SSS bankruptcy threats a result of ‘management failure’—ex-DILG chief

The failure of President Benigno Aquino III to approve a bill seeking a P2,000 across-the-board hike in pensioners’ benefits of the Social Security System (SSS) supposedly due to threats of bankruptcy was a result of management problems hounding the state-run fund.

Thus said Rafael Alunan III, a former secretary of the Department of Interior and Local Government, when asked about his thoughts on the President’s veto on the proposed SSS pension increase.

Alunan on Thursday said SSS officials could have sat down in the past and talked about possible solutions for the looming problems threatening the fund’s viability or stability.

“Everybody was taken by surprise. That’s what we call as failure of completed staff work. It’s basic management. If they were focused on their jobs, they could have anticipated the problems along the road,” Alunan said during the Pandesal Forum at Kamuning Bakery Cafe in Quezon City.

“Eh ngayong pumutok na sa mukha nila, they are even mishandling the PR crisis,” he added.

Noting that SSS was a government arm that aimed to “help secure society,” Alunan said bankruptcy threats “could have been avoided in the first place” if there was efficient planning and management.

“If you were really focused on increasing benefits, (you should have talked about) ano ang kailangan gawin para i-make sure na hindi maba-bankrupt ang SSS, if we need to amend our charter or presidential action. Wala naman ganun eh. There was no explanation,” he said.

Both the Malacañang and SSS officials defended the President’s decision to veto the bill, saying a pension hike would have negative consequences to the fund’s viability, as well as to current pensioners and members.

“The P2,000 pension increase would lead to a projected deficit of P26 billion for 2016 from an expected income of P41 billion,” SSS president and CEO Emilio de Quiros Jr. said in a statement. “As the number of pensioners grows, the initial P56 billion in additional benefit outlay per year would increase, which in turn would contribute to the rising annual deficit or net loss incurred by SSS.”

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