THE FINANCIAL CONSOLIDATION
OF THE SOCIAL SECURITY SYSTEM,
GOVERNMENT SERVICE INSURANCE
SYSTEM AND HOME DEVELOPMENT
MUTUAL FUND: A MEANS TO INCREASE
MONETARY BENEFITS TO BENEFICIARIES
PERLIEANG
MAXIMO CHIONGSON
BENIGNO TOBIAS
YUH-WENYU
T Socialstudy
his is about the consolidation of the
Security System (SSS),
Government Service Insurance System
(GSIS) and the Pag-IBIG Fund or Home
Development Mutual Funds (HDMF).
The major objectives of the study are to
find out whether a consolidated social
security system is applicable to the
Phillipines at present. It also attempts to
study the present system of the three social
security agencies concerned; to fmd out the
advantages of such a consolidated system;
and to test the significance of the answer of
member-respondents of SSS, GSIS and
Pag-IBIG Fund.
The major hypotheses of the study are·
the following:
1. The existing members of the three systems
will benefit financially from such a
consolidation.
2. The consolidated system will create more
social security benefits for its members.
3. The similarities among the SSS, GSIS and
Pag-IBIG Fund system will contribute
largely to the possibility of consolidation.
The study assumes that the f1rms
surveyed are accredited with the SSS, GSIS
and Pag-IBIG Fund, and that the political
and economic conditions of the country
will remain constant at present levels. The
study further assumes that the procedure
of research used is the standard
procedure in consolidation; and that the
sample size of the survey represents the
whole population of SSS, GSIS and
Pag-IBIG Fund members.
The study makes use of the descriptive
type of research design as the proponents
seek to determine the similarities of the
present system of the SSS, GSIS and
Pag-IBIG Fund, and the problems of the
systems as reflected by the problems of its
members with their benefits.
The study makes use of qualitative and
quantitative data in its analysis.
The major fmdings of the study are the
following:
1. The chi-square tests suggest that there are
significant differences in the answers of
the respondents, implying that pertinent
problems exist in the three systems that
make the beneficiaries .feel discontented
and regard the present systems as
inefficient. ·
2. The three systems were all created by
legislation and offer basically similar
benefits to their beneficiaries and
members.
3. The consolidation will increase the
following: (a) fund base for the members'
benefit, (b) the loan size per member of
the three systems, and (c) average loan
sizes. The increases wil~ in effect, give the
members of the three systems more
financial benefits.
63
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU
The study concludes that a Method of Data Collection
consolidated system will prove to be more
beneficial for the members of the three
systems at present. It is able to prove
that the three systems are basically
different only in name, since their operations
and system are identical with each other.
Thus, a consolidated system is now
applicable.
The proponents recomm~nd that
further study be made on the feasibility of a
consolidation; that the private sector support
such a consolidation; and that the
consolidated system broadens its scope
further.
METHODOLOGY OF THE STUDY
Research Design
The study makes use of the descriptive
type of research design. Through this
method, the proponents seek to (1)
determine the similarities of the present
systems of the SSS, GSIS and the Pag-IBIG
Fund, (2) determine the problems' of the
systems as reflected by the problems of its
members with their benefits, and (3) to come
up with a recommended applicable system in
the Philippines, whether it be a consolidated
system or not, in line with the objectives of
the study.
Sampling Plan
The proponents' total sample size for
GSIS and SSS beneficiaries is 399.98 out of
the total 13,502,813 beneficiaries listed
under the two systems in 1989. These
numbers were obtained using the formula:
N the three systems. Moreover, the data
n=
1 + N( e )2
The value of n suggests that the total
survey sheets given, based on the total
population, total 400 survey sheets for the 10
firms randomly selected, in proportion to the
number of employees per firm.
64
Data for the study were gathered with
the use of a questionnaire.
Each firm was given survey sheets
through their personnel officers, in
proportion to the number of employees per
firm against the aggregate total in Metro
Manila.
Before the questionnaire was
formulated, the proponents gathered
secondary data from the offices of the GSIS
in Arroceros and Quezon City, the SSS in
Quezon City, the Pag-IBIG Fund in Mal:ati,
and the Commission on Audit (COA) in
Quezon City. Secondary relevant data from
newspaper articles and published books were
also utilized.
Primary data were also gathered
from interviews conducted with key
persons considered by the proponents as
authorities on the subject. Each
interviewee was asked questions relevant
to the study.
Method of Data Analysis
In the analysis of the qualitative
data, similarities of the three systems
as evidenced by their charters, operational
structures, benefits offered and their
financial statements were determined.
For the analysis of the quantitative
data, the proponents made use of the
chi-square test to determine the significant
'differences of the responses of the survey
respondents. The results were later
interpreted and used in the discussion of
results. ·
Financial statements were used to
ascertain the fmancial condition of the
three systems. Such data was also used
to obtain the financial consolidation of
was used to establish relevant information
such as increases in loans per member
and average loans funds per member
upon consolidation. Ratios of investments
to assets and total funds available for
loans were obtained using these data.
Financial ratios were also based on these
data.

