Manila Bulletin
Philippines
National
Senate minority bloc wants GSIS, SSS pensioners' funds protected vs Maharlika bill
Philippines
National
Senate minority bloc wants GSIS, SSS pensioners' funds protected vs Maharlika bill
Senate minority bloc wants GSIS, SSS pensioners' funds protected vs Maharlika bill
Published May 30, 2023 03:35 am
The Senate minority bloc is pushing for an “iron-clad” provision in the Senate’s version of the proposed Maharlika Investment Fund (MIF) Act to guarantee that pension funds in the Government Service Insurance System (GSIS) and the Social Security System (SSS) would not be compromised in the MIF bill.
Senate minority leader Aquilino "Koko" Pimentel III questions why the contributions of members of Government Service Insurance System (GSIS) and Social Security System (SSS) could still be used as an investment during the Senate's interpellations on the controversial Maharlika Investment Fund (MIF) bill. (Senate PRIB photo)
This was specified by Senate Minority Leader Aquilino “Koko” Pimentel III during the interpellations on Senate Bill No. 2020 on Monday night. “Our workers’ hard-earned pension should be shielded from any adverse implications that could arise from the establishment of MIF,” Pimentel stressed. Unfortunately, he said, the threat that the MIF would dip its hands into retirees’ pension funds is still very much alive. “While they removed the forced contribution from GSIS and SSS, the current version of MIF under consideration by the Senate would allow these social insurance institutions to invest in Maharlika voluntarily as long as their boards agree,” Pimentel warned. The House of Representatives’ earlier version of the bill had sought to tap the GSIS and SSS funds as the source for the initial capital of the proposed sovereign wealth fund. But due to the public backlash, House lawmakers abandoned the proposal and removed the provision. Sen. Risa Hontiveros, deputy minority leader, said a section in the Senate’s version of the bill “still” allowed other government financial institutions (GFIs) and government-owned or controlled corporations (GOCCs) to invest in the proposed MIF—“subject to their respective investment and risk management strategies and approval of their respective boards.” Hontiveros said the MIF bill, in its final version, should be amended to categorically prohibit GOCCs like the GSIS, SSS and Home Development Mutual Fund from contributing to the proposed Maharlika Fund. However, Sen. Mark Villar, chairman of the Senate Committee on Banks, Financial Institutions and Currencies, refused to accept this, saying he was “not convinced” this should be removed as pensioners were “neither requested nor required” to invest in the proposed MIF. “This is just an option. They don’t have to invest,” Villar pointed out. But Hontiveros said the Senate has the duty to weigh which options could be considered “dangerous or disadvantageous.” “GSIS and SSS funds are owned by the members. They are not government funds and should not be touched by the government for our own disposal,” she said, adding that “it shouldn’t be an optional at all.” Pimentel also said “such provisions within the MIF bill raise serious concerns about the safety and security of our pension system.” “We should provide an iron-clad provision to shield pensions from this very financially unsound and dangerous undertaking called Maharlika Investment Fund,” he stressed. “Hindi pwedeng pilitin (They could not be forced). Hindi puedeng hingan (They could not be asked to invest). Pero kung kusa at boluntaryong magbibigay, tatanggapin naman (But if they voluntarily invest, it will be accepted),” the minority leader further said. However, when Pimentel moved to suspend his interpellation on the controversial bill, Villar objected to his motion and instead terminated the period of interpellations which lasted until 1 a.m. of Tuesday. Villar said the minority bloc could still insert their ideas during the period of amendment where recommendations of senators are added or revised. “I think we’ve debated this extensively. I’ve answered all the interpellations. And without prejudice to the amendments being proposed, I’d like to object and I’d like to move to close (the period of) interpellations,” Villar said. Despite the minority bloc’s objection, they were outvoted by the Senate majority bloc. Senate President Juan Miguel “Migz” Zubiri said the minority bloc was given all the opportunity to interpellate the past 10 hours. Zubiri insisted there is a need to vote on the pro-administration MIF bill either tomorrow (Tuesday) or on Thursday. President Ferdinand “Bongbong” Marcos Jr. has certified the Maharlika fund bill as urgent. But during the period of interpellation on SBN 2020 Monday, May 29, 2023, Pimentel cited Paragraph 2, Section 26, Article XVI of the Philippine Constitution, which allows a measure to be certified as urgent “to meet a public calamity or emergency.” “What is the public calamity or emergency which will be met by the immediate enactment of this measure?” Pimentel asked. Villar, in response, said the determination of urgency is something that is done by the executive and he believes that the administration has access to information in order to have such a determination. (With reports from Hannah Torregoza)
