PNoy rejects SSS pension hike bill

[joemarski]

Paano naman kaya nauwi na dapat 2k ang itaas ng pension? Magaling siguro ang researchers nun at alam ang data related to cash flow, expenses, estimated revenues, trading gains, atbp ng mga susunod na taon

^ 'yan din ang gusto kong malaman. Dapat inilagay na rin nila sa website kung paano, gaya nito:
Download SSS Contribution Table - Latest SSS Contribution Schedule. | Download SSS Contribution Table. SSS Contribution Schedule. The Social Security System (SSS) contribution table is the schedule used by members to identify which monthly salary bra . Naisip ko lang na maybe, pandagdag sa pambili ng maintenance
medicines i.e. para sa high blood and/or diabetes. Pero kulang pa rin ang monthly 2k.

correct me if i'm wrong na lang... afaik, 1. minimum 120 month contributions para maging pensiyonado ka,
2. 'yang 2k na 'yan eh para dun sa mga taong tumatanggap lang ng minimum pension, 3. kung mas malaki
ang naging contributions mo, mas malaki rin pesiyon, mas malaki sa 2k ang increase.

tsk, tsk, tsk, ... sana itinago na lang muna "nila" ito, hindi naman pala aaprubahan eh. Alam naman nila ang
mga madlang pipols, 'pag sinabi mong increase na pakikinabangan nila, siyempre tuwang- tuwa na sa galak
'yang mga 'yan at umaasa siyempre sa approval. Kaso nga lang, "disapproved / rejected".
Wrong timing talaga itong si Abnoy, disgrasya bata niya dito :bwahaha:

[safeorigin]

honestly, any country would be better off without socialism in the long run.
the more socialized services expand to cater to the current generation, the more you rob the future generation because it will ultimately result in defecits. Didn't work for any country in the past and present; don't see how it will be sustainable in the future.

[boomshine]

2k increase across all the pensioners hindi yata ok yan, but hindi rin ok yung mga benefits ng mga empleyado ng sss

[KenGarcia]

Napanood ko sa TV yung explanation ni Pnoy, sabi nya pwede daw nya pirmahan yang increase para makapagpapogi. Kaso nga lang by next year lugi na agad ang SSS at by 2027 baka magsara na (and by 2027 baka wala ng makaalala sa kanya haha). Kawawa naman daw ung mga nagsisimula at kasalakukuyang natagtrabaho ngayon, wala ng aabutan na pension by that year.

[anonemus]

Napanood ko sa TV yung explanation ni Pnoy, sabi nya pwede daw nya pirmahan yang increase para makapagpapogi. Kaso nga lang by next year lugi na agad ang SSS at by 2027 baka magsara na (and by 2027 baka wala ng makaalala sa kanya haha). Kawawa naman daw ung mga nagsisimula at kasalakukuyang natagtrabaho ngayon, wala ng aabutan na pension by that year.

Excuse, este, explanation ni Pnoy. Pero walang alternatives.

https://youtu.be/q7arjzmE204

On a related note, salaries and allowances ng mga SSS officials

[safeorigin]

haha, that's socialism for you. state coerces businesses into social services, the head will be showered in monopoly cash.

gee, I wonder who came up with that brilliant idea!

[Juan Martinez]

Excuse, este, explanation ni Pnoy. Pero walang alternatives.

https://youtu.be/q7arjzmE204

On a related note, salaries and allowances ng mga SSS officials

is monthly or annual salary?

[Ry_Tower]

is monthly or annual salary?

Does not really matter really. Kahit monthly pa bro, mas mataas pa din sa president suweldo nila hahahah. Pucha.

[anonemus]

is monthly or annual salary?

From the news, I got the impression that those are annual figures.

---



On a related note, is the veto just part of a scare tactic?

"All social security systems around the world have a limited fund life. Some countries have a short fund life of only 12 years or up to 2027, like the United Kingdom’s social security system.* Canada’s fund life is only up to 2022.

For SSS to claim that shortening its fund life to only 14 years or up to 2029 will lead to its bankruptcy is a scheme to scare those who do not understand the actuarial potential of a 14-year fund life. After all, SSS did not find the situation worrisome enough to initiate institutional reforms when it officially admitted to having a five-year fund life in 2001.

