Thursday October 18, 2012
RM4.78m Socso errors
SOCSO overpaid RM4.78mil to 3,532 contributors who made claims from its five benefits between 2009 and 2011.
The Auditor-General's report found that the highest cases of overpaying were from the organisation's Survivor's Pension and the Pension and Invalidity Grant benefits, with 1,956 cases and 920 cases respectively over the last three years.
Other benefits are Temporary Disability, Permanent Disability and Dependants' Benefits.
Contributors or their heirs are eligible to claim for accidents and unexpected events that fulfill conditions set under the Employees' Social Security Act 1969.
Overpayment was attributed to errors in approving and paying the claims, as well as late information of the beneficiary's change in status, like death or remarriage of widowers before May 2005.
Details of heirs were also not updated, and the revision rate was not updated in the main file on time.
In the Treasury report, Socso said it had started continuous training of its staff on the process of claiming benefits, and amended the employment process for salary verification.
It had also begun exchanging information with the National Registration Department starting December 2011 to update a recipient's status.
In 2009, overpayment had been at RM1.61mil for 1,190 cases.
This decreased to RM1.31mil for 877 cases in 2010, but shot up to RM1.86mil for 1,465 cases last year.
Socso had taken proactive approaches to retrieve the overpaid amount, which included sending notices to recipients, cutting back on the contributor's periodical payment by a maximum 40% of his or her monthly pension, and setting up a recovery unit.
Another weakness highlighted in the report was lack of integration between its computerised imaging system and its other systems, so data could not be seen in real time.
However, Socso said the system was expected to be usable until June 2013, after which its new integrated ICT Socso project, currently under development, would take over the functions.