It is difficult to speculate whether the Social Security System can afford to give P2,000 to SSS pensioners, as initially proposed, without looking into the books of the SSS.
Sen. Serge Osmeña, Sen. Cynthia Villar, Rep. Neri Colmenares and many others, including myself, committed the mistake of making a conclusion on whether or not the SSS can afford the increase.
The SSS, as can only be expected, defended itself, citing figures and actuarial evidence.
In this connection, with the objectives of knowing and helping improve the operation of SSS, may I suggest: Considering that the issue impacts exclusively private sector executives and employees, a consortium of private accounting firms (like Sycip, Valdes, Manabat, Pellas, Cunanan) should be tapped by the Office of the President to audit jointly the books of SSS—and this may be done with or without government-funding.
Also, the SSS should post on the Internet its financial statements—balance sheet, income statement—with adequate detailed disclosures, in keeping with accepted accounting standards. And it should be more public about the status of its investment portfolio.
We note that in a span of 50 years, the Government Service Insurance System made tremendous growth, bringing its assets’ value up to P788 billion. The SSS, on the other hand, appears stagnant or depleted as its assets are worth only P1.8 billion over the same span. But the SSS has some 30 million members, while the GSIS has only 2 million, more or less.
If the SSS is always in the red, what is the justification for the grant of the “too generous” bonuses and perks to its board members?
Can the SSS afford at this time a P1,000 pension increase, instead of P2,000? The premium contributions it is collecting annually reaches up to some P128 million; but it is paying some P101 million to pensioners, according to Corazon dela Paz-Bernardo, former SSS president and CEO. But the total income of SSS in 2014, including from other sources (e.g., investments and SSS loans, reportedly amounted to only P326 million.
Is there really a need to increase the premium contributions of SSS members—as proposed, it is from 11 percent to 14 percent? Notably, the proposed increase in GSIS premium contribution is from 9 percent to 12 percent.
All the above statements are speculative, subject to correction by the SSS and actual, independent audit by private accounting firms.
—JOSE ALDEA, jsaldea12@yahoo.com