Is Our Your

Is
Our
Your
strength
ability
2009
A N N U A L R E P O RT
Is Our
strength
2009
A N N U A L R E P O RT
SSS: Source of Strength and Stability
Social security must be dynamic, pro-active and sincerely
socially committed. By sustaining its good standing and
credibility, SSS is a beacon on the road to achieving a healthy
working population able to participate fully and with dignity
in their society while enjoying the fruits of their labor.
Contents
1
2
Highlights of Operations
Statement of Mission and Vision
Messages
3
4
7
Message of the President of the Republic of the Philippines
Message of the Chairman
Message of the President and CEO
2009 In Review
11
•
•
•
•
•
Nurturing Relationships with Stakeholders
Forging Partnerships for Better Service
Expressing Corporate Social Responsibility
Celebrating Special Events
Developing SSS Employees
Special Articles
19
•
•
•
•
•
•
•
•
•
•
Anti-Red Tape Act
E-Centers
SLERP-An SSS Response to Catastrophe
Mobile SSS Centers: A Tangible Response
SSS Cebu Guitar-Shaped Building
The National Social Welfare and Protection Program
SSS Corporate Social Responsibility Programs
The Philippines Welcome Social Security Experts for Regional Forum for Asia and the Pacific
The SSS Rationalization Plan and 2009 Staffing
The New Performance Evaluation System
SSS In 2010 and Beyond
26
Catapulting SSS into the Next Decade
Financial
28Statement of Management’s
Responsibility for the Financial Statements
Financial Statements
29State Auditor’s Report on the
30
Statement of Financial Position
31Statement of Comprehensive Income
32Statement of Changes in Reserves
33
Statement of Cash Flows
34
Notes to Financial Statements
44
Internal Audit Report
45
Historical Data
Management
48
Social Security Commission
50SSS Senior Management
54
SSC and SSS Management Directory
Highlights o f Operati o ns
(Amounts in Million Pesos)
Consolidated
For the YearIncrease/(Decrease)
2009
2008Amount
%
A. REVENUES & EXPENDITURES
Revenues
95,336.51 97,968.32 (2,631.81)
(2.7) Contributions
72,350.89 68,879.27 3,471.62 5.0 Investment and Other Income, net
22,985.62 29,089.05 (6,103.43) (21.0)
Expenditures
Benefit Payments
Operating Expenses
79,124.55 72,049.96 7,074.59 74,662.99 67,917.36 6,745.63 4,461.56 4,132.60 328.96
16,211.96 23,305.33 (7,093.37) B.ASSETS & RESERVES
Assets
272,610.65 233,122.19 Investments
248,641.45 211,355.23 SSS Properties
3,413.69 2,876.32 Others
20,555.52 18,890.64 Liabilities
7,280.83 7,519.25 Reserves
265,329.82 225,602.94 39,488.46
37,286.22
537.37 1,664.87
(238.41) 39,726.87
Net Revenue/(Loss)
6.0 6.1 4.9
(30.4)
16.9
17.6
18.7 8.8
(3.2) 17.6
Social Security System
A. REVENUES & EXPENDITURES
For the YearIncrease/(Decrease)
2009
2008Amount
%
Revenues
Contributions
Investment and Other Income, net
93,155.25 71,166.95
21,988.30 95,516.59
67,668.19 27,848.40 (2,361.34) 3,498.76 (5,860.10)
(2.5) 5.2 (21.0)
Expenditures
Benefit Payments
Operating Expenses
77,931.69 70,963.92 6,967.77 73,456.69
66,820.34 6,636.35 4,475.00 4,143.59 331.42
6.1 6.2
5.0
Net Revenue/(Loss)
15,223.56 22,059.90 (6,836.34)
(31.0)
B.ASSETS & RESERVES
Assets
Investments
SSS Properties
Others
Liabilities
Reserves
247,891.34 228,919.53 3,413.69 15,558.12 7,389.38 240,501.96 209,535.85 192,663.20
2,876.32
13,996.33 7,627.99 201,907.86
38,355.49
36,256.33
537.37
1,561.79
(238.61)
38,594.10
18.3
18.8
18.7 11.2
(3.1) 19.1
Employees’ Compensation and State Insurance Fund
A. REVENUES & EXPENDITURES
For the YearIncrease/(Decrease)
2009
2008Amount
%
Revenues
Contributions
Investment and Other Income, net
2,181.26
1,183.94
997.31
2,451.73
1,211.08
1,240.65
(270.47)
(27.14)
(243.33)
(11.0) (2.2) (19.6)
Expenditures
Benefit Payments
Operating Expenses
1,192.86 1,086.03
106.83
1,206.30
1,097.02
109.28
(13.44)
(10.99)
(2.45)
(1.1) (1.0)
(2.2)
Net Revenue/(Loss)
988.40
1,245.43
(257.03)
(20.6)
B.ASSETS & RESERVES
Assets
Investments
Others
Liabilities
Reserves
24,827.91
19,721.92
5,106.00
0.05
24,827.86
23,695.13
18,692.03
5,003.10
0.04
23,695.09
1,132.79
1,029.89
102.90
