Open AccessAre There Adequate Benefits and Contributions for SOCSO’s Invalidity Pension Scheme (IPS)?
Author(s) -
Shamshimah Samsuddin
Publication year - 2021
Publication title -
asm science journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.12
H-Index - 6
eISSN - 2682-8901
pISSN - 1823-6782
DOI - 10.32802/asmscj.2021.739
Subject(s) - pension , social security , actuarial science , scheme (mathematics) , social benefits , business , economics , cost–benefit analysis , public economics , finance , political science , law , mathematics , mathematical analysis , market economy , materials science , tailings , metallurgy
Social security is a protection that a country legally gives to its citizens against interruption, death and loss of income. There are two kinds of protection schemes SOCSO in Malaysia, namely the Employment Injury Scheme (EIS) and the Invalidity Pension Scheme (IPS). This article aims to determine the benefits and contributions of IPS using Actuarial Cost method. In addition, this result will be used to compare with the adequacy of SOCSO contribution rate. Data of number of active populations in year 2014 for Invalidity Pension and Survivors’ Benefit are obtained from Social Security Organisation (SOCSO). The findings concluded that the claim made on benefits is higher than the contribution. This can lead to inadequate for benefits as compared to contributions.