Secretary of Finance
as delivered by Finance Assistant Secretary and Spokesperson
Antonio Lambino II
On behalf of Finance Secretary Carlos G. Dominguez, magandang, magandang umaga po sa inyong lahat.
Congratulations to the men and women of the Social Security System or SSS on this institution’s 62nd anniversary.
Over the past six decades, the SSS has emerged as a dependable institution. For many of our people, this is the institution of last recourse during moments of severe need, and a source of comfort for our retirees.
The SSS plays a vital role in our society. As our society becomes more urbanized, as the economy becomes more formal and as our people become more mobile, social security contributions and benefits often become the only reliable means for hedging against all uncertainties. This institution must be as reliable as it can possibly be and as efficient as all modern processing technologies enable it to become. The institution must incessantly prove itself worthy of the rising expectations of its members.
Over the next few years, as the larger demographic picture changes, this institution will face multifold challenges. The principal challenge remains to be prolonging the fund’s life even as retirees become an increasingly larger segment of the population.
With increased contributions, we have managed to extend the fund’s actuarial life. We still need to put in more work in extending it further as the growth in the number of beneficiaries could soon outstrip the growth in the number of actively employed contributors.
We note that the SSS has substantially improved its revenues. For 2018, total revenues reached 212.55 billion pesos, 5.4 percent higher than in the preceding year. In the first half of this year, revenues reached 115.53 billion pesos, 20.9 percent higher than the same period last year. This impressive improvement has been due to better collection of contributions. We also need to remain mindful that this will have marginal returns eventually.
This is why the SSS needs to dramatically increase income by improving the quality and performance of its investments. We need to institute better financial management and market engagement. With the rapid expansion of our domestic economy and improved business outlook, the SSS should be able to improve its earnings from investments.
Again, only improved financial activity will convince our members that their contributions are indeed investments in the future. Because of the size of the fund SSS manages, there should be no reason why our earnings should not be better than market averages.
There is a continuing need to reduce the pension fund’s overhead expenses and to expand the use of modern digital tools to facilitate members’ access to services. We will continuously monitor progress on these two items. We have to show our members that the institution that collects from their hard-earned income is being managed in the most and efficient prudent way.
Also, much progress still needs to be made in making our frontline services more efficient. Our reception halls continue to be filled with members waiting for their turn to transact. The waiting time for processing applications for benefits continues to be too long. There should be new technologies that will enable the institution to improve further in facilitating access for its members.
Investments in new digital technologies will not only make transactions with our clients more convenient, they will also save us money in the long run. The management, however, must very clearly justify these investments by demonstrating their returns.
We need to reinforce our public messaging. Contributions to the pension fund must be understood as savings and investments for the future. We must continually emphasize that if our members contribute more today, they will have more when they retire tomorrow. When we are more efficient in delivering benefits, we can all the more convince our members that contributions are a worthwhile investment in their own futures.
There are, to be sure, many challenges this institution will face. There are also many opportunities we must not let pass.
I am confident that the dedicated professionals who work for the SSS will continue working hard for this institution to better deserve the trust of our people. Only a robust fund, after all, will assure our people of dependable long-term benefits.
Again, on behalf of Secretary Dominguez, let me congratulate the individuals, employers and institutions that we will honor today as Balikat ng Bayan awardees. I thank you for your significant contributions to the pursuit of the SSS’ mandate of providing reliable social security protection for its members and pensioners.
Thank you and good day.
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