parliament standing committee of...
TRANSCRIPT
Parliament – Standing Committee of Finance
CEO – Goolam Aboobaker
1
Agenda
LEGISLATIVE MANDATE
GOVERNMENT COMPONENT
FUNDS ADMINISTERED
VISION / MISSION / GOALS / VALUES
BUDGET
CORE OPERATIONS
THE NDP AND GPAA
GPAA AND THE SA ECONOMY
2
Legislative Mandate
3
Legislative mandate
Government Component
5
GOVERNANCE STRUCTURE
Chairperson GEPF BOT
NT Director General
Minister of Finance
GPAA CEO
GPAA’S ADMINISTRATION FRAMEWORK
GPAA
ADMINISTRATION &
SERVICE LEVEL AGREEMENT
GEPF 93% GPAA Budget
NATIONAL TREASURY 7% GPAA Budget
GPAA FUNCTIONS
Investment Administration
Employee Benefit
Administration
ICT ServicesLegal &
Governance Administration
Fund & Agency Finance
Management
Client Communication
GEPF FUNCTIONS
Strategy and advisory services
Investments and Actuarial
GovernanceLegal &
Compliance
Manage the SLA with Service
Providers
Board Secretariat
NT FUNCTIONS
Manage the SLA with
GPAA
Shared Legal Services
Programme 7 - Policy and legislation
Entities Governance and Advisory
Shared Audit Committee
Budget Vote
Risk Committee
Programme 7
Funds Administered
11
FUNDS AND SCHEMES CURRENTLY ADMINISTERED
• Government Employees Pension Fund (GEPF) in terms of the (GEP) Law of 1996
• Temporary Employees Pension Fund (TEPF) in terms of the (TEPF) Act 75 of 1979
• Associated Institutions Pension Fund (AIPF) in terms of the (AIPF) Act 41 of 1963
• Post-Retirement Medical Subsidies as provided for and regulated by Public Service Co-ordinating Bargaining Council (PSCBC)
• Military Pensions in terms of the Military Pensions Act 84 of 1976
• Injury on Duty payments in terms of the Compensation for Occupational Injuries and Diseases Act 130 of 1993
• Special Pensions in terms of the Special Pensions Act 69 of 1996
• Other and VIP funds 12
GPAA Administered Funds, Client Count
Funds Member Type Member Count Total
GEPF GEPF Members 1 276 753 1 667 824
GEPF Pensioners 248 388
GEPF Spouses 141 440
GEPF Orphans 1 243
National Treasury’s
Programme 7
Medical 87 199 115 059
Military 7 576
IOD 11 306
VIPs 1 150
Special Pensions 7 828
AIPF AIPF Members 2 523 11 764
AIPF Pensioners 6 293
AIPF Spouses 2 948
TEPF TEPF Members 122 514
TEPF Pensioners 252
TEPF Spouses 140
GPAA Total Members Administered 1 795 161
13
GPAA Regional Office Footprint
Vision, Mission & Goals
15
To be the leading and preferred fund benefits administrator.
Part 2
To effectively and efficiently administer fund benefits on behalf of our clients and stakeholders.
VISION
MISSION
SustainableOrganisation
TimeousBenefit
Payments
Client Satisfaction
Employee Satisfaction
Stakeholder Satisfaction
Modernised System driven Organisation
The GPAA vision will be realised by achieving increased levels of the
following key areas:
VA
LUES
FIV
E ST
RA
TEG
IC G
OA
LS
Client focus
Excellence
Commitment
Integrity
Interdependence
Professionalism
Transparency
.
Focus on our clients shall be through consultation, setting service standards, increasing access, providing information, ensuring courtesy,
transparency, redress and value-added services.
Our operational excellence is demonstrated by results that reflect sustained modernisation and improvement over time, improvement in all areas of importance, and performance at a level that is at, or superior to,
‘best in class’ benefit and fund administrators
We pledge to create an efficient and well-managed environment for the administration of benefits and funds.
Our focus on how we put our principles, values and what we believe is right into action. “Integrity is putting your values into action” - Robin
Siemens.
Our interdependence is the dynamic of being mutually and physically responsible to, and sharing a common set of principles with, all our clients
and stakeholders.
The expert skills, competence, and character displayed by GPAA Human Capital.
Our observed degree of clarity, openness, measurability, and verifiability in law, regulations, financial management, agreements and / or practice.
