Pensions Core Course 2013: Implementation Review of Social Pension Schemes in India
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Transcript of Pensions Core Course 2013: Implementation Review of Social Pension Schemes in India
Implementation Review of Social Pension Schemes in India
Changqing Sun
South Asia Social Protection
The World Bank
About the Review
• Jointly with Ministry of Rural Development, GoI – Feed into government’s own program review
• Objective – Review progress in implementation, highlight what has worked
across States, identify challenges, and recommend improvements
• Two phases: – Phase 1: Rapid State Assessment
• focusing on administration of social pensions and processes in planning/budgeting, application/sanctioning, fund flows and payment mechanisms, audit/assurance mechanism, grievance redressal, monitoring
– Phase 2: Field Assessment on performance on the ground, through household surveys: • Information on both outcomes and processes, particularly beneficiary
perceptions of application process and payment systems
Background
• National Social Assistance Programme (http://nsap.nic.in/)
– National Old Age Pension (1995) – Widow Pension (2009) – Disability Pension (2009) – National Family Benefit Scheme (1995) – Annapurna (2000)
• Objective – alleviate chronic poverty through regular cash transfers to the elderly, widows and disabled persons (most vulnerable among the poor)
• Ongoing debates – Universal vs. targeted – Level of benefit (Rs 300 vs. Rs 2000 or ½ minimum wage) – Fiscal space vs. priority (is spending 3.4% of GDP on social
pension too high?) – Implementation model: CSS vs. ACA
Eligibility Criteria “Plus”
Eligibility
Criteria GOI Guideline Andhra Pradesh Bihar Delhi Uttar Pradesh
Old Age
Pensions
1) Age: >=60
years
2) BPL
3) Resident of district
4) Not covered under
other schemes
2b) Family Income <
Rs. 60000 per annum
3) Resident of Delhi for >5
years
3) Resident of state
4) Not covered under
other schemes
Widow
Pension
1) Age: >=40
&<=59 years
2) Widow
3) BPL
1b) Age >=18 years
4) Resident of district
5) Not covered under
other schemes
1b) Age >=18
years
3b) BPL OR non –
BPL & Income
<Rs. 60000 per
annum
1b) Age:18-60 years
3b) Family Income <
Rs. 60000 per annum
4) Resident of Delhi for >5
years
1b) Age: 18-64 years
3b) BPL or Annual Income
<Rs. 25,546 in urban areas.
If non BPL, then Annual
Income< INR 19,884 in
rural areas
Disability
Pension
1) Age : >=18
&<=59 years
2) Severe or
multiple disability
(80% disability)
3) BPL
1b)Age: No limit
2b) 40% disability
4) Resident of district
5)Not covered under
other schemes
1b)Age: No limit
2b) 40% disability
1b) Age: 0 -60 years
2b) 40% disability
3b)Family Income<Rs.
75000 per annum
1b) Age: No limit
2b) 40% disability
3b) BPL OR Income <Rs.
