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Transforming public service delivery in the Brazilian social security system
National Institute of Social Security
Brazil

The Problem

In recent past, services delivered at the branches of the Brazilian social security administration (the National Institute of Social Security, or INSS) used to be marked by periods of great difficulty, disruptions and, in some cases, even chaotic situations. A previous modernization attempt was based on changes of facilities layout, integration and reorganization of services, and outsourcing of medical expertise. However, those efforts were frustrated because of increasing demand and a change in the profile of the claims for social security benefits.
Service provision at the social security administration was unreliable and citizens were subject to uncertainty and extreme hardships whenever they need to claim benefits.
The main public perception of INSS in Brazil were scenes of long queues in the sidewalks in front of branches, people “selling” well-positioned places in overnight waiting lines, and small amounts of claim being received each day. What is even worse is that only small proportion of claims were processed while problems went unsolved for long periods of time, which reinforced the negative image of Social Security and gave rise to privatization plans. Moreover, certain types of temporary benefits were illegally overpaid because they were not monitored.
Surveys indicated that 70% of the people in waiting lines at the branches did not receive correct information about benefits eligibility and the necessary documents for claims. Even the toll-free telephone number for citizen assistance was precarious and practically inaccessible.
Improving the quality of services of the Brazilian social security system became an imperative, both due to the constitutional provisions guaranteeing the legal right to retirement, and also because of the growth in the numbers of users.
The increase of the numbers of users of social security was due to factors such as the increase in the tax base resulting from formalization of individual independent workers and also and also from higher formalization rate in employees in micro and small companies. Another contributing factor to expansion in demand was the introduction of new federal legislation that granted access to social security earnings for poor people that were older than 65, even if they had not previously contributed to the system. In practical terms, this law granted a social protection benefit to those citizens who previously had no access to the social security.
In addition to pensions and retirements, the services provided by Social Security also include temporary benefits associated with the leaves from work due to maternity, diseases and accidents at the workplace, in addition to permanent benefits for people with physical and mental disabilities.
Considered those attributions, 37 million taxpayers, 15.2 million retirees and 11.8 million people served with other benefits are now users of the Social Security system. This represents Social Security coverage rates of 86.7% of men, 77.9% of women and 82% of all population with ages of 40 years old or above.

Solution and Key Benefits

 What is the initiative about? (the solution)
The changes began with the implementation of the INSS Service by Appointment Program in June 2006. Social Security started to redirect services that were delivered in person at one of the 1123 branches or 73 mobile units, for remote modes of services, including Internet and toll-free call centers, providing improved selectivity and resolvability to services.
Currently, the social security system delivers monthly services to 5.6 million people through the call-center or the website. A considerable portion of users of these services modes only wishes to receive preliminary guidance on documents needed to claim benefits, or to request basic information on social security contributions. Another share of calls or website accesses is done with the purpose of scheduling appointments for other in-person services.
Regular confirmation of appointments was introduced, in which the INSS telephones users three days in advance of services, and goes through a checklist of documents that will be needed on the day when the claim will be submitted in-person. To avoid financial losses to the claimants, the financial effects of any benefits that are granted are retroactive to the date in which they first requested their appointment.
Another important change was the validation and improvement of databases containing citizens’ records with social security. With these changes, civil servants were able to make better usage of information about claimants. Therefore, instead of presenting duplicated documents that had already been submitted, citizens started to benefit from automatic recognition of their right to retirement based on their records.
This new model has generated positive impacts internally and externally. For the population, it directly improved the situation of 15 million people that receive benefits or use one of the services of social security annually. It also improved prospects of services for 64 million citizens who are potential claimants, since it introduced a new logic of access to services that provides easier and faster access to guidance, information, electronic scheduling of services, and registration of complaints. For the 60,000 employees of the Social Security System, the changes brought positive impacts for self-esteem and work satisfaction.
Social security also succeeded in effectively reducing queues at the branches. The average wait between service scheduling and delivery has declined consistently. Between June 2007 and November 2009, the average wait time for approval of a claim was reduced from 60 to 18 days for retirements; from 21 to 13 days for pensions for death of spouse; from 52 to 22 days for social protection benefits; and from 84 to 27 days for maternity leave. Average length of the presence of users inside the Social Security branch declined from 107 minutes in January 2006 to 43 minutes in November 2009. More importantly, by the time users leave the branches, they will now have obtained a satisfactory solution to their problems and the civil servant who assisted them will have had time to examine the major issues concerning a claim and to act as decision-maker, in which right to retirement is recognized directly from reliable databases.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The implementation of the Service by Appointment Program has demanded measures of organization change at the INSS, supported mainly on the expertise of the servants in the organization, and facilitated through regular communication with branch managers across the country. Because of the importance given to the service area, and the inexistence of a specific area to take care of improving the quality of the service, a Management Department was created with the mission of ensuring the quality of services provided to users of the INSS and to coordinate the actions of direct and remote service to the users.
In addition to this organization change, the entire process of designing, developing and implementing a new model of service had the participation of most hierarchical levels of INSS: the President, Regional Managers, Executive Managers, and branch managers.
The development of the System of Electronic Scheduling and other additional systems that support the fully functioning model of the INSS Service by Appointment Program was conducted and fully funded by the government agencies responsible for social security administration.
The technological, financial and human resources employed in the actions necessary to implement the new model of service were fully conducted by the various technical areas of the agencies involved. This includes the deployment of three call-service units, through better planning of the use of financial resources and the actions to reduce waste.
The key leaders in the process were: Minister of Social Security, Mr. Jose Barroso Pimentel; Vice-Minister of Social Security, Mr. Carlos Eduardo Gabas; President of the National Institute of Social Security (INSS), Mr. Valdir Moses Simon; Director of Citizen Service of the INSS, Mr. Luis Henrique Fanan; and President of the Social Security Information Technology Corporation, Mr. Rodrigo Ortiz D'Avila Assumpção.

