DEPARTMENT OF DEFENCE HUMAN RESOURCE DEVELOPMENT REPORT ON THE IMPLEMENTATION OF THE MOBILITY/EXIT MECHANISM FOR MEMBERS OF THE SA NATIONAL DEFENCE FORCE, AS WELL AS ON RELATED HUMAN RESOURCE MATTERS


Appendix A: Mobility/Exit Mechanism Planning for Financial Year 2005106 and 2006/07 B: Mobility/Exit Mechanism Pension and Departmental Benefits


INTRODUCTION


1 Since 1994, the Department of Defence (DOD) has relied on natural attrition (referring to resignations, retirements, deaths, administrative discharges, medical discharges, contract maturation and transfers to other State Departments), on voluntary severance packages (Voluntary Severance Packages and Employer Initiated Packages from 1996 to 2002) and on recruiting efforts to regulate its personnel flow. Through the above measures, the DOD has managed to downsize it human resource composition from the integration high-point of 101 353 (as at 15 April 1996) to 76 061 (as at 15 August 2005).


2.Natural attrition, at an average rate of 3,38% per year, serves to keep the DOD in a broadly downsized mode, ie enabling it to more or less maintain the ideal full-time human resource strength of 70 000 indicated in the 1998 Defence Review. Natural attrition and downsizing do not, however, enable the DOD to address the qualitative dimensions of its human resource composition in an appropriate way. These dimensions include the need for human resource rightsizing to enable the DOD to create sufficient capacity to rejuvenate the SANDF, to enhance mission readiness and to address employment equity imbalances at a more robust pace. Hence, the need for a separation vehicle in the form of the Mobility/Exit Mechanism (MEM) for SA National Defence Force (SANDF) members, to be applied on a voluntary basis.


3.The implementation of the MEM for SANDF members will enable the DOD to give more momentum to its rightsizing efforts, thereby ensuring the evolution of a more effective, efficient, economical and representative human resource composition, as called for in HR Strategy 2010.


4.The DOD has now reached a stage where approval for the implementation of the MEM in a voluntary mode has been granted and where implementation is commencing.


AIM


5.The aim of this report is to inform the Portfolio Committee on Defence on the implementation of the Mobility/Exit Mechanism for SANDF members, on the state of morale and related matters.


SCOPE


6.The following aspects are addressed in this report:


a. Exit Mechanisms


i. Phase 1: Overview of exit mechanisms in the DOD from 1994 to 2005.


ii. Phase 2: Intended implementation of the MEM from Financial Year 2005 to 2008 (the current Medium Term Expenditure Framework period).


iii. Phase 3: Intent over the longer term after 2008.


b. Service systems contract expiry.


c. Update on broad-based representativity.


d. Utilisation of Military Skills Development System Members.


e. Conclusion.


EXIT MECHANISMS


PHASE 1: OVERVIEW OF EXIT MECHANISMS IN THE DOD FROM 1994 TO 2005


7.The downsizing /rightsizing debate in the DOD is influenced by a combination of external and internal factors. Externally, the debate is informed by Constitutional provisions, other Regulatory Framework and Government policy provisions and by socio-economic factors such as the defence budget and the unemployment rate. Internally, the debate is informed by factors such as the force design and structure, the state of mission readiness of the SANDF, rejuvenation requirements, increasing human resource commitments resulting from peace support operations, the need to have an appropriate balance between human resource expenditure and other expenditure components (operating and capital) and the requirement for enhanced effectiveness, efficiency and economy throughout the defence system.


8.The downsizing/rightsizing debate in the DOD had its origin in the Constitutional provisions governing the establishment of a united SA National Defence Force. Section 236(c) of the Interim Constitution (Act 200 of 1993) states the following regarding transitional arrangements for Public Administration: Ulf the number of the members of the National Defence Force exceeds the personnel strength determined in respect of the force design and structure for the Force, any member of the Force who, due to integration, consolidation and rationalisation of the National Defence Force is not accommodated in such force design and force structure, shall be dealt with in accordance with a law." Section 237 deals with the rationalisation of Public Administration. Section 237(1 )(b) states that: "All military forces referred to in Section 224(2) [former Statutory and Non-Statutory Forces] shall be rationalised for the purposes of the National Defence Force". Section 237(2)(a)(ii) states that: The responsibility for the rationalisation of military forces shall rest with the national government".


