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Friday, February 17, 2017
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THIS REFERS to the issues raised by Johnny Novera in his article entitled “SSS and GSIS” published in the Jan. 17, 2017 issue of Panay News. First, we would like to thank Mr. Novera for acknowledging the pension fund’s significant accomplishments on asset management, collection contribution and membership coverage.
However, we would like to clarify that Social Security Commission Chairman Dean Amado D. Valdez and SSS President and Chief Executive Officer Emmanuel F. Dooc made a series of consultations with actuarial and economic managers before proposing the release of P2,000 pension increase in tranches. Based on actuarial studies, the initial grant of P1,000 this January 2017 will reduce the fund life of SSS by 10 years from 2042 to 2032. But with 1.5 percent rate increase and up to P20,000 MSC, the reduction is by two years. This was actually justified by Finance Secretary Carlos G. Dominguez and emphasized that the increase should not cause the fund life to go down more than three years.
Part of the “win-win” solution is the out-of-the-box thinking and innovative solutions through direct investments in power, water and other utilities and Public-Private-Partnership (PPP) projects; legislative proposal to rationalize the powers of the Commission particularly in providing benefit and contribution increases as well as condoning penalties without the approval of the Philippine President; and interagency cooperation to resolve employer delinquency and increase collection contribution.
We would also like to state that the Government Service Insurance System (GSIS) is capable of providing higher pensions to its members since it collects higher contributions for its members at 21 percent of actual monthly salary, as compared to SSS with only 11 percent of up to P16,000 of member’s salary. Further, GSIS has 304,875 old-aged pensioners as of December 2016, which is only 14 percent of overall 2.2 million SSS pensioners. We cannot allocate the SSS funds primarily for pension increases since it is our obligation to serve the remaining 32 million members who are expected to avail of other SSS benefits and privileges such as sickness, maternity, disability, death, funeral, Employees’ Compensation Benefits and salary loan privileges.
One of the pension fund’s duties is to ensure that the benefits are provided to the rightful pensioners and beneficiaries. In this regard, the Annual Confirmation of Pensioners (ACOP) is strictly implemented by encouraging retirement, death, and disability pensioners to visit their depository bank or the nearest SSS branch once a year to prevent the suspension of pension payments. We would also like to inform you that the SSS has also launched the ACOP through video conferencing to provide convenience among pensioners residing overseas.
Meanwhile, pensioners aged 80 years old, as well as those who are unable to leave their houses due to severe health conditions, total disability and other acceptable reasons, can be exempted from having to visit their depository bank or any SSS branch just to comply with the ACOP. Instead, they can request a home visit, which involves an SSS employee going to their residence to confirm their continued eligibility for pension.
Thank you for the opportunity to make clarifications. – MARISSU G. BUGANTE, Vice President, SSS Public Affairs and Special Events Division
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