Report of the Portfolio Committee on Finance on the progress report from the Special Pensions Board on the implementation of the Special Pensions Amendment Act, No 28, 2005 (Act No 69 of 1996, as amended), dated 15 November 2006.


The Portfolio Committee on Finance exercises oversight over the National Treasury in line with the constitutional mandate set out in section 55(2) of the Constitution. In line with its oversight responsibility the Portfolio Committee requested the Special Pensions Board to provide a progress report to it on Friday, 10 November 2006, with respect to the implementation of the Special Pension Amendments Act 28, 2005 (Act No 69 of 1996, as amended).

The object of the Act is to amend the Special Pensions Act No 69 of 1996, to provide for the following:

The lapsing of the rights to pensions and survivor’s benefits on 31 December 2006;
The introduction of a surviving spouse’s pension, an orphan’s pension, and a funeral benefit;
To regulate benefit payments to spouses and dependants;
To regulate the reconsideration of determined cases;
To provide for the repayment of any benefit paid to a person that was not entitled to that benefit;
To further regulate the dissolution of the Board and the Review Board; and
To amend Schedule 3 of the Act, to include Schedule 4 in the Act.

The Special Pensions Board provided the Committee with a progress report on the implementation of the Special Pensions Amendment Act, No 28, 2005 (Act No 69 of 1996, as amended), that highlighted the following:

The national awareness campaign undertakes to ensure that all who qualify should benefit;
The number of beneficiaries reached during this process;
The number of applications received and approved;
Dissatisfaction with the fact that the qualification criteria were not changed; and
Enquiries as to the progress with respect to the implementation of the under 35 resolution.

3. The Special Pensions Board also highlighted the following challenges faced by the Board relating to implementation of the Act as amended:

Obtaining applications before the closing date of 31 December 2006;
Increased applications that highlighted the capacity constraints to screen and process applications;
False claims received that required investigations that is still ongoing;
Backlog in reviewing applications; and
Human resource constraints with high staff turnover.

Conclusion

Arising from the progress report received from the Special Pensions Board with respect to the implementation of the Act as amended it has emerged, that among others, the issue of the under 35’s still remains unresolved, despite the adoption of the Committee Report by the House (see ATC, 8 November 2005, p 2567 and Minutes of proceeding, 11 November 2005).

Recommendations:

That the Board within 30 days after the closing date for application furnish the Committee with a comprehensive report on the outcome of this process as set out in paragraphs 1, 2, and 3.
That the House request the Leader of Government Business to provide feedback on the adoption of Resolution (see ATC, 8 November 2005, p 2567 and Minutes of proceedings, 11 November 2005) with particular reference to co-ordinating the implementation of programmes which will provide education, skills and other measures with regard to integrating these individuals back into society.

Report to be considered.