0.01
1,132.78
4.8 5.5 2.1
28.4 4.8
1
Statement of
Mission
The mission of the SSS is spelled out in Section 2 of the Social Security Law (Republic Act No. 1161), as
amended by the Social Security Act of 1997 (Republic Act No. 8282):
“It is the policy of the State to establish, develop, promote and perfect a sound and viable tax-exempt
social security system suitable to the needs of the people throughout the Philippines, which shall
promote social justice and provide meaningful protection to members and their beneficiaries against
the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of
income or financial burden. Towards this end, the State shall endeavor to extend social security protection
to workers and their beneficiaries.”
Statement of
Vision
The SSS aims to develop and promote a viable, universal and equitable social protection scheme through
world-class service.
VIABLE means that it is financially sustainable, non-distortionary, and requires no government subsidy.
Current and future generations of workers and retirees are also assured of meaningful benefits in return
for their contributions.
UNIVERSAL means that protection shall be provided to all residents of the Philippines, citizens and noncitizens alike, regardless of race, creed, gender, age, geographic location and socio-economic status.
Attention will be given specially the disadvantaged and overseas Filipino workers (OFWs).
EQUITABLE means fair and uniform coverage shall be made available to all. Benefit entitlements shall be
closely linked with contributions.
WORLD-CLASS SERVICE means that the highest standards of service shall be used to ensure total member
satisfaction. A multi-skilled, forward-looking and generalist SSS workforce shall provide service that is
prompt, accurate and courteous.
2
Message
of the President of the Republic of the Philippines
Congratulations to the Social Security System (SSS) for a
successful 2009, which was marked by your enhanced financial
stability, increasing membership, operational expansion, and
improved services.
Indeed, for the past 52 years, the SSS has been the source of social
security, strength and stability for workers and employers alike.
Through its various investment programs, the SSS is a valuable ally
of government in ensuring the vibrancy and stability of our economy.
The year 2009 was marked by a series of natural calamities that
severely tested the resiliency of the Filipino people. Fortunately, the
SSS was one of the institutions that Filipinos can rely on. Through
your steady benefits and reliable loan programs, you have assured
your members and their families of assistance in their times of need.
As the agency charged with managing and delivering important
social protection programs, the SSS contributes in promoting the wellbeing, health and quality of life of the Filipino people. The SSS is indeed
a reliable partner in the search for a meaningful and sustainable
standard of living of its 28 million members and beneficiaries.
Once again, congratulations to the SSS for another year of relevance,
resiliency, and steadfastness in public service. Congratulations too
to the Social Security Commission, headed by Chairman Thelmo
Y. Cunanan, to Secretary Romulo L. Neri, SSS President and Chief
Executive Officer, and to the good men and women of SSS.
Mabuhay ang SSS!
GLORIA MACAPAGAL-ARROYO
Ten-Point agenda to “Beat the Odds”
in Six Years under the Arroyo Administration
B -
E -
A -
T -
Balanced budget
Education for all
Automated elections
Transport and digital infrastructure to
connect the country
T - Terminate the MILF and NPA conflicts
H - Heal the wounds of EDSA
E - Electricity and water for all Barangays
O - Opportunities for 10 million jobs
D - Decongest Metro Manila
DS- Develop Clark and Subic
3
Message
o f the C hairman
RESURGENCE AFTER THE DELUGE
The Financial Crisis exacted a heavy toll on industries and
institutions across the globe resulting to massive displacement
of workers and to the swelling of the ranks of the unemployed.
