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UIF 'not in the red'

Mar 01 2005 18:38

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Pretoria - Employers and workers need not be concerned about the future of Unemployment Insurance Fund (UIF), which faced financial ruin a few years ago, the labour department said on Tuesday.

The UIF was expected to exceed its actuarial valuation reserves - the amount of money needed in its reserves for it to be financially viable - by R500m at the end of the current financial year, the fund's communications officer Kgomotso Sebetso said.

This was because the fund had completed its mandate of building reserves as set out by actuaries in 2002 when it had operated with a deficit of R255m.

The actuaries required the UIF to build reserves of up to R8.4bn in order for it to be financially viable.

If the current growth rate was to be used as a yardstick, the department said, indications were that by the end of the current financial year in March it would have "gone way ahead" of the mandate.

Current figures showed close to 600 000 domestic employers had registered with the Fund and 490 000 details of domestic workers had been captured on the UIF database of employee, the department said.

 
 
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