PNoy defends decision to veto SSS pension hike

MANILA, Philippines - President Benigno Aquino III on Friday defended his decision to veto the bill raising the monthly pension of SSS retirees by P2,000.

The president said that his decision was not made out of whim as the SSS would go bankrupt if the monthly pension was raised.

READ: PNoy rejects SSS pension hike bill

"Hindi kapritso 'to. Pinag-aralan at ibabangkarote mo 'yung SSS 'pag pinasukan 'to by 2027. At siguro maski sinong mamamahala ng gobyerno, importante na may commitment and estado, in this case the SSS, na agency ng gobyerno na ibigay sa iyo 'yung benepisyong pinangako sa iyo," Aquino said in a press conference.

Aquino explained that only 2.15 million SSS pensioners will benefit from the raise while 30 million others will be affected negatively.

The president pointed out that the SSS would need an additional P56 billion per year in its fund to support the P2,000 increase in monthly pension.

The SSS is expected to go bankrupt within the next 11 years if the bill would be approved.

"Matutuwa 'yung 2.15 million, mapapahamak 'yung 30 million. Tama ba 'yun? Doon nagsimula ang desisyon natin na kailangan i-veto ang measure na ito dahil hindi natin kayang i-sustena 'yung ating SSS system," Aquino said.

Aquino said that he may be called "heartless" for not approving the SSS pension hike but he careless in the future if he approved the proposal.

The president, however, noted that the Congress can overturn his veto with a two-thirds vote.

The House of Representatives approved the SSS pension increase bill on June 9, 2015 while the Senate adopted it on November 9. The current minimum SSS pension is P1,200 a month.

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