With firms, institutions and countries bearing the full brunt of
the crisis, SSS undertook innovative measures to cope with the
challenges posed by a weakened economy while continuing
to be a reliable provider of social security to its members. The
Crisis itself highlighted importance of strengthening social
security institutions in order to act as a viable safety net for
our members while spurring economic recovery through our
investment activities.
The Social Security Commission is extremely satisfied in taking
a significant role in formulating relevant policy decisions
that supported management initiatives towards improving
collections, ensuring healthy returns on investments, providing
higher benefit pay-outs and bolstering mechanisms and
processes that uplifted the level of service to our more than
28 million members worldwide. Some of these programs
include the deployment of teller workstations in 150 branches,
expansion of payment channels to benefit overseas Filipino
workers, enhancement of existing collection systems, amnesty
programs for home and short-term loans, and the full-scale
implementation of Anti-Red Tape Act.
In behalf of the Institution, we are thankful to our members,
to our industry partners, to our stakeholders, to our fellow
government institutions and to Her Excellency, President Gloria
Macapagal-Arroyo, for giving us the support that have allowed
us to perform well beyond expectations. And as we enter a new
decade, the Commission together with the management and
employees shall strive to steer the Institution to new heights,
surpassing our goals and making a lasting difference in the
lives of those we serve – our members.
Strengthening linkages with our stakeholders;
Making decisive actions
In 2009, SSS was faced with a scenario where the gains of the
past years were threatened to be eroded by a contagion that has
subdued financial powerhouses and corporate giants across the
globe. With its ripple effects sweeping across national borders,
public institutions such as the SSS became at risk due to the
nature of its operations. More than ever, SSS had to work handin-hand with its stakeholders to maintain its financial standing
while raising the level of service to its members.
For its part, the Commission will continue to craft a policy
framework that engenders responsive and meaningful
programs that capitalize on the synergies we have with our
stakeholders and industry partners while mitigating the
effects of the crisis and aiding our members even during
calamities and disasters. The Commission is working closely
with management and with policy-makers for an amnesty
program that would allow delinquent companies to settle their
obligations without penalties. This would benefit largely small
and medium-scale enterprises and micro-enterprises, which
comprise more than 99 percent of total establishments in the
country and generate 70 percent of total employment across
the land. The policy would not only provide us with cashflows,
it would also reinstate the SSS privileges and benefits of these
affected employees.
Moreover, the Commission is intent on laying the policy
foundation that would facilitate the seamless and cost-effective
implementation of key Information Technology projects in the
pipeline such as the Automated Records Management System
and the Unified Multi-Purpose Identification System of which,
SSS is the lead agency.
As always, the Commission shall strive to remain a paragon
of transparency especially in overseeing SSS policy-making
processes and ensuring that proper mechanisms are in place
to avert possible abuses. While the Commission recognizes
the independence of management in running the day-today affairs of the Institution, it shall exercise its authority to
review the cogency of these decisions through the various
sub-committees on Information Technology, Budget, Audit and
Change Management.
“ The role of SSS in
realizing the full
vision of social
assistance is crucial
in strengthening
social welfare
program as the
country and its
citizens cope with
new social, economic
and environmental
challenges.”
Utmost care and prudence would constantly be upheld in
dealing with sensitive cases and issues that are conveyed to
the Commission in the exercise of its quasi-judicial powers.
We shall continue to prioritize the resolution of cases on the
collection of unremitted contributions and expedite the review
and approval of proposals for installment payment and dacionen-pago, provided that these are thoroughly examined, bearing
in mind the welfare and interests of SSS.
We have also secured the formal endorsement from the
Department of Finance for the draft of the proposed
amendments to the SSS Charter. We are set to put in motion
the next phase of the project which is to obtain the certification
5
as Priority Bill from the President and the formal transmittal to
Congress leading to the requisite legislative deliberations. The
Commission is well aware of the paramount importance to
modify certain provisions of the Charter in order to make the
Institution more relevant to the changing times.
Bolstering institutional capacity and maintaining institutional
neutrality
Crisis spawns problems. But it also presents opportunities
which public institutions can capitalize on. In 2009, the SSS
took the initial steps to streamline the organization with the
implementation of the first phase of the Rationalization Plan. At
least 1,131 service bureau (SB) personnel have been absorbed
as regular employees of the System. Their entry into the
organization fills in the manpower gaps that have hampered
the operating capabilities of strategic units specifically the
branch offices. Along with this, we provided various forms
of assistance to SBs ranging from economic relief to skills
upgrading and training to improve their chances of passing the
requisite government examinations.
