Cases vs. delinquent employers decline-SSS

STATE-RUN Social Security System (SSS) said the number of cases it filed against delinquent employers fell in the first half of this year.

In a briefing, Romulo Neri, SSS president, said the pension fund filed 565 cases against delinquent employers in the first semester, down 37 percent from 895 cases in the same period last year.

Neri said that most of the cases were for failure to remit contributions, which is the most frequent violation.

“We are pleased that there is less need to put pressure on employers through legal action now, which indicates more compliance of companies with the law,” he said.

But Neri said the pension fund would continue employing legal means to compel employers to fulfill their responsibilities under the law.

Employers who violate the Social Security Law may face imprisonment of up to 20 years on top of fines and penalties. SSS imposes a monthly penalty of 3 percent for overdue contributions.

Neri said the pension fund did better in the first half, citing its income from investments as well as from its lending program.

The SSS reported that its total revenue in the first half surpassed its target by 3.11 percent to P47.48 billion, while income from investments and other sources totaled P11.18 billion.

“It’s because of better stock market conditions and the relentless efforts of SSS to go after delinquent employers and compel them to fulfill their duties under the social security law,” Neri said.

“SSS is very liquid. Our stocks are doing well. We are putting our money in prime bonds. We can assure you that we can be around for like 50 years or more,” he said.

The pension fund owns stock in Philex Mining Corp., Philippine Long Distance Telephone Co., Manila Electric Co., among other listed firms.

SSS also collected P586.2 million in late payments from delinquent borrowers who benefited from its amnesty for short-term loans.

The amnesty covers salary, calamity, emergency, educational, study now-pay later, vocational-technical, Y2K, stock investment and privatization fund loans.

Contributions from the self-employed in the first half of the year inched up 19.8 percent to P2.3 billion from P1.92 billion.

Neri urged SSS members to pay their loans on time to avoid accumulating penalties and future deductions from their retirement, total disability or death benefit claims.

The pension fund chief also called on small and medium enterprises to have their employees covered. –Lailany P. Gomez, Reporter, Manila Times