The institution establishes a strategy to ensure that contributions always fulfil the requirements of the corresponding benefits and that members’ rights are respected.
Guideline code
CCC_00600
Mechanism
Mechanism
- Recommended implementation approaches consist of:
- Systematic quality control of source data;
- Audit capability to determine the correctness of contributions collected and recorded in line with the established strategy;
- Systematic follow-up of errors and data quality problems;
- Specific processes regarding derogations and exceptions.
- Alternative specific measures may consist of:
- Unifying calculation processes in order to prevent inconsistencies, where appropriate;
- The contributor entering and controlling the amount calculation in their declaration;
- Systematic quality control of source data, aimed at preventing instances when correct methods generate wrong results due to wrong source data;
- Systematic audit and testing of regulations and procedures, and of software performing calculations and transaction data. These tests could be done by institutions, by contributors themselves and/or by independent auditors.
- Specific procedures should be established to treat inconsistencies as irregular situations.
- There should be a clear definition of the institution’s, the contributor’s and the employer’s responsibilities for ensuring correct contribution collection. This should be communicated as in Guidelines 18 and 19.
- The management should commission a unit to follow up application of those parts of the strategic plan concerning the correctness of contribution calculation and recording, as well as the corresponding performance indicators.
Parent
Structure
Structure
- The management should define a strategy to ensure that contributions to be collected fulfil the requirements defined by the corresponding benefit programmes. The goal is to prevent inconsistencies between claimed benefits and effectively contributed amounts. The strategy may include:
- Specific goals addressing the different aspects involved in achieving correspondence between contributions and benefits;
- Administrative functions and processes addressing these issues, and rules to be implemented in respect of data validation and calculation methods;
- Processes for correctly reporting the contributions paid on a citizen’s social insurance record, which includes issuing periodic statements to contributors;
- Issuing regulations supporting the implementation of the defined strategy, taking into account different scenarios, especially those in which rules are not respected;
- Communication measures, to ensure that the rights and obligations of contributors are well known by stakeholders.
- The management should define specific performance indicators to evaluate the achievement of goals and measures to ensure correct contribution calculations.
Title HTML
Guideline 4. Establishing a strategy to ensure consistency between contributions and expected benefits
Type
Guideline_1
Weight
11