Groups call PNoy's veto of SSS pension hike heartless

Organized labor expectedly criticized President Benigno Aquino III for vetoing the P2,000-hike in the monthly pension of retirees under the Social Security System.

"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.

"This is basic social protection that retired workers and their families look forward to, which government is depriving them of," he added.

Cainglet said SSS pensioners receive less than their counterparts who retired from the government sector and are pensioners under the Government Service Insurance System.

"Heartless kasi many retirees find their pensions inadequate to the point that some of them accept jobs even after retirement to make  ends meet," Cainglet said.

The militant Bagong Alyansang Makabayan said Aquino had no compassion for the retirees from the private sector.

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.

Veto message

Aquino on Thursday told Congress that he was vetoing the Congress-approved measure seeking a P2,000 across-the-board increase in the SSS monthly pension.

"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. —NB, GMA News