THE PROPOSED
CONSOUDATED SYSTEMS
Financial Consolidation
for the Three Systems
In order to find out how the
beneficiaries of each system can benefit from
such a consolidation, the financial
consolidation of the three systems was taken
into consideration. For the purpose of
consolidating the financial statements of
GSIS, SSS and Pag-IBIG Fund, 1989
fmancial statements of the three systems
were used in the standard financial
consolidation procedures suggested by the
SGV and Co. Accounting F'rrm.
In consolidating the financial assets will also increase if a fmancial
statements, the proponents first identified
the identical accounts of the three systems
and then mathematically combined them.
This was also done in consolidating the
accounts with dil'ferent titles but with similar 41.53% for SSS and a low 4.3% for Pag-IBIG
nature and operation. Accounts with no
counterparts were left unaltered and were
later added to the list in the consolidated
financial statements. The pooling of accounts
method of consolidation was used. (The
consolidated financial statement of the three
systems is shown in Tables 1A and lB.)
Comparative Analysis of the Financial
Consolidated System and the Three Systems
The study focuses on the members'
problem regarding loan size or the amount of
loan they can avail of from the three systems.
The proponents attempt to fmd out if the
members will benefit from such a fmancial
consolidation.
Table 2 presents the breakdown of the
accounts in the investment part of the
consolidated system's financial statement. It . membership base of 12,1m;&13 and if all of
can be noted that upon consolidation, the
investments account increased as more
investment areas · and opportunities are
tapped. These can be beneficial for the GSIS,
SSS and Pag-IBIG Fund beneficiaries
because their total contributions will now be
exposed to new investment opportunities.
Before consolidation, the GSIS had only
CONSOUDATION of SSS. GSIS and PAG-IBIG
government securities, corporate notes,
preferred and common stocks, and other
forms of investments in their investment
portfolio mix. Likewise, the Pag-IBIG Fund
had only land for development, funds held in
trust, and other investments in its account.
Now, as shown in Table 2 where items are
taken from the consolidated systems' balance
sheet, it can be noted that the investment
portfolio mix of the new consolidated system
is large and broad. This will enable the GSIS
and the Pag-IBIG Fund beneficiaries to
expect a chance of diversification of/
investments, a possible good substantial
return, and low risk on their investments
brought about by the diversification.
The percentage of investments to total
consolidation is done. As shown in Table 2,
the new percentage of investments to tntal
assets increased to 46.54% for the
consolidated system from 32% for GSIS,
Fund. This will naturally prove to be
beneficial for all the beneficiaries of the
Pag-IBIG Fund. The beneficiaries of the
three systems can now expect a good return
on their investment with the increase in
investments, which will in turn increase the
funds available for loans to beneficiaries.
Table 3 shows how the loan size per
member/beneficiary will be increased with
fmancial consolidation. The amount which
represents the total fund available for loans
represents the sum of each system's net
income for the year, the retained earnings
accounts, reserve accounts and their
corresponding increases. The following case
illustrates this:
Under the existing SSS, it can be noted
that the total fund available for loans
amounted to P8.274 billion. The SSS has a
these members will avail themselves of a
loan, the maximum amount the SSS can give
them would be P683.79 per member.
Under the consolidated system, the
total fund available for loans amounts to
P14,682 billion. The consolidated system will
have a membership base of 14,802,813, the
total of the membership base of the three
65
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU
systems. If, for example, all of these members
will avail of a loan, the maximum amount the
consolidated system can give them is P991.90
per nwnber. It will be noted that this figure is
the highest loan amount compared with the
P914.92 per member for GSIS, P683.24 per
member for SSS, and P861.46 per member
for Pag-IBIG Fund. An increased loan size
for members is a good benefit since this
stretches their credit or loan limit.
Table 4 shows the increases in average
loan size of the beneficiaries who applied for
a loan in 1989. There were 760,049 SSS
beneficiaries with loans totalling P5.110
billion in 1989. (The breakdown of loan
releases is presented in Table 5.) The
average loan value of the loans given to the
760,049 SSS beneficiaries was P6,723.25.
Under the consolidated system, the total
fund available for loans is P14.682 billion.
Applying the percentage of the SSS loan
amount to the total of the three systems' loan
amount in 1989 (36.75%), we can get a total
amount of P5,395,701,800 available for loans
for SSS alone. Dividing this by the number of
members who took out a loan in 1989, it will
be noted that the average loan value
increased from P6,723.25 to P7,089.15 under
the consolidated system.
Using the same procedure on the fund
for loans of GSIS and Pag-IBIG Fund, it can
be ascertained that the average loan value
increased from P6,173.84 to P6,481.38 for
GSIS, and from P8,251.00 to P8,713.57 for
Pag-IBIG Fund.
Strengths and Weaknesses of the Proposed
Consolidated System
The following, based on the discussions
and analysis made, are the strong points of
the consolidated system proposed in the
study.
1. Economies of scale
2. Higher material (fmancial benefits)
3. Increase in available benefits
4. Higher investment fund base
5. Leads to efficiency
6. Eqnal treatment of all beneficiaries
7. Carry-over of Benefits
66
The weak points of the possible
consolidation of the three systems can create
some difficulties among the members. The
following are some possible weak points of
the consolidation:
1. Greater contribution of the members of a
particular system
2. Time-consuming benefits adjustment
3. Confusion among members at the start of
consolidation
4. No popular support
CONCLUSIONS
he results of the chi-square tests (see
TTable 6) show a significant difference
among the answers of the respondents from
GSIS, SSS and Pag-IBIG Fund. This means
that the population proportions are not all
equal, and implies that success or failure is
independent of the population sampled. This
difference can also be explained by the
different experiences of the members in their
respective institutions. Moreover, the
members have different views regarding the
consolidation of GSIS, SSS and Pag-IBIG
Fund.
The three systems can be consolidated
because all of them were enacted by law.
Their mission and objectives are the same:
they were created for the welfare of their
members.
It was ascertained in the discussion of
results that the three systems are apparently
different only in name, since their operations
and systems are identical with each other.
The three systems follow the same procedure
in their operations. The three systems can
thus be consolidated in the managerial level
Since the systems' officers are all appointed
by the President, all of them bold public or
government positions.
The consolidation in the fmancial
sector can also prove to be beneficial to the
members. As pointed out in the discussion on
fmancial consolidation, the loan size per
member will increase if the three systems are
consolidated. Their ratio of investments to