9. The current Constitution (Act 108 of 1996) states the following in Section 24(1) of Schedule 6 regarding transitional arrangements: 'Sections ... 236(1), (2), (3), (6), (7)(b) and (8), 237(1) and 2(a)... of the previous Constitution continue in force as if the previous Constitution had not been repealed, subject to (a) the amendments to those sections as set out in Annexure D; (b) any further amendment or any repeal of those sections by an Act of Parliament passed in terms of Section 75 of the new Constitution; and (c) consistency with the new Constitution."


10.The above Constitutional provisions were thus primarily aimed at the size and affordability of the DOD. These provisions informed the Defence Review of 1998, in terms of which it was stated in Chapter 10, paragraph 40 (dealing with Human Resources) that "... the integrated Regular Force exceeds the numbers required for the tasks that the SANDF has to perform in a low-threat scenario and is unaffordable, especially in the light of the reconstruction and development needs of the country. It is therefore necessary that the force is downsized." Chapter 10 then continues (paragraph 46 - 52) to lay down mechanisms and principles to effect employer-initiated retrenchments.


11.The implementation of the envisaged compulsory employer-initiated retrenchment process was, however, overtaken by the availability of the Voluntary Severance Package (VS P) for the total Public Service, starting in July 1996. Due to the beneficial effect that the VSP had to downsize the DOD, permission was obtained from the Department of Public Service and Administration to continue offering the VSP under the nomenclature of an Employer Initiated Package (EIP), after the VSP's term of offering expired in the rest of the Public Service. The net result was that the DOD steadily downsized towards the 70 000 mark which, according to the 1998 Defence Review, was considered to be a "viable Full-Time personnel component".


12Although downsizing requirements were largely met through natural attrition and the VSP/EIP initiatives, the subsequent emerging challenge was to make progress with HR rightsizing. HR rightsizing is meant to lead to a situation where the right person is appointed in the right post at the right time, thereby ensuring greater effectiveness, efficiency and economy (E3) in the DOD. The E3 requirement is derived from Section 38(1 )(b) of the Public Finance Management Act (Act 1 of 1999, as amended by Act 29 of 1999), which requires of all Accounting Officers to ensure the ~... effective, efficient, economical and transparent use of the resources [including the human resources] of the department..". From a military operational viewpoint, a predominantly E3 HR composition is required to ensure that appropriate rank-age, fitness and health profiles are maintained, thereby ensuring that human resources constitute a credible resource for the execution of the SANDF's Military Strategy and the DOD's mission. The increasing involvement of the SANDF in peace support operations has highlighted the imperative to establish and maintain an E3 SANDF HR composition. The above considerations have informed, and form the basis for, the DOD HR Strategy 2010.


PHASE 2: INTENDED IMPLEMENTATION OF THE MEM FROM FINANCIAL YEAR 2005 TO 2008 (THE CURRENT MEDIUM TERM EXPENDITURE FRAMEWORK PERIOD)


13. Having sketched the background of, and rationale for, exit mechanisms in the DOD, the focus shifts to the current Medium Term Expenditure Framework period (FY 2005 -08).


14 Based upon the amendment of Rule 14.8, Rule 20 and of the Annexure to the Rules of the Government Employees Pension Fund by the Minister of Finance (published in Government Gazette No 27729 of 1 July 2005) and based upon National Treasury approval for the DOD to fund the MEM from within the Defence allocation, the Minister of Defence, acting in terms of Section 55 of the Defence Act (Act 42 of 2002), made a determination on 5 July 2005 to implement the MEM in a voluntary mode. The DOD issued an Implementation Instruction to the Service and Divisional Chiefs on 11 July 2005.


15 During the current MTEF period, the MEM will be offered to identified SANDF members in a voluntary acceptance mode. The period will also be utilised to evaluate the rightsizing results occurring as a result of implementation of the MEM., to stabilise the HR composition at the end of the three-year period (through appropriate succession planning and empowerment) and then to make a decision on the way forward with HR rightsizing.


16.Legal Basis for the MEM

  1. Section 59 of the Defence Act, 2002, provides the grounds upon which the service of any member of the Regular Force may be terminated. In the normal context of transformation, restructuring or organisational development, the grounds for such a consideration could possibly be

    I "the abolition of such member’s post or any reduction or adjustment in the post structure of the Department of Defence;" and/or


ii…." if for reasons other than the member’s own fitness or incapacity, such discharge is likely to promote efficiency or increased cost-effectiveness in the Department of Defence" (the E3 principle).


