Concluding Memorandums of Understanding to improve the application procedures for immigrant workers A case of the National Pension Service

Transcription

1 Good Practices in Social Security Good practice in operation since: 2007 Concluding Memorandums of Understanding to improve the application procedures for immigrant workers A case of the National Pension Service National Pension Service Republic of Korea Published

2 Summary As an increasing number of immigrant workers gain eligibility for benefits, the National Pension Service (NPS) requires an innovative plan to assist immigrant workers to conveniently apply for the benefits to which they are entitled after they have returned to their home countries. In an effort to protect these workers benefit eligibility, and to improve the application procedure, the NPS has concluded Memorandums of Understanding (MOU) with the social security institutes (SSI) of countries where substantial numbers of such immigrant workers reside. Working with identification information provided by NPS, partner SSIs assist immigrant workers (many of whom have not yet applied for NPS benefits) in applying for NPS benefits so that these workers can obtain NPS benefits in their home countries without the need for notarization or attestation. In the interest of efficiency, application forms covered in the MOU are handled solely by the NPS International Centre. To date, the NPS has concluded MOUs with SSIs of four countries and, as such, the NPS can ensure that more immigrant workers receive their benefits through eligibility protection and convenient application procedures. CRITERIA 1 What was the issue/problem/challenge addressed by your good practice? As more people move from country to country, an increasing number of foreigners have been insured by NPS (as shown in the table below). Year Number of insured foreigners 132, , , , ,645 Given the possibility that immigrant workers may return to their home country without applying for the NPS benefits to which they are entitled, there is a risk that these workers may lose their right to such benefits or, at a minimum, face inconvenience in applying from abroad. The NPS thus sought an innovative solution to this challenge. The result has been a series of MOUs, concluded between the NPS and SSIs of other countries, which seek to improve the application procedure for immigrant workers who are eligible for NPS benefits but who reside abroad. CRITERIA 2 What were the main objectives and the expected outcomes? The primary objectives of these MOUs, which centered on improving the application procedure for NPS benefits, were as follows:

3 2 providing guidance on benefits for immigrant workers who are not aware of their eligibility for NPS benefits; improving the convenience of applying for NPS benefits for immigrant workers who reside in their home country. The expected outcomes of these MOUs were as follows: protecting the NPS benefit eligibility of immigrant workers; preventing immigrant workers from losing their eligibility; sparing all parties the cost of notarization, attestation, and post, as applications are able to submit their application forms directly to their home country s SSI without the need for these procedures; preventing illegal payment of benefits to unauthorized parties by relying on the direct submission of applications by the applicant to the partner SSI; Eliminating delays between the time of application and the payment of benefits which can arise due to the omission of relevant documents. Under this system, the partner SSI accepts the application after they have confirmed the presence of all relevant documents. CRITERIA 3 What is the innovative approach/strategy followed to achieve the objectives? Prior to the existence of these MOUs, the application procedure for immigrant workers in their home countries was as follows: 1. an applicant downloads an application form for the benefits from the NPS website and fills it out; 2. an applicant has the application form and the relevant documents notarized by the notary public office; 3. an applicant has the application form and the relevant documents attested by the Korean Consular posts; 4. an applicant posts the application form and the relevant documents to the NPS; 5. the NPS informs the applicant of the result, after which the NPS makes the payment of benefits. After concluding MOUs, the procedure has been streamlined, with the procedure as follows: 1. an applicant fills out the application form and submits the form and the relevant documents to the SSI of his/her home nation; 2. the SSI posts the application form and the relevant documents to the NPS; 3. the NPS informs the SSI of the result, after which the NPS makes the payment of benefits. To date, the NPS has concluded MOUs for the improvement of the application procedure with SSIs of four countries where substantial numbers of such immigrant workers reside (as shown in the table below).

4 3 Country In effect since Mongolia 15 November 2007 Uzbekistan 8 May 2008 Thailand 27 August 2010 Sri Lanka 22 November 2011 CRITERIA 4 Have the resources and inputs been used in an optimal way to achieve the set objectives and the expected outcomes? Please specify what internal or external evaluations of the practice have taken place and what impact/results have been identified/achieved so far. For guidance on benefits, the NPS provides its partner SSIs with identification information such as name, date of birth and passport number for immigrant workers with unclaimed benefits. The partner SSIs confirm these workers whereabouts and assist them in applying for the benefits. In the interest of efficiency, application forms covered in the MOU are handled solely by the NPS International Centre. The International Centre, which is composed of staff with a good command of six different languages (such as English, Japanese, German, Chinese, Thai and Indonesian), quickly and accurately handles the benefit applications based on their specialized knowledge and skill. When encountering obstacles in implementing the MOUs, partner SSIs can easily consult with the International Centre for quick resolution. The International Centre also drives the conclusion of MOUs for the improvement of the application procedure with additional countries. Owing to the conclusion of these MOUs, an ever-increasing number of immigrant workers have applied for NPS benefits. Excluding an MOU with Sri Lanka (the implementation of which remains in the preparatory stages), the NPS has, to date, paid USD8,387,000 to the 8,745 beneficiaries who have applied under the terms of these MOUs. Country Number of beneficiaries Amount (USD 1,000) Total 8,745 8,387 Mongolia 4,856 4,235 Uzbekistan 3,417 3,264 Thailand Since May 2008 when the MOU with Uzbekistan was concluded, 66 per cent of the total NPS benefit applications by Uzbek citizens have been accepted from the Uzbek SSI under the MOU. Since November 2007 when the MOU with Mongolia was concluded, 50 per cent of the total NPS benefit applications by Mongolian citizens have been accepted from the Mongolian SSI under the MOU.

5 4 Country Number of total applications since effectuation of MOU Proportion of application by MOU (%) Mongolia 9, Uzbekistan 5, Thailand 9,827 5 Total 24, As these statistics show, the benefit application process under the MOU is superior to the previous process. The efforts by NPS to protect the benefit eligibility of immigrant workers has garnered the attention of mass media, partner SSIs, and beneficiaries around the world, and each group has expressed its appreciation for these efforts. As a result, the reputation and performance of NPS and Korea has received a substantial boost. CRITERIA 5 What lessons have been learned? To what extent would your good practice be appropriate for replication by other social security institutions? Of course, the conclusion of social security agreements has thus far proven to be the most efficient and effective method of accepting benefit applications from a partner country. The NPS, however, has not yet concluded social security agreements with most Asian countries. Moreover, there is a significant time lag between the beginning of negotiations on a social security agreement and its eventual implementation. By using MOUs, therefore, the NPS is able to ensure benefit eligibility and convenient application procedures for immigrant workers in the absence of social security agreements. Most importantly, these MOUs enable the NPS and its partner SSIs around the world to quickly offer foreigners the convenience of applying for benefits in their home countries, as well as protecting their benefit eligibility by preventing illegal payments to unauthorized parties.