THE GOVERNMENT Service Insurance System (GSIS) and the Social Security
System (SSS) should be merged to better serve active members and
pensioner, a think tank said on Friday.
"The government must unify the GSIS and the SSS for a greater delivery
of service to its members," said Bach M. Macaraya, president of
Philippine Society for Labour and Social Security Law, Inc. (PHILSI),
said in a forum on Friday titled "The Uncertain Road: Social Security in
Globalizing Asia and the Philippines."
PHILSI is the local chapter of Geneva-based International Society for
Labor and Social Security Law. SSS is the pension fund for private
sector workers, while GSIS is its counterpart for the public sector.
The integration, Mr. Macaraya said, will allow the pension funds to cut
on costs and as a result come up with a larger amount of investible fund
to settle liabilities.
"A bigger system would result in a higher income as there are more
revenue streams or more contributions collected, which would equal to
higher income or more money to be used to for investments," Mr. Macaraya
said.
Ibarra A. Malonzo, SSS commissioner and head of coverage and collection
committee, in a separate interview, welcomed the idea, saying the
integration will "provide a bigger stream of revenues for the two funds
and provide for the pension needs of future retirees"
The cost of operation of SSS is around 10% of its total income, he said.
The private sector pension fund earned P13.14 billion in the first
semester, while profits of GSIS as of October amounted to P56 billion.
In addition to beefing up funds, Mr. Malonzo said the merger will extend
the groups' actuarial life. The actuarial life of SSS is estimated at
until 2039, while GSIS until 2045.
Although the concept is ideal, Mr. Malonzo, said it will take around two
decades before both entities could be unified.
Mr. Macaraya, for his part, noted that the integration will need to
undergo congressional approval. -- A. R. R. Gregorio
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