The Arroyo government defended on Monday the decision taken by the Social Security System (SSS) to withhold loans from workers who lost their jobs because of the global economic crisis. Deputy Presidential Spokeswoman Lorelei Fajardo echoed the stance taken by SSS President Romulo Neri who said that the pension agency for private workers in the Philippines has already breached its 10 percent ceiling in providing its members salary, calamity, and emergency loans and as such could not anymore provide loans to retrenched workers. Neri earlier said the agency could not anymore give additional benefits to its members without endangering the viability of the agency. He said the agency has tightened its finances after enduring losses in the stock market amid the global financial crisis. The actuarial life of SSS fund is estimated to last until 2036. Neri also disclosed that the SSS was having a hard time collecting from over five million members whose arrears now exceeded 25 billion pesos ($520.8 million). Labor groups have called for Neri's resignation for withholding loans to retrenched workers. In a news conference in Malacanang, Fajardo explained that only Congress could increase the ceiling to accommodate demands for separation loans from workers displaced due to the global economic slowdown. She said the Social Security System' hands are tied because the law only allows the pension agency to invest 10 percent of its funds in short-term loans. “If they have to go beyond the 10 percent limit, Congress must pass a law giving the SSS such mandate,” Fajardo said. However, she said the SSS has set aside “short-term” measures and other assistance packages to support members who have been retrenched from work here and abroad. She said the agency has extended the availability of the condonation program for delinquent short-term loans from April 2009 to December 2009. Fajardo said the SSS has also provided 2,000 summer jobs for two months to qualified dependents of displaced overseas and local workers. A one-stop-shop job fair will also be held for displaced SSS members. Earlier on Monday, Malacanang expressed surprise and puzzlement at the Social Security System decision to withhold loan assistance to laid-off workers and demanded an explanation from Neri. Press Secretary Cerge Remonde said the pension agency was established precisely to provide assistance to workers in the private sector, especially those who were retrenched from work, to ease their burden. “We will ask (SSS) President Neri to clarify that report. Precisely, we have a social security system to provide help to workers in the private sector,” he said. Moreover, National Economic and Development Authority director general Ralph Recto said the Social Security System, Government Service Insurance System, Philippine Health Insurance Corp. and the Pag-Ibig Fund should increase benefits to their members to stimulate domestic consumption and keep the economy afloat amid the financial crisis.
