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OBS PROJECT Compliance & Enforcement (Final Revision)

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OUTLINE
Goals Scope Modules New Technologies Conclusion Q & As

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GOALS
To automate the functions of the Compliance Administration Process of the Trust. To ensure effective monitoring of the Compliance enforcement activities. To ensure prompt prosecution of noncompliant employers and effective monitoring of Prosecution activities.

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SCOPE
Inspections Case Assignments Demand letter management Negotiation Penalty Reduction & Cancellation Clearance Certificate Complaint Prosecution Process

ACTIVITY

CURRENT

12/17/2013 NEW (OBS)

1) Enforce compliance through Inspections.

All Establishment must be assigned for inspection at least 2 times a year. Branch Manager/ Compliance Supervisor assigns inspection.

System will trigger due routine inspections for assignment by Branch Manager or Compliance Supervisor. The system will run these processes on monthly basis according to parameter decided by SSNIT Special assignment will be done manually by Branch Manager (adhoc inspections). When there is no Inspection Reports Created after the case has been assigned X No. of days. The system will send Stale Action Alert to the Compliance officer of the case, Compliance Supervisor and the Branch Manager about overdue inspections. Branch Manager will then have to5

2) Overdue Inspection of establishment.

Branch Manager/Compliance supervisor goes into the EBOS to identify establishments with overdue inspections status and assign inspections.

ACTIVITY

CURRENT

12/17/2013

NEW (OBS)

3) Submission of Contribution Reports.

Establishments to submit the Contribution Report at the end of the month. If not compliance officers go to retrieve it during inspections.

System will trigger nonsubmission of CR by Employer. Branch Manager will assign further action to a Compliance Team.
Compliance Team to follow up and retrieve Contribution Report

4) Inspection Activity

Compliance Officer writes report on field activities carried out such as Contribution Reports retrieved, invalid SS numbers corrected, MC distributed etc.

Compliance Team will update employer records on the system by indicating activities in a drop down list menu such as payroll vouchers, tax returns, attendance books etc.
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ACTIVITY

CURRENT

NEW (OBS)

5) Payment of Contribution Reports.

Establishments to make payment of Contribution Report before 14th of the ensuing month. When establishments are in default, compliance officers will have to retrieve a list of Establishment in arrears to enable them serve demand notice.

System will trigger nonpayment of CR automatically assign to the Compliance officer who is responsible for the case. This non-compliance item will be displayed in the Item List inquiry where user will be able to view the trigger type and the corresponding Due Months. Compliance Team to follow up and retrieve arrears.

ACTIVITY 6) Inspection Report

CURRENT Compliance Officer writes report on period of inspection, contribution report position, Arrears if any, penalty etc.

NEW (OBS)

12/17/2013

The system has a facility for Compliance officers to record inspection report in the system via an action called Inspection Report (IR) Settled or Unsettled. Compliance officers are required to update result of visitation and inspection into the system. Each of the IR has an Inspection Field Result field with droplist for user to select. The droplist for IR-Settled consist of :
Payment Received Dormant Close Down Others Arrears of Assessment Employer Not Available Whereabouts Unknown/Vacation of Premises No Cooperation/Feedback No / Uncertain Liability Wages Record Not Available Employer Relocated Appeal for Negotiation Appeal for Penalty Waiver Court Action Initiated KIV

The droplist for IR-Unsettled consist of :

ACTIVITY
7) Assignment

CURRENT
There are two type of assignments, these are: Normal Special Both assigned manually by the Branch Manager or the Compliance Supervisor.

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NEW (OBS)

There are three types of assignments, these are Trigger Normal Special Trigger based Assignment is done Automatically by the system. (i.e. Assignment by Rules) Normal and Special Assignments are manually done. (i.e.Assignment by Pool) For this type of assignment, branch manager is required to assign the case (employer) manually to a compliance officer from the pool. System generated and dispatched by email or hand to employer. Notification or alert will be sent to Compliance Supervisor, Prosecutor and Branch Manager whenever a demand letter is sent. 9

8) Demand Letter Management

Generated by the EBOS when inspection report is inputted.

ACTIVITY 9) Negotiation

CURRENT Initiated by employer. There are two types namely Normal and Special.

NEW (OBS)

12/17/2013

Initiated by employer and recommended by Compliance Supervisor using inspection report field menu. Three types namely: Normal-12 months Special -12 to 36 months Court (Judgment)- payment by installment. System will not allow negotiation if Contribution Report is not up to date. Agreement will be automatically generated. User will select type of negotiation in the menu.

