Social Insurance Board to pay bonuses to staff as disabled still wait for pension

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Social Insurance Board has paid year-end bonuses to all its 545 employees although the system of paying disability pensions failed in October leaving thousands of people without income.

Külli Pedak, director general of the board, told Eesti Päevaleht that she saw no reason not to pay bonuses since the problem with the pension payments was not caused by the staff of her agency.

“Our people have done their work and have even done more. We paid the bonus since we managed to survive these tough times,” said Pedak, adding that the bonuses would be paid from funds that had been saved during the year.

The system of paying out disability pensions has been suspended since October, forcing about 7,000 disabled people to wait for up to three months until the received their pension.

The list of staff members who will be paid a year-end bonus for diligent work includes three persons who were directly involved in developing the new disability pension system.

Spokesperson of the Social Insurance Board said that the bonus amounted to around 30 percent of monthly salary.

Representative of the Ministry of Social Affairs that oversees the operations of the Social Insurance Board said that the ministry would not comment the bonus payment since this is up to the agency to decide whether to pay it or not.

The Ministry of Social Affairs has blamed the IT system for failure to pay out disability pensions. Allan Poola, head of the IT department of the Ministry of Social Affairs recently announced his resignation.

The IT system was developed by a private contractor Me¬di¬soft that was the only bidder for the tender. Medisoft that signed the tender contract at the end of August 2008 announced that the system would not be available before end of August 2009, but in spite of that the Ministry changed the system of paying out disability pensions in October 2008.