MANILA, Philippines -- Except for condoning of penalties and surcharges on loans, the Social Security System (SSS) cannot give additional benefits to its members without putting the agency?s existence at risk, its president, Romulo Neri, said Wednesday.
Neri said SSS has tightened its finances after losses in the stock market because of the financial crisis.
At this point, he said giving additional benefits to members would "endanger the SSS's actuarial viability."
The state-run agency, which handles pension funds of workers in the private sector, relies mainly on contributions of its members. The actuarial life of SSS fund is estimated to last until 2036.
"Right now our contributions, vis-a-vis benefits, are really very tight. In other words, our margins are really very small and we're relying basically on the returns on our investments to pay for our day to day expenses and to accumulate our funds to ensure the viability of our funds over time," Neri told reporters in an interview after attending the hearing of the House economic affairs committee, which tackled measures to address the global financial crunch.
But Neri said he has told President Gloria Macapagal-Arroyo that the SSS could contribute to efforts at cushioning the crisis? impact by condoning the penalties and surcharges on its members? loans.
"This could [cost] about P10 billion from condonation," he added.
Earlier, Socioeconomic Planning Secretary Ralph Recto said the SSS, Government Service Insurance System, which covers state workers, the Philippine Health Insurance Corp. (PhilHealth), and the Pag-Ibig Fund for housing, could increase benefits to their members to stimulate consumption and keep the economy going amid the crisis.
Recto said the increased benefits, which could total to P30 billion, would be part of the P330-billion economic resiliency package of the Arroyo administration.
"If you're a senior citizen and you're a pensioner of SSS, and we can afford to give an additional benefit, why not? Which will not destroy the actuarial [standing] of SSS for that limited period of time during this crisis," Recto had said.
