SSS members oppose fund use

The Manila regional trial court was asked yesterday to declare funds of the Social Security System (SSS) private and not public to prevent the government from using the funds to finance mass housing.

The United SSS Members Inc. (USSSMI) also sought a temporary restraining order or writ of preliminary injunction to stop SSS officials from entering into contracts with any person involving specified accounts receivable and fixed assets of the SSS.

Legal counsel Guillermo Aragones also said USSSMI, the umbrella organization of more than 23 million members nationwide, is opposing the announcement of President Arroyo that SSS money, being government funds, will be used for mass housing for the poor.

"Why provide houses to non-SSS members using SSS funds when SSS members have to pay 30 percent of the total cost of the house as down payment without subsidy from the government?" Aragones asked.

He added that the government could not use SSS funds for its housing program because the funds are contributions of the private sector, exclusively sourced from the compulsory contributions of SSS-covered employers, employees, self-employed and voluntary members and from earnings derived from its invested funds.

The lawyer said USSSMI also rejects plans to increase its members’ contributions to avert a possible collapse of SSS by 2015. "There’s no need to increase the contribution rate of SSS members; what we need is a prudent management," Aragones said.

SSS Administrator Corazon de la Paz has recommended the increase in rate contributions which, together with a delay in the retirement, is a necessary measure for the SSS to be able to provide for the pension benefits of its current 23 million members.

De la Paz has also revealed that SSS resources are being depleted because of unsound benefit enhancements and improving life span of Filipinos against insufficient member contributions. According to her, contributions are so low and benefits, which were increased by Congress in 1997, are so high that SSS will have to shoulder P1.2 trillion in SSS liabilities up to 2015. She cited as an example that even with a one-time contribution of P84, a contributor can claim a P20,000 death benefit.

Aragones further stressed that USSSMI has the right to recommend who should head the SSS. Under the present setup, SSS is controlled by the Social Security Commission, which is composed of the secretary of the Department of Labor, a president and seven appointive members, three representing the employers group, three the workers group, and one the general public. All of the posts are appointed by the President of the Philippines.

The SSS president and personnel are considered government employees, remitting contribution with the Government Service Insurance System (GSIS) and not with SSS.

Artemio Andres, one of the USSSMI directors, said they hope to get a favorable decision from the Manila court.