The above grounds are, however, not applicable with regard to the implementation of the MEM, but in the absence of an alternative mechanism that will allow the DOD to regulate the optimum HR composition of the SANDF, the MEM is established to provide for the SANDF and/or its members to initiate a voluntary exit from the organisation.


17 The Intent with the MEM


a. The intent with the MEM is to enable the DOD to make tangible progress in right-sizing its HR composition through a process of realistic succession planning, but at the same time to guard against an exodus of scarce skills and specialist knowledge. The process intends to advise members within the Flexible Service System (FSS) of their future career prospects as informed by transformation and restructuring imperatives and as guided by the DOD Policy on Rank/Age Requirements. Members who have thus been informed of their career prospects (including the renewal of their FSS contracts that are due to expire) are to be offered the choice to accept any limitations attached thereto or to avail themselves of the MEM option.


b. The initiative with respect to the application of the MEM measures lies primarily with the Services and Divisions who shall conduct realistic succession planning in collaboration with the Career Managers of the respective functional groupings of personnel at all levels in the organisation. At the same time, members who are not contractually bound with regard to their service in the SANDF and who perceive that they have reached a plateau in their military careers, may indicate their interest in the MEM option to their Career Managers and/or Service or Division Chiefs.


c. In the case of members with contractual obligations, the Chief of the SANDF may recommend to the Secretary for Defence to waive such obligations if their exit from the Regular Force is likely to promote efficiency or increased cost-effectiveness in the Department of Defence.


d. The exit of the members against whom a possible charge of misconduct, dismissal based on misconduct or an investigation into alleged inefficiency is still under consideration, may not be effected in terms of the MEM measures. Only when the relevant matter has been concluded arid dismissal in terms of another provision of the Act does not apply, may these measures be effected by Service or Division Chiefs.


18.Guidelines when conducting Succession Planning


a. When conducting succession planning within the context of the MEM option and the need to maintain the SANDF's operational output levels, the following guidelines shall apply (in no specific order):


i. Whether the functional groups/musterings affected are constrained by critical shortages.


ii. The status of training and education in the functional groups/musterings concerned and the relevant learner throughput.


iii. Whether the rate of succession planning will ensure the maintenance of operational, administrative, training, logistical, technical upkeep, planning and ceremonial/disciplinary expertise within the particular structure of the DOD.


iv. Whether such succession planning will contribute towards the medium to long-term rightsizing of the DOD's HR composition at the particular .rank/age level.


v. Whether succession planning will contribute towards demographic equity at all rank levels in the DOD/SANDF. For planning purposes the following distribution in the HR composition will continue to be applied:


(1) African - 64.68%

(2) White - 24.35%

(3) Coloured - 10.22%

(4) Indian - 00.75%


vi. FSS contract expiry and renewals, justified within the context of the preceding guidelines.


vii. In the case of officers in the rank groupings Colonel and higher, realistic succession planning and placements shall include the recommendation of the Chief of HR Support (Director Military Personnel Utilisation) (DMPU). In the case of members in the rank groupings Lieutenant Colonel and below serving at Corporate Divisions, supervisors shall apply these guidelines by liaising with Service Career Managers while at the same time, keeping CHR Support (DMPU) duly informed.


a. In view of the fact that the DOD is steadily working towards a new force design and force structure, as described in the "Defence Update 2005" process, Service and Division Chiefs shall take care to conduct succession planning with their envisaged steady end state structures in mind. Members who are still on the strength of units/bases/depots that have closed down or are in the process of closing down may be considered for the MEM option, if voluntary inter-departmental transfers or redeployment within the DOD are not viable options.


b. Members who voluntarily accept or opt for the MEM shall not be nominated for further formal military courses;


ii. shall be allowed to voluntarily withdraw from courses that they are attending; and


iii. shall after exiting the Regular Force, not be considered for re-appointed in a full-time capacity in the SANDF in terms of the provisions of the Defence Act, 2002, within two years of their exit date. Members may however, without any time restrictions, voluntarily join the Reserve Force and serve therein according to the relevant policies and prescripts.


20 Planning Figures. The planned number of MEM offers, expected acceptances and

costs for the Financial Year 2005/06 and 2006/07 are contained in the Tables at Appendix A.

