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Development of Socail Security Services in Thailand.
The Social Security Office
Thailand

The Problem

The main responsibilities of the SSO are to collect contributions from three parties: employers, employees and the government and pay benefits to insured persons under the Social Security Fund.

The Social Security Office was established in accordance with the Social Security Act (B.E. 2533) on 3rd September 1990. The Act provides the basis and framework for the gradual development of a comprehension social security system in stages

• Stage 1: Starting March 1991, four types of benefits- sickness, invalidity, maternity and death are provided for employees of enterprises with 20 or more workers.
• Stage 2: Starting September 1993 the coverage extended to enterprises with 10 or more workers.
• Stage 3: Starting September 1994 voluntary insurance service was introduced.
• Stage 4: Starting December 1998 Old-Age Pension insurance and Child allowance schemes were implemented.
• Stage 5: Starting April 1, 2002 the coverage extended to enterprises with 1 or more workers. The unemployment benefit was introduced in January 2004.


During stage 1 and 2, the SSO faced problems with IT, contribution recording and the database of insured persons. However, it managed to cope with these problems.
In stage 4, the SSO had to manage with an increased workload and have to seek better methods of providing benefits. The SSO encouraged the payment of benefits through post offices and banks.

In stage 5, the SSO was faced with a huge workload, due to the extension of coverage to enterprises with one or more employees. Since the number of insured persons and enterprises increased dramatically from 5.86 million insured persons and 110,814 enterprises in 2001 to 375,706 enterprises and 8.86 million insured persons in 2006. At present, there are 381,506 enterprises and 9.1 million insured persons. The SSO tried to develop its services to the insured persons and employees according to the new changes in each stage. However, the SSO still faced some problems of benefit payment and contribution collection in part of service delivery that required the following solutions;

1. It was found that a large number of insured persons still had to wait to receive benefit at the SSO service point. They may have to come back again due to lack of necessary documents, resulting in more time and money being wasted by the customer. The basic data of insured persons used for adjudication was not completed and there were too many officers involved and too many steps of services provided to the insured persons.
2. Since many employers prefer to pay contribution at the SSO at the last minute, the 15th of each month can be a very busy time. The SSO has to find out how to manage the problem. Even though the SSO provide more channels for contribution payment through banks, post offices and electronic media, most customers still prefer to come to the SSO Area Offices and Provincial Social Security Office. Moreover, the SSO still finds the complexity in contributions collection services and would like to make it simpler.

Solution and Key Benefits

 What is the initiative about? (the solution)
SSO has had to continually develop its performance regarding contribution collection and benefit payments. The ultimate goal was a more efficient service with higher customer satisfaction. The attempt to improve its services can be seen by the achievement of Results–Based Management System, one of the activities under the SSO Re-engineering project in 1998. The success of which can be measured in terms of Key Performance indicator in 1999, the Performance-Based Budgeting System Project in 2001, the certificate of P.S.O. 1107 (the standard and service system for private sector and public) in 2002.

The performance of benefit payment and contribution collection are as follows;

1. Regarding benefit payment, the SSO reduced the steps and duration from 7 processes to 4. The SSO has combined the steps of recording the claiming, examining the information and adjudication together. The SSO placed emphasizes on training for the responsible officers so that they will have ability to cope with the new process.
2. Reducing work process and duration from 3 steps at 2 service points into 1 step at 1 service point in part of contribution collection.
3. Using the queuing system to create equity. (first come, first served)
4. Improving the computer system for data checking within the Organization to facilitate the contribution payment services and linking the contribution data with other service systems.
5. Improving the insured persons and employers’ database recording by outsourcing.
6. Improving counter services for contribution payments by using modern computer equipment in the issuing receipts to increase efficiency.
7. Dividing SSO operational structure in the service unit into Front Office and Back Office. The operational in part of Back Office can be done later such as verification of information.

The SSO also developed a new pattern and new channels of service to meet with the increased user demand through electronic media, additional channels for payment and receipt and setting up procedures of service delivery at the same standard. In recognition of this, the SSO received the award “Quality of Service” offered by the Public Sector Development Commission for government agencies that could reduce 30-50% of work process and duration of services. Three SSO Area Offices received the outstanding reward for benefit work process. In addition, two SSO Provincial Social Security Offices received the reward and complimentary reward for work process reduction.

