SSS 54th Anniversary Supplement

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The SSS fulfills a noble mandate as amplified by this year’s anniversary theme: “Sa SSS: Miyembro’y Protektado, Kinabukasa’y Sinisiguro.”

Text of SSS 54th Anniversary Supplement

  • 1. SSSat54:AprotectivepresencememberscanrelyonThe SSS fulfills a noble mandate as amplifiedby this years anniversary theme: Sa SSS:Miyembroy Protektado, KinabukasaySinisiguro.The Social Security System (SSS) is a shoulder of support to workers in times of financial emergencies and has loomed like an avuncular presence in theworkplace and in the home for more than half a century. Proud of its past and confident of itsfuture role in the lives of its members and stakeholders, the SSS notches up another fruitful yearof service as it celebrates its 54th anniversary on September 1. The SSS fulfills a noble mandate as amplified by this years anniversary theme: Sa SSS:Miyembroy Protektado, Kinabukasay Sinisiguro.SSS coverage is mandatory for private sector employees, household helpers and self-employed workers including farmers, fishermen and high income professionals such as actors,entrepreneurs, athletes, accountants, doctors and dentists. But the institution has widened itsreach to allow informal sector workers such as street vendors and watch-your-car boys to alsoavail of social security protection. Migrant workers, members separated from private sectoremployment such as those who moved on to government service and non-working spousesof active members fall under voluntary coverage. The SSS protects members in various ways:Protecting members by providing benefits, loans and other privilegesSSS benefits serve as lifeline to millions of workers when they lose their capacity to earndue to sickness, maternity, disability, old age and death. Last year, SSS benefit paymentsamounted to P77.17 billion, which made up 92 percent of total expenditures. About half of totalbenefit disbursements were for retirement claims, which were paid out to members as monthlypensions or in lump sum. The SSS administers the regular Social Security program, which offers short-term andlong-term benefits. Maternity and sickness benefits are short-term cash allowances given tomembers who temporarily stop working due to ailments and pregnancy. The SSS also looks out for the future of members over the long-term. Contributions ofmembers, which represent 10.4 percent of their covered monthly income, add up as savings tomeet future needs.

