Palace: SSS bonuses not sourced from members' contributions

Malacañang on Thursday defended the fat bonuses that were received by some officials of the Social Security System (SSS) last year, saying the bonuses were justified and were not sourced from the contributions of SSS members.

"We can only declare bonus kung kumikita iyong GOCC (government-owned and -controlled corporations) at malaki naman po ang kinita ng SSS po dito," presidential spokesperson Edwin Lacierda said at a press briefing.

Lacierda also said the bonuses, reportedly averaging P1 million for SSS officials, were sourced from the revenues of the SSS and not from the contributions of its members.

"Ang contribution po, that income will be used for operations, will be used for whatever is necessary to keep SSS going," he said. "The bonus is contingent on the revenues generated plus also other requirements as imposed by (Governance Commission for GOCCs).”

Lacierda stressed that the bonuses were in accordance with the rules of the Governance Commission for GOCCs. "Tingnan nyo po ang income po ng SSS relative to the bonus. Iyon po ang naging basehan po ng GCG sa pag-deklara," he said.

Lacierda also said SSS officials are "performing their job very responsibly" and that its employees also received bonuses.

The SSS has earlier announced it will be increasing member contributions starting next year, a move that Malacañang said aims to improve the benefits of members.

"The number of times that the contributions were increased was only the fourth in so many years. And then the number of times that the benefits were increased was even more," Lacierda said.

He specifically said that the contribution rate has only been increased twice—in 2003 and 2007—since 1980 while across the board pension increases have been implemented 21 times.

This, Lacierda said, has resulted in unfunded liability estimated at P1.1 trillion in 2011.

"If members' contribution is not increased, the Fund's liability will increase by 8 percent per year and it's actuarial life is projected to last until 2039," he said. — KBK, GMA News