Belmonte to push proposal for P1,000 pension hike
Pensioners and workers marched to Mendiola to assert their demand for a P2,000 SSS pension hike. MARIANNE BERMUDEZ
Amid the backlash on the President’s veto of the P2,000 pension hike, Speaker Feliciano Belmonte Jr. said Monday he would write to President Aquino and the Social Security System (SSS) his proposal for a moderate P1,000 pension increase without the need to go through congressional action.
This would be done by expanding the powers of the SSS to increase the premiums so that it would be able to implement the more manageable P1,000 pension hike.
“I go back to my plan, which doesn’t need congressional action – I will write the President and the SSS as well …na huwag naman P500, ibigay natin P1,000 at least,” Belmonte said.
Aquino defended his veto of the bill, saying a P2,000 pension hike for all 2.1 million pensioners would cost the SSS some P56 billion even though it only earns an annual investment income of P30 billion.
Belmonte said that while Congress approved the SSS hike, it was only the Lower House which approved on third reading the proposal to expand the powers of the SSS to include increasing the premiums of pensioners.
He said the lower chamber approved House Bill 6112 which seeks to amend the SSS Act by giving the SSS more powers, including the mandate to fix the employers and member-employees’ contributions.
The plan was to approve both bills to enable the SSS Board to implement a pension hike.
Sister bill
Belmonte said the sister bill would have given the SSS powers to increase premiums, similar to the power of the Government Service Insurance System. Belmonte was GSIS president and general manager in 1986.
He added that the bill would have also allowed the SSS more powers to recover revenue loss from pension hike, by empowering it to increase premiums as well.
“They have more chances to recover naman. Definitely, there’s money coming out without recovery. Pero they have greater authority to recover it through increased (premium), through changing some limitations that exist now in the SSS law, and so forth,” Belmonte said.
But the Senate failed to pass the sister bill, compelling Aquino to veto the bill. Aquino has since then been criticized for being heartless and lacking in compassion for shooting down the bill that would have benefited senior citizens and other pensioners.
“I fully expected at the last day na i-a-approve nila (Senate) but somehow, in-approve ung P2,000 pension hike pero hindi in-approve yung second bill,” Belmonte said.
Belmonte said he has urged Senate President Franklin Drilon to also pass the sister bill to enable the SSS to implement the moderate hike.
He said the sister bill would allow the SSS Board to approve a pension hike without the need for legislation.
“The SSS Board itself can very well on their own approve it (pension hike) without having to pass through Congress,” Belmonte said.
Compromise
Belmonte said the P1,000 pension hike is a compromise following a backlash on the President’s veto on the pension hike.
He said, however, that the SSS has not committed to implementing a pension hike once it is given more powers.
Belmonte added that Drilon only promised to do his best for the Senate to approve the sister bill.
Belmonte, however, scored the SSS for failing to send its executives during the congressional hearings when the proposed pension hike was in the committee level.
He said the SSS should have been more aggressive instead of being timid in pushing for a moderate pension hike.
“If I were in the SSS, I would have done my best for the directors to underline the importance and not send a legal officer… They should have been more aggressive,” Belmonte said.
Fiscally responsible
Belmonte, in an earlier interview, has said Aquino was just being fiscally responsible because a pension hike without an increase in premiums would bankrupt the SSS.
“PNoy chose to be a fiscally responsible leader, and not just one driven by current politics,” Belmonte said.
The proposed law vetoed by the President would have increased the monthly pension by P2,000 across-the-board – from P1,200 to P3,200 for those with 10 credited years of service, and from P2,400 to P4,000 for those with 20 years.
Communications Secretary Sonny Coloma said Aquino was worried that the “stability of the entire SSS benefit system” would be “seriously compromised” in favor of two million pensioners and their dependents, and would result in a negative income for the SSS.
Aquino added that the passage of the bill would force the SSS to use the Investment Reserve Fund (IRF) to fund the pension increase. He said this would result in the IRF reaching zero by 2029.
Bayan Muna Rep. Neri Colmenares, the author of the bill in the House, has criticized Aquino for being heartless in shooting down the proposed pension hike.
“Walang puso ba talaga si Pres.Aquino? This is patently anti-pensioner, anti-poor and anti-worker! The P2,000 hike is very reasonable and is badly needed by pensioners and their dependents,” said Colmenares, a senatorial candidate in the next elections, adding his call for Congress to override the veto. AU
