A House of Representatives committee on Thursday approved a bill granting President Rodrigoi Duterte the power to defer this year’s implementation of an increase in membership contribution to the Social Security System.
The Committee on Government Enterprises and Privatization declared as urgent the passage of House Bill 8317 which contained a congressional authority for Duterte to act swiftly in preventing SSS from collecting additional membership contributions.
Authored by Speaker Lord Allan Velasco, HB 8317 gives a chief executive said power only during “times of national emergencies” such as the current COVID 19 pandemic that has caused severe economic impact on Filipinos.
The bill also seeks to amend Republic Act 11199, the Social Security Act of 2018, that mandates gradual increase in monthly premium contributions of both employees and employers.
Chaired by Paranaque City Rep. Olivarez, the government enterprises committee also conducted initial deliberations on six other bills referring to the hike in SSS contribution.
The House panel agreed to send the legislative measures to a technical working group study and possible consolidation.
Velasco has also authored a similar measure that will grant the president the authority to defer adjustments in membership contributions to the Philippine Health Insurance Corp. which has announced the implementation of increases starting January, 2021.
“These are extraordinary times and Congress must respond accordingly,” Velasco said, as he called for the swift approval of the two bills that both aimed at alleviating the financial burden being faced by Filipino workers amid the COVID-19 crisis.
Aside from Velasco’s proposal, other bills related to the unpopular SSS premium hike are HB 8304 that proposed th suspension of the scheduled increase; HB 8310 removing the automatic increase of premium contributions; HB 8313 calling for a two-year deferment of the contribution rates and HB d8315 and 8422, also calling for suspension of the hike in contribution.
Testifying before the committee in yesterday’ hearing, SSS President Aurora Ignacio warned that the bills that sought to prevent the implementation of the premium adjustments “tend to weaken rather than strengthen the SSS, especially in these difficult times.”
Ignacio warned that the “considerable strain” in the social pension fund would have strong adverse financial impacts on the distribution of benefits to pensioners, active members, and other beneficiaries.
She added that the increase in contribution is quite modest compared to what members stand to benefit from it.
Asst. Secretary Philip Paredes of the Department of Labor and Employment said the agency is caught between the interest of both the SSS and the country’s labor force. He said being a member of the SSS board and protector of the interest of workers, Labor Secretary Silvestre Bello may not be able to give a “categorical position” on the issue.
Former Rep. Nery Colmenares slammed the SSS stand against the deferment of the premium hikes.
Citing reports from the Commission on Audit, Colmenares disclosed that the state-owned insurance firm’s net revenues increased form P22.38 billion in 2018 to P55.67 billion in 2019.
He noted that SSS has been remiss in its bid to collect the correct premium payments from both employers and workers.
In 2019, out of 43 million employed, only 37.7 million members paid their premium to the SSS. There have been a total of P463.26 million in unremitted collections.
Colmenares said COA has disclosed that delinquent employers owe the SSS P186.2 billion in unpaid share to workers’ contributions.
“Why invent a new contribution when you cannot even collect the old contribution?” Colmenares asked SSS officials.
Atty. Edgar Cruz of the SSS actuarial services warned that unless immediate action is taken by the firm, the reserve funds might be depleted in a matter of three years.
“Social insurance is a long term proposition,” he said.