Unemployment insurance fund surplus increases to R9bn 

The new Director-General of the Department of Labour Nkosinathi Nhleko was hosted during a visit to the Unemployment Insurance Fund by UIF Commissioner Boas Seruwe on 29 July 2011. The UIF is an entity administered by the Department of Labour. On that occasion, the Commissioner made a number of important announcements to the staff of the Fund.

"The Fund has for the first time posted a clean audit thanks to the work of our hard working employees. But the Fund needs to continually devise innovative strategies to do better", Seruwe said.

The Fund recorded a hefty R9bn surplus in the financial year ended March 2011, exceeding its target by R3bn. The rise in the UIF's surplus compared to last year's R6.8 bn ---- had also witnessed an increase in its asset base. The improvement was ascribed to the tightening of enforcement and compliance activity within the department.

The Fund had taken the strategic policy decision during 2009 to invest some of its surplus funds in the equities market. "From an initial exposure of R1.3bn, the Fund's investment in equities has grown to R8bn. The Fund also has investments in government bonds, parastal bonds and financial institutions", said Seruwe.

The Commissioner indicated that the UIF needs to devise strategy to do better. Thousands of employees had lost their employment during 2008/9 due to the economic recession and more than 700 000 individuals received UIF benefits every year and this figure was increasing.

At the end of March 2010 the UIF's total assets were R44bn and this had grown to R56bn at end of March 2011. The Fund has 7.6 million persons registered on its database and the Fund was endeavouring to reduce the turnaround time in settling claims from seven to five weeks.

Pieter Rautenbach