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    Editorials:

    Illustration by JIMBO Albano

    SOS for SSS

    Is it time to raise the distress signal for the Social Security System (SSS), in the light of the unexpected resignation of its CEO and the appointment of a controversial figure to head it?

    With 27 million members from the private sector—that’s about a third of the total Philippine population—the SSS is a constant presence in the lives of many Filipinos at various times in their lives.

    When SSS members find themselves financially hard-up and unable to pay for medical care or their children’s tuition, they can secure a loan from the SSS to tide them over. Or if they want to have their own house and lot, they can obtain a housing loan payable in affordable amounts over so many years.

    When they retire, SSS members can expect to get a lump sum, plus monthly pensions for as long as they live, based on their contributions. That may not be much, especially for low-income earners, but it’s still something to look forward to. So it’s important that whoever is in charge of the SSS must be able to protect the interests of members, and enjoy their trust and confidence.

    Does incoming SSS administrator Romulo Neri fit the bill?

    To answer that question, we prefer to look at the bigger picture, which is the SSS mandate.

    The rationale for the existence of the Social Security System is spelled out in Section 2 of Republic Act 8282: “It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt social security system suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden.”

    As the pension fund for private- sector employees, the SSS mission is to “develop and promote a viable, universal and equitable social-security protection scheme through world-class service.”

    To be viable, social-security protection should be provided through generations. To be universal, social-security protection should be provided to all residents of the Philippines, citizens and noncitizens alike, regardless of creed, gender, age, geographic location and economic status, especially the disadvantaged, so that no one will become a burden to society.

    To be equitable, it should make fair and uniform coverage available to all, with benefits meaningful and able to sustain a decent standard of living. And to be world-class, its service should be prompt, accurate and courteous to ensure total member satisfaction.

    We cite the mandate of the SSS at length to impress upon Secretary Neri the enormous scope of the job. Can he hack it as SSS administrator and, at the same time, oversee the National Social Welfare Program, created via Administrative Order 232, which seeks to consolidate the existing programs of the Departments of Social Welfare and Development (DSWD) and Health, Governmant Service Insurance System, SSS and other agencies providing social-welfare services?

    Our question is: Why create the National Social Welfare Program when the DSWD can very well coordinate with other government agencies with social-welfare functions? Or is the creation of another bureaucratic layer merely a means to funnel SSS funds to programs that would make the Arroyo administration—and by extension, the ruling party—look good in the eyes of the public, especially with 2010 not too far in the horizon?

    Malacañang has given assurances that the government will not use SSS funds for the government’s propoor programs. “No. I am sure the SSS funds will not be used. The President appointed him [Neri] because there should be someone who would oversee the social programs,” according to Executive Secretary Eduardo Ermita.

    But on Friday, the Presidential Task Force on Education said it is now finalizing “policy guidelines” for the SSS to adopt an educational loan program for students whose parents are SSS members. While Presidential Assistant on Education Mona Valisno says the task force will “propose” the program to the SSS, this has heightened fears that Neri’s appointment to the SSS post is part of a Palace plan to divert funds to bankroll government programs.

    Outgoing SSS president Corazon de la Paz has urged the pension fund’s 27 million members to be “vigilant” against groups and individuals who want to use their money for agenda not allowed under the SSS charter. The employees’ union of the SSS, for its part, has said it will closely monitor Neri since he will be administering the money contributed by SSS members nationwide.

    Secretary Neri assumes the mantle of leadership of the SSS with a cloud of doubt hanging over his head. He may have the experience in government to allow him to run the pension fund efficiently, but his credibility is tainted by his refusal to reveal all he knows about one of the biggest scandals under the current administration, the national broadband network with the Chinese firm ZTE.

    This is one appointment with political payback written all over it, so it’s not surprising that some sectors now say we should start sending out an SOS for the SSS.

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