BAYAN Muna Rep. Carlos Isagani Zarate urged the Social Security System to study at least five options that will enable the pension fund to finance the proposed P2,000 increase in the monthly pensions of retirees while extending the actuarial life of the pension fund.
He said the agency must improve its collection efficiency from employers from the current 38 percent to between 76 percent and 80 percent, and must strictly go after delinquent employers who have failed to remit contributions over the past 10 years.
There is also a need to cut down the bonuses and perks being enjoyed by ranking SSS officials, and that the P200-million retirement given to the SSS board members in 2009 must be reimbursed, he added.
The two other alternative measures are to collect the fines imposed by the courts against employers who violated the SSS, and for the House of Representatives to provide a subsidy as provided under Section 20 of Republic Act No. 8282, or the Social Security Act of 1997.
“Furthermore, the SSS has P428 billion in its 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 and its assets amounted to close to P500 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 government guarantees the benefits and solvency of SSS,” he pointed out.
“The agency admitted several times the availability of the funds for the pension hike, but said the increase would only shorten its fund life to 2029.”
He challenged the agency’s previous claim that its life would only last until 2025, instead in 2042.
“Assuming this were true, nine to 14 years is more than enough time for the government and SSS to find ways to increase its fund life,” he said.
According to Zarate, SSS, in 2001, declared that it only had a fund life of only five years.
“If it previously survived a five-year fund life, then surely it can also survive a 14-year fund life,” he said, adding the inadequacy in the minimum pension to the actual needs of the pensioners can not be overemphasized.
The minimum monthly pension ranging from P1,000 to P1,200, or even P2,400 for those who contributed for 20 years, could not even buy the pensioners decent food and their maintenance medicine.
He cited an Ibon Foundation data a family of six in the National Capital Region would need P5,033 a month for basic needs.
“It is very clear that the present monthly pensions for our senior citizens are not enough,” he said, adding the lawmakers would oppose a staggered grant of the P2,000 monthly pension increase.
Newly appointed SSS Chairman Amado Valdez earlier said the agency backed the grant of a P2,000 pension increase for its two million pensioners but with conditions, one of which was to stagger its implementation.