Rizal Philippines
January 18, 2016
PNoy rejects House Bill increasing SSS pension accross the board of P2,000 per month
President Aquino vetoed the bill HB 8242 authorizing P2,000 additional monthly benefits to some 2 million pensioners (I do not know the exact number and estimated this to be about P48 billion a year) Now the SSS total assets amounts to only P400+ billion and without going into actuarial intricacies, P400/40 = 10 years. SSS said the funds will be 0 by 2027. (11 years) We discounted the revenues of about P30 billion a year from members. That should take care of maternity and death benefits which are also substantial.
The Presidentiables and VPresidiantables were quick to ride on the negative reaction to the veto. (without understanding the complex issues)
1. The SSS is private fund; the govt does not own this. It is a self sustaining fund which is maintained by members contribution and the additional income from investments.
2. The investment of SSS is down because the stock market is on free fall, here and abroad.
3. The debt market yield max is 3%; so not much can be expected from investment
4. The proposed law lacked the critical item in any fiscal or budgetary proposal - WHERE DO YOU GET THE MONEY. As of now, there is none. Would you increase the contribution. Pres De Quiros said that you need to up the SSS contribution to make SSS viable if we give the P2t (in the SSS briefing today.
I am not spokesman of PNoy, nor of SSS but the public and even the lawmakers should understand this institution. The President of SSS correctly pointed out that they turned SSS around and therefore it hurts to hear comments that it is ill managed. Those who are leading SSS are respected businessmen executives from the private sector.
Shall we kill the goose that lays the golden eggs. Give the benefits now and worry about where to get the money later. This is a political gimmick by our Congressman, but they should be prepared to back this up with govt subsidy. SSS is a private fund and we shudder at the undue interference to the point of endangering this fund - a social security system
Infographic from SSS on the vetoed bill 8242
