SASSA IS CONCERNED ABOUT COMPLAINTS OF UNLAWFUL DEDUCTIONS ON SOCIAL GRANTS

• The South African Social Security Agency (SASSA) has been inundated with enquiries from beneficiaries regarding deductions from their grant payouts by insurance companies they have not signed up with.
• CEO Themba Matlou has reiterated that SASSA has no authority to make any deductions on social grants without the consent of the beneficiaries.
• Matlou has urged all beneficiaries who have fallen victim to unlawful deductions to visit their local SASSA office immediately to report the matter.

The South African Social Security Agency (SASSA) is deeply concerned by the upsurge in what appears to be unlawful deductions by financial service providers targeting social grant beneficiaries.

SASSA has been inundated with enquiries from its beneficiaries, stating that their grant money is consistently being deducted by various insurance companies that they have not signed up for, believing that the agency is collaborating with these companies.

SASSA has consistently distanced itself from any insurance company that uses the good name of the agency to achieve its goals.

CEO Themba Matlou has reiterated that SASSA has no authority to make any deductions on social grants without the consent of the beneficiaries.

“We have utmost respect for our beneficiaries and the Act governing social assistance in the country, and we will never do anything to shortchange our clients.

“Your money is your money. If you qualify for a grant, the money belongs to you, and as SASSA, we have no right, nor authority to dictate how you utilise it,” he emphasised.

The CEO is on record noting that SASSA does not work with funeral schemes and insurance companies as it is not legislated.

Matlou has urged all beneficiaries who have fallen victim to immediately visit their local SASSA office to report the matter for investigation.

Alternatively, clients who dispute signing a funeral policy with the financial services provider are advised to immediately dispute the deduction by sending an SMS to 34548 with their identity number and the financial services provider’s name.

They should also visit the insurer or the financial services provider to cancel the policy.

SASSA may allow only one deduction per month, not exceeding 10 percent of the value of the beneficiary’s social grant, for a funeral policy issued by an insurer registered under the Long-term Insurance Act, 1998 (Act No. 52 of 1998) to be made directly from a social grant. This is in terms of Regulation 29 of the Social Assistance Act of 2004.

The regulation says the beneficiary of the social grant must submit their consent to such deduction to SASSA by electronic communication or any other means of communication.

Funeral deductions are not permitted from child-related grants, such as the Child Support Grant, Care Dependency Grant, or Foster Child Grant.

Similarly, Temporary Disability Grants are also excluded from funeral deductions.

Beneficiaries can find more information on the SASSA website www.sassa.gov.za or they can call the toll-free number: 0800 60 10 11 or email GrantEnquiries@sassa.gov.za.