Workers contribute a fraction of their salaries to SSS so that once they retire; they can receive in a calibrated manner that which they have underwritten. Walang iniwan sa “paluwagan.” One gives a portion of his wage on the monthly basis so that on a given date, it will be given back in lump sum. The difference however is that under SSS, the contribution is invested so that the earnings will grow and provide as buffer to the accumulated fund intended for release according to specific considerations. One of which is for the increment of pension among others.
In Western countries, contribution to their SSS is stiff. That is the reason why most workers would rather have secondary jobs on top of their principal profession. But once the worker retires, he receives a hefty sum which could cover a lifestyle tantamount to luxurious living. Retirees from these countries virtually splurge their pension through travels in tourist destinations, trips to casino and related caprice.
Over here in this country, workers would even evade payment, complain a lot when forced to contribute and raise hell whenever there are moves to increase contribution. But when they retire, they receive only a measly amount; something that corresponds to what has been contributed. Worst, even if there is a possibility for a simple increment, it cannot be processed because SSS funds are not properly invested to earn so much. There is no creativity on finance management. Worst, there are common impressions that funds are even used unsuitably since appointment in the top echelon of the agency is a political consideration. There is too much compromise and less inspiration.
The announcement however that an increase of 2K for SSS pensioners might bring insolvency and create bankruptcy is a myth if what has been contributed will just be issued. The problem however is that the agency is not wont to work on this believing that the contribution of workers are for the agency’s survival and that only the profits derived from investment are the source of the pension.
Since there is no resourcefulness in the investment, the increase is impossible to meet. Accordingly, the agency even gave the President a fearful scenario that SSS fund life today is projected to last for 27 years or until 2047 if an increase in pension will be allowed. This, of course, is predicated on the notion that SSS will just sit it out and do nothing except tinker in a bureaucratic manner the contribution of the workers.
The President is ill advised on his position on the matter. He could have announced that he will conduct further study on the proposed law instead of out rightly telling the world his borrowed belief. He can even quote a former SSS official who said that the proposed law is silent on where to source the amount intended for the pension increase and thus necessitating further review.
SSS on the other hand could tie up with the banking community to understand the mechanics of investing so that SSS like banks can sustain its viability and capability in the face of economic challenges.
But of course, these are wishful thinking. I have retired since 2015 and as yet to receive my SSS pension. I could not move around and work to process it because I might spend 10K just to receive 2K. Now that is bad investment if you ask me.