Margarita Roa, Manila
Social Security System Tests Data Interchange
The Philippines' Social Security System (SSS) is expected to pilot test an electronic data interchange (EDI) network with seven employer-companies and three SSS depository banks.
Called the "SSSnet", the computer networking system is expected to facilitate the transmittal of SSS contributions of some 15,000 SSS members for the pilot run, which is expected to be carried out before the end of the year.
May Catherine Ciriaco, SSS assistant administrator for Management Services, said the EDI network is another option available to employers to make it easy for them to transmit their employees' monthly contributions to the SSS.
"We want to give the employers all the options available to make it easier for them to transact with us," Ciriaco said.
With the EDInetwork, companies can transmit contributions monthly instead of quarterly. And Ciriaco said the network can be linked to existing payroll systems used by employers, thus eliminating the chances of error and discrepancies in the report.
Payments Electronically Submitted
With the SSSnet, employers will electronically submit the monthly contribution list (MCL) to the SSS and a corresponding payment order (PO) to the employer's and SSS bank.
The employer bank debits the amount from the employer according to the PO and submits a corresponding debit advice (DA) to the employer. The bank sends the same advice to the SSS and remits the payment to the agency.
The SSS then acknowledges receipt of the MCL and the DA, then updates its records. This electronic process is faster because the employee SSS records SSS can be updated within a day, said Ciriaco.
The SSS is currently using three options for employers in submitting reports and contributions to the SSS and its depository banks - all of which are not done electronically.
The EDI network will mean savings for both the SSS and the employers. Ciriaco said it could mean savings of up to 40% of the operating cost for the SSS.
Meanwhile, the SSS is expected to spend around $12 million over the next five years with the implementation of a computerized ID system that promises better security and efficiency for some 16 million members of the social insurance program.
The agency is currently in the middle of bidding procedures as it expects to implement the ID system on 55 on-line branches nationwide in January 1997.
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