UIF South Africa Chapter 2: Unemployment Insurance Fund
4. Establishment of Unemployment Insurance Fund
(1) The Unemployment Insurance Fund is hereby established.
(2) The Fund consists of—
(a) the contributions made by employers and employees and collected by the Commissioner of the South African Revenue Service in terms of the Unemployment Insurance Contributions Act;
(b) the contributions made by employers and employees and collected by the Commissioner in terms of the Unemployment Insurance Contributions Act;
5. Application of Fund
The Fund must be used for the—
(a) payment of benefits in terms of this Act;
(b) reimbursement of excess contributions to employers;
(c) payment of—
(i) remuneration and allowances to members of the Unemployment Insurance Board and its committees; and
(ii) any other expenditure reasonably incurred and relating to the application of this Act.
(c) money appropriated by Parliament;
(d) any penalties and fines imposed in terms of this Act other than by a court of law;
(e) any interest or return on investment made by the Fund;
(f) any money paid erroneously to the Fund which, in the opinion of the Director-General, cannot be refunded;
(g) any bequest or donation received by the Fund;
(h) any movable or immovable property purchased or otherwise acquired by the Fund; and
(i) any other money to which the Fund may become entitled.
6. Raising of funds, loans and obtaining bank overdraft facilities
The raising of funds by way of loans and bank overdraft facilities in respect of the Fund must be done in terms of the Public Finance Management Act, 1999 (Act No. 1 of 1999).
7. Investment of money of Fund
(1) The money of the Fund other than money required to meet the current expenditure of the Fund may be deposited on behalf of the Fund by the Director-General with the Public Investment Commissioners to be invested in terms of the Public Investment Commissioners Act, 1984 (Act No. 45 of 1984).
(2) Any profit on investments accrues to the Fund and any loss must be borne by the Fund.
8. Donations and bequests to Fund
(1) Any person, body, corporation, organisation or financial or other institution may make a donation or bequest to the Fund.
(2) The Director-General may accept donations or bequests for and on behalf of the Fund.
9. Appointment of and annual review by actuary
(1) The Director-General must appoint an actuary who is a member of the Actuarial Society of South Africa or who is supervised by a member of that Society to perform the functions assigned to the actuary in this Act.
(2) Within two months after the end of each financial year, the actuary must review the financial soundness of the Fund for that financial year, and provide an actuarial valuation report to the Director-General.
(3) The actuarial valuation report must contain—
(a) a statement—
(i) reflecting the actuarial value of the assets and liabilities of the Fund;
(ii) on the financial soundness of the Fund; and
(iii) on whether or not there was a surplus or deficit in the Fund in the financial year in question;
(b) an indication of—
(i) the basis and method used to value the assets and liabilities of the Fund;
(ii) any changes to the basis and method used to value the Fund as compared with the actuarial valuation report of the previous year; and
(iii) any special consideration or restriction that the Director-General brought to the attention of or made applicable to the actuary in performing the functions in terms of this section;
(c) an explanatory note on any matter relevant to obtaining a true and meaningful statement of the financial position of the Fund;
(d) recommendations for the maintenance or improvement of the financial soundness of the Fund.