total assets will be increased upon
consolidation.
The above findings dictate that the
financial consolidation of the system will
really pwve beneficial for the members.
With the consolidation of the three
systems, the total amount of funds available
for loans will increase.
Upon consolidation, the investment
fund base of the the thr~ systems will also
increase. If this happens, the beneficiaries
will benefit in a way from the possible
increases in return of investments of the
consolidated system. An increased ROI is
good for the beneficiaries.
With the consolidation of SSS, GSIS
and Pag-IBIG Fund, members of the three
institutions will benefit from more social
security benefits. Furthermore, there will be
equal treatment/benefits received by private
and government employees.
The consolidation of the three systems,
therefore, will provide members and
beneficiaries better service in the form of
increases in the amounts of loans and
benefits.
RECOMMENDATION
These recommendations aim to resolve the
possible problems to be faced by the
Board of Directors of all the three systems
and its members. Moreover, these
recommendations were formulated to
facilitate the consolidation of the three
systems and to make the transition as smooth
as possible.
Frrst, the proponents encourage further
studies and research on the effects of the
three systems' consolidation, as there is not
enough research and no feasibility study on
the consolidation being made. Second,
support from the government and the private
sector is recommended Third, the
consolidated system should broaden its scope
and explore areas like agriculture,
aquaculture, and others. Fourth, the
consolidation of the CB Provident Fund can
also be looked into in the future. Its
CONSOUDATION of SSS, GSIS and PAG-IBIG
consolidation will be an additional benefit
that can lead to the greater good of the
beneficiaries.
ACTION PLAN
FOR THE CONSOUDATION
OF THE THREE SYSTEMS
he action plan for the consolidation of
T the three systems is recommended in this
study. The consolidation will be facilitated
properly if the following factors are to be
taken into consideration:
1. A presidential committee is assigned to
make a comprehensive feasibility study on
the possible consolidation.
2. The committee makes a comprehensive
plan on the organizational structure and
responsibilities of the consolidated system
and makes a forecast on the possible
effects of the new structure.
3. A law is passed providing for the
consolidation of the three systems--SSS,
GSIS and Pag-IBIG Fund.
4. The implementation process is subdivided
into two:
a. A management group is designated
to handle or supervise the new
consolidated system.
b. The management group formulates
new policies and procedures for the
system.
5. Information dissemination is conducted
among all the members of the
consolidated system.
6. For the long-term action plan, the
management group of the consolidated
system monitors the applicability of each
of its policies and procedures among the
members and make some necessary
adjustments.
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU

