SSS members pay more; officials get bonuses


For someone who can’t enjoy the privileges of a paying member, reading about hefty bonuses for board officials of the Social Security System (SSS) makes an already depressing situation even more devastating.

Each of the eight board officers of SSS received at least P1 million bonus for “good performance” in 2012, while its 5,000 or so employees shared P276 million, for an average of P55,200 each. Lower-ranked or those rated low by their supervisors may have received much less than the average, while those in the higher positions may have been entitled to more than double.

Emilio de Quiros Jr., SSS president and chief executive officer, justified the granting of the bonus by citing the pension fund’s net income of P36.2 billion in 2012, which was 42 percent higher than the previous year.

The income came from profits in investments and premium contributions from members employed in the private sector, minus operational expenses and payment of members’ benefits.

News about the bonus came in the heels of a plan to increase members’ contributions starting January 2014.

Whew! Bonus for SSS officials and employees and increased contributions for members don’t make the equation balance.

Aren’t the SSS officials public servants and the members “the Boss?”

De Quiros said the grant of the bonus was legitimate, citing Circular 2012-11 from the Governance Commission for Government-owned and controlled corporations (GCG) that provides a performance-based incentive system. In short, the circular allows the grant of bonus if the corporation is earning.

Okay, it may be legal; but not all legal is moral.

They are getting bonuses while members will have to pay more because SSS doesn’t have enough funds to cover retirement and other benefits after 2039.

Should the income earned last year be used right away to pay for bonuses? Can’t the amount be used for the retirement and benefits fund so that members would not have bigger deduction from their monthly payroll?

SSS is governed by the GCG, an agency under the Office of the President that formulates policies governing operations of state-owned companies. While contributions to the pension fund come from private sector employers and employees, who are supposed to be the fund owners, SSS is run by government-appointed officials.

The SSS board officials may not consider the P1 million bonus hefty because they are moneyed. But to members who belong to the rank-and-file and earn meagre incomes, P1 million is so huge an amount.

If the board members’ bonus was at least P1 million each, they should be receiving an equal amount in monthly honorarium. Wow, how lucky they are!

On the 55th anniversary of SSS in September 2012, President Benigno Aquino 3rd announced that he has approved the granting of P10,000 anniversary bonuses to each of the officials and employees of the Social Security System (SSS) in recognition of the agency’s “pagpapakitang-gilas” in 2011.

De Quiros reported then that the agency collected P46.68 billion in contributions from January to June 2012, higher by nine percent compared with P42.72 billion collections over the same period in 2011.

The SSS posted P25.5 billion net earnings in 2011. That was 11.8 percent higher than the P22.8 billion net income in 2010. Investment income hit P30 billion in 2011, or 7.1 percent more than P28 billion in 2010.

Last year’s bonus was supposed to be a token of gratitude for their “untiring service to the Filipino people.”

If the SSS officials and employees were rewarded for their “sterling performance” in the past years, why do SSS members, whose hard earned money sustain the SSS with their monthly contributions, have to pay more membership dues?

I don’t know if it has reduced the waiting time of at least six months to as long as one year just to get the new SSS membership identification card?

Why do members have to take at least one day leave from work because they have to wait for hours in line to avail themselves of the services of SSS?

In its website, the SSS said it “aims to develop and promote a viable, universal and equitable social security protection scheme through world-class service.”

By world-class service it meant “social security service that is prompt, accurate and courteous shall be provided to ensure total member satisfaction.”

And why do members get penalized for the delinquency of employers who do not remit their contributions and loan amortizations that were automatically deducted from their salaries?

The SSS was created to protect private sector employees against the hazards of disability, sickness, old age, death and other contingencies resulting from the loss on income or financial burden.

Section 22 of the Social Security Act of 1997 or Republic Act No. 8282 said in part that “failure or refusal of the employer to pay or remit the contributions prescribed shall not prejudice the right of the covered employee to the benefits of the coverage.”

But why does the SSS deny loan applications of members whose contributions and previous loan amortizations were deducted by their employers from their monthly salaries — but were later found to have not been remitted to the SSS?

Well, technically, the member with unremitted contributions or loan amortizations can obtain a new loan but he has to pay first the arrears, or to agree to have the sum with penalties deducted from the loanable amount.

Why should the member pay the arrears when the amounts had already been deducted from his compensation? Isn’t that double payment? And it’s unfair.

Asking the employee to sue the delinquent employer is not only time-consuming but also entails costs that may even be more than the amount he wants to borrow.

The SSS law makes it the duty of the employer to remit contributions and loan amortizations without need of any demand by employees. And it is also the duty of the SSS to go after delinquent employers and penalize them, not the employees.