10) Abrogation of Negotiated Agreement

A negotiation plan is abrogated automatically when the employer fails to: Pay any two either Negotiated Agreement Payment or Current Contribution

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ACTIVITY

CURRENT

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NEW (OBS)

11) Penalty Waiver

Employer initiates by application to Director General.

Employer initiates and it is escalated from Branch Manager, Area Manager, General Manager, Operations and Director General for approval through the system. System also has a calculator tool to help with the penalty computation based on 3% rate, last payment etc. Every escalation is accompanied by remarks/reports.
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ACTIVITY

CURRENT

NEW (OBS)

12) Clearance Certificate

Applied by employer and approved by Branch Manager. Available Clearance Certificates issued are -Normal - Satisfactory Arrangement.
Written complaints are sent to Director General, General Manager, Operations or Compliance Department and investigation conducted and necessary action taken (Both Employer and Employee).

There are two types namely Coverable and Exemption Certificates. Initiated by employer and approved by Branch Manager.

13) Complaints

All complaints from RCM will automatically update complaint pool for action by Branch Manager. There is compliance complaint module to handle oral and written complaints from stakeholders.

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ACTIVITY

CURRENT

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NEW (OBS)

14) Prosecution

Establishment prosecuted upon expiry of demand letter and no payment made Case may be referred by Branch Manager or initiated by prosecutor.

Procedure is the same. Here an alert will be sent to Branch Manager to initiate action. Work flow prepared for further discussion.

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ACTIVITY

CURRENT

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NEW (OBS)

15) Detection of NonCompliant Employers.

Currently this is manually detected through reading establishment file.

System will auto detect of Non-Compliant Employers based on a set of predefined criteria such as: No Contribution Report Contribution Report received without payment. Cheque dishonoured Employers with penalty outstanding. Routine inspection due Special inspection

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ACTIVITY

CURRENT

12/17/2013

NEW (OBS)

16) Monitoring of Demand Letter Expiration.

Compliance officers manually monitor demand letters that have been expired and refer for prosecution.

A demand letter with an expiry date will be issued once an employer failed to comply. If the employer fail to pay by the expiry date system will trigger an alert to branch inspector, branch manager and branch prosecutor for them to proceed with future action. The Expiration of Demand Letters inquiry will display list of demand letters that are expired with outstanding arrears.

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ACTIVITY

CURRENT

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NEW (OBS)

17) Inquiry Screens

EBOS has the feature.

The system has many inquiry screens which users can view the particulars of Employer but cannot edit. Employer details Contact Address Directors, Owners Shareholders Negotiator payment Contribution Report history Monthly contribution details etc.

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ACTIVITY

CURRENT

NEW (OBS)

12/17/2013

18) Calculator

An ordinary calculator

The Calculator is a tool to help calculate the penalty amount for the payment amount on a given due month. Calculations are based on the penalty rate, which in turn is based on the date of payment
User is required to input the Employer Number for the system to get the penalty amount. It is accessible from the Calculator link located on the top-right corner of the screen

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NEW FEATURES/TECHNOLOGIES

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ACTIVITY

CURRENT

12/17/2013

NEW (OBS)

2) My Alert Rules

Alert in the form of reminders by phone or letters are done by Branches.

System will automatically send alert to Branch Manager, Compliance officer or prosecutor in the following cases: Abrogation of Negotiated Agreement. Notice of full payment of Negotiated Arrears. Reminder to make payments (CR). Dishonoured cheque notice Scheduled meeting etc.

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ACTIVITY

CURRENT

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NEW (OBS)

5) Work Schedule

Not Available

The system has a facility for the Compliance Officers to prepare their Work Schedule. A work schedule is essentially planned visits or appointments prepared by the Compliance Officers for the coming week (s). The Compliance Officers needs to key-in the Start Date and End Date to first determine the period of the work schedule.

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ACTIVITY

CURRENT

NEW (OBS)

12/17/2013

6) Dishonored Cheque

Not Available

Dishonored Cheque inquiry displays the entire dishonored cheques from the employer. User will be able to view the information as : Cheque Received Date Contribution Period Cheque Number Bank Transaction Amount Transaction Description Cheque Receipt Number

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ACTIVITY

CURRENT

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NEW (OBS)

8) Reports

Exist for limited usage.

The Compliance System will have a standard report for all modules. Users and decision makers can design and generate reports themselves using the Business intelligence module of the OBS project

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Conclusion
The Compliance System if implemented will track employers Compliance and ensure prompt prosecutions.

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THANK YOU

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