MANILA, Philippines - State-run Social Security System (SSS) lauded yesterday the House of Representatives for approving House Bill 2158, which seeks to rationalize and expand the powers and duties of the Social Security Commission (SSC).
SSC chairman Amado Valdez expressed gratitude to the legislators for recognizing “the need for continuous reforms in the pension program.”
Majority of the legislators in the Lower House voted to approve on the third and final reading HB 2158. Only seven opposed the bill, while one abstained.
HB 2158 aims to amend Republic Act 1161, otherwise known as the Social Security Act of 1997.
Section 4 of the law prohibits the SSS from recommending an increase in benefits that will translate into higher contributions for its members.
Senate President Pro-Tempore Franklin Drilon earlier said the provision would make the recently approved P1,000 initial increase in monthly pension of retired SSS members illegal.
HB 2158 allows the Commission to fix from time to time the monthly salary credits, schedule and rate of contributions, and rate of penalties for unremitted and unpaid contributions and loan amortization without the approval of the President, the SSC said.
The measure also seeks to authorize the SSC to enter into compromise agreements to condone penalties for select cases of failure to remit monthly contributions and to pay loan amortization for short and medium term loans, also without the approval of the President.
In addition to these, the enhanced powers of the SSC is also expected to expand its investment opportunities, which will eventually allow the commission to provide more benefits in the future, such as unemployment insurance for members.
With this development, Valdez said the SSC is now in a better position to determine the needs of its members and the SSS fund.
He said the measure would also make it easier for the SSC to craft policies at a shorter time without concerning themselves with possible political issues. Mary Grace Padin