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UIF South Africa Chapter 2: Unemployment Insurance Fund 

10. Surplus and deficit in Fund

(1) Subject to subsection (2), the Director-General must report and make recommendations to the Minister if the difference between income and expenditure of the Fund is—

(a) greater than is required to meet payments for benefits; or

(b) insufficient or not increasing at a sufficient rate to meet payments for benefits that may reasonably be anticipated.

(2) The Director-General may only submit the report contemplated in subsection (1) after having consulted with the Board and the actuary on the contents of the report.

(3) In respect of a report contemplated in subsection (1)(a), the Minister, after consultation with the Board, may utilise the surplus to give effect to the purposes of this Act, including—

(a) improving the administrative efficiency and capacity of the Board and Fund; and

(b) establishing a reserve fund.

(4) In respect of a report contemplated in subsection (1)(b), the Minister may request the Minister of Finance to adjust the national budget in the manner contemplated in sections 16 and 30 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), in order to cover any deficit in the Fund.

11. Accounting, auditing and financial reporting

(1) Despite section 49(2) to (5) of the Public Finance Management Act, 1999 (Act No. 1 of 1999), the Director-General is the accounting authority for the Fund.

(2) (a) At the beginning of each financial year, the Director-General must file a business plan, approved by the Minister, with the National Treasury.

(a) The Commissioner must compile the business plan with the assistance of the actuary and the Board.

(2) In addition to the matters which must be included in the annual report and financial statements referred to in section 55 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), the annual report must set out and contain a statement showing—

(a) the total number of persons who received benefits in terms of this Act;

(b) the total number of employers who paid contributions in terms of the Unemployment Insurance Contributions Act;

(c) the total number of contributors who paid contributions in terms of the Unemployment Insurance Contributions Act;

(d) the total number of persons deemed to be contributors under section 45;

(e) the total monetary value of benefits provided in respect of each category of benefit;

(f) a statement setting out the loans, overdrafts, advances and financial commitments of the Fund;

(g) the particulars of all donations and bequests received by the Fund;

(h) the actuarial valuation report contemplated in section 9;

(i) particulars of the use of all immovable and movable property acquired by the Fund for purposes contemplated in section 58(6) and (7);

(j) any amount written off in terms of section 58(8); and

(k) any other matter determined by the Minister.

Amended Unemployment Insurance (UIF) Act

Unemployment Insurance Act (No. 63 of 2001 )
as amended by the
Amendment – Unemployment Insurance Act

Summary: To establish the Unemployment Insurance Fund; to provide for the payment from the Fund of unemployment benefits to certain employees, and for the payment of illness, maternity, adoption and dependant?s benefits related to the unemployment of such employees; to provide for the establishment of the Unemployment Insurance Board, the functions of the Board and the designation of the Unemployment Insurance Commissioner; and to provide for matters connected therewith.

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