According to the organisation, in Germany there is a self-governing Board which comprises representatives of the public employment, employers and employees. The Board is involved in strategic decisions. There is an Executive Board that is elected by the members of the Self-Governing Board. The social partners, trade unions and employers have a strategic role to play in German labour market. Following the major labour market reforms of 2005, the German social security system is divided in two. Firstly, there is the unemployment insurance which is collected through contributions from both employers and employees, and which caters for workers who lose their jobs. This is similar to the South African unemployment insurance benefits that are administered by the Unemployment Insurance Fund (UIF). The social benefits are generated by deducting 3% from the gross salary of the employee. Currently, the balance is E40 billion in the unemployment insurance fund. Funds generated by the system are administered by the Public Employment Services (PES) situated in Nuremburg. More social benefits are allocated to people with children and the unemployed. The Federal Government has a final say in terms of spending funds in support of the labour market. There are 186 local agencies that process placements and unemployment insurance benefits payments.