Good Practices in Social Security Good practice in operation since: 2007 ISSA Good Governance Guidelines in Practice: Service standards for Members and Beneficiaries The Singapore Experience A case of the Central Provident Fund Board Special mention, ISSA Good Practice Award Asia and the Pacific competition 2012 Central Provident Fund Board Singapore Published 2012 www.issa.int
Summary The Central Provident Fund (CPF) is a fully-funded, defined contribution scheme, with funds of US-dollar (USD)150 billion, 3.3 million members, and a transaction count of USD44 million. Given the diverse profile and needs of our members, we face the challenges of effectively serving a sophisticated customer base, bridging the digital divide between more versus less IT-savvy members, and delighting members while remaining cost-effective. To ensure that we provide quality service in contribution collection, we implemented electronic submission for employers through a variety of platforms catering for different needs, and provided the necessary support through dedicated educational and publicity efforts, as well as on-site support. Today, almost all large employers submit CPF contributions electronically, which has allowed us to significantly reduce the number of data entry officers and submission errors. To provide quality service in the distribution of members benefits, we implemented several innovations under the Different Strokes for Different Folks framework, using technology strategically to offer a wide range of services meeting members different needs. Despite a sharp reduction of service counters from 69 in 2003 to 37 in 2010, members overall satisfaction with services rose from 95.5 to 98.6 per cent respectively. E-service costs were also cut by 83 per cent, from USD0.70 in 2003 to USD0.12 today. E-transactions have risen from 8 million in 2003 to 46 million in 2010. Today, 97 per cent of transactions are performed online, and member satisfaction with our e-services has stayed above 99 per cent for the last three years. To date, we have 1.7 million active e-service users and approximately 750,000 email alert subscribers. We have achieved more than ten service-related international and local awards and shared our success story with hundreds of overseas and local organizations over the past three years. CRITERIA 1: What was the issue/problem/challenge addressed by your good practice? Please provide a short description. Challenge 1: Effectively serving a more sophisticated customer base The strong economic and social growth in Singapore, coupled with the high internet penetration rate, has produced an increasingly sophisticated population that demands value-added public services.
2 Challenge 2: Bridging the digital divide Through regularly engaging with our members, we have learnt that despite a high Internet penetration rate, there is still a group of Singaporeans who struggle to keep pace with IT development. Our challenge has been to provide the same excellent service to those who are not IT-savvy. Challenge 3: Delighting members while remaining cost-effective With our members increasingly sophisticated needs, providing excellent service while remaining cost-effective is a challenge. We therefore need to continually look into innovative ways of delighting our members, while keeping our costs low. CRITERIA 2: What were the main objectives and the expected outcomes? Objective 1: Quality service in contribution collection through electronic submissions Key to the successful operation of the CPF scheme is its electronic submission collection system which, in July 2009, was re-certified as compliant with the ISO 9001:2008 Quality Management System standards. On a monthly basis, about 119,600 employers submit CPF contribution details and payments for 1.9 million employees totalling about USD1.5 billion. The recovery and enforcement system, put in place to support the collection process, has helped keep employers default rate to 0.54 per cent as of 1 May 2011. The main objective of e-submissions, which started actively in 2000, was to: (i) facilitate e-submissions through a variety of platforms catering for different needs, and (ii) provide the necessary support to employers through dedicated educational and publicity efforts, as well as on-site support. The expected outcome was more employers using e-submissions and a decrease in manual data transcription and employers errors. Objective 2: Quality service in distribution of benefits through Different Strokes for Different Folks The main objective was to provide quality service to our diverse member base through multichannel services. The expected outcome was to enlarge the e-community and enable members at opposite extremes of IT savviness to transact with us conveniently. Objective 3: Improved services for CPF Access Anytime, Anywhere through service innovations The main objective was to enable access to CPF services anytime, anywhere, using IT in innovative ways to help members plan for retirement and to enhance their service experience. The expected outcome was a shift to electronic service channels, and the empowerment of members to make informed decisions about their retirement.
