MANILA, Philippines – Was the “non-renewal” of the tenure of two top officials of the Social Security System (SSS) actually linked to their opposition to the planned contribution increase?
Bayan Muna partylist Representative Carlos Zarate and former congressman Neri Colmenares raised the question as they noted that former SSS chairperson Amado Valdez was not in favor of the hike.
President Rodrigo Duterte decided not to renew the appointments of Valdez and SSS Commissioner Jose Gabriel La Viña reportedly due to infighting among officials.
“I think that another major factor here is the opposition of former Chair Valdez to the SSS contribution hike as he believes, as we do, that such a move should be the last resort in trying to extend the SSS pension fund life,” Zarate said.
“Also, their dismissal seems to be in retaliation to the expose related to the alleged rackets and profiteering schemes of some members of the board. The SSS officials that La Viña exposed are apparently close to Cabinet members who have long been pushing for the SSS contribution hike and have the ears of Pres. Duterte,” he added.
Zarate said the two officials could be casualties of a “Mafia in SSS.”
Meanwhile, Colmenares questioned anew the planned membership contribution increase due supposedly to the increased take home pay of workers from the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The state fund was looking at a 3-percentage point increase this year, which meant the monthly contributions of its members will rise to 14 percent of their monthly salary credit, up from the current 11 percent.
“This is misleading because not all workers would have increased take home pay because of the TRAIN. In fact majority of workers would still have the same wages but will have additional expenses due to the TRAIN,” Colmenares said.
“As it is, wages remain low while prices are surging. Announcing a contribution increase right now is the last thing that SSS should do,” he added.
Colmenares said that instead of increasing the contribution rate, the SSS management should improve its collection efficiency from the employers of its 31 million members, collect the billions in contributions from delinquent employers and cut down in bonuses and perks given to its board members.