Table 1A: CONSOUDAlED INCOME STATEMENT

GSIS, SSS, PAG-IBIG FUND (1989)

INCOME

Interest Income 959,584,547

Origination Fees 764,464
Penalties and other Charges 63,656,950
Dividend Income 20,076
Housing Contributory Fund 46,081,230
Processlng Fees 942,841
Miscellaneous Income 11,403,983
Net Investment Income 8,595,559,886
Net Insurance Income 4,855,822,423
Members' Contributions 6,150,857,748
Penalty on Contributions in Arrears 26,813,961
Sundry 5,355,102
Micellaneous Income 324,376,591

TOTAL INCOME 21,041,239,802

EXPENSES

Claims and Beneftts 7,179,217,671

Administrative and Operating Expenses 1,052,895,150

TOTAL EXPENSES 8,232,112,821

NET OPERATING INCOME FOR THE YEAR 12,809,126,981

ADD: Gain on Disposition of Assets 36,899,640

12,846,026,621
NET INCOME BEFORE INCREASE IN RESERVE 2,943,973,684

NET INCOME AFTER INCREASE IN RESERVE 9,902,052,937

Reserve Adjusment Account (Prior Years) 36,416,408

AMOUNT ADDED TO RESERVE 9,865,636,529

LESS: Net income (PAG-IBIG) 878,942,669

Total 8,986,693,860
240,956,383

RETAINED EARNINGS, END OF THE YEAR 9,227,650,243

68
 CONSOLIDATION of SSS, GSIS and PAG~BIG

Table 1B: CONSOUDATED BAlANCE SHEET

GSIS, SSS, PAG-IBIG FUND
FOR THE YEAR 1989

ASSETS

Cash and Other Cash Items

Cash on Hand and In Banks 9,187. 787,357
Investment in Gov't Securities 2,614,622,525

TOTAL CASH AND OTHER CASH ITEMS 21,802,409,882

Receivables 21,003,014,984
Marketable Securities 2,390,483,042
Supplies and Materials Inventory 13,361,638
Prepaid Expenses 46,655,307
DeposHs 10,534,304

TOTAL CURRENT ASSETS 45,266,459,157

INVESTMENTS

Notes 6,289,865,350
Land and Development 20,099,684
Government Bonds and SecurHies 4,392,893,341
Corporate Notes and Bonds 4,366,826,365
Fund Held in Trust 506,508,337
Loans to Members 22,810,303,236
Loans to Nonmembers 3, 735,395,168
Preferred/Common Stocks 383,218,797
Acquired Assets 29,036,905
Development in Progress 47,189,604
Other Investments 548,820,565