3 CRITERIA 3: What is the innovative approach/strategy followed to achieve the objectives? Objective 1: Quality service in collection of contributions through electronic submissions One key initiative was to provide different e-platforms for employers with different needs. For example, large employers can easily make submissions electronically via file transfer from their payroll systems. For smaller employers who tend to be less IT-savvy, we offer a platform which does not require a computer with internet access. Employers who do not have computers can make submissions using any of 600 multi-application transactional terminals (known as AXS stations) that are located island-wide. E-submissions can also be made via mobile phones. Prior to March 2010, software was distributed to employers to facilitate their computation of contributions. Employers can now auto-compute the amounts, submit and view their contribution and transaction details through a one-stop online platform, eliminating the need for employers to download new versions of the software whenever there are changes to CPF contribution rates. We conduct seminars regularly to raise the awareness of employers on the benefits of e-submissions. We give talks and briefings in partnership with other government agencies and business associations. Newly-registered employers are invited to the monthly Employer Classroom sessions, designed to help employers fulfil their roles and obligations on CPF matters and e-submissions. We have a dedicated e-submissions helpdesk for employers and conduct site visits on their request to resolve technical issues with e-submissions. A processing fee of USD5.60 per employee per month was progressively imposed on employers with more than ten employees who continued to use hardcopy forms and cheques. Other factors that facilitated e-submissions by employers in Singapore include: High PC and broadband penetration: about 84 per cent of all households own one or more computers and 82 per cent have access to broadband (2010 Infocomm Development Authority s annual household survey). The electronic direct debit mechanism (GIRO) provides a convenient means for employers to make CPF payments electronically. The application to use GIRO to make CPF payments is free of charge. Objectives 2 and 3: Quality service in distribution of benefits through service innovations The Different Strokes for Different Folks framework uses technology strategically to offer a wide range of channels to meet the needs of different member segments:
4 iphone Application CPF Tools: iphone users (90 per cent of smartphone market share) can check their CPF statements and calculate their contributions on their iphones. Since the launch in September 2010, there have been over 140,000 downloads. my cpf Inbox: Launched in November 2010, my cpf Inbox is a personalized, secure online inbox for members to track and access their correspondences with CPF anytime, anywhere. We are one of the first few public agencies to have such a feature on our website. This can potentially save millions of dollars in the long run as hardcopy letters are replaced by online correspondence. Islandwide Kiosks: To extend e-services to members without internet access, we tapped into over 1,000 island-wide kiosks (AXS Stations) managed by private vendors. Usage soared 44 times, from 9,950 in 2005 to 445,000 in 2010. Following the success of AXS, we extended services through Self-service Automated Machines (SAM) in 2009 and inets kiosks in 2010. icare (CRMS): The Customer Relationship Management System (CRMS), known as icare, is our central repository of members information. It enables the seamless sharing of information and status of transactions across more than 30 departments in the organization. With icare, we better understand members needs through member profiling, and can provide personalised service and individually customised marketing of key CPF messages. m-ambassador service: This service integrates face-to-face transactions with e-transactions by allowing Customer Service Officers (CSO) to e-transact on members behalf using Ultra Mobile Personal Computers (UMPCs). This service is particularly helpful to members who are immobile and living on their own. e-helpdesk: Members can get real-time assistance online or by telephone in case of difficulties using CFP e-services. My e-concierge: My e-concierge is a simplified online form that allows members to specify their request or if they are unable to locate the online transaction or form required. Tell Us Once: This service ensures personal information like bank details need only be provided once. For instance, each time members use an online application requiring bank details their account number is displayed automatically. Enhanced Ask Us: Members can have their queries answered by using Ask Us, an intelligent search engine that recognizes natural language. On average, in 2010 we received 114,176 queries monthly. Social and new interactive media: IM$avvy is a financial planning portal developed to extend public education. To attract and engage younger CPF members, we developed online quizzes such as IM$avvy Financial Literacy Quiz and CPF Savviness Index (CSI) Quiz that received over 183,000 entries by the public. Widely popular social media channels like Facebook and Twitter were also tapped on to broadcast relevant CPF and useful financial information and tips. To date, we have attracted more than 20,000 Facebook fans.
