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Presentation to the Joint Standing Committee on Defence 04 MAY 2007

Presentation to the Joint Standing Committee on Defence 04 MAY 2007. HR OFFICE ISSUES STATS ON PERSONNEL PER ARM OF SERVICE (ARMY, AIR FORCE, NAVY AND SAMHS). BREAKDOWN OF PERSONNEL WRT POPULATION DEMOGRAPHY. STATS ON PENSIONED PERSONNEL. RELATIONSHIP WITH NATIONAL TREASURY.

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Presentation to the Joint Standing Committee on Defence 04 MAY 2007

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  1. Presentation to the Joint Standing Committee on Defence 04 MAY 2007

  2. HR OFFICE ISSUES • STATS ON PERSONNEL PER ARM OF SERVICE (ARMY, AIR FORCE, NAVY AND SAMHS). • BREAKDOWN OF PERSONNEL WRT POPULATION DEMOGRAPHY. • STATS ON PENSIONED PERSONNEL. • RELATIONSHIP WITH NATIONAL TREASURY. ISSUES RAISED BY THE JOINT STANDING COMMITTEE 2

  3. NSF PENSION ISSUES • STATS ON PERSONNEL RECEIVING SPECIAL PENSION AND NSF PENSION. • EXPLANATION OF POLICY ON NSF PENSION AND ITS RATIONALE. • ARE PENSIONS PROCESSED IN TIME IN LIAISON WITH OTHER RELEVANT PENSION OFFICES • ARE THERE RECOMMENDATIONS FOR AN ALTERNATIVE FEASIBLE PENSION SCHEME FOR THE MILITARY. ISSUES RAISED BY THE JOINT STANDING COMMITTEE (CONT) 3

  4. NSF PENSION ISSUES • HOW MANY FORMER NON-STATUTORY MILITARY PERSONNEL HAVE EXITED THE SANDF AND WHAT WERE THE REASONS • STATS ON LEGIBLE MEMBERS WHO ARE NOT YET BENEFICIARIES. ISSUES RAISED BY THE JOINT STANDING COMMITTEE (CONT) 4

  5. SERVICE CORPS/MILITARY VETERANS ISSUES • WHAT TYPE OF TRAINING IS PROVIDED TO PERSONNEL WHO ARE ON THEIR WAY OUT OF THE SANDF • ARE THE COURSES SAQA COMPLIANT • WHAT PROJECTS ARE FUNCTIONING TO SUSTAIN AND IMPROVE THE LIFEHOOD CONDITIONS OF VETERANS AND PENSIONED MILITARY PERSONNEL. WHAT OTHER TRAINING SKILLS HAVE BEEN MADE AVAILABLE TO EMPOWER PENSIONED PERSONNEL. • WHAT OTHER TRAINING SKILLS HAVE BEEN MADE AVAILABLE TO EMPOWER PENSIONED PERSONNEL. • WHICH AGENCIES PROVIDE TRAINING FOR VETERAN PERSONNEL. ISSUES RAISED BY THE JOINT STANDING COMMITTEE (CONT) 5

  6. SERVICE CORPS/MILITARY VETERANS ISSUES • ARE THE CETIFICATES THAT ARE ISSUED COMPLIANT WITH SAQA REQUIREMENTS • WHO ARE THE SOURCES OF FUNDING FOR PROJECTS AND TRAINING • WHAT BUDGET DID THE DOD SET ASIDE FOR THE SERVICE CORPS FROM THE YEAR 2000 - 2006 • IS THERE ANY ALLOCATION FOR THIS FINANCIAL YEAR 2007-2008 • WHAT OTHER SPONSORSHIP IS AVAILABLE INTERNATIONALLY AND LOCALLY TO ASSIST THE CAUSE OF THESE VETERANS, AILING PERSONNEL AND RETIRED PERSONNEL ISSUES RAISED BY THE JOINT STANDING COMMITTEE (CONT) 6

