Image from Philippine Social Security System Facebook page - Duterte says he would approve the P2,000-pension increase
- He also warned SSS and GSIS to be swift on their releases of compensation
- Aquino vetoed the proposed pension hike in January this year
President-elect Rodrigo Duterte said he will be approving the proposal to increase the pension of Social Security System (SSS) members by P2,000.
Half a year after President Benigno Aquino III vetoed the proposed legislation, Duterte said in a PhilStar story: “Yes, I will give the P2,000 to the pensioners.”
In the same article published June 2, it was disclosed that the incoming President said no legislation is needed to implement the pension hike that will increase the monthly amount received by retired SSS members.
Duterte also warned the state-run pension fund for private employees, as well as for the public (Government Service Insurance System), to swiftly release the monthly allowances of pensioners and resolve their claims should there be complaints raised.
Last year, the 16th Congress worked on passing the bill that would provide for a P2,000 across-the-board pension increase for retired personnels of the private sector.
After being much celebrated, Aquino vetoed the measure early January in fear that the SSS would lose funds over time.
An economist, Aquino said that approving the bill would force the SSS to use its Investment Reserve Fund (IRF) to accommodate the increase in pension without the increase in member contributions, which will lead to the public firm’s bankruptcy.
A Rappler story, meanwhile, explained that the SSS funds are “in peril” due to SSS failure’s to do the following:
- increasing member contributions
- Improving collections efficiency
- using idle assets
Bayan Muna Representative Neri Colemnares strongly contested the President’s decision and slammed the SSS executives for having lavish end-year bonuses.
Colmenares rallied on overriding the veto of the President by getting 2/3 of Congress’ vote but failed until the resumption of the plenary session after the elections. The 16th Congress will close on Monday, June 6; ahead of the scheduled adjournment on June 10.
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