The institution implements the key processes of identifying its debtors and carrying out the procedures to obtain the corresponding payment.
These processes play a fundamental role in promoting compliance by contributors and obtaining the payments necessary to the system’s sustainability. Efficient identification and settlement of debts also adds to the credibility of the collecting agent and helps to build the culture of social security.
Guideline code
CCC_01400
Mechanism
Mechanism
- Administrative procedures carried out within the institution or the contribution collection system could be based on risk evaluation.
- Tolerance levels below which it is not economically worthwhile to pursue debt should be developed.
- Procedures could be introduced whereby debts are amalgamated year-on-year until the amount involved is worth pursuing.
- Policies could be developed in partnership with other government institutions for identifying, linking and pursuing debt which goes beyond the contributions system, such as benefit overpayments and other government debts.
Parent
Structure
Structure
- The management should design and implement a process to manage debt, and establish duties and responsibilities to carry out the tasks of debt management.
- This process should be based on a risk evaluation approach.
- Coercive legal capabilities should be granted to the institution to enable forced collection through judicial procedures, which should be introduced where appropriate.
Title HTML
Guideline 11. Managing debts owed by contributors and employers
Type
Guideline_1
Weight
19