In 2010, the Commission, together with management,
shall address the pressing need to fill in the leadership void
created by the retirement or promotion of some middle and
senior management officials. The filling-up of these positions
is reflective of our desire to insulate SSS from political
interventions and to maintain the stability of SSS in the face
of an expected change in the political leadership in 2010 with
the conduct of the national elections. We assure our members
that the Commission will remain steadfast in upholding
the highest standards of professionalism while maintaining
our commitment to the ideals espoused by the SS Charter.
Institutional integrity shall be our primordial concern.
Rising from the deluge
Last year, the nation became mute witness to the devastation
brought about by Typhoons, Ondoy and Pepeng. Over three
million people were affected and millions of pesos worth of
properties and farm outputs, were destroyed.
In response, the Commission and SSS Management approved
the Salary Loan Early Renewal Program where a total of P4.7
billion were released to some 257,755 affected members. SSS
6
also set up mobile centers in badly hit areas in Metro Manila
including parts of Rizal. The mobile centers provided basic
services such as receiving of benefit applications and offering
responses to inquiries on the status of loans and benefit
claims. More than 18,000 transactions were processed by SSS
during the entire campaign.
Despite the pall of gloom cast by the twin typhoons, SSS was
able to find a reason to celebrate with the opening of the SSS
Cebu Branch. The inauguration of the three-storey structure
not only represents our tangible manifestation of constantly
enhancing our services to our members. It also served as a ray
of hope as we and the rest of the country begin to rebuild from
the wreckage left behind by Ondoy and Pepeng.
Though much has been done, much still needs to be
accomplished. Innovation remains an imperative in a vastly
changing economic landscape. Rest assured, the Commission
and SSS Management shall work together in steering the
Institution to new heights as we begin another chapter in the
Institution’s meaningful history in this new decade.
Maraming Salamat at Mabuhay ang SSS!!!
THELMO Y. CUNANAN
SSC Chairman
Message o f the P resident & C E O
RESILIENCY AMIDST THE CRISIS
I. Withstanding the Crisis
2009 would be best remembered as the year when SSS was able
to endure ill-effects of the Financial Crisis as well as weather
two devastating typhoons that almost put the country’s
economy in peril. Despite the grave challenges, SSS was able
to exceed its operational targets including modest increases in
contribution collections and notable gains in investments.
The Institution likewise opened its new building in the heart of
Cebu, which now stands as a proud landmark in the area and a
fitting testament to SSS’ commitment to elevate the quality of
service to our members in the Queen City of the South.
SSS continues to be upbeat about the prospects for the coming
year as the world economy gradually emerges from the slump.
The Institution shall use the lessons from the crisis to fortify its
financial standing and improve its operations. SSS shall carry on
with its mandate and institutional objectives despite the looming
change in political leadership. It would remain actively involved
in the policy-making arena, lending its insights, knowledge and
expertise while bolstering linkages with other state agencies in
advancing reforms in social welfare and protection.
II. Operational Highlights
Stable collections despite weak economic activity
0
72,350.89
20
68,879.27
40
61,829.08
60
52,543.60
80
SSS contribution collections last
year reached P72.3 billion, up by
S
five percent from the P68.9 billion
collected in 2008. Collections
continued to outpace benefit
payments for the fifth year in a
row with the surplus reaching
P300 million. The higher collections
200
6
were attained despite the lingering
200
7
effects of the Global Financial
200
8
Crisis which forced companies to
200
9
downscale operations amidst falling
demand. Collections were boosted
by the expansion of both bank and non-bank payment facilities
that targeted voluntary and self-employed individuals specially
the overseas Filipino workers. Some of these programs include the
deployment of 150 automated teller work stations in 92 branches
and the increase in the number of collecting agents such as Bayad
Center and Worldwide Delivery Services.
CON
TRIB
UTIO
N
SSS supplemented these additional payment facilities with
strong collection efforts typified by aggressive legal action
against erring employers. Last year, SSS filed cases against
1,133 employers for failure to remit the contributions of
their employees. In addition, the Institution sued close to 200
employers for refusing to present company records and for
neglecting to register their businesses with SSS.
