Palace: Gov’t only ensuring SSS stability with veto

MANILA, Philippines – Malacañang on Thursday defended President Benigno Aquino’s III decision to veto the proposed Social Security System's (SSS) P2,000 pension hike, noting that the government is only ensuring the stability of the entire SSS system.

Communications Secretary Herminio Coloma Jr. said the government considered the benefit of majority of the estimated 31 million SSS members for the next 27 years.

“Ang pangunahing layunin ng pamahalaan ay tiyakin ang katatagan ng pondo ng SSS para tugunan ang pangmatagalang pangangailangan ng lahat ng 31 milyong miyembro nito [The government ensures enough funds in the long run for SSS and all its 31 million members],” Coloma said.

Coloma also reiterated Aquino’s reasons in declining the proposed House Bill 5842 saying that the corresponding adjustment of the minimum monthly pension, will result in jeopardizing the funds and income of SSS.

“’Yung sobrang laki nung epekto nito na hinihigitan pa ‘yung kontribusyon at 'yung investment income at dahil dito ay iikli ang buhay ng pondo, na sa halip hanggang 2042 ay hanggang 2029 lamang [It would have a huge effect... the funds would last only until 2029 instead of 2042],” Coloma said.

“Hindi magiging responsable ang pamahalaan kung hahayaang mapariwara o masira ang katatagan ng pondo. Ito na ang magiging sukdulan ng kawalan ng malasakit sa ating mga Boss, ang mamamayang Pilipino, kung hahayaan nating mangyari ito [It would be irresponsible on the part of government if we let SSS lose funds],” he added.

The Palace official, however, assured that the SSS management is studying alternative benefits to be provided for its members while still securing the stability of its fund.

Aquino earlier rejected the SSS pension hike for retirees due to financial consequences. He said the SSS funds may reach zero in favor of only 2.1 million pensioners as compared to the majority.

RELATED: Drilon respects PNoy’s veto on SSS pension hike