SSS Pension Hike: A Promise impossible to Keep by the President

President Duterte finally admitted that increasing the pension of retirees by P2,000 is an impossible promise to keep.  He finally saw the wisdom that giving an additional P2,000 to the millions of retirees means signing the death of SSS.  I hate to say this, but, guys, those who voted for the president thinking that he can actually enforce this law, you were all taken for a ride.  It is simply not realistic and unfair to the other SSS members.   In fairness to the president, he came to his senses and become practical.  It is not easy admitting one's fault and to admit that it is simply not possible because the money is not only his to decide on, makes him a bigger man to me.   And for that I admire him.  Let's consider the reason why increasing the pension to 2,000 is not a wise decision.

By simple math computation, we can deduce that the scenario is going to be like this:  if we give millions of pensioners 2,000, there should be an equivalent 2,000 that will be go back to the coffers of SSS to keep the financials balanced.  All it takes is simple bookkeeping knowledge:  Where would SSS get the 2,000 to offset the expenditure and keep the financials balanced?  SSS could get this from the income of their investments from the premiums paid by the members.  Income coming from funds are variable and unpredictable and dependent on many factors.  The only constant in this equation is the premium ranging from 500-1650 by the SSS members. 

If the income from investments of the fund is not enough to offset the expenses, the financials will not be balanced anymore and it will be down the drain for SSS after that.  Those who will be at the receiving end of unwise decisions will be the future pensioners, who are the current premium payers.  SSS will have no choice but to increase premiums if the president will make good his promise to increase the pension of current pensioners.  It is not fair for them bear the brunt of this law.  It was never realistic in the first place.     

The only solution to that would be to increase it in staggered basis and gradual.  It is also advisable to give an increase by a minimum amount yearly just to make pensioners cope with inflation.  The P2,000 can be realized in a period of 4 years, but not in an abrupt and instant manner.  To do that would mean the death and loss of SSS.  Heaven forbid.