(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 goal of social inclusion is a strategic vision of the current Federal Government administration. Within Social Security, inclusion refers to two important aspects: strengthening social dialogue and participation of civil society, and guarantee of access to social security rights.
On the one hand, strengthening social dialogue refers to greater participation of civil society in the definition of social security policies, through measures such as the reintroduction of the social security councils.
Following these guidelines, the mission of Social Security is to "ensure protection of workers and their families through a supportive public system of social security that is inclusive and sustainable, with the objective of promoting social welfare." And its vision is to be "recognized as an asset of workers and their families, through the sustainability of social security schemes and through excellence in management, coverage and service."
On the other hand, the goal of guaranteeing access to social security rights has inspired a set of specific actions.
Within this context, the actions of Social Security are directly aligned with a strategic vision of social inclusion. The queues at the social security branches are an expression of denial of immediate access to social security right, while waste and frauds reduce the fiscal capacity to pay legitimate claims. Therefore, the main strategic drivers of social security are (1) service excellence and (2) priority to management and social control, as tools to reduce waste and fraud.
The remaining strategic drivers are (3) strengthening social protection, (4) strategic people management and (5) improvement of infrastructure.
Some of the most important actions are the implementation of the monitoring of retirement payments and of data in the National Registry of Social Information; as well as the introduction of Service Control Rooms in all of the Regional Administrations and in the Central Administration. The Control Rooms have the main information about the operation of the service units, allowing for all management levels to view performance data and information about service in each of the social security branches.
Moreover, all of the managers of social security branches were trained not only to handle daily managerial tasks, but also to strengthen the chain of command and to guarantee strategic alignment, promoting a 360 degree view of the institution.
The social security administration understands that the isolated actions would hardly achieve the goal of guaranteeing the right to social security. Therefore, the professionalization of management has been treated as an essential pre-requisite for the success of the efforts to improve service and reduce waste and frauds, towards a guarantee of social security rights as a tool of social inclusion.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
In the first half of 2006, some branches of Social Security piloted the Service by Appointment Program by using the internet and the existing a 0800 toll-free number, which at the time worked precariously.
In June 2006, the toll-free 135 number was introduced with a new service center, and the INSS branches embraced the new type of service so enthusiastically that currently all services are available by appointment only.
Throughout the second semester of 2006, the change towards a service by appointment model was consistent and irreversible. In chronological order, one can observe the evolution in service delivery towards remote channels. In chronological order, the evolution can be observed in the introduction of services through the remote channels:
• December 2005 - two call-center units (0800 toll-free number) in the states of Bahia and Pernambuco, with a service capacity of about 2 million per month, with 280 positions. The services offered were basically information about benefits and contributions, hotline, and complaints.
• December 2006 - three stations, with the new toll-free number 135 located in Pernambuco, with a capacity of 5 million calls per month and 902 positions. The services offered were:
1. Guidance and information;
2. Fraud hotline;
3. Ombudsman;
4. Scheduling of appointments for: medical evaluation for sick pay claims, request for extension of sick pay leaves; request for reevaluation of medical decision on sick pay claims; retirement claims; disability claims; welfare claims; certification for years of contribution and pension; maternity leaves; and simulation of time of contribution needed for retirement.
6. Registration with in social security.
• July 2008 - the Call Center of the Federal District was terminated and replaced by a Center in Pernambuco. All of toll-free services started to be delivered solely on the 135 toll free number, and service capacity was increased to 8 million per month, with 1385 positions.
The services added were:
1. Submission of claims (sick pay, request of extension, request of consideration and review of sick pay);
2. Services to individual taxpayers;
3. Automatic information statements (claim status; decision on request for review, date of medical inspection);
4. Change of address;
5. Reporting of complaints or suggestions;
6. Reporting of fraud, and
7. Satisfaction survey; confirmation of attendance, anticipation of scheduling.
• November 2009, in addition to the above services, new services offered were:
1. Scheduling appointments for rectification of work history records; rectification of registration data; rectification of payment information;
2. Information about pending claims;
3. Information about overdue contribution;
4. Cancellation of appointments;
5. Confirmation of attendance to medical inspection;
6. Information on decisions about appeals to decisions of medical inspections;
7. Electronic issuing of benefit statements for income tax returns, and
8. Rescheduling of medical inspection.