  7. To brief the Joint Standing Committee on the demographic composition of the DOD, the NSF Pension Project , the Administration of Military Veterans’ Affairs and the Service Corps. AIM 7

  8. DEMOGRAPHIC COMPOSITION OF THE DOD 8

  9. SANDF RACE-RANK DISTRIBUTION AS AT 01 APRIL 2007 (29%) (32%) (50%) (62)% (62%) (49%) (37%) (20%) (15%) (24%) (67%) (50%) (36%) (14%) (7%) (6%) (3%) (12%) (10%) 9 Def Rev 76% Black (African, Coloured & Indian) 24% White

  10. SANDF GENDER DISTRIBUTION PER RANK AS AT 01 APRIL 07 (100%) (100%) (3%) (97%) (10%) (90%) (14%) (86%) (20%) (80%) (28%) (72%) (64%) (36%) (32%) (68%) (43%) (57%) (11%) (89%) (14%) (86%) (18%) (82%) (21%) (79%) (17%) (83%) (17%) (83%) (17%) (83%) (18%) (82%) (35%) (65%) (100%) Macro Gender 10 81% Male 19% Female

  11. DOD RACE DISTRIBUTION FOR 1994, 1996 AND 01 APRIL 2007 1994 1996 WHITES 37827 WHITES 33455 (45.7%) (33.1%) INDIANS 842 (1.0%) INDIANS 938 COLOURED 12983 (0.9%) (15.7%) COLOURED 11999 AFRICANS 54718 (11.9%) (54.1%) AFRICANS 31053 TOTAL: 101 110 (37.5%) TOTAL: 82 705 DEFENCE REVIEW GUIDELINE 01 APRIL 2007 Indians Whites 918 14903 WHITES 17045 (1%) (19%) (24.4%) AFRICANS 45276 (64.7%) Coloured COLOURED 7154 (10.2%) 9850 (13%) Africans INDIANS 525 51754 (0.8%) (67%) TOTAL: 70 000 TOTAL: 77 425

  12. DOD GENDER DISTRIBUTION FOR 1994, 1996 AND 2007 1994 1996 MALE 66361 (80.2%) MALE83210 (82.3%) FEMALE 16344 (19.8%) FEMALE 17900 TOTAL: 82 705 (17.7%) TOTAL: 101 110 FEB 2007 MALE 59150 (76.%) FEMALE 18275 (24%) TOTAL: 77 425 12

  13. 76% Black (African, Coloured & Indian) 24% White SA ARMY RACE-RANK DISTRIBUTION AS AT 01 APRIL 2007 (100%) (80%) (20%) (32%) (68%) (54%) (46%) (52%) (48%) (57%) (43%) (33%) (67%) (89%) (11%) (4%) (96%) (75%) (25%) (50%) (50%) (27%) (59%) (69%) (31%) (10%) (90%) (95%) (5%) (97%) (3%) (1%) (99%) (100%) (14%) (86%) Def Rev

  14. 87% Male 13% Female SA ARMY (BH) GENDER DISTRIBUTION PER RANK – 01 APRIL 07 (100%) (100%) (4%) (96%) (5%) (95%) (9%) (91%) (14%) (86%) (16%) (84%) (20%) (80%) (40%) (60%) (5%) (95%) (11%) (89%) (87%) (13%) (11%) (89%) (90%) (10%) (90%) (10%) (12%) (88%) (15%) (85%) (100%) (100%) Macro Gender 14

  15. 76% Black (African, Coloured & Indian) 24% White SA AIR FORCE RACE-RANK DISTRIBUTION AS AT 01 APRIL 07 (100%) (75%) (25%) (38%) (61%) (76%) (24%) (80%) (20%) (30%) (70%) (46%) (54%) (64%) (36%) (81%) (19%) (50%) (50%) (10%) (90%) (73%) (27%) (40%) (60%) (74%) (26%) (85%) (15%) (19%) (81%) (86%) (14%) (100%) Def Rev

