Business Process Applicationresponse
Ac
ce
ss
Siy
ay
a If the client is found on the Database, a claim can be registered
Cli
ent
Co
rres
po
nd
en
ce
Dat
abas
e
Payschedule
Walk-InLabour centre official
Exception reportsFor risk management
Adjudication of claim employee on database
Enters id Number into Siyaya, system Search's for previous claim
Siyaya requests clerk to verifytombstone details Once verified, Siyaya applies Business rulesClaim approved based on Declaration or rejectedIf approved Siyaya prints pay dates as per schedule or if rejected refusal notice
Refusal notice
Future work ProgrammeFuture work Programme Grow database Implement CRM Operationalise SIYAYA Improve service delivery Communication and
education
Way f
orw
ard
200
5-2
006
April 2005
100% of benefit claims are paid Electronically
utilising Mzansiand Teba bank
channels
Siyaya operational
• Crm upgraded customer care line
April 2006
80% of registeredemployers submit their declarations
April 2006100% of all approved
claims are paid within 28 days
April 2006
April 2006