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
The analysis of the previous situation indicated the following problems:
• Civil servants lacked motivation and were underpaid
Civil servants lacked motivation with their activities and earnings. Most worked alone and focused more on the operational steps for the provision of benefits as opposed to the view of recognition of citizen rights to retirement, sometimes resulting in wrong calls with citizens.
There was little expectation of career advancement. Key positions in the system were filled by people outside of civil service, usually as a result of political compromise rather than merit.
• Lack of communication
There was disbelief from civil servants about the possibility of an effective transformation of the social security system, since there were problems in facilities, equipment, computer systems, and staff capacity to manage the system and the branches.
• Derelict branches and lack of effective organizational system
The physical infrastructure of most agencies was derelict, lacking budgets for the purchase of basic supplies for servants or the citizens who spent hours without access to safe water or adequate sanitation.
Moreover, the chain of command between the branch and the higher levels was broken and it did not show effectiveness in solving problems presented by service users. Many of the analysis and suggestions made by consultants were costly, ineffective, and had low applicability, ignoring important aspects of the institutional history of the agencies that make up the Brazilian social security system.
• Outdated or broken equipment, inoperative systems, and unreliable data unreliable
In all units of service, computers and printers were outdated or insufficient. Also the servers hosting operating systems and databases had limited capacity for needs arising from increased demand. In addition, the servants had not received training to use their equipment and systems, underperforming in their duties.
To overcome these problems, the leaders of the social security redefined the mission of the institution. Through strategic planning, the mission of social security was set to "ensure protection of workers and their families through a supportive public system of social security that is inclusive and sustainable, with the objective of promoting social welfare."
The vision seeks to have the social security "recognized as an asset of workers and their families, through the sustainability of social security schemes and through excellence in management, coverage and service."
This vision was established as a call for strengthening social protection through service excellence, focus on management and social control. To meet these strategic issues, the two main pillars were to upgrade the infrastructure, and to implement strategic management of people.
One of the key tools to overcoming obstacles was the adoption of a direct line of communication between managers and servants across the country, to the extent that the negotiations about changes in careers, salaries, and organizational structure was communicated to the civil servants directly by the leaders of the Ministry of Social Security, the National Institute of Social Security, and the Social Security Information Technology Corporation.

(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
For the National Institute of Social Security Service by Appointment Program required structural reorganization measures in four dimensions:

• Staff Management
An integrated strategy of professionalization of social security was adopted, focused on the investment in people management. Performance incentives were associated with opportunities for professional development and meritocratic mechanisms of career advancement.
The first action of note was the change in the selection process for executive management of the INSS. The executive managers started to be selected through internal competitions restricted to social security civil servants, including written examinations and analysis of academic and professional titles.
Another important action was the gradual introduction of a system of variable pay for performance bonus for the servants of Social Security. Currently, inspecting physicians receive a bonus for productivity in medical inspections and the other servants receive a performance bonus for social insurance activity (GDASS).

•Organizational Configuration
The actions in the area staff management have been complemented with the organizational restructuring of INSS, along the guidelines of administrative decentralization and the implementation of a chain of command among the different levels of the organization. With that purpose, the centralized board of directors was terminated and regional management departments were created. In the new organizational structure, the INSS has a President, five functionally specialized Directors, five regional management departments, 100 executive managers and 1.113 branches of the social security system.
Because of the high relevance attributed to the service to users, and given that no particular part of the organization was directly responsible for the service, a citizen costumer service department was created with the mission of assuring the quality of the services provided to the users of the INSS and to coordinate the actions of direct and remote service channels to users.

•Process Management
An expert group was formed and given the exclusive assignment to enable the implementation of a new management model for the INSS, based on process management. In that effort, twelve work macro work processes were identified in the organization and detailed up the level of 8.000 individual activities, so that the new systems of information could be designed and implemented. After the detailed description of the work processes, a group of software designers was hired for the development of systems.

