SSS chief: No pension hike under Aquino

Social Security System President and Chief Executive Officer Emilio de Quiros Jr. speaks during a news conference at the SSS building, East Avenue, Quezon City, January 18, 2016. INQUIRER PHOTO / NINO JESUS ORBETA

OVER two million pensioners of the Social Security System (SSS) should not expect any increase in their pensions before President Aquino steps down on June 30.

SSS CEO and president Emilio de Quiros Jr., amid heavy criticism over the President’s unpopular decision to veto a bill seeking a P2,000 across-the-board monthly pension increase, said they were studying ways to improve benefits and increase the pension—with a corresponding hike in members’ contributions.

But this was unlikely to happen during the Aquino administration, as the issue would be politicized with the May elections just months away.

“Probability-wise, it may be difficult,” De Quiros admitted, when asked whether an increase in benefits or pension, even by a smaller amount, was possible in the next five months.

“We are always studying ways and means to improve the benefits. My concern is if we do it now and it’s an election year, what would people think? It’s under study but we need to look at it from that point of view.”

The SSS held a media briefing Monday to clarify the issue of the veto, which has drawn sharp criticism from pensioners and others, not just Mr. Aquino’s critics.

De Quiros reiterated it was irresponsible to implement the P2,000 pension hike without an increase in member contributions, saying this would lead to bankruptcy for the SSS in 11 years, or by 2027, instead of its current 26-year lifespan, or by 2042.

“We are sensitive to our pensioners but it has to be balanced. We cannot keep on spending without a corresponding [contribution] increase to support the SSS,” De Quiros said.

The SSS estimated that the P2,000 hike for about 2.15 million pensioners would cost P56 billion for 2016 alone. To fund this, the SSS would have to sell its shares of stock in listed firms at a loss given the lethargic stock market.

This means the SSS would lose P26 billion in 2016 instead of making a net income of P41 billion, he said.

Liberal Party standard-bearer Mar Roxas on Monday said the President’s veto of the pension hike might be unpopular, but it was the right thing to do.

But Roxas, who has been lagging behind his rivals in the presidential surveys, was unperturbed by the possible adverse impact of Mr. Aquino’s veto on his candidacy.

“The President did what was right. Why should he worry?” he said. “As a leader, not all your decisions would be popular. But in every decision, there’s right and wrong. We will do what’s right. That’s what daang matuwid (straight path) is all about, ” he told reporters.

Roxas said it was wrong to place the financial stability of the SSS on the line just because of the coming elections.

“I’m not saying the retirees don’t need financial help. What I’m saying is the help we will give should help strengthen the foundation and financial stability of the SSS.”

Not for political points

According to Roxas, financial experts had warned that approving the pension hike might bring financial problems for the SSS and lead to its bankruptcy.

“If we do it, we may look good for the next one, two or three years, but the pension of other SSS members would be lost. So what’s right about that? Should we do this for political points? I don’t think so. I will not support it,” he said.

Sen. Bongbong Marcos Monday conceded it would be difficult for Congress to override President Aquino’s veto of the SSS pension hike.

“It is very difficult to override [the veto] because you need a two-thirds vote. The best way is for the executive and legislative to work together to improve collection [of SSS contributions] and investment returns so we can get P2,000,” he said.

Marcos, however, said he supported a compromise measure to increase the SSS pension by P1,000.

“If the [SSS] is managed better, the P2,000 is possible. At least as an interim measure, we can settle for P1,000,” Marcos told reporters during a visit Monday to the University of Caloocan City North campus.

Marcos, who is running for Vice President as an independent candidate, said he was still planning to campaign together with Sen. Miriam Defensor Santiago, who is battling lung cancer.

“That’s what we’re going to do, so long as she is able. That’s what we’re planning for,” he said of the presidential candidate.

As this developed, Speaker Feliciano Belmonte Jr. blamed the top executives of the SSS for the public backlash over the vetoed pension hike.

In a press conference, Belmonte called the top SSS officials led by De Quiros “timid” and “not aggressive” in clarifying to lawmakers the negative impact of a P2,000 pension hike on the viability of the SSS when Congress was deliberating on the bill.

“They did not send anybody knowledgeable [on the matter], they only sent their vice presidents here (Batasan)… I did not see De Quiros or any of the directors,” said Belmonte.

Bayan Muna Rep. Neri Colmenares called the SSS commissioners “lazy” and “greedy” for refusing to improve the SSS’ atrocious collections while continuing to reward themselves with fat bonuses and perks every year. With reports from Dona Z. Pazzibugan and Gil Cabacungan