  16. SAAF (BH) GENDER DISTRIBUTION PER RANK – 01 APRIL 07 84% Male 16% Female (100%) (100%) (11%) (89%) (6%) (94%) (12%) (88%) (80%) (20%) (20%) (80%) (21%) (79%) (94%) (6%) (19%) (81%) (8%) (92%) (12%) (88%) (19%) (81%) (16%) (84%) (11%) (89%) (80%) (20%) (24%) (76%) (100%) Macro Gender 16

  17. 76% Black (African, Coloured & Indian) 24% White SA NAVY RACE-RANK DISTRIBUTION AS AT 01 APRIL 2007 (100%) (25%) (75%) (33%) (67%) (77)% (23%) (37%) (63%) (52%) (48%) (64%) (36%) (25%) (75%) (13%) (87%) (100%) (63%) (37%) (39%) (61%) (24%) (76%) (86%) (14%) (87%) (13%) (90%) (10%) (89%) (11%) (11%) (89%) Def Rev

  18. 82% Male 18% Female SA NAVY(BH) GENDER DISTRIBUTION PER RANK – 01 APRIL 2007 (100%) (100%) (92%) (8%) (89%) (11%) (91%) (9%) (83%) (19%) (90%) (10%) (29%) (71%) (72%) (28%) (33%) (67%) (94%) (6%) (11%) (89%) (92%) (8%) (85%) (15%) (78%) (22%) (26%) (74%) (28%) (72%) (100%) Macro Gender 18

  19. 76% Black (African, Coloured & Indian) 24% White SAMHS RACE-RANK DISTRIBUTION AS AT 01 April 2007 (100%) (67%) (33%) (39%) (61%) (37%) (63%) (37%) (63%) (47%) (53%) (64%) (36%) (71%) (29%) (83%) (17%) (89%) (11%) (57%) (43%) (32%) (68%) (80%) (20%) (10%) (90%) (8%) (92%) (13%) (87%) (4%) (96%) (15%) (85%) (100%) Def Rev

  20. 48% Male 52% Female SAMHS (BH) GENDER DISTRIBUTION PER RANK – 01 APRIL 2007 (100%) (79%) (22%) (78%) (35%) (65%) (48%) (52%) (60%) (40%) (32%) (68%) (34%) (66%) (70%) (30%) (33%) (67%) (35%) (65%) (38%) (62%) (46%) (54%) (41%) (59%) (48%) (52%) (54%) (46%) (54%) (46%) (83%) (17%) (100%) Macro Gender 20

  21. PSAP RACE-RANK DISTRIBUTION AS AT 01 APRIL 2007 (100%) (67%) (100%) (39%) (37%) (25%) (75%) (37%) (47%) (31%) (69%) (64%) (71%) (63%) (37%) (83%) (89%) (68%) (32%) (57%) (68%) (43%) (57%) (80%) (43%) (90%) (57%) (92%) (37%) (63%) (87%) (96%) (85%) (98%) (2%) Def Rev 76% Black (African, Coloured & Indian) 24% White 21

  22. PSAP GENDER DISTRIBUTION PER RANK – 01 APRIL 2007 (100%) (50%) (50%) (37%) (63%) 75%) (25%) (28%) (71%) (43%) (57%) (45%) (55%) (27%) (73%) (33%) (67%) Macro Gender 22 56% Male 44% Female

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  25. NSF PENSION DISPENSATION 25

  26. BACKGROUND • PREVIOUS SERVICE OF FORMER STATUTORY FORCE MEMBERS WAS RECOGNIZED FOR PENSION PURPOSES • DISPARITY BETWEEN FORMER NON-STATUTORY FORCE MEMBERS AND FORMER STATUTORY FORCE MEMBERS IN AS FAR AS PENSION BENEFITS ARE CONCERNED 26

  27. BACKGROUND (CONT) • INTENTION OF THE NSF PENSION DISPENSATION IS TO ADDRESS THE DISPARITY BETWEEN FORMER NON-STATUTORY FORCE AND FORMER STATUTORY FORCE IN THE DOD IN AS FAR AS PENSION BENEFITS ARE CONCERNED 27

