By Jovee Marie N. dela Cruz & Butch Fernandez
The senators whined, said they felt dejected, and even lamented as “most unfortunate” President Aquino’s last-minute veto of the Congress-approved measure set to lapse into law today (Friday) granting P2,000 additional pension for members of the Social Security System (SSS).
They’ve probably forgotten—or plainly ignored the fact—that they are partly to blame for the presidential veto, because they failed to pass a “sister bill” that seeks to give the SSS board the power to raise premiums to ensure the fund’s viability, or at least this is the view of their counterparts in the House of Representatives.
House Majority Floor Leader and Liberal Party Rep. Neptali M. Gonzales II of Mandaluyong City said there should have been no problem in passing the bill into law, if only the Senate approved the accompanying measure that authorized the SSS board to increase the premiums of its members, saying, “this is very important to prevent the SSS from going bankrupt as a result of the pension increase.”
“When we approved the bill that increased the pension benefits by P2,000, we, likewise, approved an accompanying bill that authorized the SSS board to increase the premiums of its members. While the Senate approved the pension increase, it failed to approve the accompanying bill. Thus, the President opted not to play politics and, instead, was forced to veto the bill to prevent the SSS from being bankrupt,” he said.
Speaker Feliciano Belmonte Jr. agreed. “The House passed a sister bill giving the SSS board powers similar to that of the GSIS [Government Service Insurance System] board to increase premiums, but it was not yet approved by the Senate. P-Noy [President Aquino] chose to be a fiscally responsible leader, and not just one driven by current politics.”
The President, Belmonte said, had no choice, as the SSS could not afford the pension hike. Now, the senators and congressmen are resigned to the fact that Congress will not be able to turn the tide.
“[I don’t think we have the] capability to override President’s veto,” Belmonte said, a statement echoed by Gonzales.
Executive action
Sen. Ralph Recto recommended that Mr. Aquino, on his own, “take executive action” and still increase SSS pensions without waiting for legislation.
“Raising [SSS] pension is not just via the legislative route,” he said. “It can also be done by the President exerting influence on the SSS.” Recto recalled that Congress only stepped in with the measure “because the SSS froze pension amelioration measures.”
According to him, more direct executive action remains an available option.
“The SSS law allows him to do so,” Recto said in an e-mail to Senate reporters. “For the sake of the pensioners, it should not be a choice between meron o wala. There should be a compromise amount, which can be effected through executive action.”
Recto suggested that if Mr. Aquino finds the P2,000 per SSS pensioner “too high, then my unsolicited advice to him is to recommend an amount which he thinks is suitable, and supportable by SSS finances; then convey this to the SSS board—whose members are his appointees—for possible implementation.”
Recto added: “If P2,000 is too expensive, P-Noy may consider P1,000 per pensioner. That’s only half. SSS income is enough for half.” The senator said the increase can be enforced by an SSS board resolution.
“It’s about time we increase pensions of SSS pensioners. Congress may override the President’s veto but it will be difficult to get a two-thirds vote,” said Recto, who also authored an SSS pension-increase bill in the Senate, filed in July 2013.
P-Noy’s prerogative
Senate President Frank Drilon said he respects Mr. Aquino’s decision to exercise his veto power over the proposed measure granting a P2,000 across-the-board increase in the monthly pension for SSS members.
Drilon conceded it is “within [Aquino’s] prerogative as President to do so and this is part of the system of check and balance that is a critical component of our democracy.”
He added that if Mr. Aquino, after a thorough review of the bill, believed that the enactment of the measure would, in the long run, negatively impact on the agency’s fund life and ability to provide a meaningful social-security protection to its members and beneficiaries, “then we fully respect his judgment.”
The Senate President pointed out that they “may have a different opinion with the President on this particular matter, but I am confident that the Executive branch is looking into other alternatives that will help the pensioners, without compromising the viability of the SSS as an institution tasked by the state to establish, develop, promote and perfect a sound and viable tax-exempt social security system suitable to the needs of the people.”
