Question NW2032 to the Minister of Social Development
13 September 2017 - NW2032
Jooste, Ms K to ask the Minister of Social Development
(1)What will the proposed state-funded funeral benefits for elderly social grant beneficiaries entail; (2) will the 10% deduction for the state-funded funeral benefits be made only from the old age grant; if not, what is the position in this regard; if so, what are the further relevant details?
Reply:
1. The Department of Social Development has proposed an amendment to the Social Assistance Act to make provisions for funeral benefits. This amendment Bill has gone out for public comments, which have been considered. The department will approach Cabinet in the course of the next few months for approval to take the amendment to Parliament. If parliament approves the Social Assistance amendment Bill that makes provisions for the Funeral Benefit, the department will develop a set of regulations outlining the administration and other criteria of the benefit. The department is currently conducting consultations in preparation for the drafting of the regulations. The benefit levels will be determined at implementation and annually; and will be gazetted as with the other social grants.
2. Regulation 26A provides for a maximum of 10% to be deducted from an Older Persons’ grant, a Disability Grant or a War Veteran’s grant, for funeral insurance. This applies only to private insurance companies (not the state), to allow beneficiaries to access funeral insurance in the absence of the state providing such benefits.