Commissioner Boas Seruwe said yesterday that the UIF’s actuaries had supported the proposal which had been adopted by the board and was due to be submitted to the Cabinet shortly. The fund’s accumulation of surplus cash over the years has enabled it to progressively expand the benefits offered.
It has received unqualified audit reports continuously since 2005, contrasting sharply with many other departments that are judged negatively for their performance.
The UIF’s annual report, tabled in Parliament yesterday, showed that contributions (less refunds) rose 5% to R11,3bn (from R10,8bn), investment income rose 3% to R3,6bn (R3,5bn) and the net surplus was up 38% to R9,5bn (R6,9bn).
A number of factors contributed to the strong financial outcome: for instance, the number of registered employers on the database rose 4,7% to 1,35-million as economic conditions improved.
On the other hand, 49000 fewer claims were received than the previous year, with 732158 of the 751996 claims submitted being approved. The amount paid out in claims fell 5,4% to R5,4bn from the previous R5,7bn, with unemployment benefits paid falling from R4,5bn to R4,2bn.
By the end of March the IDC had drawn down R1bn of this for 76 approved deals.
According to business plans submitted, 17233 jobs were created and saved since the launch of the bond in April last year.
In addition, the UIF set aside R1,2bn over five years for government’s layoffs training scheme.