1. Administrative Innovations to Improve Compliance & Enforcement: The Philippine Case Presented by: Aurora E.L. Ortega Vice-President – Operations Social Security System Republic of the Philippines

2. Outline of Presentation Key Statistics Administrative Innovations –Target-focused Innovations –Service-improvement Innovations –Problem-solving Innovations –Demand-driven compliance Results of Innovations –Increase in Membership –Increase in Collection –Collections > Benefits Concluding Note

3. Basic Labor Statistics Population 80 Mn Labor Force – 67% 53.6 Mn Others – 33% 26.4 Mn Employed – 89% 47.7 Mn Unemployed – 11% 5.9 Mn Gov’t – 8% 5.9 Mn Private – 92% 43.9 Mn Others (inc. OFW’s) – 5% 2 Mn Unpaid Family Workers – 9% 4 Mn Self-employed – 28% 12.4 Mn Employed - 58% 25.9 Mn Source: NSO, DOLE

4. Covered Employees, Registered, Paying Employed - 58% 25.9 Mn 20.8 Mn Registered 5.1 Mn Not registered 7.6 Mn Paying 13.2 Mn Non-paying Registered 20.8 Mn Actual Contributions PHP 43 Bn Potential Contributions PHP 164 Bn USD 3.3 Bn SSS Monthly Contribution: 9.4% of Covered Salary Covered Salary: Min. Php 1,000, Max. Php 15,000

5. Total Employers 1.5 Mn Total Employers

6. Administrative Innovations Target- focused Field Inspection Linkage w/ Local Gov’t Units Accounts Monitoring

7. Administrative Innovations Target- focused Field Inspection Linkage w/ Local Gov’t Units Accounts Monitoring Service Improvement Auto-Debit Arrangements Access to Member Info Payment Facilities Covenant of Service

8. Administrative Innovations Target- focused Field Inspection Linkage w/ Local Gov’t Units Accounts Monitoring Service Improvement Auto-Debit Arrangements Access to Member Info Payment Facilities Covenant of Service Problem- Solving Electronic Data Interchange Alternative Payment Schemes

9. Administrative Innovations Target- focused Field Inspection Linkage w/ Local Gov’t Units Accounts Monitoring Service Improvement Auto-Debit Arrangements Access to Member Info Payment Facilities Covenant of Service Problem- Solving Electronic Data Interchange Alternative Payment Schemes Creating Demand Information Dissemination Engagement w/ Employer Organizations & Employee Trade Unions Mass Media

10. Results of Innovation: Increased Membership Source: MIS-SSS

11. Results of Innovations: Increased Collections Source: MIS-SSS

12. Results of Innovations: Collections > Benefits Payments

13. Thank You! Social Security System Republic of the Philippines

14. Table 1: The SSS Covenant of Service Benefits Claim Target Processing Time (in working days) Phase 1Phase 2 1. Retirement 155 2. Death 155 3. Funeral 3-5 4. Maternity 83-7 5. Sickness 8 after medical exam5 after medical exam 6. Disability 15 after medical exam5 after medical exam 7. Salary Loans 33 8. ID Card Issuance 105

15. Electronic Data Interchange Social Security System Employer Electronic Fund Transfer 1a. Monthly Collection List (MCL) 4. Payment Order Remittance Advice (PORA) 2. Debit Account (DA) Payment Order (PO) (PO/C) (DA/C)6. Credit Account (CA) 3. Monthly Collection List Acceptance (MCA) Employer’s Bank SSS Depository Bank ELECTRONIC DATA INTERCHANGE [INSERT SLIDE SHOWING EDI PROCESS]