VISION / MISSION / GOALS / VALUES
Corporate Achievements versus Strategic Objective 2013/14
Prog. Quarter 4/ Annual Performance
1 94% of benefits were paid within 60 days and 89% of queries were resolved within 2 days as required by law.
94% of the SLA was complied with in fulfilment of the Administration Agreements with the National Treasury.
2 93% of benefits were paid accurately and 77% were paid within 60 days of receipt.
95% of the SLA was complied with in fulfilment of the Administration Agreements with the Government Employees
Pensions Fund.
3 100% of the queries received from clients were acknowledged and 86% were resolved within 7 days.
We are developing a methodology to measure customer satisfaction
4 471 clients attended the roadshows and 2 667 prospective retirees were reached through GPAA’s Education and
Outreach Programmes.
4.1 A number of projects were managed under the Project management Office and led to a number of improvements including a
number of renovations and the relocation to enhance client service experience.
4.2 96% of tenders were concluded within 120 days as required by National Treasury Regulations.
90% of invoices were paid within 30 days as directed by the President and Cabinet.
4.3 The Senior Management Organisational Structure has been approved by the Minister of Finance and the non-SMS
structure is under review to meet the Department of Public Service and Administration’s requirement.
Performance management has improved and compliance is at 95%.
4.4 Various strategies have been implemented including the establishment of the Risk Management Committee chaired by an
external chairperson.
GPAA has a functional Hotline to report fraudulent case and a number of awareness initiatives have been implemented.
4.5 The Legal services’ two-days Query Complaints/Requests (QCR) turnaround was at 89%and 97% QCR were resolved within 7
days.
4.6 98.6% of the ICT SLA was complied with in fulfilment of the Administration Agreements with the GEPF and National Treasury.
5 2 Regional Offices are under way in Limpopo and Free State
277 Agreements have been formalised to implement e-channel at employer departments.
The recruitment of 25 CLOs to improve service delivery have almost been finalised
Budget
18
GPAA Budget
Audited Outcomes Adjusted
appropriatio
n
Medium-term expenditure
estimate
Description R’000 R’000 R’000
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Admin fees 481,348
522,445
1,003,095 1,289,60
2
1,151,21
9
1,008,97
6
Other income 261
Total revenue 481,609
522,445
1,003,095 1,289,60
2
1,151,21
9
1,008,97
6
Compensation of employees 272,334 295,471 388,273 454,697 475,473 500,306
Goods and services 200,347
204,398
275,574 370,528 386,857
390,723
Capital Expenditure 13,309
14,559
75,688 92,195 97,173
102,922
Modernisation -
13,696
263,560 372,182 191,715
15,025
Total expenditure 485,990 1,003,095 1,289,60 1,151,21 1,008,97
NT Programme 7 Budget
2015 Adjusted Estimates Programme 7 inputs
31 March 20142014/15 Origional Budget
Actuals as at 21 July 2014
2014 Available Budget
Business Inputs2014/15 Adjusted
Budget
R’000 R’000 R’000 R’000 R’000 R’000
MILITARY ADMIN AUXILIARY SERVICES4
975 -4
975 4
975
CIVIL ADMIN AUXILIARY SERVICES57
508 50
658 12
933 37
725 50
658
Government Pensions Administration Agency57
508 55
633 12
933 42
700 -55
633
PFMI 422 423 104 319 - 423
PARLIAMENTARY AWARDS 20 21 7 14 - 21
OTHER PENEFITS77
775 89
070 21
024 68
046 -10
000 79
070
INJURY ON DUTY500
677 532
950 152
823 380
127 -532
950
GOV CONTR TO MEDICAL SCHEMES1 441
406 1 646
400 407
586 1 238
814 -1 646
400
UNITED KINGDOM TAX2
109 2
219 192 2
027 -2
219
SPECIAL PENSIONS435
433 524
460 122
452 402
008 -64
000 460
460
POLITICAL OFFICE BEARERS208
162 217
953 71
997 145
956 -217
953
PENSION BENEFIT RSA PRESIDENT7
477 8
568 1
909 6
659 3
500 12
068
Civil Pensions and Contributions to Funds2 673
481 3 022
064 778
094 2 243
970 -70
500 2 951
564
MIL PENSIONS EX-SERVICE MEN26
542 27
597 6
818 20
779 27
597
SA CITIZEN FORCE138
958 146
790 43
247 103
543 146
790
Core Operations
21
Benefit Administration Value Chain
Support Services
NDP Implementation
24
Capable State
Building a capable State
To professionalise the public service
A purely administrative
approach should be adopted for lower-level appointments, with senior officials
given full authority to appoint staff in their
departments.