As I understand it, the mandate of the SSS is not limited to collecting monies from members and placing them in investment instruments. It is also tasked to protect its members from abusive employers.

The agency’s reports always highlight the amount it has collected and its investment earnings. I have yet to come across a news report about a delinquent employer was put behind bars for non-remittance of the employees’ contributions.

Well, last March, the SSS president said the state-owned pension fund agency was stepping up efforts to pursue delinquent employers who were not remitting contributions of their employees by filing cases against them.

According to de Quiros, the agency has filed 1,227 cases against delinquent employers in 2011, which was 66 percent more than the 740 cases filed in 2010.

Failure to remit deducted contributions or loan amortizations of employees is a crime equivalent to swindling.

According to the SSS law, any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, did not remit the deducted amount to SSS within 30 days from due date, is presumed to have misappropriated the contribution or loan amortization and should suffer the penalties under Article 315 of the Revised Penal Code. The penalty is a fine of P5, 000 to P20, 000 and/or imprisonment of six to 20 years.


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  1. I applaud them for launching the educational loan program. But they need to improve their customer services: mag-employ sila ng mga maraming SSS-experts sa hotline at sa email section nila para masagot naman ang mga tumatawag at mga nag-e-email. They need to be able to respond to member inquiries promptly and correctly. Front desk employees who are answering member inquiries should know the rules being implemented by their final evaluators so members’ claims are not rejected due to wrong advice by the front desk employees.

  2. renato r. santico on

    the SSS CEO and the members of the SSS Commission should answer these issues satisfactorily to justify their P1JM do not deserve the P1M bonus they gave themselves:
    1. They have not done anything for the restitution to the SSS Fund of the hundreds of millions in gains pocketed by the previous Chairman, CEO, and members of the Commission when they exercised the Philex Mining Stock option plan using their own money instead of SSS money.
    2. Arrearages on loan repayments/amortizations remain at the very high levels of from 80% to 90%.
    3.Processing time for claims and loans remain at unacceptable length of time reaching months before payment is made.
    4.The SSS Fund is purely private. Government has no equity whatsoever in the Fund. It is thus immoral of the CEO and the Commission to allot millions of pesos for themselves from a Fund where the government has NO EQUITY, not even a single centavo.
    5. SSS employees enjoy unconscionable salary levels with VPs, SVPs, the EVP
    receiving monthly salaries reaching P300K. Aside from their basic pay, these officials also receive something like 40% of their basic pay in monthly credits to their Provident Fund Equity which are paid to them upon separation/retirement.

  3. Dapat siguro gawin nalang optional ang pagiging member nang SSS. Tutal marami na ngayon paraan para pag-handaan ang pag-tanda. Hindi na naman siguro karamutan sa aming mga empleyado na magbigay ng contribution sa PhilHealth at pakinabangan nang mga mahirap natin na kababayan. Pero para pakinabangan ng mga sugapa sa pera ang contributions nang member mukhang walang tama dun.

  4. Meler Magsipoc on

    reduce salary of employee in order to pay minimal amount and redirect employer share to employee.

  5. The SSS officials and employees are not even members of SSS! They are members of GSIS. They raid the coffers of SSS because they know that their own benefits as government employees will not be affected. In fact, being GSIS employees serves as incentives for them to raid the SSS coffers. The past SSS presidents Romulo Neri and Corazaon de la Paz, together with other SSS officials, werev found by a senate investigating committee to have misappropriated hundreds of millions of pesos given to them as emoluments by corporate borrowers from SSS. The Philippine Association of Retired Persons (PARP) had filed three years ago a case with the Ombudsman to punish the said officials and recover the stolen funds already established by the senate investigation to have been stolen, but until today, the culprits are enjoying their stolen wealth while SSS pensioners flounder with their low pensions and benefits.
    We DEMAND that the SSS THIEVES be jailed together with the pork barrel scammers and the stolen funds be recovered and paid to SSS members an retirees!

  6. candy cadinsky on

    There is a dirty secret in SSS. One of the factors that is generating huge income for the SSS is its policy of exacting illegal penalties on the loans from its unsuspecting members without the latter’s consent. Not only are the “penalties” scandalous and immoral, it is in clear violations of the law.

  7. Jacinto C. Decena Jr. on

    Why did Pnoy asking all SSS members to increase their monthly distribution because he was telling that by 2032 eh wala na raw laman ang kaban ng SSS. Eh ito at limpak limpak na salapi pala ang nakuhang bonus ng mga empleyado. Is this the way to Daang Matuwid?