NOV.

30, 2012

NR # 2939

Legislator wants to ensure that SSS and GSIS pension funds are properly administered
A Metro Manila lawmaker has taken the initiative to consciously monitor how pension funds under the care of the Social Security System (SSS) and the Government Service Insurance System (GSIS) are being managed by filing a measure that would ensure that state pension funds are carefully invested at no risk against losses or siphoned off to benefit private sector entities. Rep. Winston Castelo (2nd District, Quezon City) proposed under House Bill 6665 that the Bangko Sentral ng Pilipinas (BSP) or the Monetary Board issue rules, regulations, guidelines and other sanctions as it may see fit that will introduce the culture of transparency in the business or corporate affairs of both the SSS and the GSIS. In the light that no government agency undertakes a conscious monitoring on how pension funds are being administered, it behooves upon a cognizant entity to adopt a proactive approach as would ensure how substantial chunk of funds may be utilized for all the bonafide SSS and GSIS members and stakeholders, Castelo said. Castelo stressed that there should be an internal system of disclosure initiated by the state pension fund itself for the full dissemination and information as to how such funds are being run. Not surprisingly, SSS or GSIS is awash with cash but this shall not lend freedom for them to invest in any way they see, Castelo said. Castelo said it is of paramount consideration that pension funds are contributed by private and public workers in the SSS and GSIS, respectively and it is only fitting and proper that serious custodial job is reposed upon those that manage these pension funds. The Quezon City lawmaker added that in no permissible instance must management provide any part of the pension funds to buoy up or resuscitate an otherwise ailing private or public entity. Under the proposed Pension Funds Disclosure Act of 2012, a culture of transparency and internal system of disclosure shall be adopted in all the business and corporate affairs of the SSS and the GSIS as a matter of right and privilege on the part of their private and public workers. All returns of investment under this system of disclosure shall be fully disseminated for the information of the private workers in the case of SSS and public workers in the case of GSIS. The SSS is mandated to issue appropriate rules, regulations and guidelines against violations of this Act and similarly, the GSIS is directed to do the same. Pension funds must accrue only to their legitimate contributors and no one else. These should not be siphoned off for purposes other than the higher interest of its contributors, Castelo said. (30) lvc