Senate minority leader Aquilino "Koko" Pimentel III questions why the contributions of members of Government Service Insurance System (GSIS) and Social Security System (SSS) could still be used as an investment during the Senate's interpellations on the controversial Maharlika Investment Fund (MIF) bill. (Senate PRIB photo)
This was specified by Senate Minority Leader Aquilino “Koko” Pimentel III during the interpellations on Senate Bill No. 2020 on Monday night. “Our workers’ hard-earned pension should be shielded from any adverse implications that could arise from the establishment of MIF,” Pimentel stressed. Unfortunately, he said, the threat that the MIF would dip its hands into retirees’ pension funds is still very much alive. “While they removed the forced contribution from GSIS and SSS, the current version of MIF under consideration by the Senate would allow these social insurance institutions to invest in Maharlika voluntarily as long as their boards agree,” Pimentel warned. The House of Representatives’ earlier version of the bill had sought to tap the GSIS and SSS funds as the source for the initial capital of the proposed sovereign wealth fund. But due to the public backlash, House lawmakers abandoned the proposal and removed the provision. Sen. Risa Hontiveros, deputy minority leader, said a section in the Senate’s version of the bill “still” allowed other government financial institutions (GFIs) and government-owned or controlled corporations (GOCCs) to invest in the proposed MIF—“subject to their respective investment and risk management strategies and approval of their respective boards.” Hontiveros said the MIF bill, in its final version, should be amended to categorically prohibit GOCCs like the GSIS, SSS and Home Development Mutual Fund from contributing to the proposed Maharlika Fund. However, Sen. Mark Villar, chairman of the Senate Committee on Banks, Financial Institutions and Currencies, refused to accept this, saying he was “not convinced” this should be removed as pensioners were “neither requested nor required” to invest in the proposed MIF. “This is just an option. They don’t have to invest,” Villar pointed out. But Hontiveros said the Senate has the duty to weigh which options could be considered “dangerous or disadvantageous.” “GSIS and SSS funds are owned by the members. They are not government funds and should not be touched by the government for our own disposal,” she said, adding that “it shouldn’t be an optional at all.” Pimentel also said “such provisions within the MIF bill raise serious concerns about the safety and security of our pension system.” “We should provide an iron-clad provision to shield pensions from this very financially unsound and dangerous undertaking called Maharlika Investment Fund,” he stressed. “Hindi pwedeng pilitin (They could not be forced). Hindi puedeng hingan (They could not be asked to invest). Pero kung kusa at boluntaryong magbibigay, tatanggapin naman (But if they voluntarily invest, it will be accepted),” the minority leader further said. However, when Pimentel moved to suspend his interpellation on the controversial bill, Villar objected to his motion and instead terminated the period of interpellations which lasted until 1 a.m. of Tuesday. Villar said the minority bloc could still insert their ideas during the period of amendment where recommendations of senators are added or revised. “I think we’ve debated this extensively. I’ve answered all the interpellations. And without prejudice to the amendments being proposed, I’d like to object and I’d like to move to close (the period of) interpellations,” Villar said. Despite the minority bloc’s objection, they were outvoted by the Senate majority bloc. Senate President Juan Miguel “Migz” Zubiri said the minority bloc was given all the opportunity to interpellate the past 10 hours. Zubiri insisted there is a need to vote on the pro-administration MIF bill either tomorrow (Tuesday) or on Thursday. President Ferdinand “Bongbong” Marcos Jr. has certified the Maharlika fund bill as urgent. But during the period of interpellation on SBN 2020 Monday, May 29, 2023, Pimentel cited Paragraph 2, Section 26, Article XVI of the Philippine Constitution, which allows a measure to be certified as urgent “to meet a public calamity or emergency.” “What is the public calamity or emergency which will be met by the immediate enactment of this measure?” Pimentel asked. Villar, in response, said the determination of urgency is something that is done by the executive and he believes that the administration has access to information in order to have such a determination. (With reports from Hannah Torregoza)