1000 per month
Coverage and Expenditure by GoI and States
• Three social pension schemes covered 26 million beneficiaries for FY2012-13, costing GoI US$ 1.5 billion (0.55% budget). BUT states expand coverage (some also benefit level) significantly
0
20
40
60
80
100
120
140
160
All India UP Bihar AP Delhi
NSAP-financed pensioners as % of GoI targets
Old Age Pensions Widow Pensions Disability Pensions
0
20
40
60
80
100
Uttar Pradesh Bihar AndhraPradesh
Delhi
% pensioners financed by GoI
Old Age Pensions Widow Pensions Disability Pensions
Tale of two states AP • Pioneered with biometric based
smart card technology for beneficiary identity and pension payment
• Centralized administration through functioning MIS
• Viable “banking correspondent” model for SP & NREGA
Bihar • Used Post Office exclusively • Complete paper based processing of
administrative tasks, with no MIS to support implementation
• Beneficiary list was digitized for reporting purpose
Roles and Responsibilities in AP
GP/Ward Mandal / Municipality District State
Key Player GP Secretary or Ward Councilor; CSP
Mandal Parishad Development Officer (MPDO) or Municipality Commissioner; PDA (TSP) Mandal Coordinator
DC; PD of DRDA; PDA (TSP) Commissioner RD; CEO SERP
Application & Identification
(1) GP Secretary or Ward Councilor identifies eligible individuals and collects application
Verification (2) After reviewing applications, MPDO or Municipality Commissioner enters eligible applicant data into SSPS offline application and upload into SSPS
(3) SERP conducts Six-Steps-Validation; (4) SERP adds validated applicants to pensioner list or gives reason for rejection
Sanction (5) MPDO provides Sanction Order to pensioner
(6) TSP enrolls pensioner
Fund Flow and Cash Disbursement
(13) CSP disburses cash to pensioners; (14) CSP returns undisbursed cash to PDA MC;
(11) MPDO downloads & prints out AR and handovers to MC; (12) MC takes cash and AR & handovers to CSP
(8) DC approves Acquaintance Roll and PD sent FTR; (10) PDA receives Acquaintance Roll and fund released, and credits pensioner accounts
(7) SERP freezes Acquaintance Roll for that month; (9) CEO SERP releases fund to PDA
Monitoring & Social Audit
(15) CSP returns signed/thumb printed AC to both PDA and MPDO, with reason for non-disbursement; (17) GP Secretary or Ward Councilor verifies non-disbursement cases
(16) PDA consolidates cash disbursement and pension non-disbursement reason and feeds data into SSPS; (18) MPDO modifies/confirms pensioner status for non-disbursement cases
PD monitors implementation
CEO SERP monitors implementation
Evaluation CEO SERP is responsible
Application & Sanction of New Pensions in AP
Applicant- Submits
form with white ration card, and/or other documents
Panchayat Secretary/Bill
Collector- Collects form
Mandal Parishad Development Officer (MPDO) / Municipal Commissioner (MC)
MPDO/ MC enters data offline&
uploads to central server
Six step validation with ration card
database
Sanction/ Reject
MPDO /MC synchronize with
central server gets list
Provides Sanction order to beneficiary
INDIRAMMA/ Rachabanda-
Collects Form, white ration card
PDA/ TSP downloads list of new sanctions
for enrollment
Village/ Ward meetings with
Sarpanch/ Ward Councilor
Proactive identification’s effect
0
5
10
15
20
25
30
35
40
45
50
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Number of Beneficiaries: Target (in lakhs)
Old age Pensions Widow Pensions Disabled Pensions
Verification of beneficiaries
• MPDO cross-checks documents for age- proof and the details on ration card against application form.
• Six Step Validation at state level – Stage 1: The data of applicants compared with the
sanitized ration card database and invalid ration cards are filtered out.
– Stage 2: All duplicate applicants filtered with ration cards numbers
– Stage 3: Verification of the applicant name against ration card with software for phonetic comparison.
– Stage 4: Check for one pensioner per family (No longer done)
– Stage 5: Applicant`s name is matched with live pensioners and those with the same name and fathers name within a GP.
– Stage 6: Applicant`s name compared with names deleted during Integrated Common Field Survey (ICFS).
57139 26151
72581
27010
21430
3008
349391
invalid ration card #
duplicate ration card #
name not matched
one OAP per family
duplicate with existing live pensioner
deleted in ICFS
eligible applicants
State generates acquittance monthly
online
Mandal Coordinator takes list & cash to
CSP
CSP disburses &marks absentee pensioners as TM,
PM or dead
Un disbursed cash & signed acquittance returned to Mandal
Coordinator
PDA shares disbursement
details with social pensions server
MPDO prints 2 copies of
acquittance list
State Nodal Account (SNA) transfers funds to PDA
PDA credits beneficiary accounts
& gives cash to TSP/MC
MPDO validates TM, PM or death cases online after field
verification
Mandal Coordinator hands over signed
physical acquittance to MPDO/MC
Payments to beneficiaries
PDA remits undisbursed amount
to SNA
CSP uploads disbursement data to PDA server daily
MPDO keeps physical copy of
signed acquittance for audit purpose
Actors involved in payment in AP
• PDAs – Paid 2% by SERP – mostly banks (e.g. Warangal has 8 banks), Post Office has 2.5 districts
• MIS vendor (develop, upgrade and operate)
• TSP – Paid 1.75% by PDA – IT (hardware, software, connectivity, data) and operation services
(enrollment, cash delivery, HR capacity)
– District Coordinator - Monitors enrollments and disbursements.