The success of the SSO service operation mission can be measured through the number of awards received from the Public Sector Development Commission for government agency from 2003 to 2007. The SSO received 5 awards in 2003, 2 awards in 2004, 11 awards in 2005, 1 award in 2006 and 6 awards in 2007. Most of the awards recognize improvements in registration, contribution collection and benefit payment.

Moreover, the SSO launched a survey on customer satisfaction every year and uses the result as indication to improve its services. The survey was done by external organization to avoid bias.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The Public Sector Development Commission co-ordinates a compulsory activity for all government agencies to reduce levels of work process and duration of service, so that customers will receive the highest possible standard of service in the least possible time. The SSO initiated this scheme by setting up a working group to determine the work process for the Area Office and Provincial Social Security Office. The working group is responsible for the counseling and receiving of the service unit’s problems in improving the service procedure. The working group sets the standard in stipulating the work process and duration, so that the service unit would operate to the same level.

It can be said that every SSO officer is responsible for implementing the initiative. The policy makers consisted of the Secretary-General, an Adviser in efficiency and deputy secretary-generals. These personnel formulated policy and defined strategies including the strategy of benefit development to conform to the economic and social circumstances and the strategy of strengthening efficiency of service delivery. Divisions who are responsible for contribution collection and benefits payment are Contributions Division and Benefits Division. Those who provide services are all SSO Area Offices and Provincial Social Security Offices. Therefore, it can be said that the stakeholders in this task consisted of employees, employers and their families, including all SSO personnel.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The main objective of the initiative followed the vision mission and core value of the Social Security Office as follows;

Vision:
 To be a high quality organization with outstanding performance in service delivery for all, as well as management for the stability of the funds.

Mission:
• To provide high quality of Social Insurance service the nation as a whole.
• To strengthen the stability of the funds.

Core Value:
• Service minded
• Team work
• Committed to success
• Ethics and integrity

From its objectives, the SSO set up strategies and adjusted the strategy and operational strategies year by year. In 2007, there were six strategies including the strategy of benefit service delivery and increasing the management efficiency.

To achieve the SSO objectives, the SSO organized public services activities which shall have the most benefit to the insured persons such as Result- Based Management System, Key Performance Indicator, the Performance-Based Budgeting System, reducing work process and duration of services. The SSO would like to raise the example of operational strategy in duration of service.




Since the beginning, the SSO has improved the duration of service through the announcement of ideal service levels.

In 2004: Contribution collection from employer
Former 90 minutes to new goal 45 minutes
In 2005: Claims for sickness benefits
Former 100 minutes to new goal 45 minutes
In 2006: Claims for invalidity benefits
Former 80 minutes to new goal 40 minutes
In 2007: Claims for child allowance
Former 90 minutes to new goal 30 minutes

To evaluate performance of responsible officers, each office creates its own measure such as queuing time, time of service indicator through manual basis. Each office keeps evidence on this matter. The evidence will be inspected by the central office or the inspector–generals of the office.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
The key development and implementation steps on reducing work process and duration of services are as follows;

In 2003, the SSO started to consider work processes that might affect the insured persons and employees. It was found that 20 work processes had an impact on the SSO’s customers.

In 2004, the SSO selected the first 5 work processes that it considered the most important. They were
1. Claim for sickness benefit ( medical service only )
2. Contribution collection from employers
3. Contribution collection for voluntary insured persons
4. Registration collection for voluntary insured persons
5. Order payment for the high cost medical services

In 2005, the SSO chose another 5 work processes as follows;
1. Registration
2. Claim for sickness benefit ( both medical services and cash benefit )
3. Claim for Dental Care
4. Claim for Maternity Benefit
5. Appeal process







In 2006, the SSO selected 5 work processes as follows;
1. Claim for old age benefit
2. Claim for invalidity benefit
3. Contribution payment through Internet
4. Claim for death benefit
5. Reimbursement of the overpayment contribution