5 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. Contribution collection With e-submission, the number of data entry officers required was reduced by 55 per cent, from 42 in year 2000 to 19 as at 1 May 2011, while employers submission errors were reduced by 45 per cent. Although the number of employers has grown by 35 per cent since 2000, by converting to e-submission, the increased volume of submissions can be processed without more staff. Today, almost all employers with more than ten employees have shifted to e-submission. As of 1 May 2011, 66 per cent or 81,400 employers submit CPF monthly contributions electronically, compared to 11.5 per cent or 10,390 employers as at end 2003. This translates to 94.1 per cent coverage or 1.7 million employees. Distribution of benefits Despite a sharp reduction of service counters from 69 in 2003 to 37 in 2010, members overall satisfaction with our services rose from 95.5 to 98.6 per cent respectively. Member satisfaction with our e-services has stayed above 99 per cent for the last three years. E-transactions have risen from 8 million in 2003 to 46 million in 2010 and today 97 per cent of transactions are performed online. To date, we have 1.7 million active e-service users and approximately 750,000 email alert subscribers. This reflects the successful shift in preferred service channel from manual to electronic, affirming that our service strategy works. Our e-service costs were cut by 83 per cent, from USD0.70 in 2003 to USD0.12 today, with the bulk of transactions performed via e-channels. We have achieved more than ten service-related international and local awards and shared our success story with hundreds of overseas and local organizations over the past three years. In 2010, my cpf clinched the prestigious Stockholm Challenge 2010 Award under the Public Administration category, beating more than 290 project submissions from 90 countries. Our Service Transformation Journey was the only winner in the Public Administration category at the Stockholm Challenge 2010 Awards.
6 CRITERIA 5: What lessons have been learned? To what extent would your good practice be appropriate for replication by other social security institutions? Please explain briefly. Contribution collection Providing different e-platforms which are convenient and easy to use Notwithstanding the imposition of processing fees for larger employers who did not use e-submission, the drive to convert employers would not have been successful without the provision of various easy and convenient e-platforms. Customizing conversion strategies in terms of providing different e-platforms, different educational efforts and degrees of assistance for different groups of employers is essential. Recognising the importance of listening to employers and conducting usability testing Enquiries can be greatly reduced if pertinent issues highlighted by employers via feedback or during usability testing are addressed before the launch of an application. Employers feedback on our initiatives and services is also sought through annual surveys. Adopting a phased approach (instead of trying to convert all employers at one go) This would make the initiative more effective and manageable. Our initial focus was on larger employers (in terms of employees) before gradually reaching out to smaller employers. Processing fees were initially imposed on employers with 100 or more employees if they did not submit monthly CPF contributions electronically. Although this group only makes up 1.8 per cent of the total number of employers, it represents 53 per cent of total employees. Distribution of benefits One size does not fit all understanding target groups Part of the value added came from understanding that different age groups have different needs at different life stages. There was therefore scope for us to package different CPF schemes and services according to the needs of members at different life stages. When we first embarked on Bridging the Digital Divide, ideas were generated to modify behaviour, such as training to use online services for the non-it literate, or stop counter services to force members to use online services. However, the task force soon realised through feedback from focus groups, members and front-liners like Customer Service Officers that while modifying behaviour has its merits, it is a long process and trying to force a change quickly would not be effective. A more effective way was to gain insights into the lifestyle and mindset of target groups. Services were tailored around their daily lives, minimizing disruption to the target groups while reaping maximum benefit and convenience for them.
7 Managing change within the organization It was initially difficult to get staff to think from a member s perspective, and identify what would be appropriate for members at a particular life stage. In implementing the my cpf project, management had to take a very active role in communicating and explaining the concept to ensure buy-in from staff. For example, the Customer Service Department trained the CSOs to serve members by life events. The my cpf concept was also instilled in new staff during their orientation programme. Transferability The concepts, mindset and technology behind the success of our service delivery are transferable to other organizations. The basis of member segmentation and the packaging of information and services in an integrated, intuitive manner can be applied to other public service organizations, including other social security institutions. One way to achieve an efficient and cost-effective collection system is to leverage on IT and collect contributions through e-submissions. Other social security institutions who are interested in developing their e-platforms to enhance their collection processes could draw on our experience as a useful reference.