Benefit payments increase slightly as coverage widens
SSS benefit disbursements reached
P72.05 billion reflecting a 6.1 percent
increase from the P67.9 billion
released in 2008. The bulk of the
releases went to retirement and
death which accounted for nearly
85 percent of total disbursements.
At the same time, SSS stepped up
200
6
its coverage efforts with the inking
200
7
of two agreements that would
200
8
200
widen the coverage of overseas
9
workers and beef up procedures on
employer registration. In May, SSS
signed a social security accord with the Panama Maritime
Authority (PMA) that would provide voluntary social security
coverage to Filipino employees of the Panamanian agency. The
institution also entered into an agreement with the Philippine
Health Insurance Corporation (Philhealth) to harmonize
the two agencies’ employer registration procedures under
the new Single Employer Registration Process (SERP). Under
SERP, employers registering with SSS using the new Business
Registration Form are automatically registered with Philhealth.
72,049.96
0
67,917.36
40
20
EFIT
S
60,746.59
80
60
52,122.01
BEN
Optimizing returns on investments amidst a
bearish environment
Last year, SSS managed to post respectable returns on its core
investments capped by a block sale of Meralco shares worth
P5.67 billion,which netted the SSS’ profits amounting to P 1.53
billion from this transaction alone. Well-timed placements
both in the equities and government securities market allowed
SSS to maximize profits, even as the overall financial market
remained subdued. Earnings from investments and other
income reached P22.98 billion easily surpassing the P16.9
billion target for 2009. SSS likewise registered considerable
gains from corporate notes and bonds, which grew to over P1
billion from P393.8 million in 2008.
SSS generated cash flows from the fifth extension of the
amnesty program for short-term member loans, as well as stock
investment and privatization fund loans. As of October 2009,
SSS already collected P2.5 billion from about 749,888 accounts.
8
The Institution likewise instituted the needed mechanisms
for the full-scale implementation of Republic Act 9507 or the
Socialized and Low-Cost Housing Loan Restructuring and
Condonation Act. As of end-December, SSS has collected more
than P55 million from the program benefitting around 2,240
members who have applied for amnesty, with 586 paying in
full while 1,654 opting to pay in instalment. While the benefits
of such programs have greatly improved the institution’s
liquidity and bottomline, the social benefits of increased home
ownership ratios and liberalizing access to affordable home
loans far outweighs the financial returns.
Finding symmetry between judicious spending and enhancing
service delivery
In 2009, SSS continued its policy of prudent yet strategic
spending by concentrating on key items and programs that
improved service delivery and enhanced operating efficiency.
One of last year’s highlights was the inauguration of SSS Cebu
Branch, building which now stands not just a landmark in the
province because of its unique architectural design but also as
an endearing testament to the Institution’s commitment to
upgrade the level of service to two million SSS members and
over 85,000 employers in the Central Visayas Region.
In addition, SSS calibrated its service delivery systems to comply
with Republic Act 9485 or the Anti-Red Tape Act of 2007 (ARTA),
which has been implemented in nine pilot branches namely,
San Pablo, Calamba, Diliman, Pasay-Roxas, Pasay-Taft, Bacolod,
Bago, Cagayan de Oro and Iligan. These branches were the first
to conform with the requirements of the new law by posting
SSS’ version of the Citizen’s Charter. The Charter contains
the Institution’s processing time commitments for 23 most
utilized frontline services. We expect that by early 2010, all SSS
branches would be equipped and prepared to comply fully with
the stringent requirements of the ARTA.
At the core of this service enhancement is the upgrade of major
Information Technology systems of the Institution. Last year, SSS
completed the activation of the Business Recovery Center (BRC)
– SSS’ primary back-up facility that protects SSS’ data from any
possible threat and disaster. More importantly, the reactivation of
the BRC has shored up the online capability of SSS, allowing more
users and members to access the SSS database. It successfully
undertook the migration of vital membership and contribution
payment systems from IBM to Sun System and decommissioned
its outdated mainframe which has resulted into monthly savings
of P5.3 million. In addition, SSS has installed Voice Over Internet
Protocol in 134 branches nationwide and expanded lines for
the Interactive Voice Response Service, which would enable the
Institution to cut back on telecommunication expenses while
providing uninterrupted service to members over the phone.
Supplementing all these is the acquisition of workstations
that would boost the productivity and efficiency of our
branch personnel.