The unfunded liability argument, which SSS claims amounts to P1.19 trillion* is a similar scare tactic. All government pension schemes have unfunded liabilities, many of which are larger than that of the* Philippines** per capita but none of them went bankrupt.* A study by Richard Marin (2014), “Surviving the Global Pension Crisis,” showed that* the Philippines was better off than many countries.* (See Table 1.)

The Philippines has a low-funding gap of $22.92 billion or 8.2 percent of the gross domestic product (GDP). Ireland, which has a lower GDP, has a huge funding gap of $320 billion or 156 percent of its GDP.

Unfunded liability is manageable if SSS institutes reforms in the next 14 years to expand its* investment reserve fund. It requires a strong political will on the part of both the Senate and the House of Representatives to come to the succor of senior citizens and approve the proposed pension-increase law."



Read more:*Pension hike reasonable, feasible | Inquirer Opinion
Follow us:**inquirerdotnet on Twitter*|*inquirerdotnet on Facebook

[Flipo]

From the news, I got the impression that those are annual figures.

---



On a related note, is the veto just part of a scare tactic?

"All social security systems around the world have a limited fund life. Some countries have a short fund life of only 12 years or up to 2027, like the United Kingdom�s social security system.* Canada�s fund life is only up to 2022.

For SSS to claim that shortening its fund life to only 14 years or up to 2029 will lead to its bankruptcy is a scheme to scare those who do not understand the actuarial potential of a 14-year fund life. After all, SSS did not find the situation worrisome enough to initiate institutional reforms when it officially admitted to having a five-year fund life in 2001.

The unfunded liability argument, which SSS claims amounts to P1.19 trillion* is a similar scare tactic. All government pension schemes have unfunded liabilities, many of which are larger than that of the* Philippines** per capita but none of them went bankrupt.* A study by Richard Marin (2014), �Surviving the Global Pension Crisis,� showed that* the Philippines was better off than many countries.* (See Table 1.)

The Philippines has a low-funding gap of $22.92 billion or 8.2 percent of the gross domestic product (GDP). Ireland, which has a lower GDP, has a huge funding gap of $320 billion or 156 percent of its GDP.

Unfunded liability is manageable if SSS institutes reforms in the next 14 years to expand its* investment reserve fund. It requires a strong political will on the part of both the Senate and the House of Representatives to come to the succor of senior citizens and approve the proposed pension-increase law."



Read more:*Pension hike reasonable, feasible | Inquirer Opinion
Follow us:**inquirerdotnet on Twitter*|*inquirerdotnet on Facebook

Bro with due respect. so it will come down to which opinion is credible, Colmenares or Monsod?

Legislators thinking of themselves in pushing SSS pension hike | Inquirer Opinion

[Flipo]

Napanood ko sa TV yung explanation ni Pnoy, sabi nya pwede daw nya pirmahan yang increase para makapagpapogi. Kaso nga lang by next year lugi na agad ang SSS at by 2027 baka magsara na (and by 2027 baka wala ng makaalala sa kanya haha). Kawawa naman daw ung mga nagsisimula at kasalakukuyang natagtrabaho ngayon, wala ng aabutan na pension by that year.

Ako nga pensioner na, inintindi ko na lang!

Comment ni ex sen. Ernesto Maceda na kaalyado ni Binay, na bihirang mag-agree kay Pnoy!

P-Noy vetoes SSS pension increase

President Aquino said the increase, if approved, would have resulted in a total payout of P56 billion annually, which will yield a deficit of P16 billion to P26 billion annually, that will endangered the financial stability of the SSS.

The vetoed bill goes back to Congress for a possible override, which requires a two-thirds vote of both Houses.

The President acted correctly. The amount of pension benefits should be decided by SSS management, not by Congress.


Pero bagong balita pinarereview ni Pnoy sa SSS management kung pwede yung 500 pesos increase!

[kimbon]

Ako nga pensioner na, inintindi ko na lang!

Comment ni ex sen. Ernesto Maceda na kaalyado ni Binay, na bihirang mag-agree kay Pnoy!