– Mandal Coordinator - coordinates enrollment process, collect payment documentation, manage cash movement from banks to CSP.
• CSP – Payment agent – Must be SHG member of GP
– Paid by Rs 300 + 2.5 * # of pensioners paid
• Village Organization (V0) – Safe keeps physical cash for the CSP prior to disbursement
2 filled Applications, 2
Photos, BPL List, Voter List,
(Death/ Disability Certificate)
Application + Attachments +
RTPS Application
Number
Applicant RTPS Counter
Application + Attachments Application Number +
Block Register ID
Block Office
RTPS Database
Application + Attachments Application
Number + Block Register ID + SDO Sanction
Number + Sanction Order
SDO Office
Block Register by panchayat
SDO Register by
Block
Apps + Supporting
stored block wise
RTPS Application Number + SDO
Sanction Number + Sanction Order
Block Office
Number of Sanctioned
ADSSO
Total number of sanctioned
pensioners by block (no details)
Number of beneficiaries in State
DoSW
Social Pensions Document/Information Flow in Bihar
Issues in administration processes in Bihar
Stage On Paper In Practice Gap
Applicant Application Filling & Submission to BDO
• Submit application in person to RTPS counter at block office
• Supporting documents checked at the time of submission and receipt provided
• Application submitted to mukhiya/ward member/vikas mitra/panchayat sachiv who submits on behalf of the beneficiary
• Supporting documents (Death Certificate, BPL list ) not easy
• Need support to fill form at the RTPS counter
• No support for those unable to go to the block office in person
• May need to pay for submission
Panchayat Sachiv Verification
• Panchayat Sachiv to conduct physical verification before sanction and for updation of pension beneficiary list
• Verification carried out before submission of application form
• No procedure in place for systematic updation of pension beneficiary list
• Unclear parameters of verification
• Errors of age in age proof used • Death certificate not easily
available (10+ years)
BDO Verification, Recommendation, Monitoring (Physical Verification)
• BDO to receive application at RTPS counter, verify documents and ensure that Panchayat Sachiv conducts physical verification
• Block office receives documents at the RTPS counter, sorts by GP and recommends to SDO
• RTPS: Acknowledgement receipt in English
• RTPS system only front end, no system of tracking other than whether disposed or not.
• No physical verification undertaken
Issues in Bihar (2) Stage On Paper In Practice Gap
SDO Sanctioning & notifying ADSS of new sanction
• Sanction pension based on verification already done
• Intimates ADSS, PO superintendent & BDO of Sanctioning
• Verification of the documents multiple times (by 2 assistants),
• Intimates BDO & ADSS of sanctioning
• Verification only involves checking if all supporting documents attached
BDO Intimation to applicant
• Sanction orders mailed to beneficiary/available for pick up at RTPS counter.
• Update RTPS application on status of application
• Sanctions sent through the Mukhiya/Panchayat Sachiv (PS)
• No sanction orders mailed
• Sends sanction order to Branch level PO for account creation
• Creates opportunity for rent seeking by letting Mukhiya/PS collecting sanctions
ADSS Compilation of records & Monitoring
• Compilation of number of sanctioned pensioners and reporting to DoSW monthly
• Monitoring of Pensions
• Compilation of number of sanctioned pensioners
• ADSS not always able to exact accountability directly from BDOs and SDOs. Require intervention of the DM.