In 2007, there were 5 work processes left but the SSO considered 3 of them to be of lesser importance as they had little public or they both work processes and duration of service could not be reduced. Therefore, there were only 2 work processes left as follows;
1. Claim for child allowance
2. Reimbursement of the overpayment contribution. (through the bank)

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
The main obstacles in these attempts were:

1. Even though the services offices tried their best to provide fast and accurate service to the insured persons, there were still some problems with the knowledge of new staff. The officers were busy with their work and had no time to provide information to the new comer.
2. Officers had to adjust themselves with the new change all the time; they had no time to receive their information and the new service procedure. The SSO had to provide suitable training for them but all of them could not access the training. Sometimes, it was found that the service units didn’t send the right person to receive training.
3. In part of the follow-up and evaluation, the SSO assigned the SSO Area Office and Provincial SSO to report the receiver performance and problems to the SSO. Then, the SSO sent the divisions concerned to visit and give advice to them for the solution. Knowledge specialists were allocated to offices that needed them, but due to a shortage of such officers a backlog of work soon developed.

To overcome these main obstacles, the SSO set up strategies and operated many seminars and workshops, through to brainstorming among the service unit. In addition, the SSO issued many training documents and handbooks to assist them and sent knowledgeable staff to give advice.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The SSO allocated the budget to launch the new initiative, therefore, expenditures for initiative activities came from the existing administration budget. Technical support and costs were provided within the office by existing personnel. Existing staff levels were maintained throughout the initiative, this was for three reasons:

 Any training given to new staff would possibly slow down progress.
 A higher number of staff would result in having to request an increased budget.
 The increased efficiency of the existing staff negates the need for new officers, as more work can be done in less time by the same number of staff.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The SSO executives have clear policy to extend the result of this initiative to service units throughout the country so that they will work to the same standard. The SSO announced this initiative to the public, arranged seminars for service providers and the SSO officers in the SSO area offices, provincial social security offices to inform them about this initiative. The SSO produced handbook on services standard with information on the new working process and disseminated to every service units in central and regional area. In addition, the SSO has divided the area and assigned the executives to support the area under assignment. In case SSO executives change position, the implementation will be useful for the insured persons without any burden in part of budget in the long run.
There has been a significant increase in the number of visiting foreign delegations to our offices. Government officers come to observe how the initiative has positively affected the service provided to the public and the satisfaction levels of staff. In 2006 and 2007, 30 groups visited our offices, these included delegations from the Governments of Laos PDR and Vietnam.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
The SSO is the agency responsible for providing high quality service to achieving the goal of customer satisfaction. The key factor to make the initiative on reducing work process and duration of services on contribution collection and benefit payment are as follows;

1. The SSO Executives have policies to encourage, enhance and follow-up every SSO service unit throughout the country to operate to the same standard. They have to listen to the opinions of the SSO officers and service providers and bring about the opinion to improve efficiency.
2. The SSO Officers must have a service mind to achieve set goals.
3. Support from the Public Sector Development Commission to provide opinions and recommendation is very important. The Commission assisted SSO, provided evaluation and gave the award “Quality of Service” to the SSO
4. Improved capability in allocating the resource as a direct result of higher efficiency. Due to the high quality in allocating the resource, the reform can be done much faster than before. The Office can serve the customers’ needs and achieve high customer satisfaction as well.

Perhaps the biggest lesson learned from the initiative is that any real change can only be driven by the wants and needs of the public. We also learned that the SSO is there to serve the public, and high customer satisfaction is a key part of any service to be provided.
The SSO learned a lot from all attempts to reach the goal of customer satisfaction. Our core values mentioned were regarding teamwork, service minded and committed to success. This inspiration brought us to achieve our goal.

Contact Information

Institution Name:   The Social Security Office
Institution Type:   Government Agency  
Contact Person:   Pornpun Supanakorn
Title:   Social Security Office  
Telephone/ Fax:  
Institution's / Project's Website:  
E-mail:   pornpun2501@yahoo.com  
Address:   Social Security Office
Postal Code:  
City:  
State/Province:  
Country:   Thailand

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