UIF 'in good financial health'
Zibonele Ntuli
11 March 2005
South Africa's Unemployment Insurance Fund (UIF) is now financially viable, having built up reserves of up to R8.4-billion.
Labour Department spokesperson Page Boikanyo said the fund became fully reserved for the period ending December 2004, with total investments at that stage standing at R8.8-billion.
Boikanyo said the Fund was expected to exceed its actuarial valuation reserves by R500-million at the end of the 2005/06 financial year, with the surplus for the period ending December 2004 standing at R1.3-billion.
The Fund was a cause for concern prior to 2002; in 2001 it showed a deficit of R255-million.
A turn-around strategy was implemented, and since then the fund has shown remarkable achievements.
Boikanyo said that the widening of the contributor base, along with strong growth on the income side, had played a major role in the turn-around.
"In December 2004 alone the Fund collected about R562-million from
employers, compared to R477-million on average per month in the 2003/04 financial year."
"A team of financial experts had already made sure that the Fund dealt effectively with audit queries raised by the Auditor-General in the 2003/2004 financial statement", Boikanyo added.
In 2004, the UIF paid out R1.5-billion in benefits to over 440 000 unemployed workers, as well as R242-million to women on maternity leave, and at least R6-million to more than 27 000 unemployed domestic workers.
Close to 600 000 domestic employers have registered with the Fund.
Source: BuaNews
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