FROM: Barbara Hannah, Chief Counsel
SUBJECT: Update regarding the Survivor Benefits Unit
RECOMMENDATION:
title
Update regarding the Survivor Benefits Unit.
body
BACKGROUND:
In November 2021, an independent review by Brown Armstrong identified significant gaps in SBCERA’s death benefit processing procedures. The report highlighted issues such as:
- Limited attempts to contact beneficiaries.
- Delays in claims processing.
- Insufficient tracking of claims status.
A follow-up review in August 2024 indicated that these issues remained reinforcing the need for immediate action and process improvements.
Recognizing the urgency of addressing these concerns, the Chief Executive Officer requested that the SBCERA Board approve the creation of a dedicated Survivor Benefit Unit (SBU). The unit formally began operations on December 2, 2024, with the hiring of Sandy Meier as the Survivor Benefits Manager.
A. Key Metrics and Progress
At the time the SBU was created, there were more than 1,400 open workflows related to survivor benefits, the oldest of which dated back to 2013. The SBU is diligently reviewing each open workflow to determine the action needed to be taken, including closing out the workflow if benefits have been paid. In three (3) months, the SBU has reduced the open workflows by 40%. This reduction accounts for both backlog clearance and ongoing management of newly reported deaths.
B. Process Improvements
Dedicated staffing: After the Survivor Benefits Manager was hired, staff has centralized processing of all survivor benefits. Staff has been temporarily reassigned to assist the Survivor Benefits Manger in tackling the backlog, as well as ensuring timely processing of current survivor benefits cases. A new staffing model is expected to be put in place for the SBU as part of the FY 2025-26 budget.
Communication and Timeliness: Staff has created a standard requirement to have initial contact with beneficiaries within 2 business days of death notification. Staff has also created a standard that the first benefit payment setup shall be completed within 2 business days after receiving complete documentation. In the month of February, the SBU processed 50 first benefit payment setups.
Claims Tracking:
Staff introduced a tracking log to monitor claims status and ensure timely follow-ups, and has instituted a follow-up process to send correspondence to beneficiaries who have yet to contact SBCERA after receiving the initial notice letter. This process includes sending follow-up letters to the beneficiary that occurs at 30, 60, and 90 days from the date of the initial notice to beneficiary. The follow-up correspondence is already yielding better results in terms of both timeliness and responsiveness.
C. Ongoing Enhancements
System Improvements: In order to improve the intake process, staff is working with LRS to redesign Pension Gold death reporting process to reduce manual handoffs. This change will allow anyone in the call center to log death information directly in the member’s account in Pension Gold versus sending the information via email to staff. This process is expected to be in production as of late April 2025. In addition, staff is developing a streamlined death benefit workflow with automated reminders, and improved turnaround times.
Beneficiary Communication: Staff is programmatically working to update and refine communication templates to enhance clarity and responsiveness.
D. Looking Ahead
The Survivor Benefits Unit’s early progress demonstrates a strong start toward resolving longstanding issues and improving service for beneficiaries. Staff will continue to refine the process moving forward, focusing on the ongoing initiatives, from system enhancements to refined communication protocols, which are expected to further streamline processes and ensure beneficiaries receive timely and accurate payments. In addition, SBCERA will establish standard operating procedures to guide staff through every stage of the survivor benefit process, as well as ongoing staff training.
Staff is confident that these improvements will continue to build momentum and a Survivor Benefit Unit that sets high standards for responsiveness, accuracy, and care for SBCERA members and their beneficiaries. We look forward to providing further positive updates in future reports.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Operational Excellence & Efficiency
Superior Service Experience
STAFF CONTACT:
Barbara Hannah
Debby Cherney
ATTACHMENTS:
None.