SSS won’t go bankrupt with P2,000 pension increase, lawmaker says

Party-list Rep. Neri Colmenares of Bayan Muna on Tuesday said that Sen. Juan Ponce Enrile’s contention that the Social Security System (SSS) will go bankrupt with the P2,000 pension increase is without basis and can easily be debunked.

“The SSS and Sen. Enrile should stop trying to delude the people that it has no funds for the P2,000 pension increase because this is not true. The SSS board in Congress hearings actually admitted several times that it has the funds for the pension increase. The increase will only shorten its fund life to 2029 instead of the current 2042,” he added.

Assuming this is true, he said, 14 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, which has a fund life of only up to 2027 and Canada, which has a fund life of 2022 or merely seven years,” Colmenares, also senior deputy minority leader, pointed out.

In fact, he said, 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 P500 billion. Ayaw lang talaga dagdagan ng SSS ang pension ng mga pensioners kaya ganun na lang ang kanyang pag-oppose dito. Mas gusto pa ng SSS na pahabain ang buhay ng pondo niya, kesa buhay ng mga miyembro niya,” Colmenares said.

Instead of harping on increasing contributions,  the lawmaker said the SSS should (1) improve its collection efficiency from the employers of its 29 million members, (2) collect the billions in contributions, which delinquent employers failed to remit in the last 10 years, (3) 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, and (4) collect the fines imposed by the courts against employers who violated the SSS law.

“If this is not enough, then Congress can always provide for subsidies as provided under Section 20 of RA [Republic Act] 8282 as amended. There is no way that the SSS will go bankrupt as the SSS wants people to believe. In fact, under Section 21 the Philippine government guarantees the benefits and solvency of SSS,” Colmenares said.

“The SSS pension increase law does not allow for an increase in premium contribution. So it is best for SSS and Sen. Enrile to support the pension increase and, together, with the government look for means to increase its fund life instead of using nonexistent obstacles to the pension increase. SSS is so obsessed with its funds that it has failed to see that it has completely abandoned its mandate to provide genuine social security to the people.” Colmenares said.

source:  Business Mirror