Sassa 10% funeral deduction plan "well underway"
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PLAN: Social services PLAN: Social services
During a presentation to Parliament’s committee on Social Development on Wednesday, the South African Social Security Agency (Sassa) quietly revealed that a process is “well underway” to ensure that Sassa itself makes funeral policy deductions from social grants.
With legislation providing that 10 percent of old age grants may be deducted for these policies, this provides a highly lucrative opportunity for whoever partners with Sassa, reports the Daily Maverick.
It’s said it was also the first time committee members heard about this news.
Sassa’s payment Transition Project Manager, Zodwa Mvulane, presented feedback to the committee on the outcome of working with the South African Post Office (SAPO) to pay out social grants.
Page eight of the report, titled “Identified functions which Sassa will manage”, listed as its third component the matter of “26A deductions” - or debits made from social grants by third parties.
The Social Assistance Act allows for only one deduction — funeral policies.
“Within the Sassa regulation, 10 percent of the grant amount can be capped for funeral cover. This time we want to do such deductions ourselves within Sassa and the process is well under way on this one,” Mvulane said.
“There is approval given for the procurement of the process, the project plan is there and in place.
“Also there are timelines that by September the payment file would have changed and Sassa would be doing this in-house.”
Committee member for the Democratic Alliance (DA), Bridget Masango, was shocked.
“I am very uncomfortable about it,” Masango told Daily Maverick.