TOTAL INVESTMENT 43,130,157,352

PROPERTIES AND EQUIPMENT 717,493,348

REAL AND OTHER PROPERTIES ACQUIRED 551,888

OTHER ASSETS 3,557, 117,188

TOTAL ASSETS 92,671, n8,933

69
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU

LIABILITIES & NET WORTH

CURRENT LIABILITIES 2,639,078,528

DEFERRED CREDITS 88,176,667

RESERVES

Social Insurance Fund 21,773,276,069

Optional Life Insurance Fund 757,610,900
Medicare Insurance Fund 542,715,673
Employees Compensation Insurance Fund 415,255,354
General Insurance Fund 992,365,000

Reserve Fund
SSS Corporate Fund 42,466,939,258
Health Insurance Fund 3,738,126,752
State Insurance Fund 5,226,693,877

51,431,759,887

Insurance Reserve 10,165,863

Property Valuation Reserve 357,670,290
Donated Property 2,081,250
Net worth Pag-IBIG 11,397,489,504

TOTAL RESERVES 87,680,389,790

SURPLUS 2,264,133,948

TOTAL UABILITIES AND NET WORTH 92,671,778,933

Table 2: PERCENTAGE OF INVESTMENTS (1989 FINANCIAL STATEMENTS)

CONSOLIDATED
SYSTEM GSIS sss HDMF

Notes 14.58% % 29.16% %

Land for Development 0.04 0.08 0.42
Gov't Securities/Bonds 10.19 46.50 0.57
Corporate Notes/Bonds 10.12 9.55 0.02
Funds Held in Trust 1.17 99.49
Loan to Members 52.89 57.53
Loans to Nonmembers 8.66 10.51
Preferred/ Common Stock 0.89 37.98 1.78
Acquired Assets 0.07 0.13
Development in Progress 0.11 0.22
Other Investment 1.28 5.97 0.09

Total 100.00% 100.00% 100.00% 100.00%

Investment to Total Assets 46.54% 32.00% 41.53% 4.30%.

70
 CONSOLIDATION of SSS, GSIS and PAG-IBIG

Table 3: LOANS TO MEMBERS/FUND AVAilABLE FOR LOANS

(1989 Financial Statement)

Consolidated
System GSIS sss HDMF

Net Income* 13,724,969,290 601,145,015 8,238, 142,754 878,942,669

Retained Earnings 240,956,383 240,956,383
Reserve Adjustment 36,416,408 36,416,408
Increase in Reserv•s 2,943,973,684 2,943,973,684
Surplus for Net worth 2,264,133,948 2,264,133,948

Total Funds Available 14,682,181,817 1,280,984, 751 8,274,559,162 1'119,899,052

Number of Members** 14,802,813 1.400,000 12,102,813 1,300,000

Loan Size per Member 992 915 684 861

• The Net Income amount for the consolidated system includes the net income of HDMF,
originally deducted from the Income statement.

** The number of members for GSIS and HDMF are estimates for 1990 gathered from their
annual report.

TABLE 4: INCREASE IN AVERAGE LOAN SIZE

Under the Present Structure:

Loan Amount Number of Beneficiaries Average Loan

in 1989 with Loans Size

sss P5, 110,000,000 760,049 P6,723.25

GSIS 5,937,000,000 967,278 6,137.84
HDMF 2,857,100,000 346,263 8,251.00

P13,904, 100,000

Under the Consolidated System:

Loan Amounts Percentage of Beneficiaries Average Loan

in 1989 who loaned Size

sss P5,395, 701 ,800 36.75% P7,099.15

GSIS 6,269,291 '700 42.70 6,481.38
'~DMF 3,017,188,400 20.55 8,713.57

P13,904, 100,000 100.00%

*The data are based on 1989 Financial Statements of SSS, GSIS and HDMF.

