Lawmaker quells SSS misgivings on P2,000 proposed pension hike
THERE are five measures that can all be used to lengthen the fund life of the Social Security System (SSS), said Bayan Muna Rep. Carlos Isagani Zarate as he quelled misgivings should the SSS would implement the P2,000 across the board pension hike.
In a press statement, Zarate said can improve its collection efficiency from employers covering 29 million members, from 38% the SSS should at least double it to 76%-80%
He said it can collect the billions in contributions which delinquent employers failed to remit in the last 10 years.
The partylist lawmaker also advised the SSS to cut down in bonuses and perks given to its board members and collect the more than P200 million retirement package given to SSS board members in 2009.
Zarate also hinted that the SSS can even lengthen its fund life by collecting the fines imposed by the courts against employers who violated the SSS law.
If not enough, he added that Congress can always provide for subsidies as provided under Section 20 of RA 8282 as amended.
“Furthermore, the SSS has P428 Billion in investment fund which generates an investment income of an average of P32 Billion per year. With this, the net revenue of SSS in 2014 was a huge P44.47 Billion. Its assets amount to nearly P 500 Billion. As it is, there is no way that the SSS will go bankrupt as the SSS wants people to believe. In fact, under Section 21 of Republic Act 8282, the Philippine government guarantees the benefits and solvency of SSS” said the progressive solon.
“Also the SSS has actually admitted several times that it has the funds for the pension increase. The increase will only shorten its fund life to 2029 in our hearings and now they are saying that it is 2025 instead of the current 2042.Assuming this is true, nine to fourteen years is more than enough time for the government and SSS to find ways to increase its fund life. In 2001, SSS declared that it has a fund life of only five years and yet it was able to increase this to 2042 in just 14 years. If it previously survived a five year fund life, then surely it can also survive a 14 year fund life. Truthfully speaking, we are in a better shape than the United Kingdom (UK) which has a fund life of only up to 2027 and Canada which has a fund life of 2022 or merely seven years,” said the Davao-based solon.
“The inadequacy of the minimum pension to the actual needs of the pensioners could never be overemphasized. The minimum monthly pension of P1,000-1,200, or even P2,400 for those who contributed for twenty years, would not buy our pensioners decent food, much more provide for their maintenance medicines which would cost thousands of pesos a month. IBON Databank said that a member of a family of six in NCR needs at least P5,033 a month for basic needs. Pitting the need for pension increase versus the alleged decreased fund life of SSS as the former leadership of the SSS has done is not only outright insensitive, but a violation of the SSS mandate “to manage a sound and viable social security system which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies…” he added.
“Kitang-kita naman po na kulang na kulang ang pension ng mga seniors natin. Wag na po itong baratin at utay-utayin dahil ngayon na pa nila kailangang ang P2000 para sa kanilang mga gamut at pagkain. Mas mahalaga po ang buhay kesa sa pera,” ended Zarate.
In a press statement, Zarate said can improve its collection efficiency from employers covering 29 million members, from 38% the SSS should at least double it to 76%-80%
He said it can collect the billions in contributions which delinquent employers failed to remit in the last 10 years.
The partylist lawmaker also advised the SSS to cut down in bonuses and perks given to its board members and collect the more than P200 million retirement package given to SSS board members in 2009.
Zarate also hinted that the SSS can even lengthen its fund life by collecting the fines imposed by the courts against employers who violated the SSS law.
If not enough, he added that Congress can always provide for subsidies as provided under Section 20 of RA 8282 as amended.
“Furthermore, the SSS has P428 Billion in investment fund which generates an investment income of an average of P32 Billion per year. With this, the net revenue of SSS in 2014 was a huge P44.47 Billion. Its assets amount to nearly P 500 Billion. As it is, there is no way that the SSS will go bankrupt as the SSS wants people to believe. In fact, under Section 21 of Republic Act 8282, the Philippine government guarantees the benefits and solvency of SSS” said the progressive solon.
“Also the SSS has actually admitted several times that it has the funds for the pension increase. The increase will only shorten its fund life to 2029 in our hearings and now they are saying that it is 2025 instead of the current 2042.Assuming this is true, nine to fourteen years is more than enough time for the government and SSS to find ways to increase its fund life. In 2001, SSS declared that it has a fund life of only five years and yet it was able to increase this to 2042 in just 14 years. If it previously survived a five year fund life, then surely it can also survive a 14 year fund life. Truthfully speaking, we are in a better shape than the United Kingdom (UK) which has a fund life of only up to 2027 and Canada which has a fund life of 2022 or merely seven years,” said the Davao-based solon.
“The inadequacy of the minimum pension to the actual needs of the pensioners could never be overemphasized. The minimum monthly pension of P1,000-1,200, or even P2,400 for those who contributed for twenty years, would not buy our pensioners decent food, much more provide for their maintenance medicines which would cost thousands of pesos a month. IBON Databank said that a member of a family of six in NCR needs at least P5,033 a month for basic needs. Pitting the need for pension increase versus the alleged decreased fund life of SSS as the former leadership of the SSS has done is not only outright insensitive, but a violation of the SSS mandate “to manage a sound and viable social security system which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies…” he added.
“Kitang-kita naman po na kulang na kulang ang pension ng mga seniors natin. Wag na po itong baratin at utay-utayin dahil ngayon na pa nila kailangang ang P2000 para sa kanilang mga gamut at pagkain. Mas mahalaga po ang buhay kesa sa pera,” ended Zarate.
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