Unjustifiable Bonuses of SSS Commisioners (First Part)

Let's examine again the issues hounding the country's Social Security System (SSS) at this time by stating the following facts first:

• SSS has an unfunded liability of about PhP 1.07 Trillion as of December 2011.
• The unfunded liability of SSS is expected to increase by about 8 percent annually.
• SSS registered a double-digit growth in its net revenue in the first semester of 2012.
• SSS Investment Reserve Fund (IRF) now stands at close to PhP 390 billion from PhP 290 billion.

An unfunded liability exists when the present value of a pension fund's contributions and assets is insufficient to cover the present value of future benefit payment and operating expenses. Such situation occurs because the benefits that a member receives or is entitled to far outweigh the accumulated contributions, including interest.

The IRF, on the other hand, measures the members the ability to pay for pension and other benefits.

Given the four (4) scenarios above, the SSS Board announced the following three reactionary measures:

1. The SSS will implement a 0.6-percent increase in its current 10.4 percent monthly contribution rate, setting the new rate at 11-percent effective the applicable month of January 2014, as well as the increase in the maximum monthly salary credit (MSC) from PhP 15,000 to Ph P16,000.
2. SSS provided bonuses to its employees in accordance with the performance-incentives system set by the Governance Commission for Government-owned and -controlled corporations (GCG), which operates under the Office of the President. Rank-and-file employees received a bonus equivalent to 2.5 percent of their monthly salary if they belong to the top 10 percent performers, and 1.2-1.5 percent to the 80 percent.
3. Members of the Social Security Commission, the policy-making body of the SSS, rewarded themselves with about PhP 1 million each. The list of commissioners who received their bonuses include the following:
   
   
   1. Juan B. Santos, Chairman, PhP 1.17 million
   2. Emilio S. De Quiros, Jr., SSS President and SSC vice chairman, PhP 1.04 million
   3. Diana V. Pardo-Aguilar, PhP 1.33 million
   4. Daniel L. Edralin, PhP 1.12 million
   5. Eliza R. Antonino, PhP 968,000
   6. Marianita O. Mendoza, PhP 1.02 million
   7. Ibarra A. Malonzo, PhP 1.41 million
   8. Bienvenido E. Laguesma, PhP 1.30 million

Let us make it clear to everyone that majority of its members do not have anything against the two (2) policies being proposed or already adopted by the SSS. What everyone is fuming mad about is the third measures which exemplify an overwhelming urge to have more of something, usually more than you really need – greed.

The bonuses received by the commissioners were given because every time they attend a board meeting they get PhP 40,000 each and PhP P20,000 per committee meeting. They usually have a maximum of two meetings per month for one whole year.

So, why on earth they decided to enrich themselves using the Board Meetings as a cover and pretend that a few hours of talking nonsense deserve a reward? Are the eight (8) board members the only responsible people that allowed SSS to post double-digit earnings? Are they also the ones who are the main reasons why IRF increased by as much as PhP 100 million? Did the work of rank and file employees account for only a small portion of the good performance which is why they did not receive as much as PhP 1 million each?

(to be continued tomorrow)