P-Noy vetoes SSS pension increase

President Aquino said the increase, if approved, would have resulted in a total payout of P56 billion annually, which will yield a deficit of P16 billion to P26 billion annually, that will endangered the financial stability of the SSS.

The vetoed bill goes back to Congress for a possible override, which requires a two-thirds vote of both Houses.

The President acted correctly. The amount of pension benefits should be decided by SSS management, not by Congress.


Pero bagong balita pinarereview ni Pnoy sa SSS management kung pwede yung 500 pesos increase!

si manang Maceda naman parang di naging senador ng ilang terms. don't waste our time anymore if the SSS management would be decided the pension. they will clearly protect their vested interest.

[boomshine]

Bakit kaya soooobrang dami ng VP ng SSS?

[screws]

Where is the SSS money invested nowadays?

Does it even have a contribution to nation building?

[XploY]

Where is the SSS money invested nowadays?

Does it even have a contribution to nation building?

It was invested by then Pres Erap in First Pacific Holdings.

[screws]

It was invested by then Pres Erap in First Pacific Holdings.

wonder how SSS portfolio look like..

by the way, contrary to what some forumers think of the SSS tops salary, those salaries they get is ok. correct me if im wrong but SSS is a quasi public corporation so salary is probably pegged to industry standards. even charities pay tops to attact good candidates.

[vinj]

wonder how SSS portfolio look like..

by the way, contrary to what some forumers think of the SSS tops salary, those salaries they get is ok. correct me if im wrong but SSS is a quasi public corporation so salary is probably pegged to industry standards. even charities pay tops to attact good candidates.

Yup. Pay peanuts and you get monkeys. It would be different though if they were rewarding themselves excessively. Heck, politicians still steal more than that too.

[Lew_Alcindor]

wonder how SSS portfolio look like..

by the way, contrary to what some forumers think of the SSS tops salary, those salaries they get is ok. correct me if im wrong but SSS is a quasi public corporation so salary is probably pegged to industry standards. even charities pay tops to attact good candidates.

Fair enough. But does the SSS give an insutry-level standard of service?

[Flipo]

Social security
DEMAND AND SUPPLY By Boo Chanco (The Philippine Star) | Updated January 18, 2016 - 12:00am
----
But here as it is there back home, social security is all about long term viability. It means keeping the fund healthy enough to provide the benefits promised its members. This is why even if as a retiree I will benefit from the recently vetoed proposal to raise SSS pension benefits, I can see why P-Noy did the responsible thing.

I remember that when it was pointed out to Sen. Cynthia Villar that the proposal will shorten the actuarial life of SSS funds, she rejected the comment saying in so many words there is time to let the future take care of shortfalls. There is a need now and they are providing for that need.

It was obvious that the need the senators and congressmen had in mind was in aid of election. They needed to be able to point out to something as their accomplishment. It is clearly a shortsighted proposal.

There is no such thing as a free lunch. Someone has to pay the bill at some time. Some say the increase is needed for social justice sake. Then they should call for a subsidy out of the National Treasury. The proposed increase in pension by itself would deplete the fund.

But increasing contributions, a logical companion move to the vetoed bill, is not popular with the employers and members. Or, as former NEDA chief Solita Monsod pointed out, they could have made SSS like GSIS which provides more benefits as a result of its contributions structure. Government employees contribute nine percent of their income every month to the GSIS. SSS members contribute only 3.63 percent of their income to the SSS.

SSS also puts a ceiling on that 3.63-percent contribution to a maximum P15,000 of income, while GSIS members have no such ceiling; they pay nine percent on total income. The government contributes 12 percent of income as its contribution, so the total is 21 percent.

In the SSS, employers pay 7.36 percent, so the total is 11 percent. If the private sector wants larger pensions, it should contribute larger amounts. Or maybe the time is ripe for a unified social security system combining the pool of government and private sector workers under one set of rules as in many countries.

For now, SSS must also think of members other than retirees. It provides current working members benefits like salary loans, sickness and disability payments, and assistance for members who are victims of disasters and catastrophes. Most importantly, it must make sure it has enough funds to provide pensions in the future.

At present, SSS funds are projected to last for 27 years, until 2042. Raising pensions by P2,000, as proposed by the bill, will nearly cut the SSS fund life in half, from the current 27 years to only 14 years, with the funds only sufficient until 2029.