71
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU

Table 5: Amount of Loans in 1989 per System/Fund:

(Loan Release in Millions) 1

sss HDMF

Salary P2,625.1 Multipurpose P1,898.10

Education 1.1 Home Lending 65.5
Calamity 846.9 Expanded Housing 369.2
SNPLP 3.0 Corporate Housing 479.7
SILP 12.7 Community Mortgage 3.0
Housing 1,618.2 Social Housing Program 23.6

TOTAL P5,110.0 P5,937.0 P2,857.1

1. Data from the 1989 annual reports of the three systems

2. The GSIS annual report do not present the breakdown of their loan releases and only
the total value Is presented.

TABLE 6: RATIO ANALYSIS

Consolidated GSIS sss HDMF

System

Liquidity ·'
Net Working Capital * 42,627,350 2,232,317 29,544,420 10,950,470
Current Ratio 17.50 2.20 213.45 30.29
Quick Ratio** 17.40 213.23 30.18

Activity***
. Penod
Average Collection
Equity Cap~al Turnover
. ··- 0.36 days
0.23 times 0.36times
0.35days
0.25 times
2.78days
0.095times
Total Capital Turnover 0.22 times 0.34 times 0.24 times 0.091 times

Leverage
Debt Ratio 2.9% 7% 0.27% 4%
Debt to Equity 3.0% 8% 0.27% 4%
Current Liabilities to Net Worth 2.9% 8% 0.27% 3%

Profltabil~y
Net Prof~ Margin 61.00% 50.00% 63.00% 81.0%
Return on Investment 13.82% 12.16% 13.86% 7.40%
Return on Equity 14.00% 13.00% 16.1)0% 8.00%
Productivity of Assets 23.00% 24.00% 25.00% 9.00%
Net Prof~ on Working Cap~al 30.00% 157.0% 28.00% 8.00%

Notes:
*The Net Working Cap~al Values are all in terms of thousands.
**GSIS has no inventory amount, hence its quick ratio is equal to its current ratio.
***Ratios that use the account "sales" in ks formula are computed by subst~uting the
"gross Income" accounts for sales.
****The average collection period of GSIS cannot be determined since ~s balance sheets
does not have a receivables account

72
 CONSOUDATION of SSS, GSIS and PAG-IBIG

STATISTICAL TESTING AND ANALYSIS (CHI-SQUARE TESTS)

(Analysis of Survey Results)

QUESTION: Are you satisfied with your current benefRs?

CHI-SQUARE TESTS
Observed Frequencies

sss GSIS PAG-IBIG FUND TOTAL

YES 6 37 30 143

NO 55 54 46 155

TOTAL 131 91 76 298

CHI-SQUARE= 9.443 D.F. = 2 PROB = 8.903E.OO

A. Ho: There is no significant difference among the proportion of "Yes" answers in SSS,
GSIS and Pag-IBIG Fund.
B. Ha: There Is a significant difference among the proportion of "Yes' answers In SSS,
GSIS and Pag-IBIG Fund.
c. L = .05
D. CrX2 = 5.991
E. Computed X2 = 9.443
F. Reject Ho
5,9!11
The result of the chi-square tests shows there is a significant difference among the
proportion of 'Yes' answers in the SSS, GSIS and Pag-IBIG Fund with regards to the
members' response to the question of whether they are satisfied with the current benefits the
three institutions offer. The significant difference in the proportion of the response of
members may be due to the fact that the three institutions do not offer exactly the same
benefits. Although SSS and GSIS, being insurance institutions, have a lot of benefits in
common; Pag-IBIG Fund's benefits, being a provident fund, are different from both SSS and
GSIS.
The proportion of 'Yes' answers for SSS is greater than that of GSIS's and Pag-IBIG
Fund's because SSS offers more benefits compared to the latter two. SSS offers maternity
benefits as well as educational and community hospital service loans which is not found in
either GSIS or Pag-IBIG Fund. More members of GSIS and Pag-IBIG Fund are not satisfied
with the benefits they are receiving.
Suggested benefits from SSS members are business loan, unemployment welfare,
consumer loan, life insurance, calamity loan, dividend benefits, paternity leave. Suggested
benefits from GSIS members are consumers loan, educational loan, real estate loan, travel
benefits/allowances, free medicine during hospitalization. Suggested benefits from Pag-IBIG
Fund members are housing loans without collateral, sickness benefits/hospitalization expenses,
return or contribution immediately upon withdrawal of membership.

73
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU

QUESTION : Do you encounter problems with SSS, GSIS or Pag-IBIG Fund?

