SSS will not be affected by any transition, Palace assures

Manila (2 September) — Funds managed by the Social Security System (SSS) will be well-protected and managed well, whoever sits as its leader, as pensioners’ welfare is the government’s primary concern.

The government assured that any transition in SSS will not adversely affect its funds’ status as this has been secured by the government since the start of the present administration in 2001.

“SSS will not be affected. Whoever sits will only improve SSS,” Presidential Deputy Spokesperson Anthony Golez Jr. said.

While the Ombudsman has recommended the filing of graft charges and the imposition of a six-month suspension against SSS administrator Romulo Neri, Golez said it is unfair to already “float names” on his replacement.

“He’s been very loyal to the President, and he (in turn) enjoys the trust and confidence of the President,” he said.

Neri announced last week that SSS has been able to reverse a potential reduction in revenue, particularly from members’ contribution of the pension fund.

Contributions totaled P36.3 billion as of the first half of the year, a 6.5 percent increase from the same period last year, despite some factory shutdowns and retrenchments.

This still outpaced benefit payments amounting to P35.65 billion during the same period.

SSS’s investment income also grew in the first half to P11.18 billion, which is higher by 24 percent compared to the targeted investment income for the same period.

During the term of President Arroyo, SSS has been able to reverse a potential depletion of the pension fund through an intensive revenue collection effort and a minimal increase in members’ contribution.

This extended the life of the pension fund. As of 2001, SSS’s pension fund was projected to have a life of just 10-15 years. As of 2007, its life span has doubled to last up to 2038. (PIA)