Another occasion for complaining

Once again, the Social Security System has provided us another occasion for complaining—it did not keep its earlier promise to release this month the 5-percent pension adjustments for June, July and August.

This lapse is certainly trivial and preventable, yet we are complaining. In our country, some—even if unorganized—must complain to point out malpractices otherwise they would continue unchecked and unreformed.

For instance, when Benhur Luy initiated a personal complaint for illegal detention against Jenny Napoles, he probably did not foresee that it would lead into unearthing the alleged shameful pork barrel scams of our political leaders. Scarce and precious public funds would have been wasted unabatedly on more creative versions of Priority Development Assistance Fund, Disbursement Acceleration Program and Malampaya Funds.

Thus, Fred, Tito and I—all pensioners—didn’t mind joining anti-PNoy protesters and signing the people’s initiative petition against pork barrel despite the dwindling crowd at Luneta last August 25. For us, it was an afternoon that was well-spent—much better than watching never-ending telenovelas or listening to pro-PNoy activists re-affirm their faithfulness to his reform agenda.

All along, we have sympathized with SSS pensioners in their clamor for a pension increase. Like them, we also appreciated the importance that then-president Gloria Macapagal-Arroyo gave to the last pension adjustment of 10 percent when she personally announced it during the SSS golden anniversary celebration in 2007.

Without citing reasons, SSS casually announced last June the 5 percent pension adjustment despite being unprepared to immediately pay out. SSS promised instead to release the June, July and August increases together with the regular pension for August.

But SSS released only the 5 percent for August and did not bother explaining what had happened to the June and July adjustments.

The missing amounts are meager—P60 per month for the lowest pensioners—yet the non-payment is puzzling and troubling. It couldn’t have been caused by a cash flow problem or by an innocent computer programming error.

Did SSS need something to distract the members’ attention from noticing the P1 million performance bonuses that it recently awarded to its board members for the second straight year?

The sincerity of SSS in helping pensioners cope with the rising costs of living is thus questionable. Why would it not simply release the pension adjustments?

When SSS celebrates its 57th anniversary on September 1, it would likely have nothing for pensioners but it would be bannering achievements for active members.

SSS would boast of having announced disaster assistance packages each time there was a calamity –natural or man-made – and of having granted educational loans as if the scholarship grants of senators, congressmen, mayors, Technical Education and Skills Development Authority, and Department of Science and Technology were not enough.

But extending loans is not SSS’ primary objective. Besides, the loans dissipate the funds and worsen its actuarial viability because of high collection delinquency and operating costs.

SSS would proudly proclaim the increase in contributions as if this were enough to reform itself. Yet it has not resulted in any substantial gain in pension actuarial life.

On paper, employers and employees now contribute at 7.367 and 3.633 percent of salary credit – a total of 11 percent. But the salary credit is capped by a low ceiling of P16,000 per month.

In reality, an employee earning P50,000 contributes only 1.163 percent of his salary – and his employer, 2.357 percent – to finance his SSS pension benefits.

In other words, SSS collects only a total of 3.520 percent from a P50,000 salary, not 11 percent. This is one of the lowest in the world.

The Bureau of Internal Revenue – in contrast – demands from him a 32 percent personal income tax. This is one of the highest in the world.

Only recently, SSS boasted that it collected P58.8 billion in contributions from January to June and that its AlkanSSSya program has added 83,757 informal sector workers to its 31 million registered members.

But it has kept mum on the number of regular contributors—less than 10 million – and of those who don’t pay contributions – 21 million.

With so little contributions, how much pension could one expect? A monthly pension barely enough to survive a week on a shoestring budget. SSS, after all, is not a financial Merlin who can create something from nothing.

It is not totally the employers’ fault that they contribute less than 10 percent of payroll for pensions.

SSS has not been earnest enough to demand higher amounts, unmindful that 21 percent of actual pay is being contributed for public servants to the Government Service Insurance System. Consequently, public sector retirees get higher pensions. –Horace Templo, Manila Standard Today