  28. BACKGROUND (CONT) • THE DOD NSF PENSION PROJECT WAS ESTABLISHED TO IMPLEMENT THE ADMINISTRATION OF THE NSF PENSION BENEFITS • THIS ADMINISTRATION IS DONE IN SUPPORT OF THE NSF PENSION PROJECT AT GEPF ( NATIONAL TREASURY) 28

  29. POLICY FRAMEWORK • DEFINITIONS • NON-STATUTORY FORCE MEMBER • FORMER MK/APLA MEMBER WHO ENTERED INTO EMPLOYMENT AGREEMENT WITH THE DEPARTMENT OF DEFENCE EITHER AS A PUBLIC SERVICE ACT PERSONNEL (PSAP) MEMBER OR AS A DEFENCE ACT (UNIFORM) PERSONNEL MEMBER THROUGH INTEGRATION OR NORMAL PERSONNEL ACQUISITION PROCESS. 29

  30. POLICY FRAMEWORK (CONT) • NON-STATUTORY FORCE SERVICE • THE PERIOD BETWEEN THE DATE ON WHICH THE NSF MEMBERS JOINED THEIR RESPECTIVE FORMER FORCES AND THE DATE OF THEIR TAKING UP EMPLOYMENT WITH DEPARTMENT OF DEFENCE • IF JOINED FORMER NSF BEFORE AGE 16, THE SERVICE WILL START FROM AGE 16. 30

  31. POLICY FRAMEWORK (CONT) WHO QUALIFIES FOR NSF PENSION FORMER MK/APLA MEMBER WHO • ENTERED INTO EMPLOYMENT AGREEMENT WITH THE DEPARTMENT OF DEFENCE OR ANY STATE DEPT • EITHER AS A PUBLIC SERVICE ACT PERSONNEL (PSAP) MEMBER OR AS A DEFENCE ACT (UNIFORM) PERSONNEL MEMBER ON OR BEFORE 31 MARCH 2002 • THROUGH INTEGRATION OR NORMAL PERSONNEL ACQUISITION PROCESS. 31

  32. MEMBERS WHO DO NOT QUALIFY • FORMER NSF MEMBERS WHO: • DEMOBILISED • RECEIVED BENEFITS IN TERMS OF DEMOBILISATION ACT 99 OF 1996 • DID NOT TAKE UP EMPLOYMENT WITH ANY OF THE STATE DEPARTMENTS THAT PARTICIPATE IN THE GEPF 32

  33. RECOGNITION • MEMBERS WITH LESS THAN 10 YEARS NSF SERVICE • 50% OF THE SERVICE WILL BE RECOGNISED • PROVIDED MEMBER MEETS HIS/HER FULL FINANCIAL OBLIGATION 33

  34. RECOGNITION (CONT) • MEMBERS WITH 10 OR MORE NSF SERVICE • 100% OF THE SERVICE WILL BE RECOGNISED • PROVIDED MEMBER MEETS HIS/HER FULL FINANCIAL OBLIGATION 34

  35. NSF PENSION VS SP PENSION • CHOICE BETWEEN NSF PENSION BENEFITS AND SPECIAL PENSIONS BENEFITS • OPTION TO RETAIN SPECIAL PENSIONS BENEFITS - FORFEIT THE RIGHT TO BE CONSIDERED FOR NSF PENSIONS BENEFITS • OPTION TO FORFEIT SPECIAL PENSIONS BENEFITS IN FAVOUR OF NSF PENSION BENEFITS 35

  36. MEMBER OPTIONS • PAY BACK THE SPECIAL PENSIONS BENEFIT AMOUNT RECEIVED • MONTHLY SPECIAL PENSIONS BENEFIT WILL STOP • IF CANNOT AFFORD TO PAY BACK SPECIAL PENSIONS BENEFIT, NSF SERVICE WILL BE REDUCED ACCORDINGLY 36

