SSS exec allays fears on P12.5B stimulus fund
BACOLOD CITY – Social Security System (SSS) Assistant Vice President for Media Affairs Department Joel P. Palacios recently wrote a letter to the Sangguniang Panglungsod of Bacolod in reference to the Bacolod City Council Resolution opposing the alleged “transfer and utilization” of an estimated P12.5 billion of the Social Security System’s (SSS) funds to the P330-Billion economic stimulus package of the national government.
The council, in Resolution No. 176-Series of 2009, said the move would “duly endanger the rights and benefits” of SSS members.
Palacios clarified, in his letter which was received last week by SP Member Greg Gasataya, that SSS considers the P12.5 billion, which was part of the stimulus package for infrastructure projects, as an investment, and not a dole out.
He further stated that the Social Security Act of 1997 allows SSS to invest up to 30 percent of its investment reserve fund to finance domestic infrastructure projects such as roads, bridges and ports. “The Social Security Law requires a full government guarantee and a fair return for SSS investments in infrastructure. The government guarantee ensures that SSS would get its money back no matter what happens with the investment,” Palacios clarified.
He said that SSS investment earnings add to their revenues and allow the institution to provide more meaningful benefits to members and their beneficiaries. The clarification submitted by Palacios was accepted by the SP last Wednesday during their 99th SP Regular Session.