Tolentino wants investigation into loss of SSS P843.9B – Manila Bulletin

Senator Francis Tolentino has called for a Senate investigation into the 843.9 billion peso net loss to the Social Security System (SSS) even as the Upper House is set to adjourn sine die on June 3.

In Senate Resolution 1006 tabled yesterday, Tolentino called on the Senate leadership to direct the Senate Committee on Crown Corporations and Public Enterprises ‘to conduct an investigation, in support of the legislation, of the million losses reported in the 2021 unaudited financial statements of the Social Security System. to ensure its financial viability and its ability to discharge its fiduciary responsibilities to the general public.

Tolentino said the losses would have resulted from an accounting standard change brought about by the Philippine Financial Reporting Standards (PFRS).

SSS explained that the increase in its net loss compared to the previous year is due to the recognition of the margin for adverse deviations (MfAD) in the policy reserves.

Considered as a cushion of prudence, MfAD are elements of the assumptions used in the calculation of an actuarial liability for possible adverse deviations from expected experience.

Although the SSS has ensured that its cash flow and funding position remains secure, there is a need to study the effects of its net losses to ensure that it remains financially viable for the payment of benefits to members. covered, Tolentino said.

With the increase in the membership base of the SSS, there is also a need to review the existing social security benefits guaranteed under the Social Security Act of 2018 to further assist Filipino retirees and beneficiaries to cope. to their financial burdens, he stressed.

As of April 2021, 40.49 million Filipinos were enrolled in the Social Security System 6 (SSS).

Of this, approximately 76% or 30.77 million are employee members, while 5.03 million are voluntary paying members, 3.35 million are self-employed members, and 1.34 million are Filipino worker members at the foreigner (OFW).

The effect of the reported losses should be reviewed with the aim of developing laws and regulations that would provide additional security to the agency’s long-term financial position to fulfill its fiduciary obligations to all its stakeholders, stressed Tolentino.

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