House committee approves SSS pension hike in two tranches

THE P2,000 pension hike being sought from the Social Security System (SSS) was approved on Tuesday at the House committee level.

The House Committee on Enterprises and Privatization approved the committee report containing House Bill No. 18 on the P2,000 across-the-board pension increase for SSS beneficiaries — a long- standing public concern that became a leading issue in this year’s election campaign.

For his part, SSS Chairman Amado D. Valdez informed the committee the sense among his agency’s directors that it would be easier for the SSS to implement the P2,000 increase in two P1,000-increase tranches.

“Our proposal is to come up with the resolution saying that in compliance with a Resolution of Congress that will increase the pension fund, we are increasing it initially to P1,000 and the other P1,000 will be in 2020 subject to some results from what we are doing like increasing our collection, raising the membership fees... But the P1,000 is doable on the basis of a resolution,” Mr. Valdez said.

“It will be in the form of an executive order (EO) that says that this is because of Congress instruction or advice — we will put this [in] an executive order that would be signed by the President in the presence of Congress,” he added.

The SSS chairman also said the first tranche can be implemented by January next year. Committee Chairman Representative Jesus N. Sacdalan (North Cotabato, 1st District) agreed to the tranches but said the pension hike should be done by December in time for Christmas.

Speaking to reporters after the hearing, Mr. Valdez explained his agency’s options in increasing its funds, such as investing in private-public partnership (PPP) projects.

“Instead of putting the funds in government securities with 1%-2% returns — and sometimes in PPPs we get a bond that only gives us 2% — we’ll become direct investors to the extent of 25%,” Mr. Valdez said. “We will go to NEDA (National Economic and Development Authority), ask what they would recommend to place our pension fund.”

On implementing the pension hike increase in two tranches, Mr. Valdez said: “We want to see to it that the system will be able to raise the funds to what we need.”

“If the [House] takes too long, we would go through the EO,” the SSS official added. “We’re requesting the [House] resolution to prevent legal impediments... [S]ome people might question it.”

The bill for the pension increase would be presented to the plenary next week.