SSS bonuses lawful, authorized by proper government agency
This refers to Amando Doronila’s article titled, “Fat bonuses of SSS execs untouched” (Front Page, 1/25/16).
We would like reiterate that the grant of performance-based bonuses (PBB) to Social Security System officials and employees are authorized by the Governance Commission for GOCCs (GCG), the oversight body tasked to religiously monitor the performance of government-owned and -controlled corporations (GOCCs), and to grant the authority to give the PBB. The grant is based on the accomplishments of the SSS which is evaluated annually by the GCG.
The PBB is a merit-based incentive given not only to the SSS but to other GOCCs as well. The amount of PBB depends on the performance of the institution and is subject to the guidelines of the GCG. The SSS is evaluated through a scorecard which contains its performance targets for the year. In order to qualify for the PBB, the SSS must accomplish at least 90 percent of its GCG-approved performance targets.
The SSS is open to public scrutiny, and its financial statements and accomplishment reports are available in its website as confirmed by the GCG. These reports validate our continuous efforts to improve the benefits of our pensioners while ensuring the financial viability of the SSS fund.
As caretaker of the pension fund, the SSS has implemented reforms to strengthen the financial soundness of the institution and ensure that its members will continue to benefit from their contributions.
An example of the benefit-value per peso-contribution in the SSS: A member who has paid the minimum contribution (P110 per month) for 10 years and who will receive his monthly pension for 10 years would have a return of P156,000 from his P13,200 paid contributions.
In Doronila’s case: Based on his SSS records, he paid a total of 203 monthly contributions to the SSS. These amounted to P22,069.26. Since February 1993, he has been receiving a monthly pension from the SSS which, as of January 2016, has amounted to P936,507.38. This shows that his contributions redounded much to his benefits.
For members to continue enjoying their SSS benefits, we must safeguard the solvency and long-term viability of the fund since the SSS is a long-term proposition that has commitments to its members —commitments that extend many decades into the future.
The total amount of monthly pension that Doronila has received from the SSS, as compared to what he contributed, is proof that the SSS fund remains strong and sufficient to finance all benefits.
Therefore, we have to provide a competitive compensation to fund managers who have the skill to manage the SSS members’ contributions and make good returns from SSS assets so they will continue to benefit from every peso they contribute to the SSS.
—MARISSU G. BUGANTE, vice president, Public Affairs and Special Events Division, Social Security System
