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PNoy vetoes SSS pension hike bill
President Benigno Aquino III has refused to sign a Congress-approved measure seeking a P2,000 across-the-board increase in the SSS monthly pension, a Palace official said Thursday.
"In his message, President Aquino said the stability of the entire SSS benefit system, whose present membership comprises about 31 million individuals, will be seriously compromised in favor of two million pensioners and their dependents," Communications Secretary Hermino Coloma, Jr. said in a statement.
In his veto message to House Speaker Feliciano Belmonte Jr. and Senate President Franklin Drilon, Aquino said a P2,000 increase per retiree – multiplied by the present 2 million pensioners – would mean a total payout of P56 billion a year.
With such a payout, the pension fund would incur a P16 billion to P26 billion yearly deficit, Aquino said, noting that the SSS has an annual investment income of P30 billion to P40 billion.
“Given this situation, the Social Security System will be constrained to draw from and use its Investment Reserve Fund (IRF) to support the pension increase. Consequently, the IRF will diminish over the years, eventually reaching zero by the year 2029,” the President said.
“While we recognize the objective of the bill to promote the well-being of the country’s private sector retirees, we cannot support the bill in its present form because of its dire financial consequences,” he added.
Overturn a presidential veto
House Bill 5842 is primarily “An act mandating a P2,000 across-the-board increase in the monthly pension with corresponding adjustment of the minimum monthly pension under the Social Security System, amending for the purpose Section 12 of Republic Act No. 1661, as amended, otherwise known as the Social Security Act of 1997.”
Congress transmitted the bill last December 15, expecting the President to sign it into law in time for the Yuletide season. It would have lapsed into law on Friday had Aquino not signed or vetoed the measure.
According to Article VI, Section 27 of the 1987 Constitution, the House of Representatives and the Senate may still overturn a presidential veto on the pension hike bill with a two-thirds vote of the members of each chamber.
“If, after such reconsideration, two-thirds of all the Members of such House shall agree to pass the bill, it shall be sent, together with the objections, to the other House by which it shall likewise be reconsidered, and if approved by two-thirds of all the Members of that House, it shall become a law,” the constitutional provision read.
SSS President and CEO Emilio de Quiros Jr. earlier said that the pension fund for private sector employees will have to increase the monthly contributions of its members from 11 percent to 15 percent should House Bill 5842 be promulgated.
He said a P2,000 raise in SSS pensions will shorten the actuarial life of the pension fund unless the monthly contributions are likewise increased.
'Heartless'
Organized labor expectedly criticized Aquino for the veto.
"Vetoing the P2,000 increase in SSS pension shows how inconsiderate and heartless the administration is," said Julius Cainglet, assistant vice president of the Federation of Free Workers.
Cainglet said the Aquino administration kept on harping about the country's economic growth but couldn't back it up with measures that will benefit Filipinos.
"They bark about the Philippines' unprecedented growth and yet, they cannot put their money where their mouth is," Cainglet said.
Bayan Secretary General Renato Reyes said the administration could not provide for the increase in pension while it could provide SSS executives with millions of pesos in salaries and bonuses.
"Just wow. Having no compassion, Aquino vetoes the SSS pension hike bill while his appointed officials in SSS, consisting of the President abd CEO, two EVPs, seven SVPs, 16 VPs and eight [board directors] were paid millions in 2014," Reyes said.
"Some officials had salaries and bonuses that amounted to P4 to P5 million each for that year. Such is the irony of daang matuwid. The public must express its unequivocal rejection of this regime, through mass protests and through the ballot in May," he added. – Kathrina Charmaine Alvarez/VS, GMA News
