Social Security System needs drastic changes to cater to members' needs especially increase of pension
Posted by Malaybalay Blogger at 5:44 PM
CHIZ WANTS SSS TO ITEMIZE INVESTMENT PORTFOLIO
Senator Francis “Chiz” Escudero called on the Social Security
System (SSS) to make public its investment portfolio and explain to its two
million pensioners why President Aquino was correct in his assessment that the
pension fund would go bankrupt in 2029 if he did not veto the Congress-ratified
P2,000 increase in their pension.
“It is about time that the SSS, with its officials earning
millions of pesos in salaries and bonuses, be put under the spotlight and be
made to explain in full details why the agency will go belly up if we grant the
much-needed P2,000-increase in the monthly pension of its retired members,”
said Escudero, the leading vice-presidential candidate.
In his veto message, the President said that enacting the SSS
pension hike bill could lead to “substantial negative income for the SSS” and
depletion of its Investment Reserve Fund by 2029.
The Chief Executive explained that with the pension increase of
P2,000 per retiree, multiplied by the present number of more than 2 million
pensioners, would result in a total payout of P56 billion every year.
Compared against the annual investment income of P30 billion to
P40 billion, such total payment for pensioners will yield a deficit of P16
billion to P26 billion annually, the President said.
As such, Aquino said the deficit would seriously compromise the
current members of about 31 million just to favor the two million pensioners
and their dependents.
Escudero said this was the reason why the Filipino people,
particularly the pensioners and their dependents, “would want to know where the
SSS bigwigs have invested their contributions.”
The veteran lawmaker also recalled a statement the President
made during the 55th Founding Anniversary of the SSS on September 3, 2012,
during which he emphasized the role of the pension fund in helping its members.
“SSS ensures that its funds are protected made to grow so that
it can continue its mission of providing viable, universal and equitable social
security protection for now and for more generations to come,” read the speech
carried by the official website of the Office of the President.
Escudero said it was ironic that for that anniversary
celebration, the SSS chose the theme: “Kabuhayang Pinagsikapan,
Seguridad Maaasahan.”
“So where are all the fruits of these contributions by these
retirees? The security they were promised?” Escudero asked.
“Surely, these contributions made by SSS members that were also
used to pay the millions of pesos in salaries, benefits and bonuses of the
agency’s officers should have also been considered investments, investments to
make sure that they use SSS funds properly so that these would get the best
yield in the investment market,” he added.
Yet now, Escudero said, the pension fund is “using this excuse
of poor investment yield as the reason why SSS pensioners cannot get their just
increase in pension.”
“If there is anybody that should be made to suffer for the
shortfall in investment income, it shouldn’t be the pensioners but those under
whose care the billions of pesos in SSS contributions were put so that they
could invest them properly,” he said.
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