Descriptive Research on SOCSO‟s Invalidity Pension Scheme (IPS) Claims Payment

Social insurance was introduced in Malaysia in 1971 through Social Security Organization (SOCSO). Herein, this study describes the increasing trend amounts of SOCSO’s IPS claims payment. This study analyzed IPS data from 2002–2014 to examine severity each of benefits offered such as Invalidity Pension, Survivors’ Pension, Constant Attendance Allowance, Rehabilitation Benefit and Funeral Benefit. Furthermore, the registered number of employers had increased to approximately 5% in 2013. This is because SOCSO officers all around Malaysia had been actively searching for employers who have yet to register to make contributions for their eligible employees. Additionally, the total number of IPS claims payment had steadily increased since 2002 to 2014. On average, the total claims payment of IPS increased at a rate of 10% every year. This study suggested that a large part of the increase in IPS claims could be explained by population which active contributors, and the increase result from equalization of IPS services across the country. In addition, it seems that the claims of low and high care levels depend on different factors. The increase in IPS claims should be monitored carefully to identify underlying factors and to ensure sustainability of the funding system