A NEWLY enacted law is touted to end the problematic palakasan scheme in getting appointed as members of the governing board of the Social Security System (SSS), Sen. Richard Gordon said on Tuesday.
Gordon, who chairs the Senate Committee on Government Corporations, cited key provisions of Republic Act 11199 that, he said, was projected to “usher in an era of competent professional management” in the SSS.
“The Republic Act 11199 or the SSS Act of 2019 would put an end to the palakasan system in the appointment of members of the governing board of the state pension fund,” the senator said.
For instance, Gordon pointed out that one of the key amendments in the newly enacted Social Security law is “the inclusion of qualifications and standards in the selection of the members of the Social Security Commission (SSC), the policy-making board of the SSS.”
“Now, members [of the SSS governing board] will no longer be appointed merely on the basis of a palakasan system,” added Gordon.
The senator confirmed that under the new SSS law embodied in RA 11199, the SSS Commission will be composed of the secretary of finance as the ex officio SSC Chairman; SSS president/CEO as its vice chairman; the secretary of labor and employment as ex officio member; and six other members from the workers’ and employer’s group.
Gordon said the SSS law further provides that members of the SSC shall be of known competence, probity, integrity and recognized expertise in the fields of social security, pension fund, insurance, investment, banking and finance, economics, management, law or actuarial science and with at least 10 years of managerial or leadership experience.
In a statement, the senator stressed the huge responsibility of the SSS leadership, citing its fiduciary duty.
“Napakalaki ng responsibilidad ng Social Security Commission. Sila ay may fiduciary responsibility para pangalagaan at palaguin ang pera ng bayan. Nararapat lamang na ang mga taong ilalagay natin sa Social Security Commission ay kwalipakado, may karanasan at eksperto sa larangan ng social security [The Social Security Commission has a huge task. They have a fiduciary responsibility to safeguard and grow the wealth of the people. It’s only right that only those who are qualified, have enough relevant experience and are experts in social security are appointed there],” Gordon stressed.