• Information Technology
Since 2005, more than 30,000 computers have been acquired in order to modernize the branches and the areas of centralized data processing. The deployment of three toll-free call center units was entirely funded by the INSS budget. The cost associated with annual maintenance in the call center units is about 98 million Brazilian reais /year (49 million US dollars). This services handles 58 million phone calls per year with 1,370 operating positions that work from 7 AM to 10 PM, Monday to Saturday, while the electronic system runs full-time (24 by 7).

Sustainability and Transferability

  Is the initiative sustainable and transferable?
Sustainability is one of the key aspects of the process and it is embedded in the institutional view of social security. For this, a gradual increase in the budget of the institutions was negotiated, in order to allow for an increase in both salaries of civil servants, as well as capacity building initiatives.
Similar efforts were applied to the modernization of the infrastructure and this is widely supported by a management plan focused on the professionalization of public service. Among other aspects, it is worth mentioning the actions to increase motivation and the adoption of suggestions of civil servants from the INSS, the Ministry, and the IT Corporation for the development of systems.
The number of branches has also been increased in order to reach all municipalities with more than 20 thousand residents, with incentives for servants who choose to move to these new workplaces (the construction of 720 new branches is either in progress or in the bidding stage).
The replication of this experience is fully plausible. This experience includes aspects that are in line with the current management knowledge, and is supported by the decisions agreed upon and articulated by the leaders of institutions that are responsible for social security.
These decisions are communicated directly to the servants so that they are well understood and assimilated. The definition of goals is done with the participation of branches managers, considering the need to adapt the infrastructure and the adequate number of professionals in each unit. When pre-established goals are met, new discussions about further improvements of services take place.
This is the context for the 2010 Action Plan, made in collaboration with all hierarchical levels of the institution. Goals for each unit are set in agreement with branch managers, then consolidated with executive managers, followed by regional managers, and finally at the national level. The final validation of the proposed goals results in a managing agreement containing mutual responsibilities and performance goals for next year.
There was a paradigms shift, and the relevance of the manager’s role within the institution gained prominence. As a result, the professionalization of management has led to greater participation of the servants in the process of achieving the goals of teams and branches, which leads to pay rewards and opportunities for career advancement. There is a quest for standardization of procedures and raising the quality of services, which means constant evaluation of the actions carried out in branches, by the chain of command.
All of this action is guided by the use of financial resources that is consistent with the economic growth of the country, and does not require a disproportionate increase in funding for social security.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
The image of social security is changing with the advancement of strategic actions designed to: improve services to citizens; organize and validate claim-relevant databases; reduce waste and fraud; improve wages; and create opportunities for career advancement for the servants, whose ideas have become increasingly used to improve work processes.
The goal by 2010 is to expand the reach of service. Currently, 30% of Brazilian municipalities have at least one social security branch and 720 new branches are under preparation, mostly in medium-sized cities with more than 20 thousand residents in non-metropolitan areas. There is a clear concern with decentralization, especially in densely populated areas of the Northeast, which has higher poverty rates, and of the North (Amazonic region), which was previously assisted by mobile units only.
Note that since January 2009 all citizens who meet the statutory requirements and whose work and salary history are correct in the National Registry of Social Information can now have their retirement claim processed and granted within 30 minutes at the time when they are being served. There has also been an increase in the resolubility of the service by appointment due to the previous communication to the citizens of the correct documentation to be submitted. Another innovation was an agreement with the banking system, starting with public banks, to allow social security users to withdraw their social security statement, allowing for any corrections to be made before the time when they will claim their retirements.
In July 2009, the INSS started sending the Notice of Eligibility for Retirement to urban workers that complete the age requirements to retire. This letter from the Social Security informs men aged 65 or older and women aged 60 or older and that have made a 180 monthly contributions to Social Security that they have become eligible to the retirement benefits. In addition, the notice sent by the INSS provides guidance on how to claim the benefit. This measure, already adopted in other countries, only became possible with the update of entries by the crossing of information from different agencies responsible for social policies.
The surveys with users of remote services are also being used to improve the training for call center attendants in order to clarify the information given by telephone or Internet. An effort to map the skills of professionals working in branches is also underway for all management levels, so that they master managerial roles rather than being restricted to expertise in social security regulation. The emphasis is the service to the citizen and the recognition of social rights.
The improved communication between managers and servants also increased incentives for innovation among teams, demand for capacity building, and levels of trust in the servants as providers of quality services to the public.

Contact Information

Institution Name:   National Institute of Social Security
Institution Type:   Government Agency  
Contact Person:   Valdir Moyses Simão
Title:   President  
Telephone/ Fax:   556133134065
Institution's / Project's Website:   556133134557
E-mail:   valdir.simao@previdencia.gov.br  
Address:   Setor Bancário Norte, SBN, Quadra 2, bloco “E”, lote 15, 13 andar.
Postal Code:   70040912
City:   Brasília
State/Province:   Distrito Federal
Country:   Brazil

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