NEW SSS POLICY ON PENSION, ETHICALLY QUESTIONABLE, AT THE VERY LEAST

Sneak punch

By Manila Standard Today | Posted on Jun. 15, 2013 at 12:01am | 770 views
http://manilastandardtoday.com/2013/06/15/sneak-punch/

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The law says members of the Social Security System with at least 10 years of contributions to the Fund should receive pension at age 65.  But new requirements imposed by the present SSS management has turned this future benefit into an illusion.
SSS President and Chief Executive Officer Emilio de Quiros, in a statement released last June 6, said members who turned 65 on April 1, 2013 but failed to meet the required 120 contributions (equivalent to 10 years) will only get back their contributions. They will not qualify for pension.
The SSS is a pension fund. If it cannot provide pension, what is it?
For the past 60 years, since the SSS was created in 1957, members who lack the required number of contributions have been allowed to continue paying until they meet the pension requirement. The reason is obvious. Many workers often change jobs and their contributions could be intermittent.
Isn’t it reasonable that they be allowed to pay even beyond age 65 to meet the pension requirement?
The widows and minor children of members will also feel the brunt of the new policy.  When you deny a member the opportunity to cover the gaps in his contributions, you also deny the benefit to his family when the member dies. The law provides that the benefit can be passed on to the widow and minor children.
What is the cause of this harsh attitude by SSS management towards its members? Why so sudden?
According to some SSS officials, who asked not to be named because they lack authority to speak for the Fund, De Quiros has a ready answer: “Para hindi malugi ang SSS.”
The answer smacks of insensitivity to the struggle of Filipino workers to contribute to SSS despite their meager pay. Records show many workers live below the poverty line. A pension gives them a glimmer of hope for the future—a promise that has turned into a lie.
The new policy announced by De Quiros was a sneak punch to the solar plexus. It took effect on April 1, but De Quiros announced it to the public on June 6. Members, who were lucky to learn about it before April 1, have to meet another set of requirements to be allowed to continue paying contributions.
The law also allows even 59-year-old workers to become members. But there is no sense in contributing to the SSS if you are not assured of pension. SSS should look into its membership, identify those who do not qualify and tell them to stop paying. It is unfair for SSS to shatter their hopes at the end.