7/7/2011
Social Security Organisation of Malaysia
Moving Forward in Social Security
Coverage
K. SELVARAJAH
Chief Executive Officer
SOCIAL SECURITY ORGANIZATION MALAYSIA
selvarajah@perkeso.gov.my
4 -5 July 2011
Putra World Trade Centre
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Social Security Organisation of Malaysia
Scope
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Social Security
Prevention, Rehabilitation & Compensation
Return to Work
Global Changes
SOCSO’s RTW Program
Way Forward
Conclusion
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Social Security Organisation of Malaysia
Definition of Social Security
“The protection which society provides for its
members, through a series of public
measures, against the economic and social distress
that otherwise would be caused by stoppage or
substantial reduction of earnings resulting from
sickness, maternity, employment
injury, unemployment, invalidity, old age and
death; the provision of medical care; and the
provision of subsidies for families with children.”
Social Security Organisation of Malaysia
ILO Convention 102
Social Security (Minimum Standards) Convention, 1952
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Medical Care
Sickness Benefit
Unemployment Benefit
Old Age Benefit
Employment Injury Benefit
Family Benefit
Maternity Benefit
Invalidity Benefit
Survivor’s Benefit
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Social Security Organisation of Malaysia
Social Security Organisation (SOCSO)
CORPORATE GOAL
To provide comprehensive social security
protection for Malaysians.
CORPORATE OBJECTIVE
To ensure and guarantee the timely and adequate
provision of benefits in a socially just manner and
to promote occupational health and safety.
Social Security Organisation of Malaysia
Compensation
before
before
Prevention
Rehabilitation
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Social Security Organisation of Malaysia
Applying the 3 Principles
Minimising Impact of Injury
Minimising Disability
Injury/
Prevention Disability
Disability
Rehab
Disability Compensation
Each time, a worker receives compensation,
compensation, the social security
system has failed:
1. to provide a safer working environment
2. to rehabilitate and to include these worker back to the
community
Social Security Organisation of Malaysia
Legal Mandate: Section 40, ESSA1969
40. (1) The Organization may, in addition to the scheme of benefits
specified in this Act, promote measures or co-operate with existing
institutions for the improvement of the health,
health occupational safety
and welfare of insured persons and for the rehabilitation and rereemployment of insured persons who have been disabled or injured
and may incur in respect of such measures expenditure from the
funds of the Organization within such limits as may be prescribed
by the Minister.
(2) Measures under subsection (1) may include provision of
artificial limbs and appliances, opportunities for gainful
employment under suitable conditions and convalescent homes.
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Social Security Organisation of Malaysia
Why Return to Work?
Social Security Organisation of Malaysia
Why Return to Work?
The Social Obligation
“Often, Social Security Administrators focus on
processing claims and forget their role to protect
the insured, and include them back into the
community”
The Macro Perspective
“The ultimate objective of social security systems
is to honour benefits when they are due. This
means, first of all, being financially sustainable.”
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Social Security Organisation of Malaysia
Why Return to Work? – The Micro Perspective
Often spouses
become
disabled as well
Injury Leads to Disability
Affecting Love
Ones
Social Security Organisation of Malaysia
Why Return to Work? – The Micro Perspective
Productivity/
Employers
Often spouses
Affecting Siblings
become
Injury Leads to Disability
disabled as well
A MICRO ISSUE
BECOMES
A MACRO ISSUE
A Disabled
Family
Affecting Love
Ones
Community
Country?
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Social Security Organisation of Malaysia
The Global Change
Social Security Organisation of Malaysia
The Changing Trend
ILO Convention 102
Social Security (Minimum Standards) Convention, 1952
Traditional Approach of Social
Security
Compensation Oriented
(Pay workers to stay off work)
Medical Care
Sickness Benefit
Unemployment Benefit
Old Age Benefit
Employment Injury Benefit
Family Benefit
Maternity Benefit
Invalidity Benefit
Survivor’s Benefit
ILO Convention 159 &
Recommendation 169 (1998)
The New Approach of Social
Security
Total Replacement of Income –
Dynamic Social Security through
Disability management. (Pay workers
to return to work)
The recommendation provides that “where possible
and appropriate, social security schemes should
provide, or contribute to the
organization, development and financing of
training, placement and employment (including
sheltered employment programmes and vocational
rehabilitation services for disabled persons, including
rehabilitation counseling
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Social Security Organisation of Malaysia
UN Rights of Persons with Disabilities
• Adopted 13 December 2006
• 148 Signatories
• 100 Ratification
• Malaysia ratified the convention 19 July 2010
The Convention marks a "paradigm shift" in attitudes and approaches to
persons with disabilities. It takes to a new height the movement from
viewing persons with disabilities as "objects" of charity, medical
treatment and social protection towards viewing persons with disabilities
as "subjects" with rights, who are capable of claiming those rights and
making decisions for their lives based on their free and informed consent
as well as being active members of society.