A summary of the planned MEM offers, expected acceptances and costs are indicated

below:

Table1 MEM Planning for FY 2005/06 as at 23 August 2005

Ser No

Budget Holder

Planned Officers

Expected Acceptances

Total DOD Cost

 

a

b

c

d

1.

SA Army

718

359

36 256 266

2.

SA Air Force

48

48

13 431 239

3.

SA Navy

50

50

11 355472

4.

SA Military Health Service

40

40

6 294 522

5.

Divisions

280

190

25 822 533

6.

Total

1 136

687

93 160 032

Table2.MEM Planning for FY 2006/07 as at August 2005

Ser No

Budget Holder

Planned Officers

Expected Acceptances

Total DOD Cost

 

a

b

c

d

1.

SA Army

0

0

0

2.

SA Air Force

152

152

46 108 958

3.

SA Navy

0

0

0

4.

SA Military Health Service

9

9

14 88 578

5.

Divisions

310

294

44 536 071

6.

Total

471

455

92 133 607

21.It can be expected that, as the MEM is intended to be implemented over a three-year or longer period, there will be a measure of flexibility in the actual number of members who may be progressively identified by the DOD or who may individually volunteer to accept the package, due to the dynamic nature of the career management process. Certain members who may initially have been identified for exit may, for example, be able to be staffed into an appropriate post, should a critical vacancy arise. On the other hand, certain members in critical posts may approach the organisation and request to be identified for exit. The bottom line is that succession planning will have to be done pro-actively and with circumspect to ensure that a balance is maintained between progressive rightsizing (including attaining employment equity imperatives) and the retention of critical skills, where appropriate.


22.The planning for actual exists, based on numbers of members and Departmental costs, will be integrated in the Services' and Divisions' annual HR plans for the duration of the MIEF period. The tempo of exits will be planned in such a way that they can be accommodated within the allocated (and re-prioritised) defence budget, within realistic succession planning parameters and within the 2005/06 and successive MTEF planning and budgeting cycles.


23.Pension and Departmental Benefits. Refer to Appendix B for an exposition of the pension and Departmental benefits respectively.


24 Weighted Average Departmental Cost per Member. The weighted average cost to the Department in effecting the MEM (ie excluding GEPF pension benefits) is illustrated below:


a. The average cost per Top Officer (General and Admiral): R859 944.


b. The average cost per Senior Officer (Major/Lieutenant Commander to Colonel/Captain (SAN): R233 791.


c. The average cost per Junior Officer (Lieutenant/Sub Lieutenant to Captain/Lieutenant (SAN): R59 975.


d. The average cost per Warrant Officer: R168 560.


e. The average cost per Senior Non-Commission Officer Officer to Staff Sergeant/Chief Petty Officer: R79 391


f. The average cost per Junior Non-Commissioned Officer Corporal/Able Seaman to Corporal/Leading Seaman): R51 882.


g. The average cost per Private/Seaman: R48 120.


h. The weighted average Departmental cost per member: R84 579.


25 In order to curb costs, every effort will be made to grant MEM's during the first quarter of each financial year, thereby allowing the Department to utilise the funds already budgeted for members to pay for their exits.


PHASE 3: INTENT OVER THE LONGER TERM AFTER 2008


26. Due to the fact that the MEM will be implemented in a voluntary-mode during the current MTEF period, it is at this stage difficult to forecast the exact rightsizing results that will materialise at the end of the period. Certain members who may be identified to accept the MEM, may decline the offer and opt to serve until retirement even though they may not face promising career advancement prospects. On the other hand, members with high potential may well apply to be considered for an offer. Thus, a certain degree of fluidity can be expected from a voluntary implementation mode.


27. The DOD will, therefore, continuously (monthly) assess the progress being made to right-size, as the MEM is being implemented. Should there not be significant rightsizing results at the end of the MTEF period, representations will be made to Government to consider alternative means, which may then also include considerations for a possible compulsory rationalisation exercise. This will require Cabinet approval.


SERVICE SYSTEMS CONTRACT EXPIRY


28.In pursuance of Desired End State No 2 of HR Strategy 2010 (an effective, efficient and economical [E3] HR composition) and Desired End State No 4 (a new way that members serve), the SANDF is currently in a process to steadily migrate from the "old" Flexible Term Service System (comprising the Short, Medium and Long Term Service Systems) to the new SANDF service system (comprising the Military Skills Development System and the Core Service System).


