"Building a caring society. together"1 DSD Annual Report 2007/08 Presented to Portfolio Committee on Social Development 22 January 2009

"Building a caring society. together"2 Part B Programme Performance Comprehensive 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 15 th 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 08/09R124 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 –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