Why do we pay UIF when UIF does not pay?

[Dave A]

I've just had a member of staff return after taking a spell of maternity leave, only to hear how UIF has let her down in the payment of her maternity benefit claim.

As a UIF contributor she is entitled to claim a maternity benefit from UIF, which she duly did. She got paid for the first month, but has not received a payment since - despite all her efforts.

They just tell her it's system problems, and there's nothing they can do.

Years of contributing, and in a person's hour of need...
FAIL!

I'm outraged.

[AndyD]

UIF are the most disorganized bunch of louts I've ever come across. I know it sounds harsh but my advice would be it's not your fight so don't get involved. They're unresponsive, lazy and they couldn't give a damn, they'll give you grey hairs and the stress will take years off your life.

[Dave A]

UIF are the most disorganized bunch of louts I've ever come across.... They're unresponsive, lazy and they couldn't give a damn, ...

That's pretty much what she said.

I know it sounds harsh but my advice would be it's not your fight so don't get involved... they'll give you grey hairs and the stress will take years off your life

To some extent that's what I said to myself. However looking at how much stress this has caused in this employee's life, I had to do something (even if it was just to vent on TFSA and fish to see how widespread the problem is).

[Andromeda]

From City Press:
"An enormous accumulated surplus of R99 billion is lying unused in the Unemployment Insurance Fund (UIF).

The UIF says it’s going to invest part of the surplus to protect jobs, and new rules will soon help more people to qualify as beneficiaries of the fund.

However, these steps will have little effect in making a dent in the surplus. The UIF’s unaudited surplus of almost R99 billion up to end March this year is about the same amount as the total 2015 budget for local governments.

According to the UIF’s annual report for 2015, the fund had an income of R16.14 billion in the 2014/15 year and, during the same financial year, paid out R7.2 billion to 798 467 beneficiaries."

Here is the whole article http://city-press.news24.com/Busines...ocket-20160715

[Dave A]

So clearly the problem is not a shortage of money. Which kinda burns my ass even more, frankly.

From that same story -

However, these changes will not have a significant effect if allegations of inefficiencies at the UIF turn out to be true.

Agents who help people to claim UIF benefits said the many problems at the labour department’s centres, where benefits need to be claimed, were just getting worse.

The agents spoke to City Press’ sister newspaper Rapport on condition of anonymity.

They're only allegations because they haven't been properly investigated. Time they dropped a few bar on a commission of enquiry. Seems like they've got the spare change...

[Andromeda]

You might recall that in the 2015 budget speech the minister mooted the idea of suspending UIF contributions because the UIF was embarrassingly cash flush, and within days sanity prevailed and it was "decided" that contributions should rather continue, but that benefits would be improved???

As usual sweet blow all happened and the surplus is now even larger. It's enough to drive one to despair.

[MTSCFin]

Try not paying your UIF contributions and see what happens to you, they don't have system problems then!!

[Mike C]

I see that this has hit the news now!

http://www.timeslive.co.za/thetimes/...-surplus-funds

[Dave A]

From that story -

He said claims were often delayed by the submission of incomplete documents and because employment records had not been updated by the employer.

In our case we use uFiling, and everything was up to date. When our employee went in to DoL to register her claim, I got a call from the clerk attending her to say that data submitted via uFiling can take months to update on their systems - so I had to make a paper-based submission, scan it and email it to the clerk.

Which I did, so I've got hard evidence...

[AndyD]

Maybe some of their embarassingly large surplus would be well spent upating and better integrating their IT system.