Managing the career progression including convening panels for
recruitment, performance
assessment and disciplinary procedures.
25
CLIENT INTERFACE
•Service Channels•Call centre•Regional offices in all nine provinces
Satellite client office in Durban, Johannesburg; Port Elizabeth; Mthatha , Phuthaditjhaba, Thohoyandou.•Other channels : email, twitter, fax, SMS.•Client Liaison Officers (CLO) deployed in all regional offices to act as liaison between employer departments, members, pensioners, beneficiaries and the GEPF.
EMPLOYER INTERFACE
• Regional Office Network supports Employer liaison and education.
• Client Liaison Officers (CLO) and Client Service Agents (CSA) are deployed at employer departments to facilitate speedy processing of exit documents.
• Employer training and induction on GEPF
• HR Forums
• Quarterly Newsletter for Clients• Community Roadshows • Mobile Offices • Retiring Member Campaigns • Pre Retirement Workshops• Pensioner Groups • Exhibitions (Rand Easter; Pretoria and Royal
Shows)• National & Community Radio Talk Shows .
CLIENT OUTREACH & COMMUNICATION
• Data Quality Improvement Project
• Appropriate technology and systems to support the service delivery improvement plan
• Data improvement and business process enhancements
• Negotiate Employer draft SLA and Memorandum of Understanding (MOU) with applicable stakeholders
DATA IMPROVEMENT INITIATIVES
Current Structure
30
CURRENT STRUCTURE
MANCO
EXCO
CEO
COO
Benefit Administration
and CRM
CFO
Fund and Agency
Accounting
CIO
ICT Systems and Infrastructure
Head: Corporate Services
HR, Facilities, Training,
Communication
Head: Legal
Governance and Legal Services
Head: Risk and Fraud
Management
Risk and Fraud Management
HIGH LEVEL
GPAA Employment and Career Development (NDP)
32
GPAA Permanent Staff – 31 March 2014
Occupational Bands Male Female Total
African Coloured Indian White African Coloured Indian White
Top Management 1 0 2 0 2 1 0 1 7
Senior Management 10 1 0 4 3 0 0 1 19
Professionally qualifiedand experiencedspecialists and mid-management
72 6 4 8 59 6 3 16 174
Skilled technical andacademically qualifiedworkers, juniormanagement, supervisors,foreman andsuperintendents
107 7 6 10 261 26 9 63 489
Semi-skilled anddiscretionary decisionmaking
30 1 0 1 39 5 0 8 84
Unskilled and defineddecision making 6 0 0 0 18 0 0 0 24
Total 226 15 12 23 382 38 12 89 797
Employees withdisabilities 2 1 0 1 3 0 0 0 7
GPAA Contracted Staff – 31 March 2014
Occupational Bands
Male Female Total
African Coloured Indian White African Coloured Indian White
Top Management 3 0 0 0 0 0 0 0 3Senior Management
3 1 0 1 0 0 0 0 5
Professionally qualifiedand experiencedspecialists and mid-management
13 0 1 1 3 0 1 7 26
Skilled qualifiedworkers, juniormanagement, supervisors,
52 0 0 1 90 2 2 7 154
Semi-skilled anddiscretionary decisionmaking
8 0 0 0 9 0 0 0 17
Unskilled and defineddecision making
18 0 0 0 19 0 0 0 37
Total 97 1 1 3 121 2 3 14 242
Empathy toward Disability (NDP)
Employment of disabled and impaired persons
• 7 Disabled and impaired persons are employed at GPAA
GPAA facilities are impaired and disabled
friendly
• Entrances have wheelchair ramps
• Lift at head office
First in queue for disabled and impaired
clients at service centres
• A policy in walk-in centres
35
Building Institutional Capability
36
GPAA & Enabling Milestones (NDP)
Ensure that skilled, technical, professional and managerial
posts better reflect the country's racial, gender and
disability makeup.
Broaden social cohesion and unity while redressing the
inequities of the past.