29. The achievement of the above desired end states depends on the achievement of an appropriate balance amongst the different service system components. The ideal is to increase the ratio of Military Skills Development System members compared to the other full-time service system components and to utilise the Reserve Force to a greater extent. This will enable the Department to spend less on human resources, thereby enabling more funding for operating priorities such as infrastructure, accommodation, training etc.


30.The E3 goal will, however, only be able to be achieved over the longer term. It will gain momentum as the Flexible Term Service System components phase out naturally, while the membership of the new service system's components steadily grow.


31. Currently serving Short and Medium Term Service members whose contracts expire, are being considered for the allocation of Core Service System contracts. The Long Term Service System is steadily reducing in size as members retire, resign, etc. No new appointments are effected in the Long Term Service System. All existing service contracts will therefore remain in force until they expire naturally or until the member terminates the contract through resignation or until the DOD terminates the contract through disciplinary measures arising from legal action or through administrative measures such as a Medical Board. It is emphasised that the MEM is a voluntary service termination mechanism where the ultimate decision whether or not to utilise the opportunity, rests with the member.


32 The extent of Short and Medium Term Service contract expiry in the SANDF, without members not receiving any further full-time service contract, is very low. During 2001, 73 members exited the Regular Force after contract expiry; during 2002, 77 members exited; during 2003, 95 members exited; during 2004, 71 members exited and from January to July 2005, 34 members exited. Over the above period from 2001 to 2005, therefore, a total number of 350 Short and Medium Term Service members exited the Regular Force upon contract expiry, of whom 130 (37%) were African, 36 (10%) were Coloured, 13 (3%) were Indian and 171(48%) were White. The primary reasons why no new contracts were allocated were due to the members' choice not to continue serving in the Regular Force and due to disciplinary and administrative discharges.


33. The current composition per service system component is are with reference to the total full-time human resource strength): as follows percentages


a. Short Term Service System: 1 543 (2,02%)

b. Medium Term Service System: 26 907 (35,37%)

c. Long Term Service System: 25 035 (32,91%)

d. Military Skills Development System: 5 775 (7,59%)

e. Core Service System: 1 886 (2~47%)

f. Non-Uniformed Personnel: 14813 (19,47%)

g. Auxiliary Service: 102 (0,13%)


UPDATE ON BROAD-BASED REPRESENTIVITY


34. As on 15 August 2005, the total full-time HR component of the DOD comprised the following race groups:


a. African: 48 149 (63,30%).

b. Coloured: 9 667 (12,70%).

c. Indian: 999(1,31%).

d. White: 17 246 (22,47%).

e. Total: 76061(100%)


35 The total DOD gender composition was as follows (15 August 2005):

a. Female: 17 104 (22,48%).

b. Male: 58 957 (77,52%).


36. The SANDF Regular Force (61 248 members in total) comprised the following race groups (15 August 2005):

a. African: 39 797 (64,97%).

b. Coloured: 6935(11,32%).

c. Indian: 879 (1,43%).

d. White: 13637 (22,26%).


37. The SANDF Regular Force gender composition was as follows (15 August 2005):

a. Female: 10640 (18,26%).

b. Male: 50068(81,74%).


38. While the equity targets for broad-based representivity as stated in the Defence Review, have been attained in broad terms, the remaining challenges are to address the over-representivity of White males in middle-level command and management positions and in scarce combat, technical and statutory professional musterings. Also to be addressed, is the under-representivity of Whites in junior ranks.


39. The complexity of the above challenge requires that the DOD should close representivity gaps while at the same time not lose scarce expertise. Whilst the implementation of the MEM will create capacity to correct some of the imbalances, especially regarding the over-representivity of White males in middle-level command and management positions, the DOD is currently also busy with staff work to determine ways and means to expedite the above process even further.


40. The new DOD Human Resource Acquisition Strategy, once implemented, should contribute to address the under-representivity of Whites in junior ranks in the future.