  37. MEMBER OPTIONS • NSF SERVICE REDUCTION FOR SP BENEFIT RECEIVED • 15 YEARS NSF SERVICE • RECEIVED R30 000 SP BENEFIT • 1 YEAR SERVICE = R10 000 • NSF SERVICE TO BE REDUCED BY 3 YEARS • THEREFORE WILL BE LEFT WITH 12 YEARS NSF SERVICE 37

  38. DEMOB BENEFIT VS NSF PENSION • IMPACT OF DEMOBILIZATION BENEFITS ON NSF PENSION BENEFITS 38

  39. MEMBER OPTIONS • PAY BACK THE DEMOB BENEFIT AMOUNT RECEIVED • IF CANNOT AFFORD TO PAY BACK DEMOB BENEFIT, NSF SERVICE WILL BE REDUCED ACCORDINGLY 39

  40. COST OF BUYING NSF SERVICE • 5% OF MEMBER’S FINAL SALARY(31st May 2000) • THE RESPONSIBILITY OF THE MEMBER • THE DIFFERENCE BETWEEN THE TOTAL COST AND THE MEMBER’S PORTION • THE RESPONSIBILITY OF THE STATE 40

  41. MEMBER CONTRIBUTION (EXAMPLE) • FORMULA (5% x Final salary x NSF Service) = MEMBER CONTRIBUTION) • NSF SERVICE = 8 YEARS • FINAL SALARY = R58 000 • MEMBER CONTRIBUTION = R23 200 COST OF BUYING NSF SERVICE 41

  42. MEMBER OPTIONS – 5% • PAY 5% NSF MEMBER CONTRIBUTION • ONCE-OFF LUMP SUM, • INSTALLMENTS, OR • BOTH LUMP SUM AND INSTALLMENT • MEMBER CAN CHOOSE TO PAY A PORTION OF THE 5% NSF MEMBER CONTRIBUTION • IF CANNOT AFFORD TO PAY THE 5% NSF MEMBER CONTRIBUTION, THE NSF SERVICE WILL BE REDUCED ACCORDINGLY 42

  43. MEMBER OPTIONS • NSF SERVICE REDUCTION FOR MEMBER CONTRIBUTION • 15 YEARS NSF SERVICE • MEMBER CONTRIBUTION = R43 500 • 1 YEAR SERVICE = R10 000 • MEMBER CANNOT AFFORD TO PAY R40 000 (PAID R3 500) • NSF SERVICE TO BE REDUCED BY 4 YEARS • THEREFORE WILL BE LEFT WITH 11 YEARS NSF SERVICE 43

  44. 44

  45. STATISTICS 45

  46. EXITED MEMBERS 46

  47. CHALLENGES: INTERNAL • MEMBERS WITHOUT VALID ADDRESSES • LIVING MEMBER – 569 • DECEASED MEMBERS – 318 • (LIAISON TOOK PLACE WITH HOME AFFAIRS – VERY LITTLE RESULTS) • LETTERS SENT TO UNITS 62 MEMBERS RESPONDED • NSF JOINING DATES DISPUTES - 3057 • DISPUTES RESOLVED - 706 47

  48. POLICY ISSUES • 5% MEMBER OWN CONTRIBUTION PLUS ADDED INTERESTS • MEMBERS LESS THAN 10 YEARS SERVICE ONLY 50% RECOGNITION • NSF PENSION RECOGNITION VS SPECIAL PENSION DEDUCTION • LETTER WRITTEN TO MOD FOR POLITICAL INTERVENTION 48

  49. ALTERNATIVE PENSION SCHEME • DEPARTMENT STILL EXPLORING THE POSSIBILITY OF DEVELOPING AN ALTERNATIVE PENSION SCHEME FOR THE MILITARY • HOWEVER THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION HAS EXPRESSED SOME DIFFERENCE OF OPINION ON THIS MATTER 49

  50. MILITARY VETERANS’ AFFAIRS ADMINISTRATION 50

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