Topping the critical IT projects was the awarding of the contract
to produce the Unified Multi-Purpose ID (UMID) System
Compliant ID cards to All Cards Corporation – a consortium
of the top IT corporations in the country. The signing of the
contract paves the way for the fast-tracking of Social Security ID
card production while expediting the information interfacing of
the various state agencies such as the SSS, Government Service
Insurance System, Philhealth, Home Development Mutual Fund,
National Statistics Office and the Philippine Postal Corporation.
The UMID, which is envisioned to enhance the integrity of
state-issued ID cards and cut costs in maintaining redundant
ID and membership systems, is projected to be the main
tool in facilitating IT-enabled transactions ranging from cash
disbursement to general access card to health care services and
to public railway transport.
Infusing new blood into the Institution; Making HR policies
relevant and responsive
After nearly four years of intense and gruelling series of
consultations and dialogues, SSS finally obtained the approval
from the Department of Budget and Management and the
Social Security Commission to implement the first phase of
the Rationalization Plan (RatPlan). This has resulted into the
absorption as regular employees of some 1,131 qualified
Service Bureau (SB) personnel. The “regularization” of these SBs
is part of SSS’ long-term plan to ensure institutional stability by
infusing new blood in the system and bolstering the manpower
requirements of its strategic units to meet new operational goals.
Moreover, the Institution is also in the process of facilitating the
promotion of eligible personnel, appoint Officers-in-Charge of
various branches and fill-up the vacancies left by some middle
and upper management officials who availed of the Early
Retirement Program under the RatPlan.
SSS likewise sustained its programs for continuing higher
education by sending qualified employees on both local
and international study grants. This typifies the Institution’s
desire to hone and prepare future managers, which would be
harnessed from among the ranks. SSS is proud to have the most
number of candidates in the InWENT scholarship in Germany,
where the participants would be exposed to global trends and
practices in the field of social security, management, leadership,
investments and strategy formulation.
SSS also offered livelihood training and skills enhancement
programs to its employees which they can use in setting up
small businesses and to prepare them for a productive life when
they retire from the System. Some of these training programs
were undertaken together with the Alert and Concerned
Employees for a Better SSS, demonstrating a strong partnership
between management and the union for looking after the
welfare of employees. Corollary to this, SSS organized sports
tournaments and after-office unwinding activities to ensure
healthy and balanced work life while preserving harmony and
camaraderie in the work place.
However, the most critical of all human resources-related
programs is the refinement of policies on the hiring, promotion,
placement as well as performance appraisal of employees and
officials, which are anchored mainly on the new Performance
Evaluation System (PES). SSS has completed a dry run of the PES
in vital units and branches such as Makati 1, San Pablo, Bacolod,
Cagayan de Oro and Management Services Group. With the
operationalization of the RatPlan, there is a need to strengthen
institutional dynamics on personnel administration in order to
engender a culture of professionalism and service excellence
and to prepare our employees for the challenges posed by
ARTA. SSS strongly believes that rewards and incentives should
be tied closely with actual performance. The system-wide
implementation of the PES would ensure that employees’
performances are in line with corporate objectives of the SSS.
Responding to the call of the times
The SSS as a public institution was at the forefront of rendering
humanitarian and socio-civic work especially during the
aftermath of the twin typhoons “Ondoy” and “Pepeng”, whose
heavy rains swelled rivers and waterways that inundated
homes, claimed lives and destroyed properties including crops
and public infrastructure worth approximately P21.3 billion .
Within days of the deluge, the Institution donated P100 million
for disaster response and relief operations and set-up mobile
offices in badly hit areas in the National Capital Region. These
mobile centers offered basic services to affected members
such as receiving of loan and benefit applications and provided
counselling and information on SSS membership. In October
alone, SSS attended to more than 18,700 transactions with
1,054 applications received for processing, 5,800 forms issued
while assisting some 11,793 walk-in inquiries and requests for
membership verification.
At the same time, SSS instituted a Salary Loans Early Renewal
Program (SLERP), which liberalized guidelines on salary loan
renewal allowing affected members to renew their loans to
help defray expenses for home repair and construction. As
of end-December, SSS released almost P4.7 billion in loans
that benefitted some 257,755 members in provinces and
cities affected by the calamities. As an adjunct program, the
9
Institution also reduced the interest rate of its loan window for
home repair and improvement from 13 to nine percent, in
order to provide indirect financial relief to members whose
homes were destroyed by the storms.