Despite the setback, Drilon assured that the Senate “will continue to legislate measures that it believes are critical and will be effective in uplifting the lives and welfare of our people. The Senate will not be hindered by this veto. We will look at it again and we will work hard to perfect the bill and finally give the people what it so deserve.”
Most unfortunate
Sen. Cynthia Villar lamented as “most unfortunate” the presidential veto on the bill that would have benefited 1.9 million SSS pensioners.
She pointed out that the elderly and retired sector have been eagerly awaiting the enactment of this bill. “It is very sad that the merit of the bill and the help it intends to bring were overlooked and will no longer be enjoyed by the pensioners.”
Villar griped that the Committee on Government Corporations and Public Enterprises, which she chairs, “worked tediously and studied this bill carefully.”
“It remains my position that the additional P2,000 can be given without putting the stability of the SSS fund in jeopardy,” she added. “Nonetheless, we will try to look for alternative ways to help the pensioners. If unable, we will prioritize the passage of the same bill next Congress.”
‘Cross party lines’
PARTY-LIST Rep. Neri Colmenares of Bayan Muna said the P2,000 pension hike is very reasonable and is badly needed by the 1.9 million pensioners and their dependents.
“This is patently anti-pensioner, anti-poor and anti-worker. I am now calling on the members of the House of Representatives and the Senate to side with the people and override the Aquino veto. We are also calling on LP [Liberal Party] congressmen to cross party lines and help us override this,” he said.
In vetoing the proposal, the Palace said President Aquino was worried that the SSS would be compromised if he would allow the pension hike. Around P3.8 billion a month is needed for the said proposal.
“This meager pension is a far cry from the actual budgetary needs of seniors to live decently according to their needs. The SSS has more than enough funds to provide an increase in pension, both the Senate and House have already discussed and sort out this issue of bankruptcy,” Colmenares said.
Two-thirds vote
Under Article VI, Section 27 of the 1987 Constitution, the Congress could pass a bill into law despite the President’s veto if two-thirds of the members of each chamber vote for its approval.
At least 191 of the 287 remaining House members would have to vote to approve a vetoed measure to overturn the President’s opposition to it.
Nationalist People’s Coalition (NPC) Rep. Sherwin Gatchalian of Valenzuela said the bill went through a rigorous process of debate and discussions in both chambers, saying both houses found merit and justification for the additional pension.
“I think the better solution is finding a common ground and formula instead of killing the hopes of the senior citizen-pensioners,” he said.
Liberal Party Rep. Alfred Vargas of Quezon City, meanwhile, said the measure can still be passed by the next Congress.
“It’s unfortunate that this has happened as our senior citizens and retirees heavily rely on their pensions, especially those who have no other source of income, and those who continue to have dependents. However, whatever solutions we make for people’s welfare must not be half-baked or be short-lived in this case, and possibly have future retirees with no pensions at all. I hope all three branches of government can find a middle ground,” he said.
NPC Rep. Rodolfo Albano III of Isabela said the decision of President Aquino to veto the bill increasing SSS members’ pension might have repercussions on the popularity of LP standard-bearer Manuel A. Roxas II.
1 comment
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Why not try something else?
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Sometimes, the solution to a problem is as simple and elegant as a Paper Clip’, which is nothing more than a piece of bent wire.
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As has been repeatedly shown in various international studies by the UN, IMF, WB, ADB, etc and with local counter-part studies by various local agencies;
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the following government agencies which handles the collection and administration of ‘payroll withholding payroll tax (payroll tax) like the GSIS, SSS, PHIC / PhilHealth and HDMF / Pag – IBIG are all going to be bankrupt / non – liquid between the period of 2030 – 2050.
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As has been our position since our founding in November of 2011; the only solution to the eventual bankruptcy of the GSIS, SSS, PHIC / PhilHealth and HDMF / Pag – IBIG is to merge them.
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This is for the resulting entity to achieve a break – even in its WACC (capital cost) through ‘economies of scale’ and ‘network economics’.
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So simple, yet does this current or future administration have the ‘political will’ to push through with this?
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Just asking po.
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