The BSP presented yesterday its financial sector restructuring and reform agenda that included administrative measures focusing mainly on state-owned pension funds, Social Security System (SSS) and the Government Service Insurance System (GSIS).
The BSP pushed for the introduction of clear credentials and qualifications for appointing members of the boards of SSS and GSIS, both of which are now facing serious actuarial problems due to declining collection and increasing claims.
The directorships and other top-positions at the SSS and the GSIS are some of the most coveted positions in the government.
"There is a need to clearly outline the regulations to diversify and further improve the management of all pension funds," said BSP Deputy Governor and officer-in-charge Amando Tetangco Jr.
According to Tetangco, government also needs to step in and make a policy decision on providing regulations that would allow SSS to increase member contributions that will narrow funding gaps.
The GSIS and the SSS are two of the biggest institutional investors in the country, holding significant shares in various listed companies, including banks.
With their finances approaching dire straits, however, the BSP has been urging immediate steps and policy decisions to prevent the pension funds from being depleted further.
On the other hand, the BSP also urged the legislation of the proposed amendments to its charter that would boost its regulatory authority as well as the bill that would allow the creation of the proposed credit information bureau.
As the Arroyo administration firms up its legislative agenda for presentation to the 13th Congress, the BSP has begun lobbying for the legislations that never made it through the 12th Congress.
The proposed legislations include the Corporate Recovery Act, the Pre-Need Bill, amendments to the Corporation Code, the revised Investment Company Act and the proposed People’s Equity Retirement Acccount (PERA) intended to mobilize savings.