NCOP
FOR WRITTEN REPLY
QUESTION NO. 198
DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 20 NOVEMBER 2009
(INTERNAL QUESTION PAPER NO. 25)
Mr T D Harris (DA-WC) to ask the Minister of Health:
(1) What are the relevant details of the pension fund for the Primary
Health Care Professional Nurses in municipal employ;
(2) how is a personâs pension fund affected when such a person is
employed by a new employer such as the provincial departments of
health;
(3) (a) what are the relevant details of the (i) plans and (ii) deadlines
which are in place to ensure that all provinces are on the same
programme of âprovincialisingâ primary health care and (b) what are
the guidelines as to how the (i) powers and (ii) functions should be
delegated to municipalities?
CW291E
REPLY:
The following information is as obtained from our Provincial Departments of
Health:
EASTERN CAPE
1) Different municipalities belong to different pension/provident funds
and/or group schemes. Details of the funds are not currently
available, but will be obtained by the Department as it endeavours to
finalise a transfer agreement for municipalities.
2) A number of options become open to staff during the transfer of
ownership of an organization whereby staff is affected. The nature of
the transfer also dictates how the pension matter is to be managed. In
short, based on the nature of the pension fund, employees may either
encash, transfer into the existing/new employerâs pension fund etc.
3) The then MINMEC (now National Health Council) resolved in November
2005 that all Primary Health Care services should be transferred to
Provincial Departments of Health by 30 June 2007. It is intended for
the national progress in this regard to be reviewed and new time
frames to be set at its next meeting.
As the process was not completed by June 2007 in the Eastern Cape, a
revised target has been set for 31 March 2010, which will also be
informed by the national process outlined above.
In terms of the above mentioned resolution, the delegation of PHC
services, inclusive of district hospitals, would be considered through
a service level agreement with municipalities that have the capacity
by 2015.
Please note that this project is managed by the District health
Services component and the HR unit supports them in the process. This
process is still underway.
FREE STATE
(1) The details are as follows:
⢠On taking over the officials from Local Authorities a consultant
was appointed by the Department of Health to handle the transfer
of pensions for the said officials in cases where possible.
⢠Due to no transfer agreements between the GEPF and Municipal
Pension Fund, pensions could not be transferred.
⢠Officials who contributed to Provident Funds could also not
transfer their pensions.
⢠The consultant assisted these officials with options on their
pensions.
⢠Many officials opted for their pensions to be paid out.
⢠The Department of Health obtained purchase of service quotations
for all officials who indicated they want to purchase service to
enable them to have at least 10 years of service on retirement
date from the Department. The officials were thus enabled to
make a decision on providing for their retirement so that they
can receive a gratuity as well as annuity on retirement.
⢠Various meetings were held with the relevant officials to
support them with information related to retirement and pension
matters.
⢠No grievances are known related to pension matters from former
Local Authority officials.
(2) It had the effect that there is a break in the officialâs years of
pension contributed service. According to the Government Employees
Pension Fund regulations an official must have 10 years of service or
more to receive a gratuity as well as annuity on retirement. The
officials who transferred had to start contributing to the GEPF on
appointment, and will not all have 10 years of service on retirement.
(3) The Free State Department of Health was one of the first Provinces to
complete this exercise and all Primary Health Care nurses have been
incorporated in the staff establishment since August 2008.
NORTHERN CAPE
(1) Cape Joint Retirement Fund;
(2) Individuals have an option of a payout or transferring their pension
to the new employer.
(3) At this stage the National Department of Health is best suited to
provide details due to the fact that we as a provincial department do
not have the relevant information.
WESTERN CAPE
The Decision to "provincialise" PHC services was taken at the National
Health Council meeting in August 2005. The process to delegate powers and
functions is described in Chapter 5 of the National Health Act of 2003.
END.