37
MODERNISATION PROGRAMME AIMS TO:
• Be the vehicle for delivering GPAA’s strategic Goals• Improve business processes and governance• Invest in improved infrastructure (ICT) and facilities• Improve customer service, outreach and education• Improve employer Departments’ interface and reporting• Enhance employee capabilities• Forge strategic alliances with all current and future partners• To function as part of the Financial sector rather than in a
bureaucracy• Remove as many manual processes as possible to reduce
fraud• Supply members, pensioners and beneficiaries with secure
internet access to personal data
39
Satisfied customers and clients
ModernisedOperation
Efficient Funding Model
Excellent Customer Experience
Multi Channel Menu
State of the Art Call Centre
1st Pension payments within 30
Days
Exit Process Automation
Modernised efficient administration
Automated Processes
Integrated Systems
On-Line Management Information
External Integration
Lower Operational Costs
Flexible Administration
Engine
Increased System Availability
Mutual beneficial relationships with
stakeholders
Key Account Management
Costing Model
SLA Compliance
Complaints turnaround time
reduced
Trust Relationship
Satisfied Efficient and effective Employees
Culture of Excellence (Top down)
Efficient Organisational
structure
State of the Art Building
Performance Management by
strategic objectives
Skills development and replenishment
Instilled GPAA values
Mutual beneficial partnerships with
employer communities
1st Time right submissions to
GPAA
Concluded and managed
formalised agreements
Joint member awareness
programmes
Business Process Management
MODERNISED DESIRED STATE 2016 AND BEYOND
HOW THE MODERNISATION APPROACH WILL ENABLE DELIVERY AGAINST
GPAA’ STRATEGIC OBJECTIVES
Modernisedand efficient
administration
Mutually beneficial
relationships with
stakeholders
Satisfied, efficient and
effective employees
Increase client compliance to GPAA’s requirements through the introduction of effective controls.
Re-channel GPAA’s human capital to focus on educating members, employers and beneficiaries and thus increasing GPAA’s visibility to it’s Client base
Reduce human intervention in the execution of simple, bulk & repetitive tasks
Leverage more on new & existing technological solutions to enhance the delivery of services to GPAA clients across the value chain
Enhance human capabilities to focus on the delivery of professional & efficient services
Provide simple access to standard & consistent information and GPAA processes
2 3
THE GPAA STRATEGY
Mutually beneficial
partnerships with employer communities
4 5
GPAA’s 5 Strategic Goals
Satisfied customers and clients
1
ToFromTo
Static forms
Multi page static forms
Single page dynamic
forms
Single page integrated
dynamic forms
Manual data capture
From
Paper /Manual
DigitizationScanning
Risk Engine
Gate Keeping
RiskManaged
Targeted automated analysis and compliance
Non-compliance
Manual paper channels
Digital/Self service channels
Paper processing & data capture
Electronic channels
3rd Party Data
Limited validation
3rd party validation Pre-population /
VerificationManual form completion
Human intensive manual processes, non-value adding
activities
Automated workflow processes, value
adding only
Push
Pull
THE KEY GPAA’S MODERNISATION SHIFTS
RECAP OF THE GPAA MODERNISATION DRIVERS
MODERNISATION KEY SUCCESSES PROJECT SPECIFIC
eChannel (online submission of exit documentation): Currently 315 employers representing more than 80% of membership have adopted it.
Outreach: Mobile units have been deployed to all provinces providing rural GPAA clients with access to services. Eleven specialised vehicles to support the mobile units have been procured.
Retiring Member Campaign (RMC): Resulted in a reduction in the turnaround time from 57 days to about 20 days for exit to date paid.
Senior Management Service (SMS) organisational structure: The entire organizational structure has been completed and is undergoing approvals. A capacity model will be used for the process of redeployment and retraining of staff in the new structure.
Core Business Process Mapping: 90% of the core business processes have been mapped (as is) and 50% are currently being re-engineered (to be). The to-be business processes have now been validated against the Solution Design.
Call Centre Optimization: A hosting solution for the call centre and a new location have been acquired and now new call centre functionality to improve responses is being implemented.
Implementation of the Technical Architecture Design: The partner has been appointed and key work-packages are in a process of being implemented. Key infrastructure has been acquired and is being hosted on-site in the revamped data centre. Focus has shifted to implementing the solution design.
