Outgoing SSS chief advises members: Protect your funds

MANILA, Philippines - Outgoing Social Security System (SSS) President Corazon dela Paz on Thursday urged the pension fund’s 27 million members to be “vigilant" against groups and individuals who want to use their money for agenda not allowed under the SSS charter. “You have to be vigilant and make sure that the funds will be used properly and in the interest of all the SSS members," Dela Paz, who will be replaced by Commission on Higher Education (CHED) Chairman Romulo Neri on August 1, said in a press briefing in Makati City. Before that, in a television interview, Dela Paz said some quarters have allegedly expressed intentions to utilize the funds of SSS members for the government’s pro-poor agenda. "What I was saying was that it's not included in the [SSS] Charter. Using the funds has limits," she said, adding that there are a lot of problems in the country that needs to be dealt with funds. She said that SSS funds cannot be used to finance pro-poor projects of the government "unless it is defined in the Charter." The SSS is a government-controlled financial institution. Dela Paz admitted that her decision may have been received negatively by some people but said she had to "make a stand." She however said health issues, and not politics, were the reason behind her decision to leave the SSS. “Any time you’re in a position like this you go through decisions that others might not like," she said without naming names. Dela Paz said that in her nearly seven-year tenure at the pension fund, operating expenses have been kept down through cost-saving measures. At the same time, she said that they were able to increase the maximum salary credit from P12, 000 to P15, 000. Contribution rate, which has been fixed at 8.4 percent since 1979, was increased to 9.4 percent in 2003 and to 10..4 percent in January last year, she said. She also said that contribution payments have exceeded benefit disbursement by P1.21 billion, making it the first surplus in seven years. Likewise, the SSS fund life strengthened from 2015 to 2036. Pension was also raised by 10 percent in 2006 followed by another similar across the board pension hike in August 2007. Dela Paz said she believed that SSS will remain in good hands with Neri at the helm. “I know him for quite some time though (we’re) not very close, and I know him to be very intelligent. He had better knowledge and experience to plan for our country’s future. Neri has what it takes to be a good SSS president," she said. Dela Paz appealed to the public to give Neri a chance to serve the SSS. At the same time, she belied reports that with Neri at the pension fund, the administration could utilize SSS as a “milking cow" for the 2010 presidential elections. “I am not worried about that. I’ve seen them disapproved proposals that did not passed the SSS standards," she said, adding that the SSS board “is highly competent, knowledgeable and would not allow itself to be used" by personalities with vested interest. - GMANews.TV