UTILISATION OF MILITARY SKILLS DEVELOPMENT SYSTEM MEMBERS


41.With the 2003, 2004 and 2005 MSDS intakes, the SANDF has already made big strides to rejuvenate its human resources from the bottom up. There are currently 5 775 MSDS members, who comprise 9,4% of the Regular Force. Due to the feeding stream brought about by the larger intakes since 2003, the number of Regular Force Privates between 18 and 24 years of age have increased from only 1 941 (10% of all Privates) in 2002 to 5 695 (33% of all Privates) currently. The next intake is scheduled for January 2006, when 4 304 new members will report for service (SA Army: 3 000; SA Air Force: 196: SA Navy: 600: SA Military Health Service: 211 and the Divisions: 297). Despite severe operating constraints, the SANDF will endeavour to maintain its rejuvenation momentum through relatively large intakes. It should be considered, however, that the current organisational capacity and the limitations on the operating budget, prevent the achievement of sustained intakes of approximately 7 000 per year, as envisaged in HR Strategy 2010. The limitations in organisational capacity is mainly attributable to the occupation of lower level production posts by members who are no longer effectively, efficiently and economically in service, with specific reference to the SA Army, who prevent MSDS members from being staffed into posts.


42.In order to enhance the MSDS, the DOD has initiated an effect analysis survey amongst MSDS members that will be conducted in four stages, je just after members report for service, upon completion of Basic Training, upon completion of functional training (end of year 1) and just prior to the completion of the two-year service period. The first surveys will be conducted towards the end of 2005 and on a continuous basis thereafter with regard to the two year-groups which are in the MSDS system at any given time (currently being the 2004 and 2005 intakes). The findings will be utilised to improve the MSDS as a service system.


CONCLUSION


43.Until now, the DOD has relied on natural attrition to regulate the nature of the SANDF's personnel flow and to effect HR rightsizing, with unsatisfactory results. Although the DOD has managed to downsize over the years, it has not been able to right-size in compliance with the legal requirement for an effective, efficient, economical and representative organisation.


44. Rightsizing to restore the personnel flow to an appropriate state will only be able to be effected through appropriate personnel exits. Depending on the progress being made through the implementation of the MEM in a voluntary approach over the current MTEF period, it may be necessary to consider a compulsory severance approach by 2008.


45. The SANDF is on a steady migration path from the old Flexible Term Service System towards the new service system. This process is, however, a longer term endeavour, mainly due to the time it takes for current service contracts to mature.


46.While the MEM will contribute towards the achievement of a more balanced demographic composition at middle level command and management, other ways and means are being considered to expedite the process.


47 Despite capacity constraints, the SANDF endeavours to maintain its rejuvenation momentum through MSDS intakes. An effect analysis survey is to be launched soon to determine MSDS members' attitudes and opinions towards the MSDS as a system and will assist the DOD to continuously improve the MSDS.


48.Submitted for your consideration.


MEM PLANNINNG PER BUDGET HOLDER FOR FY2006/07 AS AT 23 AUGUST 2005

BH CODE

BUDGET HOLDER

PLANNED OFFERS FY 2005/06

EXPECTED ACCEPTANCE FOR FY 2005/06

TOTAL COST ITEM 10 FY2005/06

TOTAL COST ITEM 15 FY2005/06

TOTAL COST FY2005/06

01

SA ARMY

718

359

31,589,266

4,66,000

36,256,266

02

SA AIR FORCE

48

48

11,607,239

1,824,000

13,431,239

03

SA NAVY

50

50

10,705,472

650,000

11,355,472

05

SAMHS

40

40

5,865,522

429,000

6,294,522

07

SERVICE CORPS

5

4

884,164

51,000

935,164

10

HR SUPPORT CENTRE

7

7

7,29,588

301,658

1,031,246

11

LEGAL SERVICES

10

10

1,248,714

26,000

1,274,714

12

DEF TRAINING INST

14

11

2,783,647

143,000

2,926,647

13

MOD CORP COMMS

0

0

0

0

0

14

MOD RES FORCE

1

1

233,791

0

233,791

15

CHIEF FOREIGN RELATIONS

0

0

0

0

0

17

STRATEGIC PLANNING

0

0

0

0

0

18

EQUAL OPPORTUNITIES

1

1

258,478

13,000

271,478

20

MINISTER OF DEFENCE

0

0

0

0

0

21

C SANDF

0

0

0

0

0

22

DEFENCE INSPECTORATE

0

0

0

0

0

23

MOD CHAPLAIN GENERAL

0

0

0

0

0

24

POLICY AND PLANNING

2

2

861,551

87,230

948,781

25

FINANCE DIVISION

0

0

0

0

0

26

SECRETARY FOR DEFENCE

0

0

0

0

0

30

JOINT SUPPORT

0

0

0

0

0

31

LOG AGENCY

84

14

0

91,000

91,000

32

CMI

29

15

2,046,501

117,000

2,163,501

33

MILPOL

68

68

4,847,422

1,450, 100

6,297,522

40

DEF INT

30

30

4,301,021

505,900

4,806,921

50

CJ OPS

27

26

4,221,272

299,650

4,520,922

60

ACQUISITION

2

2

307,846

13,000

320,846

TOTAL

 

