One of our biggest character flaws as Filipinos is the desire for instant gratification – wanting something to be done at once without looking at the whole picture or taking into consideration the possible consequences later on. Such is the situation regarding the proposed bill to increase the pension of Social Security System beneficiaries, which President Aquino vetoed.
I checked with several finance experts familiar with the SSS and they all confirmed to me that unpopular as it was, the President did the right thing in vetoing the bill in its present form because it would have depleted the funds by 2029, since the provisions did not indicate a funding source to support the proposed P2,000 pension increase. Passing the bill would have been “financial suicide” as Senator Serge Osmeña described it because the country’s credit rating would eventually be downgraded – which would bring the economy back to square one.
Unfortunately, people are focusing on the veto itself but not on the reasons why the President deemed it the right thing to do at this time. Let’s face it, if the President only wanted political expediency, then it would have been so easy to affix his signature to the bill and get brownie points from voters who will look more favorably towards Liberal Party standard bearer Mar Roxas. But I’m sure the President was properly advised that the measure would only benefit the two million current pensioners but would be detrimental to the rest of the 30 million SSS members who will be left “holding the bag” when the money runs out 13 years from now. Nothing will be left for the rest of the paying members.
While it is true that the bill had passed through both the Congress and Senate, the provisions were not – as Senator Osmeña himself admitted – thoroughly scrutinized because the legislators were swamped by a lot of other bills they were trying to pass. This admission comes as a shock and disappointment to many who feel that Congress should be more circumspect, especially since the bill was approved in a rather hasty manner.
Some also blame the PLLO (Presidential Legislative Liaison Office) for failing to do proper coordination between the President and both houses of Congress. Had the PLLO been doing its job, there would have been an opportunity for the President to cascade his misgivings about the bill before it was passed – hence, the veto would not have happened because the bill would have been more thoroughly crafted with problematic provisions addressed first.
Nobody wants to see the state-run agency go bankrupt, as it would be thoroughly unfair for young workers today to find they have nothing to look forward to when their retirement approaches. One of the proposed solutions would be to increase the contribution of current members – something that should be thoroughly studied since it appears that there have been several pension hikes in the past with no corresponding adjustments made on the rate of contributions. As Labor Secretary Rosalinda Baldoz also explained, funeral and sickness benefits were increased in the last couple of years while rehabilitation coverage has been extended even to temporary workers, unlike in the past when only permanent employees were entitled to such.
However, it is understandable why members are against the proposal to increase the amount of contributions and why pensioners are angry about the veto because the pension fund is reportedly mismanaged – and yet the executives still give themselves fat perks and bonuses. Many also agree with Senator Bongbong Marcos that the managers should be made to account for the alleged mismanagement. There are allegations that the collection rate does not even reach 40 percent – meaning 60 percent is delinquent. There are also allegations that the fund managers made some bad investments. For instance, the SSS reportedly bought a lot of condominium units but instead of generating income, these units lie idle, incurring expenses for utilities, maintenance and other fees.
SSS executives denied these allegations, saying their collection efficiency rate is at 88 percent. However, people still want the management to explain how collection can be enhanced and want scrutiny on the expenses incurred by the agency. Nine SSS execs are facing graft charges before the Office of the Ombudsman for allegedly mismanaging the funds.
Admittedly, the presidential veto is a very unpopular move, but I believe it was the right thing to do at this time even if it will benefit many of us senior citizens. Approving the bill in its present form would have been unfair to many young employees who will be retiring 15 years from now.
PeopleAsia to hold People of the Year awards
PeopleAsia magazine will be holding one of the most anticipated and prestigious events of the year at the Sofitel – the “People of the Year” awards that recognizes some of the most exceptional and inspiring individuals in the country. Now on its 11th year, People of the Year has since spawned other imitation awards. We feel very flattered because as they say, imitation is the best form of flattery.
Among the past awardees include the late President Cory Aquino, and this year, we are launching the Max Soliven Lifetime Achievement Award in honor of our late publisher and chairman. Max and I launched the magazine 16 years ago with former President Joseph Estrada as guest of honor – at the very same hotel where the awarding will be held. Today, the magazine’s success has been more than phenomenal.
Not surprising at all that we now have people calling our office wanting to be invited. Unfortunately, we can only accommodate so many for such a grand event.
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