Social Security Organisation of Malaysia
The Changing Trends (Since Bismarck)
Book IX of German Social Security Code
(SGB IX)
Effective as of July 1, 2001, the new Book 9 of the German
Social Code is designed to bring about fundamental
improvements in the situation of people with disabilities or at
risk of being disabled, to be realized by replacing welfare and
provision by the notion of participation: By making available
the social services and supports needed, people with
disabilities are to be enabled to participate in the life of the
community and, notably, in working life.
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Social Security Organisation of Malaysia
The Changing Trends (1999)
US GAO REPORT TO CONGRESSIONAL COMMITTEE:
MARCH 1997
Recommendations
• Social Security Disability Programs lag in Promoting Return to Work.
• SSA Disability Program Redesign necessary to encourage Return to
Work.
Social Security Organisation of Malaysia
The Changing Trends (2010)
In the United Kingdom: On the 6 April 2010
the sick note was replaced by the fit note.
Evidence shows that work is generally good for your
health and that often going back to work can actually
aid a person’s recovery. On the other hand, staying
off work can lead to long-term absence and job loss
with the risk of isolation, loss of confidence, mental
health issues, de-skilling and social exclusion.
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Social Security Organisation of Malaysia
SOCSO?
Social Security Organisation of Malaysia
SOCSO’s RTW Program
(1977 or 2007?)
Earliest information – 23 May 1977
In 2007, SOCSO launched the RTW
Program to assist SOCSO Insured
Person to return to employment
through systematic disability case
management.
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Social Security Organisation of Malaysia
SOCSO’s RTW Program
This program is established with the
objective of assisting SOCSO’s Insured
Persons with employment injury as well as
those claiming for invalidity pension to be
able to return to work.
Social Security Organisation of Malaysia
Program Coverage
Treatment Rehabilitation
Orthotics &
Prosthestics
Modifications Vocational
Retraining
Coordination with Compensation
Focus on Prevention
Job Placement
1. Faster Recovery
2. Safer Re-entry
to Work
3. Return to Work
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Social Security Organisation of Malaysia
Results
0%
N = 4256
5%
18%
RTW
Job Seeking
3%
On Rehab
Acute
Defaulted
74%
Social Security Organisation of Malaysia
Results (Hierarchy)
N = 3143
5%
3%
11%
1%
Same Job Same Employer
Similar Job Same Employer
7%
10%
Different Job Same Employer
63%
Same Job Different Employer
Similar Job Different Employer
Different Job Same Employer
Self Employed
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Social Security Organisation of Malaysia
Way Forward
Social Security Organisation of Malaysia
Way Forward (1)
Move from a claims management to
disability case-management system which
covers the aspect of
prevention, rehabilitation and
compensation to focus on inclusion and
integration.
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Social Security Organisation of Malaysia
Way Forward (2)
Work Trial Allowances & Modification
Grants: To provide incentives to promote
return to work strategies amongst disabled
workers and employers.
Social Security Organisation of Malaysia
Way Forward (3)
One Stop Rehabilitation Centre in Melaka:
Providing specialized Return to Work care
and rehabilitation (physical & vocational) for
SOCSO’s Insured Person.
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Social Security Organisation of Malaysia
Way Forward (4)
To have more competent disability case
management team by adopting international
disability management standards –
NIDMAR’s certification.
Social Security Organisation of Malaysia
Conclusion
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Social Security Organisation of Malaysia
Conclusion
To move towards a Dynamic Social Security
System: A social security system must
provide total protection which enables (not
disable) a disabled person. Social Security
Administrators should not focus only on
compensation alone but to assist a disabled
person to be included (not excluded) into
our society.
Social Security Organisation of Malaysia
Thank you!
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Social Security Organisation of Malaysia
K. SELVARAJAH
Chief Executive Officer
SOCIAL SECURITY ORGANIZATION MALAYSIA
selvarajah@perkeso.gov.my
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