VICE President Jejomar Binay on Wednesday vowed to give priority to reforming the Social Security System once he was elected president in this year’s national and local elections.
He said he would increase the assistance to pensioners under his administration should Congress refuse to override President Benigno Aquino III’s veto of a bill granting a P2,000 increase in the pension of SSS members.
“If Congress will not override the veto, I will give priority to increasing our assistance to SSS pensioners under my presidency,” Binay said.
“After six years, it has become apparent that the SSS has failed to introduce reforms that would have addressed the long-festering problem of collection inefficiency, poor customer service and the absence of additional benefits for its members,” Binay’s spokesman Joey Salgado said.
He made his statement even as Communications Secretary Herminio Coloma Jr. said the government was now looking into the possibility of increasing the monthly pension of SSS members.
But he said Malacañang would not give “false hopes” to SSS members.
“The SSS is continuing to study [that] but the implication to the stability of the funds is also important,” Coloma said.
“That’s why the contributions and benefits are being balanced. President Benigno Aquino III has no concrete decision yet.”
Meanwhile, the Commission on Audit said the SSS had foregone an estimated rental income of P198.11 million in 2014 from its properties worth P17.956 billion due to mismanagement at the expense of its members and pensioners.
The agency said the SSS continued to take on the fixed costs—such as association dues, power and water bills, repairs and maintenance and manpower—of its idle unoccupied properties without any return on invested capital.
It said the SSS had further deprived the system of additional funds to be extended as social protection and benefits to its members and beneficiaries.
Salgado said reforming the SSS would be a priority of the Binay administration.
“After six years, it has become apparent that the SSS has failed to introduce reforms that would have addressed the long-festering problem of collection inefficiency, poor customer service and the absence of additional benefits for its members,” Salgado said.
He said the Home Development Mutual Fund or Pag-IBIG Fund, which Binay used to head, should be seen “as proof that you can expand benefits, improve services and shore up financial stability without increasing contribution.”
“It can be done. Look at Pag-IBIG today,” Salgado said.
“It is not only the most financially stable government corporation, it is also setting the benchmark in customer service. And all the reforms were introduced during the term of the Vice President.”
As of May 2015, the Pag-IBIG Fund had released P169.71 billion in housing loans that benefited 239,903 families, Salgado said.
He said the agency had also expanded its loan programs to cover calamities, education, travel and other purposes. A total of P177 billion had been released to eight million members as of May 2015, a month before Binay resigned from the Cabinet.
Salgado said the presidential veto of the SSS bill, which is being supported by the administration standard bearer Manuel Roxas II, again underscored the absence of compassion especially for senior citizens.
“Our senior citizens have contributed to our economy. The least the administration could do was show concern for their welfare,” Salgado said.
“The SSS pension amounts have been unchanged since 1997 and have not been adjusted for inflation.”