The Social Security System (SSS) will begin so-called real-time posting of member-contribution payments under its electronic collection system (e-CS) by January next year that redounds to faster processing of claims and greater transparency at the agency.
According to SSS President and CEO Emmanuel F. Dooc, the real-time posting under its e-CS will help members and their beneficiaries receive their benefits and loan proceeds on time.
“All SSS branch teller facilities and nonbank payment partners will implement real-time posting of SSS contribution payments starting January 16, 2018. All commercial and universal banks are required to convert their current manual processing of SSS contribution collection and report submission into the e-CS with PRN [Payment Reference Number] by February 4, 2018, and March 4, 2018, for all other banks,” Dooc said.
Social Security Commission Chairman Amado D. Valdez estimated the so-called unposted member-loan payments, not contributions, should dramatically fall next year, considering only P817 million have thus far been tracked in the first quarter versus P1.135 billion in 2016.
“The commission’s priority is to enhance the contribution collection process. Not only will it improve the turnaround time for processing benefits, but it will also provide a detailed, accurate and on-time data on our contribution-collection efficiency,” Valdez said.
“Although we have managed to improve posting of member-loan payments, we are still not happy with it so we are pushing for process enhancements like real-time posting,” Valdez added.
Dooc said all SSS benefits and loans are based on contributions of members and their employers, which is why it is important that payments are recorded correctly and promptly.
“For instance, to avail [himself or herself] of a sickness benefit, a member must have at least three posted contributions in the last 12 months immediately before his semester of sickness or injury. If any of his required contributions is not posted, he cannot apply yet for a sickness benefit,” he said.
The pilot phase of the project aims for near real-time processing of contribution payments from SSS branch teller facilities within the year, meaning contributions will be posted within 24 hours from the time of payment.
The pension fund has 279 branches nationwide, 96 of which accept payments. It also has 81 accredited partner-banks and 10 nonbank collection partners.
As of August, the SSS collected P106 billion in contributions from its various payment facilities, with more than 34 percent of the remittances coming from SSS branches amounting to P36 billion. A total 38 percent, or P39.8 billion, are paid through its ePayment partners like the Electronic Data Interchange facilities, overseas collection partners, Bayad Center, SM Payment Centers and Auto-debit Arrangement program partners.
“About 66 percent of our contribution collections are remitted through other payment channels, aside from our teller facilities, so we will make sure that our collection partners are in sync with our system to implement real-time posting of contributions,” he added. The Social Security Commission (SSC), the policy-making body of the pension fund, approved the policy amendments, system and procedure enhancements and resource requirements for the implementation of the e-CS to support continuous process improvements at the SSS.
Last week the SSS said its undistributed collection stood at P817 million as of the first quarter, which contracted by 28.2 percent from the P1.135 billion recorded in the same period for 2016.
Dooc clarified that the undistributed collections were member-loan payments, and not contribution payment of members.