1,136

687

82,491,494

10,668,528

93,160,032


MEM Planning PER BUDGET FOR FY2006/07 AS T 23 AUGUST 2005

BH CODE

BUDGET HOLDER

PLANNED OFFERS FY 2006/07

EXPECTED ACCEPTANCE FOR FY 2006/07

TOTAL COST ITEM 10 FY2006/07

TOTAL COST ITEM 15 FY2006/07

TOTAL COST FY2006/07

01

SA ARMY

0

0

0

0

0

02

SA AIR FORCE

152

152

40,332,958

5,776,000

46,108,958

03

SA NAVY

0

0

0

0

0

05

SAMHS

9

9

1,371,578

117,000

1,488,578

07

SERVICE CORPS

32

24

6,163,868

678,667

6,842,534

10

HR SUPPORT CENTRE

98

98

12,031,800

2,247,239

14,279,039

11

LEGAL SERVICES

0

0

0

0

0

12

DEF TRAINING INST

3

3

568,045

26,000

594,045

13

MOD CORP COMMS

1

1

168,560

13,000

181,560

14

MOD RES FORCE

1

1

233,791

0

233,791

15

CHIEF FOREIGN RELATIONS

3

3

637,398

13,000

650,398

17

STRATEGIC PLANNING

0

0

0

0

0

18

EQUAL OPPORTUNITIES

2

2

988,756

26,000

1,014,756

20

MINISTER OF DEFENCE

0

0

0

0

0

21

C SANDF

0

0

0

0

0

22

DEFENCE INSPECTORATE

0

0

0

0

0

23

MOD CHAPLAIN GENERAL

0

0

0

0

0

24

POLICY AND PLANNING

5

5

1,351,174

497,600

1,848,774

25

FINANCE DIVISION

0

0

0

0

0

26

SECRETARY FOR DEFENCE

0

0

0

0

0

30

JOINT SUPPORT

0

0

0

0

0

31

LOG AGENCY

0

0

0

0

0

32

CMI

106

106

11,007,341

871,000

11,824,341

33

MILPOL

31

32

2,640,876

682,520

3,323,396

40

DEF INT

27

18

3,021,619

360,600

3,382,219

50

CJ OPS

1

1

348,218

13,000

361,218

60

ACQUISITION

0

0

0

0

0

TOTAL

 

471

455

80,865,982

11,267,626

92,133,607


THE MEM PENSION AND DEPARTMENTAL BENEFITS PENSION BENEFITS


1.A member who is 55 years or older and has completed at least 10 years pensionable service, including former Non-Statutory Force service, may opt for one of the following pension benefits:


a. A gratuity equal to his/her actuarial interest payable to the member in own right or into an approved retirement fund of the member's choice; or


b. a gratuity and annuity determined in terms of the formula that applies to the member without the scaling down of pension benefits in terms of Rule 14.3.3(b) and without an addition of pensionable service in terms of Rule 14.2.4(b).


2. A member, other than a member referred to in paragraph 1, will receive a gratuity equal to his/her actuarial interest payable to the member in own right or into an approved retirement fund of the member's choice, without scaling down of pension benefits in terms of Rule 14.3.3(b) and without an addition of pensionable service in terms of Rule 14.2.4(b).


3 Where a member passes away prior to his/her final date of service, the normal death benefits with regard to pension and Departmental payments will apply.


THE MEM DEPARTMENTAL BENEFITS


4. Exit Pay. Two weeks' basic salary for every full year of service but with a minimum payment of R15, 000.00.


5 Leave Pay. All leave due shall be paid (capped leave, any unused leave from the current leave cycle as well as permissible, unused leave from the preceding leave cycle).


6. Resettlement. Members who have availed themselves of the MEM option will be entitled to the following resettlement costs:


a. Transport of household effects and insurance costs.


b. Subsistence and travel costs of a member and his/her household to the place of resettlement.


c. Storage of household effects and the all-inclusive insurance thereof in exceptional circumstances for a maximum period of three months.


d. Postponement of removal of furniture for a maximum of 12 months may be authorised.