What the proposal will do is put the social security benefits of our younger generations at risk. I don�t think that is fair to them, specially because pension benefits today are being paid by these young workers now. We are talking here of the interests of 30 million members against that of 2 million pensioners.

Many people forget SSS is not funded by the government. We, its members, fund it with contributions. The fund must grow through investment gains to meet its commitments.

Simply, SSS revenues or fund inflows come from contributions and investment income. Benefit disbursements and operating expenses constitute outflows. The average net revenue for the past five years (2010 to 2014) has increased to P33 billion compared to the average net revenue of P8 billion from 2000 to 2009.

But, as SSS chairman Johnny Santos explained to me some months ago, the strong performance in SSS net revenues can easily be nullified by drastic increases in outflows such as the proposed P2,000 monthly pension increase.

Johnny pointed out that net revenue in 2014 was P44.5 billion and implementing the proposal will require at least P56 billion per year. That wipes out revenues and will require SSS management to dip into the reserve fund for the deficit. This scenario will worsen in succeeding years, as the number of pensioners continues to grow.

SSS management pointed out during the public hearings that this has happened before. SSS had to repeatedly consume part of its reserve funds to meet its benefit obligations due to successive pension hikes in the past without the corresponding increase in contribution rates. The responsible thing to do in managing pension funds is to think long-term.

There have been observations about so called excessive compensation being collected by SSS management. What is excessive depends on two things: one, what the law allows and second, performance.

Getting good money managers to look after the fund means we must be ready to pay the price. The way I see it, the guy who calls the shots on investment decisions should get compensation that is competitive to what someone in the private sector with the same skill and reputation gets. Giving them their due also eliminates an excuse for corruption.

Alternatively, the responsibility for investing SSS funds can be given to a private fund management firm for a fee based on an agreed performance criteria. This way, we don�t have to worry about overpaying SSS officials who are government employees and still get professional performance.

Maybe, we can save some money in compensating members of the Board who do not have day to day management responsibilities. They should serve in the interest of public service and not look to SSS for extraordinary compensation and perks. Besides, these are mostly political friends who contribute little or nothing to SSS. The SSS president should also not get what looks like double compensation because he also sits in the board.

How well are they managing SSS funds? According to materials shared with me by Johnny Santos, they did rather well. �The average return on SSS investments reached of 9.8 percent from 2009 to 2014, higher than the 5.5 percent average of benchmark rates over the same period. These benchmark rates include the inflation rate, the 10-year Treasury bond rate, and the 365-day Treasury bill rates.�

That�s pretty good performance, specially at this time. Indeed it makes sense for some members to have the option of making additional contributions for the purpose of having SSS manage it. This will make the pension mean more when one hits retirement age. Right now, the top monthly pension of less than P15,000 means little to high earning members who contributed at the maximum rate during their working years.

The presidential veto of this obviously politically motivated measure should spark serious discussions of how to make our SSS more relevant to its members. And we don�t have to reinvent everything because there is a wealth of experience on how to do it right from many countries.

We just have to be serious about fixing the system for good.


President Aquino said the increase, if approved, would have resulted in a total payout of P56 billion annually, which will yield a deficit of P16 billion to P26 billion annually, that will endangered the financial stability of the SSS. Ang abnormal yung nagpapa-poging nagpanukala ng batas na wala naman ibinigay na alternative para ma-offset yung gagastusin. Sa totoo lang ang daling magpa pogi para kay PNOY at hayaan na lang ang susunod na admin ang mamroblema pero di naman kasi pa pogian ang pagiging presidente e. Kaya nagkakandaletse letse ang Pilipinas kasi ang daming pangit na pulitiko ang gustong gumuwapo. Papasayahin mo ang ilang libong retirees ngayon tapos yung milyun-milyun na naghuhulog ngayon papangangahin mo sa dulo kasi wala ng pera para sa kanila.

[H1Tman]

Colmenares was not concerned at all on the future effect of the increase to SSS. Typical leftist thinking, basta ibigay nyo no matter what. [emoji123]🏻bahala kayo kung mabangkarote pondo ng SSS.