MEETING with mayors from Visayas last Wednesday, President Duterte was in a foul The grant of the pension increase to over two million Filipinos aged 60 and above creates a new pact by the government with the people.
President Rodrigo Duterte committed himself to this contract when he approved last week a P1,000 increase in the monthly pension of Social Security System (SSS) qualified members. The adjustment was the first of a two-step increase government is eyeing for them. The first will take effect this month, and the second P1,000 adjustment in 2022 or earlier.
To go with the adjustment, Duterte said, would be a corresponding 1.5 percent contribution rate hike in May 2017, a not so popular move but something members could accept as part of the pact, with the SSS assurance it would not go bankrupt. That is the social contract that stemmed from the pension hike.
There was pressure exerted on the administration to grant the pension hike. Congress deliberated on a joint resolution for the increase, the SSS board itself approved the move, and civil society took turns pressing on the need to improve pensioners’ lot. But it was Duterte who put his signature on the piece of paper. He and his administration would have to work on making the contributions of private employees work for them.
That is the new social compact that came about after the approval of Duterte last week. It is in seeing the increase through and in ensuring the sustainability of the fund that is intended for the members’ future needs.
The SSS reportedly said it is looking at expanding its investment folio this year by looking at international markets, to increase the fund. The agency should be reminded that its reason for being is to protect the money of its members, not to play the stock market for them. The urgent course for SSS is to let inactive members give their contributions. Out of the 34 million SSS members, 20 million do not pay their premiums.
The 1.5 percent contribution rate hike in May to correspond with the pension adjustment would be tolerable and would be the members’ obligation to sustaining the fund. It is for the administration to see there is improved collection and no mismanagement, no misappropriation of SSS funds in investments disadvantageous to the members.
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The discomfiture, even panic in some cases, that stemmed from the announcement of a mobile phone signal shutdown this weekend highlighted our dependence on this technology. Without the use of mobile phones and the Internet, what is it we can do?
This is a good exercise for the soul and for sanity. Without gadgets and virtual connections, we are forced to be mindful of people and events. Pit Senyor!
When you have Internet connection, go to www.sunstar.com.ph for a live Sinulog coverage or to view video replays.
ninicab@sunstar.com.ph