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By Maricel E. Burgonio, Reporter
THE outgoing president of state-run Social
Security System (SSS) said reforms aimed at ensuring the financial
viability of the pension fund for private-sector workers would be
sustained despite her departure.
In a briefing, Corazon de la Paz, outgoing SSS
president, said the pension fund’s first-quarter net income jumped
513 percent year-on-year to P12.34 billion, driven by its gains from
the sale of shares in Banco de Oro Unibank (BDO). This was more than
the P11.69-billion target the pension fund’s management set for
the three-month period.
Earlier, Joel Palacios, SSS spokesman, told The
Manila Times that the pension fund is optimistic about meeting its
P21.5-billion full-year net-income target.
“Our gains from BDO reached P9.09 billion for
the quarter,” de la Paz said.
She said SSS plans to increase the base for the
minimum monthly salary credit (MSC), which has been rendered
outdated by each passing wage increase.
MSC is the compensation base for contributions
and benefits related to the total earnings for the month. The
maximum covered earnings or compensation has been set at P15,000
since January 2002.
“We’re trying to increase the base of
P15,000 by adjusting the formula without going to Congress through
the Department of Justice,” she said.
De la Paz said she informed President Arroyo on
June 18 of her plan to step down, citing health reason. Romulo Neri,
chairman of the Commission on Higher Education will replace her on
August 1.
“For seven years, I have done my part in
serving SSS and its time to move. Slowly through the years, we
strengthened the SSS’ financial viability,” she said.
De la Paz said the SSS’ fund life is projected
to extend to 2036 from 2015 when she assumed the fund’s leadership
in 2001. This was driven by the increase in the contribution rate of
its 27 million members, improved collections, and higher investment
income.
SSS’ total assets reached P247.74 billion last
year.
De la Paz said SSS also reached out to overseas
Filipino workers by establishing more foreign offices and
introducing more remittance options. Consequently, SSS members’
contribution rate increased to 10.4 percent in January last year,
from 9.4 percent previously.
The pension fund said its investment income is
projected to reach P26.08 billion this year, higher than last
year’s P17.87 billion. It will be supported by the pension
fund’s investments in equities, government securities, and loans,
as well as members’ contribution.
De la Paz also supported Neri’s appointment to
SSS.
“Secretary Neri has what it takes to be good
in SSS. Let’s give him a chance,” she added.
Neri has been in hot water, having served as
director-general of the National Economic and Development Authority
when the botched $329-million National Broadband Network deal with
Chinese firm ZTE was transacted last year. Neri had bared an alleged
bribery attempt in exchange for his approval of the deal.
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