Likewise, SSS turned over P1.2 million in cash donations
to various charitable institutions during the onset of the
Christmas season. The amount, which represented the pooled
voluntary contributions of the employees, is considered the
largest ever collected in the history of the SSS.
The Institution remained a paragon on institutional integrity
as it shared first placed with the Supreme Court in the list of
government agencies polled by the Social Weather Station
(SWS) in terms of sincerity in fighting corruption. SSS garnered
a net sincerity rating of +46 percent in the survey, which
involved interviews with 550 business managers in Metro
Manila, Cavite, Laguna, Batangas, Metro Cebu, Metro Davao
and Cagayan de Oro-Iligan. This is the fourth time since 2006
that SSS has placed in the top three agencies of the SWS
survey. Moreover, SSS continued to set the standard for energy
conservation and ecological and solid waste management
as it garnered a five-star energy conservation rating of 94
percent from the Department of Energy while being cited as
a “Garbology Master” by the Department of Environment and
Natural Resources.
III. Priming for Transition and broadening the Institution’s role
in the advancement of social welfare and protection
Making social security as a core agenda in national
development
Last year, the SSS intensified its involvement in the policymaking arena by shepherding two initiatives that highlighted
the role of pension funds in facilitating economic recovery
while broadening the ambit of social protection to the poor and
to the most vulnerable sectors of society. SSS, together with its
partner agencies in the National Social Welfare and Protection
Program Cluster of the Cabinet, such as the Department of
Social Welfare and Development (DSWD) and the National
Economic Development Authority (NEDA) including the
Development Academy of the Philippines completed a study
on strengthening the social welfare and protection programs of
the government. The study, which was submitted to President
Gloria Macapagal-Arroyo during a symbolic turnover at
Malacañang on July, would hopefully serve as the blueprint for
future policies directed at enhancing the scope and coverage as
well as the administration and fiscal soundness of the various
social welfare and protection programs of the country.
10
Moreover, SSS provided inputs to Executive Order 867, which
mandates agencies involved in the delivery of social service to
adopt the DSWD’s National Household Targeting System for
Poverty Reduction (NHTS-PR) – a data bank and information
management system that identifies poor families and where
they live. Among the important facets of the EO is the fusion
of the NHTS-PR and the UMID to strengthen implementation
and monitoring of social welfare programs leading to the
reduction of leakages. Corollary to this, SSS has been included
as a permanent member of the Sub-Committee on Social
Protection under the Cabinet-level Social Development
Committee of NEDA. The Sub-Committee is tasked to develop
a comprehensive 5-Year Social Protection Plan built around key
programs such as skills training, social housing, micro-credit,
emergency employment, training scholarships and access to
affordable electricity. Balancing priorities, ensuring smooth transition and continuity
of programs
SSS is bracing itself for a transition in political power with the
conduct of the National Elections in May 2010. Notwithstanding
the change in leadership, SSS is determined to continue with
its priority programs that are anchored on the Five Enabling
Forces namely: product, process, people/organizational culture,
communications and physical facilities. Institutional stability
shall become the primary focus of SSS in the months leading
to the elections. So far, SSS has already accomplished a number
of programs that have resulted into improved management
of assets, enhanced fiscal standing and greater efficiency in
processing and dispensing of claims and benefits. But more
needs to be done in order to prime the Institution for challenges
brought about by the rapidly changing socio-economic
landscape.
As always, SSS shall remain a pillar of financial strength amidst
the crisis and a reliable partner to its stakeholders and members.
Maraming salamat at Mabuhay ang SSS.
ROMULO L. NERI
President and Chief Executive Officer
2009
IN REVIEW
source
Our
SSS’ membership has
grown to a MILLION
employer-members
nationwide. Growth
has been rapid in
recent years, indicating
both the success of
SSS initiatives and the
changing profile of
Philippine business.
