Stop using bankruptcy as ‘scare tactic’ vs SSS pension hike—solons
Stop scaring the President and the people about the “phantom effect” of raising the pension of Social Security System (SSS) members, Bayan Muna Representative Carlos Isagani Zarate told the country’s economic managers on Sunday.
President Rodrigo Duterte earlier disclosed that he has not yet approved the proposed P2,000 across-the-board pension hike as he was advised by Budget Secretary Benjamin Diokno, Finance Secretary Carlos Dominguez III , and National Economic and Development Authority (NEDA) Director-General Ernesto Pernia that the SSS may go bankrupt.
But Zarate, one of those pushing for the pension hike in the House of Representatives, dismissed this warning by the Cabinet officials as another “scare tactic.”
“This is the same scare tactic used by the previous SSS administration,” the lawmaker said in a statement.
“It would be well for the three cabinet members to stop scaring the people, especially the President, for this phantom adverse effect once the current pension is increased,” he added.
Zarate said it would be “utterly ridiculous” for the three Cabinet officials to say that the SSS would go bankrupt since it would be given anyway in two tranches so the agency could still raise more funds.
He also pointed out that the proposed P2,000 pension hike would only translate to P66 per day “for the much needed additional fund for our senior citizens’ food, maintenance medicine and other expenses.”
“In fact, with the initial P1,000 increase beginning this month, that would mean just P33 per day of additional funds for the elderly pensioners,” Zarate said.
Bayan Muna chairman and former representative Neri Colmenares also asked the Cabinet officials to stop trying to “delude” the people and the President that the SSS has no funds for the P2,000 pension increase “because this is not true.”
“They are trying to sabotage the distribution of the P2,000 pension increase, even if it has actually admitted several times that it has the funds for the pension increase. At most, the increase will only shorten the SSS fund life to 2025-2029 instead of the current 2042,” Colmenares said.
“Assuming this is true, fourteen years is more than enough time for the government and SSS to find ways to increase its fund life,” he said.
Colmenares noted that in 2001, SSS claimed that it only had fund life of only five years and yet, it was able to increase this to 2042 in just 14 years.
“If it previously survived a five year fund life, then surely it can also survive a 14 year fund life. Truthfully speaking, we are in a better shape than the United Kingdom (UK) which has a fund life of only up to 2027 and Canada which has a fund life of 2022 or merely seven years,” he said.
Instead of harping on increasing contributions, Colmenares said, the SSS should improve its collection efficiency from the employers of its 31 million members; collect the billions in contributions from delinquent employers, who failed to remit in the last ten years; cut down in bonuses and perks given to its Board members and collect the disallowed more than P200-million retirement package given to SSS Board Members in 2009; and collect the fines imposed by the courts against employers who violated the SSS law.
And if the proposals were not enough, he said Congress can always provide for subsidies as provided for under the law.
Instead of blocking the pension hike proposal, Colmenares urged the Cabinet officials to just work with the SSS leadership and Congress in looking for ways to increase its current fund life. CDG
