BILLIONS OF FUNDS entrusted by the working class to government state insurers may have been gone for good after incurring heavy losses in dubious stocks investments, fat allowances and misplaced acquisitions of assets not readily liquefiable.
When the Maharlika Investment Fund (sovereign wealth fund) was formed, pensions lodged in the Social Security System (SSS) and the Government State Insurance System (GSIS) were tagged as potential sources of capital for MIF.
The working class — both in the government and the private sector, took a firm stand against the idea, for which the proposal was discarded.
For one, entrusted funds should not be used to provide capital for something that has not been tried and proven to work in the country. There’s no way to gamble something that is meant for disbursement to its paying members.
Yet, at the rate the entrusted funds are being spent on investments (without the consent of the contributors) – many of which are not readily liquefiable – the actuarial lives of these pension funds are shortened, to the detriment of the workers from whom funds come from.
MARCOS REMINDER
Addressing the 68th SSS anniversary coinciding with the launch of the 2025 Pension Reform Program, President Marcos recently reminded SSS and GSIS to safeguard the integrity of the state-run pension funds even as he urged state insurers not to squander pension funds.
Under the 2025 Pension Reform Program, pensions for retirees and disability survivors were increased in an earnest effort to ensure that the state insurer “remain fair and responsive”
“Sa mga kapwa ko lingkod-bayan sa SSS at GSIS, huwag nating kakalimutan na ang bawat kontribusyon ng ating mga miyembro ay bunga ng kanilang pagsisikap at sakripisyo,” the President said.
“Kaya naman, tungkulin natin na tiyakin na sa oras ng kanilang pangangailangan ay nandiyan tayo, handang umalalay at magbigay ng ginhawa sa kanila,” he added.
INVEST WISELY
Marcos likewise cited the need for SSS and GSIS to keep pension funds safe from losses.
“That is why I direct the leadership of these two institutions (SSS and GSIS) to guard this trust with the highest integrity and vigilance. So, invest wisely. Modernize your systems and make your processes efficient,” Marcos said.
He continued: “Ensure that your services are easier to reach, be it through digital platforms or help desks and kiosks, even in the most remote areas. Make sure your services are available whenever the need arises, wherever the need arises.”
Marcos urged the two agencies to “protect the lifetime of work that our pensioners have built for themselves and for our country.”
ONLINE GAMBLING
His reminder followed reports of alleged investment losses incurred by the GSIS in online gaming operations, raising concerns over how pension funds were being managed.
The multi-year SSS pension hike is expected to benefit more than 3.8 million pensioners until 2027. Retirement and disability pensioners will receive a 10 percent annual increase, while death or survivorship pensioners are bestowed with a five percent yearly hike.