2. Members look forward to getting retirement benefits at the end of their employment,while workers who become physically or mentally incapable receive disability benefits.Survivors of members are entitled to death benefits, including funeral grants of up to P20,000. The SSS also grants additional benefits for work-related sickness, disability or deathunder the Employees Compensation program, which the agency administers. The SSS promotes social justice under the principle of cross-subsidy. Contributions ofactive members subsidize pensioners. High-earners subsidize low-income workers. Malemembers help fund maternity benefits of female workers. The institution offers loan privileges to employers and members to help fulfill their creditneeds. Members can avail a maximum of P24,000 in salary loans. Its housing loan programs helpmembers buy their own home or apply for loans for house repairs and improvements. SSS corporate loans help businesses to expand and grow, to create jobs and spur socialand economic growth. In more than two decades, the SSS has released more than P23 billion forbusiness and social loans to fund more than 5,000 projects that have generated 99,300 jobs,created 4,125 hospital beds and provided school facilities for almost 168,000 students.To increase employers access to SSS lending facilities, the agency has relaxed itsrequirements and allowed monthly adjustments of interest rates to align them with market ratesstarting July 2011. Also, the SSS opened the credit facilities to new projects such as sustainableenergy, forest development and mining.Protecting fund viability The SSS must ensure the continuing viability of the fund to secure a good future for itsmembers. The SSS manages the flow of income from contributions and investments to finance itsoperations, pay for members benefits and protect its reserve fund, which serves as buffer intimes of deficits.From September 1957 to June 2011, the SSS collected a total of P794.76 billioncontributions and earned P370.68 billion in investment and other income. Over the same period,benefit payments amounted to P794.69 billion while operating expenses totaled P86.41 billion. At present, SSS has assets of nearly P315 billion and its fund life is expected to last 28years or until 2039. The SSS hopes to bring back the fund life to perpetuity through structuralreforms that can lead to higher income from contributions and investments. 3. Protectin rights an benefits o workers fngnd offrom delinq quent emplo oyersPart of SSS duty is to pprotect workkers from ddelinquent em mployers wh deny wo hoorkersrightful b benefits. Unnder the Soc Security law, employers have the responcialy nsibility to r reportworkers for SSS cov verage within 30 days from start of en employment They must also deduc and t.t ctremit the workers contribution and loan aeirc nsamortizationss. Employers th fail to com E hatmply with th law face i he imprisonmen of up to 12 years on t of nttoppaying p penalties and fines. SSS account of dSfficers all o over the couuntry monito complianc of or ceemployer through personal visit torstscheck company recor rds.SSS files charges agac ainsterring emmployers in court or beforethe Socia Security Commission In al C n.the first half of 20011, SSS ffiledcases agaainst 518 emmployers wit a thcombined delinquen of P236 dncy 6.28million. This marks a 72 percscentincrease compared with a total of w l302 cases filed from January to JJunelast year. .Protectin the syste from fraudngem To T prevent fraud, SSS has fimplemen the new Unified Multipurpose Identificatio System (Untedw on UMID), whic uses biom chmetrictechnolog to determ a person identity tgymine nsthrough fingerprint matc ching.UMID cards contain a cUcontactless c chip and magnetic strip that store biometric and pe escdemograp phic informaation to iden ntify membe Because the UMID uers. uses biometr technology, itricwould be impossibl for any ple person to oobtain multip ID card to be used in fraudpledsdulenttransactio ons. 4. Stak keholddersvvoice(ClockwisefromLeft)Da anielL.Edralin,BienvenidoE.Laaguesma,Maria anitaO.Mendozza,IbarraA.Maalonzo,RosalindaD.Baldoz(ExOffic cioMemberasSSecretaryofLabor),ElizaBettinaR.Antonino,JJuanB.Santos(C Chairman),Em milioS.deQuiroos,Jr.(ViceChairmanandCEO))andDianaV.PardoAguilar The T Social Seccurity Commiission (SSC), a nine-memb body that serves as SSS governing b ber Sboard,steers the institution to fulfill its m emandate to it members a stakehold tsand ders. Under th Social Security heLaw, ex-o officio SSC members inclu the Labor Secretary or his duly des m uder signated undeersecretary an thendSSS president, who als holds the p so position of Vic Chairman.ceTheT other sev members were appoinvenPresident of t Philippines. Three of them nted by the P therepresent the employer three repre rs, esent the labo sector and one represenor d ntative from t general pthe public.Two wom represent the employer and worke groups, remenrsersespectively.TheT present SSC is heade by Chairm Juan B. Santos, who is one of th three mem Sed mano hembersrepresenti the emplo ing oyers sector. Santos, who was former trade secreta served a the first Filipino .or ary,asPresident of Nestle Ph hilippines from 1987 to 2003 and was a recipient o the prestig s of gious ManageementMan of th Year award in 1994.he d 5. SSS President and Chief Executive Officer and SSC Vice Chairman Emilio S. de Quiros,Jr. and Labor Secretary Rosalinda D. Baldoz are ex-officio members. De Quiros is a veteran banker fromthe private sector prior to becoming SSS president in 2010, while Baldoz rose from the ranks in thegovernment service.Joining Santos from the employers sector are Diana P. Aguilar, an investment banker with 13years of experience in capital markets transactions, and Bienvenido E. Laguesma, who was formerSecretary of the Department of Labor and Employment.The workers advocates in the SSC are Daniel L. Edralin, chairperson of the Alliance ofProgressive Labor, and Ibarra A. Malonzo, a lawyer, who held various positions such as GeneralSecretary of the National Confederation of Labor and President of the National Federation of Labor.Marianita O. Mendoza, a doctor who pushed for the inclusion of non-working spouses under SSScoverage, has been reappointed as female representative of the workers group.Eliza Bettina R. Antonino represents the general public. She held positions as Vice President ofWemilco Management and Development Company and served in various capacities at the Senate of thePhilippines. 6. Service iinnovationsSSSimpleementsnew wways stoim mprovee vicedeserv elivery membe ytomersThe Social Secu urity System in its dr m, rive to impprovese ervice delivvery, has immplemented innovative ways to m e maketr ransactions e easier, faster and more crconvenient f its 29 mformillionmembers. Th SSS offer a lifeline t private sem he rstoector workers andth families during tim of sickne maternit disability old heirsmesess, ty, y,agea and deathh. The n new Unified Multi-purdrpose Identification (UM MID)ca facilitate processing of benefit claims and loan applica ard es g ationsth hrough the wwonders of b biometric tec chnology. In the future, i willitbe used by m members to withdraw S SSS benefit claims and loanproceeds at au utomated tel machineller es.SSS mmembers no have eas access to their recor toow syordsmonitor their contributim ions, benefi and loan payments and itsn sdetermine the eligibility to various SSS program Member cand eir yms.rsview their reecords throu Self-Serughrvice Informmation Termi inals,which are touwuch-screen kkiosks installled at SSS branches, w awithsi ingle swipe o their SSS IDs. of Memb bers can also get infoormation usiing their mmobilephones thro