Pimentel to SSS: Recover investments

The Social Security System (SSS) should recover the P27.28 billion it has invested in government housing agencies led by the National Home Mortgage and Finance Corp. (NHMFC).

This was what opposition Sen. Aquilino Pimentel Jr. demanded from the SSS management before implementing the increase in SSS contributions approved by President Arroyo.

He said that the increase may not sit well with employers and its 24 million worker-members unless the System’s investments are managed judiciously and benefits are improved.

"It would be difficult to justify any increase in membership contributions if billions of pesos of SSS investments and commensurate earnings remain uncollected," Pimentel said.

He asked the SSS what it has done to collect the P27.28 billion investment that has already matured from state housing agencies. He disclosed that another P24 billion remains uncollected from salary and emergency loans extended to SSS members.

Originally, the SSS has recommended a hike in members’ contribution rate from 8.4 percent to 14 percent citing the need to stem the depletion of the SSS fund due to ballooning benefit payments and declining investment income.

In 2001, SSS premium contributions amounted to P31.9 billion against total benefits of P39.6 billion paid to active SSS members and retiree pensioners.

The SSS warned early this year that the pension fund would be exhausted in 15 years at the rate benefits are growing and overtaking investment earnings.

SSS president Corazon De La Paz even made a dire forecast that the fund’s lifetime may be shortened to 10 years if the economic condition does not improve.