Medical Benefits


a. All members with at least 10 years former Statutory or Non-Statutory Force military service or who have contributed for at least ten years, have the option to buy into the Regular Force Medical Continuation Fund (RFMCF) in order to receive the specified medical benefits after age 60. For the period between exit date and age 60, the member and his/her dependants will become eligible for the currently existing specified categories of medical service provided by the SA Military Health Service at State cost.


b. Members who decline the option to buy into the RFMCF or who have less than 10 years military service (including former Non-Statutory Force service) or who have not contributed to the RFMCF for at least ten years, will receive the following benefits as applicable:


i R3 000 if the member has less than five years' service.


ii R7 000 if the member has five years and more but less than ten years' service.


iii. R10 000 if the member has ten or more years service.


iv. The re-imbursement of all contributions made to the RFMCF during their period of military service, with applicable interest.


8 Service Bonus. A pro rata service bonus will be paid, linked to the exit date and the member's date of birth.


9. Contractual Obligations. Members may be released from contractual obligations that require of them to remain in service, where C SANDF has specifically recommended such a step to the Secretary for Defence.


10. State Guarantee System. Payments to third parties under the State Guarantee System and Departmental debt will be recovered from members' exit benefits or any credits available. Thereafter the balance will be claimed against the members' pension benefits.


11 Official Housing. The SANDF will give one month's notice to a member to vacate official housing. No request to continue occupying the house beyond one month after the last day of service will be entertained. In this regard, Allocating Authorities shall ensure that the Home-using Tariff System (HTS) transaction, relating to the vacating of official housing, is completed on or before the affected member's last day of service. In instances where approval has been granted for continued occupation for another month, rental and other payments must be paid directly by the member into the B7 account.


12. Notice Of Termination of Service. The normal notice period for the termination of service is three months after Ministerial approval has been obtained. A minimum notice period of one month may, however, be applied but in such instances the following administrative aspects shall be borne in mind and accepted by the member requesting such an arrangement:


a. A delay in the payment of Departmental Benefits up to a maximum of three months from the last day of service.


b. A delay in the payment of pension benefits by National Treasury (Pension Administration) up to a maximum of 60 days after receipt of the completed documentation by National Treasury.


C. No application for re-skilling will be approved after the final date of service.


d. In order for eligible members to receive uninterrupted SA Military Health Service benefits, a bridging amount determined by the RFMCF must be paid prior to the final day of service. The balance of any outstanding norm amount, as determined by the actuaries of the fund, must be paid within three months of a member's final day of service.


13. Special Leave In Lieu of Notice


a. In the event that a member requires special leave during the normal notice period of three months after Ministerial approval has been obtained for his/her exit, such leave may be granted by Officers Commanding for the unexpired period of notice on condition that his/her services are not required by the SANDF in terms of any succession planning arrangements.


b. Such special leave granted, will not affect the member's capped leave, where applicable, or the annual leave entitlement with respect to "leave pay". However, should a member withdraw his/her MEM option, then all such special leave taken will be deducted from any capped leave that the member may have had; or


i any annual leave entitlement still due to the member; or


ii ant annual leave entitlement still due to the member; or


iii partially from the annual leave entitlement in the next leave cycle; or lastly


iv will be viewed as unpaid leave, the value of which will be recovered from the member's salary during the following month of service.


c. Where a member intends to utilise such special leave to take up a new job opportunity against payment, the SANDF shall not entertain any request by the member to extend his/her final date of service.


d. Members intending to utilise such special leave to take up a new job opportunity against payment, must comply with the requirements pertaining to remunerative work outside the SANDF as contained in DODI/PERS/04/99


14. Subsidised Motor Vehicle Schemes. Subsidised motor vehicles will be dealt with in terms of the policy of the Department of Transport on subsidised motor vehicles.


15 Re-skilling. Re-skilling refers to the process whereby SANDF members are, on a voluntary basis, assisted in the acquisition of marketable skills. Reskilling is not only limited to training for employment in the formal sector, but also includes entrepreneurial skills. A maximum amount of R13 000 per member will be allowed for reskilling. The attendance of full-time sessions for reskilling, while the member is still in service, may not exceed three months New applications for reskilling, after the member has already exited the Regular Force, will not be entertained.