New EDapem, Taspen Disbursement Management System - Redia Technology

New E-Dapem, Taspen Disbursement Management System

Introduction

PT. Taspen Persero is one of state-owned enterprise who manage public pension fund that provided retirement, disability, and survivor benefits for most civilian employees. The benefits are not only given to pensioner himself, but also the family in case the pensioner has passed away. The term of family means the retired civil servant's spouse and children who are unmarried and under the age of 21. In the case of children aged 19 or 20, they must also be in full-time education or in full-time vocational training. The normal benefits are distributed monthly, and some types of benefits are distributed annually through banks that are registered for disbursing pension.

The way the pension disbursed are pensioners should come directly to the bank or by submitting a proof of life documents in case they can not manage to come physically every month, two months or three months depends on regulation. A proof of life document, or life certificate, basically is a document used by governments, pension funds and insurance companies to make sure that individuals are alive and continue to qualify for benefits. Usually the proof of life document requires a professional like a notary public to confirm that the benefits recipient is alive.

This pension distribution or we should say pension disbursement, managed by a system called EDapem. And this EDapem was initially developed by banks under some specification released by PT. Taspen, so each bank has their own application, their own database, and their own specific rule regarding pension disbursement.

At the moment this case study was written, PT. Taspen manage 2.5 million pensioners, which is a quite huge of members and data. As it was not a centralized application, some issues may raise upon the implementation:

Pension recipients must come to the bank himself or by submitting a proof of life documents to get pension funds unlocked in their bank account.
All applications have its own style of reporting that might lead to inconsistencies on consolidation process.
As PT. Taspen require all transactions to be recorded in their own system, they also need to be consolidated daily through a file transfer mechanism.
There is no way for PT. Taspen control over data and detailed disbursement mechanism as all disbursement systems are fully managed by banks.

Solutions

To overcome the previous mentioned issues, there are few things should be considered:

With growth of Facial Recognition and Liveness Detection technology in recent years, the technology is possible and feasible to be implemented.
More centralized application is needed instead of spreading the EDapem system across the banks. The bank’s teller can simply access the centralized web application and with the help of switching payment gateway, the transaction can be forwarded to the core banking system to unblock pensioners fund in their account instantaneously.
Even though pensioners can do authentication on their own, bank users’ interaction to the system will still be needed due to the fact that not all pensioners or fund recipient able to authenticate themselves for some reasons.
4. System scalability is the most important thing in the system, as mentioned previously, most of 2.5 million users might access to the system concurrently in the first week of every month.

Technologies and tools

Here are links to sample user documentations and video tutorials: