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DSD Annual Report 2007/08

DSD Annual Report 2007/08 . Presented to Portfolio Committee on Social Development 22 January 2009. Part B Programme Performance Comprehensive Social Security. Presentation outline. Part B: Programme Performance 2007/08: Comprehensive Social Security Social Assistance Social Relief

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DSD Annual Report 2007/08

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  1. DSD Annual Report2007/08 Presented to Portfolio Committee on Social Development 22 January 2009 "Building a caring society. together"

  2. Part B Programme PerformanceComprehensive Social Security "Building a caring society. together"

  3. Presentation outline Part B: • Programme Performance 2007/08: • Comprehensive Social Security • Social Assistance • Social Relief • Social Insurance • Appeals "Building a caring society. together"

  4. Government’s 3 pillar social security framework • Comprehensive Social Security is premised on 3 pillars • Pillar 1: Social Assistance • Non-Contributory • Pillar 2: Social insurance - those can afford must contribute in a system based on social solidarity to protect against unemployment, sickness, disability, old age and death • Contributory • Pillar 3: voluntary contributions for benefits over and above pillars 1 & 2, e.g. additional retirement annuities "Building a caring society. together"

  5. Programme 2: CSS • Social Assistance • Children and Families • Old Age and Disability • Social Relief • Social Insurance • Retirement Reforms "Building a caring society. together"

  6. Social Assistance "Building a caring society. together"

  7. Programme 2: Comprehensive Social Security SOCIAL ASSISTANCE: Children, Youth and Family Benefits • Commissioned a number of studies to investigate the feasibility of improving income support to children, youth and families . The studies informed new policy developments in these areas which include • a draft policy document on comprehensive services to children. • Draft policy on social protection for youth • Draft policy on income support to families Old Age and Disability • During the 2007/08 financial year the department achieved the following; • The Cabinet in August 2007 approved the harmonised assessment tool for care dependency grants and adult persons with disabilities. • Piloting for the harmonised assessment has been finalised "Building a caring society. together"

  8. Programme 2: Comprehensive Social Security Social Assistance (continued) • Reviewed the targeting mechanisms, means tests and values for Social grants which confirmed that the thresholds have remained stagnant over the years which eroded the purchasing power of grants. • Outcome • Amended regulations of the Social Assistance Act • Means Tests for Social grants adjusted Other Social Assistance Policy Development • Lowering of the age equalisation for old age grant • Extension of the child support grant to 15th birthday • Disabled refugees access to disability grants • Allowing alternative forms of identification for social grants • Provision of Social Relief of Distress to Refugees • In year adjustments on social grants to deal with high food and fuel crisis "Building a caring society. together"

  9. Programme 2: Social Security Transfers & Administration Social Assistance transfers (South African Social Security Agency, SASSA) • About 12,5 million South Africans are benefiting from the social safety net. These beneficiaries constitute more than 25% of the country’s population. • Compiled monthly reports for service delivery assurance of the effectiveness and efficiency of social security spending. • MIS: Rolled out the registry system in 6 provinces. The project was transferred to SASSA in May 2007. "Building a caring society. together"

  10. Programme 2: Social Security Transfers & Administration Social Assistance transfers (South African Social Security Agency, SASSA) • Oversight Arrangements • Monthly Transfers of funds • Monthly expenditure Reports • Bilateral meetings to discuss take ups and expenditure reports • SASSA submits Quarterly Progress reports • Periodic Evaluation of programmes "Building a caring society. together"

  11. Social Insurance "Building a caring society. together"

  12. Programme 2: Comprehensive Social Security Social Insurance • Completed 4 feasibility Studies on retirement reforms focusing on • Feasibility of universalising the Old Age Grant; • Design of appropriate retirements benefits for mandatory contributions; • Options for providing insurance cover for post post-retirement medical schemes; and • Accreditation of retirement insurance providers • Developed a micro simulation model to evaluate the potential macroeconomic impact of the social security system, including envisages reforms. "Building a caring society. together"

  13. SOCIAL RELIEF "Building a caring society. together"

  14. Programme 2: Comprehensive Social Security Social Assistance (continued) Social Relief Funds • Completed a draft policy and Bill on Social Relief of Distress with the intention of ensuring uniformity across all provinces. • Appointed legal expect to consolidate the provisions of the Fund Raising Act No. 107 of 1978 under a new Social Relief of Distress Bill. • Dissolved the Boards (Dormant) "Building a caring society. together"

  15. Allocation to Regions • Budget Allocation 08/09 R124 m • Additional amount (November 2008) R500m The • Additional allocations was divided as follows: • Eastern Cape: R100,000,000 • Free State: R 34,000,000 • Gauteng: R 62,000,000 • KwaZulu-Natal: R119,500,000 • Limpopo: R 80,000,000 • Mpumalanga: R 36,500,000 • Northern Cape: R 12,500,000 • North West: R 33,500,000 • Western Cape: R 21,500,000 Total ` R500,000,000 "Building a caring society. together"

  16. Proposed Strategy • The allocation of R500 million is managed by SASSA. • The majority of potential beneficiaries will qualify under the category of “undue hardship” which has to be assessed by Social Workers. • Groups that should be targeted: • Children who turned 14 years of age in the period April – December 2008. • Support from civil society to identify needy people (families and individuals facing undue hardship) • People awaiting the outcome of appeals • Rejected disability grant applications. "Building a caring society. together"

  17. Risk Factors • Lack of admin budget for implementation; • Limited staff capacity; • Lack of co-operation by stakeholders; • Limited timeframe for rollout; • Timing – Festive season period; • Commitments made in March ’09 may not be paid before financial year end – significant impact on budget for 2009/2010; • Roll over for transfer payments not considered. "Building a caring society. together"

  18. APPEALS "Building a caring society. together"

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