CHI-SQUARE TESTS
Observed Frequencies

sss GSIS PAG-IBIG FUND TOTAL

YES 56 57 12 125

NO 66 46 40 152

TOTAL 122 103 52 277

CHI-SQUARE = 14.578, D.F. = 2, PROB = 6.830E-04

A. Ho : There is no significant differences among the proportion of "Yes" answers in the

three institutions.
B. Ha : There is a significant differences among the proportion of "Yes" answers in the
three institutions.
c. L = .05
D. CrX2 = 5.991
E. Computed X2 = 14.58
F. Reject Ho 5,~9t

The result of the chi-square tests shows there is a significant differences among the
proportion of 'Yes' answers in the three institutions with regards to the members' response to
whether they encounter problems with SSS, GSIS or Pag-IBIG Fund. The significant
difference in the proportion of 'Yes' answers is due to the different policies, rules and
regulations followed by each institution.
The proportion of "Yes' answers by GSIS members is greater compared to that of SSS
and Pag-IBIG Fund Problems encountered by the members are the following:
SSS GSIS PAG-IBIG

t. Delayed payment of pension/benefits

by the system 15 13 1

2. Benefits are too limited 4 6 4

3. Loans take longer time to process 15 16 2

4. Benefits and loans are too small 21 22 4

5. Others 1• 0 1**

TOTAL 56 57 12

* Too high interest on loans

** Information dissemination

Most members feel that the benefits and loans they receive are too small, loans take a
long time to process, payment of pensions/benefits are delayed, benefits are too limited. One
SSS member respondent feels interest on loans is too high while one Pag-IBIG Fund member
respondent feels that the problem is information dissemination. Members of Pag-Ibig Fund are
not aware of the other benefits it offers.

74
 CONSOLIDATION of SSS, GSIS and PAG-IBIG

QUESTION : Are you In favor of a unified system consolidating SSS, GSIS and Pag-IBIG
Fund?
CHI-SQUARE TESTS
Observed Frequencies

sss GSIS PAG-IBIG FUND TOTAL

IN FAVOR 72 23 13 108

NOT IN FAVOR 56 41 28 176

128 115 41 284

CHI-SQUARE = 34.589, D.F. = 2, PROS = 3.084E.n8

A. Ho : There Is no significant differences among the proportion of "In favor" answers In

the three institutions.
B. Ha : There Is a significant difference among the proportion of "In favor'' answers In
the three Institutions. ~
c. L = .05
D. Cr X2 = 5.991 .£..
E.
F.
Co~putedX2
ReJect Ho
= 34.589 \\\ r-'"
5,991
The result of the chi-square tests shows there is a significant difference among the
porportion of "In favor" answers in the three institutions with regards to the response of
members whether they are in favor of a unified system merging SSS, GSIS and Pag-IBIG Fund.
The proportion of "In favor" answers in SSS is greater than GSIS or Pag-IBIG Fund.
Respondents who are in favor of-the unification of SSS, GSIS and Pag-IBIG Fund feel that both

QUESTION : Do you think the problems you listed will be solved if such a consolidation
will take place?

CHI-SQUARE TESTS
Observed Frequencies

sss GSIS PAG-IBIG TOTAL

YES 65 12 3 80

NO 21 129 11 161

TOTAL 86 141 14 241

CHI-SQUARE= 109.290 D.F. = 2, PROB = 2.300E-13

A. Ho : Thre is no significant difference among the proportion of "Yes" answers in the

three institutions.
B. Ha : There Is a significant difference among the proportion of "Yes" answers In the
three institutions.
c. L = .05
D. CrX2 = 5.991
E. Computed x2 = 109.290
F. Reject Ho
5,991

75
P. ANG, M. CHIONGSON, B. TOBIAS andY. YU

private and government employees should enjoy equal or the same benefits and this can be
done ouly with a unified system. Furthermore, they believe a unified system will minimire the
expenses of the government, increase the benefits as well as the amount of loans to members
but with lesser interest cost and with lesser deductions from salaries of members.
Respondents who are not in favor of a unified system feel it would only increase the
problems of the three institutions since it is too big to handle and manage. With more
members, confusion may arise and loans may take long to process. Furthermore, each system
follows its own organizational chart and policies.

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