Soto: Paying Our Respects

WE HAVE six million senior citizens. They are in their sixties, seventies or eighties and called by some as the "baby boomer generation." Yet, not all our Lolos and Lolas can expect to live out their golden years in comfortable retirement as most come from the ranks of the impoverished many.

The Expanded Senior Citizens Act of 2010 (RA 9994) was the hot topic in a recent episode of So To Speak. It hinges on the principle of social insurance and social security. Or the way a citizen can adequately access society's wealth in the form of goods and services that would improve his/her quality of life.

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RA 9994 builds upon earlier legislation passed in 1992 and 2003 respectively. These seem shrewdly timed as both 1992 and 2010 were national election years. Former President Gloria Macapagal Arroyo even packaged the signing of RA 9994 as her 'early Valentine's gift' to the elderly. Is this coincidence or is she courting this vote-rich segment of the population?

Before such legislation, our country was one of the few countries in Asia that does not provide a social pension for its elderly poor, relying mainly on the individual's capacity to save up during his so-called productive years and use that instead.

Now, with the new law, our elderly can now enjoy privileges such as 20 percent VAT exemptions on goods and services including doctor's fees and recreation, mandatory coverage of PhilHealth, a monthly stipend of P500 or
P1,500 for indigents along with free pneumonia and influenza vaccines and a chance to go back to school if they so desire. There is even a five percent discount in water bills (if consumption is less than 30 cu/ month) and power (if consumption is less than 100 kwh).

However, this popular law is not without its detractors and obstacles.

For example, many small drugstores and other commercial establishments are struggling in the face of the exemptions in the VAT, prompting a howl from seniors. Some seniors are even subject to grilling inquisitions every single time they avail of the VAT exemptions.

Senator Osmeña even tagged the many exemptions granted by the 14th Congress "idiotic" including those granted for senior citizens. He says this translates to lost government revenue of around a hundred billion pesos for the past two years while Finance Undersecretary Gil Beltran pegged these foregone revenues at P1.68 Billion.

A closer look shows that this law is instrumental in increasing the purchasing power of our elderly. Although not enough to lift the indigents from poverty, it is able to spur consumption that is good for an economy in constant deficit.

However, the mandatory coverage of PhilHealth has yet to materialize as well as a national health program for the elderly. We hope that the agencies in charge of this are working double-time in order that these provisions become reality.

We owe it to our elderly that they be adequately cared for and should not begrudge whatever comfort we can give them in their twilight years. Respect for the elderly is right up there with our penchant for having close family ties.

And by laying the ground for a good social pension for the old and poor, given time, we too will benefit.