A labor group called for the inclusion of safeguards against arbitrary premium hikes in the implementing rules and regulations (IRR) of the newly signed Republic Act (RA) 11199 or the Social Security System (SSS) Rationalization Act.
Federation of Free Workers (FFW) Vice President Julius H. Cainglet expressed concern over the provision of RA 11199 giving the Social Security Commission (SSC) the power to adjust SSS premium rate without resorting to a law.
“It’s a bit dangerous, as one of the built-in safeguards against unbridled increases in premium contributions [were] just removed,” Cainglet was quoted in a statement as saying. “This is the formula for destruction. Giving more power to a commission whose members do not represent the interests of its main contributors—its members.”
FFW, together with other members of the Nagkaisa labor coalition, has been questioning the composition of the SSC, which they claimed does not genuinely represent the interest of labor and even employers’ groups.
Cainglet said as a precaution against “unbridled” increases, he said other stakeholders, and not just the SSC, should craft the IRR for RA 11199.
He added the guidelines should include a mechanism, wherein stakeholders could oppose a SSS premium hike.
“Opposition by trade unions to an increase should be enough to prevent them from implementing an increase,” Cainglet added.
President Duterte signed RA 111 on February 7 in an effort to prolong the viability of the SSS fund.
Among the salient provisions of the new law is allowing the SSC to increase contributions based on the result of an actuarial study of the SSS fund.
It also makes it mandatory for overseas Filipino workers who are below 60 years old, as well as tasked the SSS to come up with an unemployment insurance for its members, who were involuntarily displaced.