FROM: Barbara Hannah, Chief Counsel
SUBJECT: Update regarding the Survivor Benefits Unit
RECOMMENDATION:
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Update regarding the Survivor Benefits Unit.
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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 bu...
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