SSS suspends controversial pension policy

The Social Security System (SSS) has suspended a management order to cut off lifetime pension for elderly members, who reached age 65 last April but short of the required 120 monthly contributions, a senior official said on Monday.

SSS Vice-President Agenes San Jose said the suspension of circular issued by President and Chief Executive Officer Emilio de Quiros will be reviewed following complaints from members who described it as “illegal” and “insensitive” to the plight of senior citizens.

“We are not insensitive to the issues being raised, and the Commission together with management agreed to revisit the guidelines, which the System issued last April 2013,” San Jose said.

San Jose was referring to the Social Security Commission (SSC), the policy-making body of the SSS. The Fund has 29 million members, who comprise more than half of the entire labor force in the country.

Manila Standard Today exposed the onerous provisions of SSS circular 2013-003, which gave 65-year-old members 90 days to apply for voluntary payments to complete 120 contributions. After the grace period from April 1 to July 1, the 65-year-olds will only get refund of their contributions.

In a previous interview with the Manila Standard, SSC member Diana Pardo-Aguilar said cutting off 65-year-old members would help extend the actuarial life of the Fund and broaden its number of paying members.

“For every new member, we will incur unfunded liabilities because of structural defects. We are plugging the holes to the extent that we can today,” Pardo-Aguilar said.

Pardo-Aguilar said the SSS has an estimated total unfunded liabilities of more than P1 trillion.

SSS retirement, death and funeral officer Zenaida Losarito had said the circular was based on a 1968 SSC resolution, which management sought to implement to protect the viability of the fund.

Several members of the House of Representatives had expressed anger at the SSS circular, which disenfranchised almost two million elderly members, and they called for a congressional probe on the issue.

DeQuiros should be summoned to answer questions during the question hour, one legislator said. –Jennifer Ambanta, Manila Standard Today