By Elvin Bailey
Following up on the commentary about selling Social Security, and based on feedback received through our suggestion boxes, there are several other issues that need to be explained. One is the issue of timing, and waiting. One of the comments from our Suggestion Box was particularly brutal: “social security sit on their @#* too long to give back social – these are people who gives government bad name”. Actually, we do not. Permit me to explain.
When a person registers with Social Security, they have to wait a while. The newly insured person must wait until a minimum of 26 continuous weeks of contribution is paid before anything can be claimed. This first wait then entitles the person to an exit benefit (funeral) and a sickness benefit if they fall sick. In the case of maternity, that wait is extended to 39 weeks or the normal length of a pregnancy. Put another way, you can claim funeral grant after 6 months of contributions, your first sickness benefit after 6 months of payment and your virgin maternity claim after 9 months of contributions. The contributions need not be continuous either. Everyone should be aware by now that to qualify for a pension, the minimum wait is 9 years, 8 months and 1 week. (500 weeks), and that qualifies the Insured Person for 30% of appropriate wages. Maximum pension of 60% is earned after a wait of 1750 contributions 33 years, 8 months, 2 weeks. Patience is truly a virtue.
We have our share of wait too. A business and also a new employee have two weeks after the start of the business and or the employment of a person to register with us. And, at the end of the month in which contributions are generated, there is a one month’s grace period before the employment report (C3) and applicable money are made to Social Security. The report is as important as the money.
The Social Security Act No. 13 of 1978 stipulates that all correspondences must be addressed to the Director, and that she is duty bound to respond within 2 weeks. But we have taken it a step closer and set ourselves a customer charter that has us responding to short term claims within 48 hours. And so, in 2009 for example, 9155 of the 12,622 short term claims (73%) were processed within one week, and 318 of the 503 long term claims were settled within a month. I must reassure persons that our accuracy rate (getting it right the first time every time) is not compromised by our speed. It is as close to 100% as it is humanly possible to get!
What slows down the process are: a) ineligibility, i.e. not meeting the requirements such as being sick long enough, b) not having enough contributions, c) [sickness] claims that are for periods longer than 12 days, d) Employment injury claims as they have to be evaluated by our medical team d) persons with multiple jobs. Each of these situations which require another round of checks before a decision is handed down. It is this second round that delays us.
Sometimes employers and employees become eligible for refund of contributions. This usually happens when an Insured Person attains pensionable age and remains in the workforce; and the full 11% is paid instead of the applicable 1%. Or, as is becoming more prevalent, salary comes from multiple sources, which, when combined within our records, points to an overpayment of either contributions, levy or both. This takes time to sort out.
So bear with us as we work out these challenges within your organization.
The issue of Age Pension requires clarity. At least one month before your 62nd birthday, the process of claiming should be started, by us and by you. Within the recent past, we have had late, very late claimants. One person waited 3 years, another waited 10 years and one waited 13 years. The Act only allows a retroactive payment of 6 months. Some of these late claimants were of the view that Social Security is only for old people, some were misled and yet others were of the view that pensionable age was 65 years.
The important point to make in this discourse is that a claim has a shelf-life. It is six months for an age benefit, 10 days for sickness, three weeks for maternity, 10 days for employment injury. Some people punish themselves through late claims. Recently, we had three cases where eligible persons claimed their age pension 3, 10 and 12 years late. That was a real tragedy for the claimants because it meant that legally, Social Security was obligated only to honour a 6 month back-pay. (The Board considered all the information and allowed 24 month retroactivity). One of these applicants indicated that he thought Social Security is only for old people and he did not feel old. Imagine!
My faith informs me that waiting helps to renew my strength, but I would not give away my rights. Should you?