GEPF Membership
43
1 007 121
159 118111 949
33 035 32 044
0
200000
400000
600000
800000
1000000
1200000
African White Coloured Indian Unidentified
GEPF Membership
96
24
6
99
02
6
17
59
4
4 2
79
17
10
1
23
4 2
46
72
40
1
48
51
7
3 6
96
1 2
71 4
4 9
55
13
4 6
83
0
50 000
100 000
150 000
200 000
250 000
African White Coloured Indian Unidentified Total
GEPF Pensioners and Spouses
Pensioners Spouses
1 101
17 12 260
1 192
0
200
400
600
800
1 000
1 200
1 400
African White Coloured Indian Unidentified Total
GEPF Orphans
The five year administration costs plan for GEPF is stated below.
The administration costs are growing significantly in the last two year due to
modernisation gaining momentum.
The 2014/15 budget has been approved by the GEPF board.
ADMINISTRATION COSTS
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
GPAA with CAPEX and Modernisation
R387m 485m 528m 1003m 1289m 1151m 1008m
% increase 12% 6% 33% 24% 4% 3%
Total accounts GEPF and NT 1,848,128 1,848,129 1,848,130 1,848,131 1,848,132
1,848,133 1,848,134
Capex & Modernisation Excluded R 21.31 R 22.54 R 29.93 R 37.21 R 38.88 R 40.18
Capex & Modernisation Included R 21.91 R 23.81 R 45.23 R 58.15 R 51.91 R 45.50
BENCHMARKED ADMINISTRATION COSTS
Standalone Umbrella Specialised
corporate
Retirement
annuity
Preservation
funds
Units of
administration
Rand/ per
member per
month
SA R 37.44 R 62.37 R 35.54 R 23.34 R 42.89
International
RGM
R 26.56 R 26.25 R 33.88 R 18.74 N/A
International Reference Group (Intl RGM) includes data from UK, Canada, France,
Germany and Australia and a study of the major administrators in Chile.
Fighting Corruption
49
GPAA & Critical actions (NDP Item 3)
Steps by GPAA to professionalise the public service, strengthen accountability, improve
coordination and prosecute corruption.
50
Fighting Corruption (NDP)
• Deterrence
– Fraud hotline
– Disciplinary measures
– Anti-Corruption Policy Framework
– Protection of Whistle-Blowers
• Prevention
– Data Security
– Implementation of Prevention Strategies
– Stakeholder Collaboration (Public and Private Sectors)
• Education
– National Client awareness campaigns and newsletters
– Workplace ethics training
51
Procurement Policies (NDP)
“Government’s procurement policies blur the line in matters of corruption, and the state procurement system has become overly
bureaucratised (NDP).”
To Address this GPAA has:• Reviewed SCM Policy and delegations• Increased access to opportunities by distributing Bid documents to
suppliers without charges• Manage the corruption risk by purchasing via committees at low
and high cost level.• Promoted SMME and BBBEE companies by rotating suppliers and
granting preferential points during evaluation.• Included declarations from supplier and staff members at all
bidding processes.
52
Economy
53
Economic influence by Pensioners being paid on time
54
Payment of Annuities vs Collection of Contributions
• The total received contributions can be expected to increase by 8.25% during 2014/15 to 56.6 billion, and total benefits payments can be expected to increase by 21.57% during 2014/2015 to 63.7 billion.
-3 000 000 000
-2 000 000 000
-1 000 000 000
0
1 000 000 000
2 000 000 000
3 000 000 000
4 000 000 000
5 000 000 000
6 000 000 000
7 000 000 000
Ap
r-1
0
Jun
-10
Au
g-1
0
Oct
-10
De
c-1
0
Feb
-11
Ap
r-1
1
Jun
-11
Au
g-1
1
Oct
-11
De
c-1
1
Feb
-12
Ap
r-1
2
Jun
-12
Au
g-1
2
Oct
-12
De
c-1
2
Feb
-13
Ap
r-1
3
Jun
-13
Au
g-1
3
Oct
-13
De
c-1
3
Feb
-14
Ap
r-1
4
Jun
-14
Au
g-1
4
Oct
-14
De
c-1
4
Feb
-15
Contributions received and Paid per month from April 2010 to March 2014 and projections until March 2015
Actual Contributions Received at month end Total Actual Benefit Payments Difference per m or Q
55
Supporting Government’s Pension Reform Process
Treasury interaction
Increased and modernised Capability to
attract greater administration
volumes
Assurance to Pensioners and
members
Pensions reform research
Encouraging higher savings percentage per
capita
Commitment to least cost
administration services
56
NT
DPSAGPAA
GEPF