Applicant BDO : Verification and
Recommendation SDO: Sanctioning
ADSS: Compiling & reporting
DoSW: Compiling & request fund release
State Treasury: Fund release
Postal Department Bank Account
CPMG Divisional (head) PO
Sub Post Office Branch
Information
Physical Verification by Panchayat Sachiv
21 days (RTPS)
21 days (RTPS)
Monthly
RTPS Receipt Sanction Order
District Aggregate
Aggregate numbers
Application & Supporting documents
Funds Flow
BDO: Intimation to applicant
Applicant via Mukhiya/PS
PO Account
Update RTPS
Pensions Process Sanctioning
Bank/Post Office networks
Coverage of Banks and Post Office in the rural areas
S.No State No of
G.Ps
No of
Bank
Braches
Of which
Rural
Post
Offices
(SO&BO)
Total Bank
Branches/
GPs (%)
Rural Bank
Branches/
GPs (%)
BO & SO
/GPs (%)
1 2 3 4 1/2 1/3 1/4
1 Bihar
8474 5247 2809 8982 62% 33% 106%
2 Uttar
Pradesh
51973 13507 6095 17536 26% 12% 34%
3 Andhra
Pradesh
21695 9020 3090 16130 42% 14% 74%
4 Haryana
6081 3659 1392 2642 60% 23% 43%
Source: Banks include RRBs & Coop Bank; data is as of March 31, 2012 from RBI website; Post office data from website of India Posts.
The proposed cash disbursement model
All pension payments will be made in cash through quarterly panchayat level camps supervised by the BDO.
1. Funds will be transferred by DoSW from the State Treasury to the district.
2. DM will transfer money from district accounts to BDO
3. BDO withdraws money based on sanctioned accounts
4. Supervisors will make payments in camps with support from Panchayat Sewak
Arrangements for cash payments currently underway in Bihar:
1. Printing of colour-coded passbook for each type of pension
2. Creating a consolidated database of all pension beneficiaries based on records in the offices of the BDO, SDO and ADSS
3. An example of an online MIS/database being developed in Jehanabad can be viewed here: www.sapjehanabad.in
The ‘final’ verification of beneficiaries to clean the database will be done at the time of pension disbursement through shivirs.
Lessons learnt • Proactive identification of beneficiaries works better than
demand based approach due low awareness, difficulty in obtaining documentary proof, transaction cost of application, and weak ability to follow up on outcome
• Support for filling applications to reduce rent-seeking and delays from use of intermediaries; and support for obtaining documents required
• Cross-verification with key database and use biometric authentication when feasible
• Robust transactional MIS with central database to support implementation and to reduce work load
• PDA (banks and/or PO) must maintain service standards defined clearly and monitored rigorously.
• CSP connected with local community, paid according to transactions, viable business with multiple programs (+NREGA)
• Coordination and capacity building
Payment mechanisms Andhra Pradesh Bihar Delhi Haryana Uttar Pradesh
Implementing Entity
SPV (SERP) under
RDD
DoSW DoSW DoSW 3 Departments
Mode of payment to
beneficiaries
Bank/ Post Office
account credits; and
cash disbursement by
BC/CSP’s
Cash
disbursement
by BDO’s
Credit to
beneficiary
bank account
thru RBI
Cash
disbursement
by Gram
Sarpanch
Credit to
beneficiary bank
account by
districts
Funds management
Model Centralized Decentralized
(funds drawn by
BDOs into
dedicated bank
account )
Centralized Decentralized
(funds
transferred to
dedicated
bank account
of GP)
Decentralized
(payment by
districts)
Paying agent BC’s supported by
CSPs
(SHG’s, Post Offices)
Block
Development
Officers
Department of
Social Welfare
Gram
Sarpanch
District SW
Officer
Frequency Monthly Quarterly Quarterly Monthly Six monthly
Digitized beneficiary
database
Yes + integrated
transaction based
system
In process of
development
Yes Yes Yes
Claw-back Yes No No Yes No
Task Force on Comprehensive NSAP
• Relaxing eligibility criteria particularly for widow and disability schemes
• Phased universalization to include all eligible for benefits under the National Food Security Act (aims to cover 75% of rural population and 50% of urban population)
• Proactive identification of potential beneficiaries
• Monthly payment using Bank and PO based systems and beneficiaries need not to travel
• Transaction based IT solution to cover all administrative processes and to interface with fund management system and that of other partners
0 100 200 300 400 500
FY12-13
FY13-14
FY14-15
FY15-16
FY16-17
widow
diabled
old age