2009
IN REVIEW
Nurturing relationships WITH stakeholders
•
12
•
OFW Family Day
•
SSS unveiled marker of new Cebu Building. Social Security
System (SSS) officials applaud after unveiling the marker
of the new SSS building along Osmeña Boulevard in
Cebu City on 17 November. The unveiling was part of the
inauguration and blessing ceremonies of the three-storey
SSS Cebu City branch (inset), which sits on the 6,000
square-meter lot where the old SSS Cebu Regional Office
stood for three decades until the 1990’s. SSS opened
the doors of the guitar-shaped building to members
on December 8, in time for the Feast of the Immaculate
Conception. Photo shows Cebu City Mayor and guest-ofhonor Tomas Osmeña (3rd from right), SSS President and
Chief Executive Officer Romulo Neri (2nd from left), Social
Security Commission (SSC) Chairman Thelmo Cunanan
(2nd from right) and SSC Commissioners Fe TibayanPalileo (left) and Victorino Balais (right).
Member’s Day program
•
Kapihan sa SSS in Cebu. Social Security System (SSS)
President and Chief Executive Officer Romulo Neri (top
photo, 3rd from left) responded to questions from the
media (bottom photo) during the “Kapihan sa SSS” at
the new SSS Cebu City branch on 17 November. It was
SSS’ first Kapihan in the Visayas region. Other Kapihans
were at San Pablo City in Laguna, Laoag City in Ilocos
Norte and Davao City. The Kapihan allows the local media
to get updates on SSS operations. Joining Neri in the
panel were (top photo, from left) the agency’s Senior Vice
President for Investments Edgar Solilapsi, Vice President
(VP) for Members Assistance Center Program and Officerin-Charge for Benefits Mario Sibucao, Executive Vice
President and Chief Actuary Horacio Templo, VP for Visayas
and Mindanao Eddie Jara, VP for Coverage and Collection
Judy Frances See and Assistant Vice President for Central
Visayas Cluster Helen Solito.
•
Groundbreaking ceremonies for the new SSS office in Laoag
City. The Social Security System (SSS) held groundbreaking
ceremonies for its new office building in Laoag City
in Ilocos Norte on October 8. Local officials joined SSS
executives during the lowering of the time capsule at the
2,164 square meter lot in Barangay Buttong. The agency
presently occupies the two-storey, 320-square meter RT
Bueno Building in Laoag City. SSS Laoag covers a total of
557 barangays from 23 municipalities, including the cities
of Laoag and Batac. Photo shows (from left) Commissioner
Victorino Balais of the Social Security Commission, Laoag
City Mayor Roger Fariñas, SSS Executive Vice President
and Chief Actuary Horacio Templo, Vice Mayor Eduardo
Domingo and SSS Laoag Branch Head Benjamin Lopez.
•
Blessing of the new SSS Taguig branch. The Social Security
System (SSS) Taguig branch moved to a bigger office (inset)
to accommodate more members and employers in one
of the fastest-growing business hubs in the country. SSS
has more than 3,200 registered companies in Taguig City,
which accounts for over 66,100 employees from industries
such as commerce, trade, services, manufacturing,
agriculture, fishery and livestock. Commissioner Victorino
Balais (2nd from right) of the Social Security Commission
and SSS Officer-in-Charge for National Capital Region
(NCR) Alberto Alburo (2nd from left) cut the ribbon
during the blessing of the new SSS Taguig branch at the
FTI Compound in Western Bicutan on 30 October. Also
present were (front row, from left) SSS Assistant Vice
President for NCR South Cluster Consolacion Cancio, SSS
Taguig Branch Head Salve Vizconde and SSS Assistant Vice
President for NCR Central Cluster Naciancino Monreal.
13
2009
IN REVIEW
Forging partnerships for better SERVICE
•
14
The Philippines welcomed social security experts for
Regional Forum for Asia and the Pacific. The Philippines
hosted the gathering of social security policy-makers,
administrators, researchers and representatives of
regional and international organizations for the
“Regional Social Security Forum for Asia and the Pacific,”
on 21 to 23, October 2009 at the Dusit Thani Manila
Hotel in Makati City. Sponsored by the International
Social Security Association (ISSA) and organized by
the Philippine Social Security Association (PHILSSA),
the Regional Social Security Forum for Asia and the
Pacific focused on the role of social security amidst the
current milieu of globalization, internal and external
migration, growth of informal economies, changes in
family structures, and the impact of the global financial
crisis. The Opening Ceremonies was graced by the
Philippines’ second highest official, Vice President Noli
de Castro, who is also known as the “Housing Czar”
being the chairman of the Home Development Mutual
Fund (HDMF). Delegates were welcomed by PHILSSA
Chairman Winston F. Garcia, who is the president and
general manager of the Government Service Insurance
System (GSIS), and by ISSA President Corazon S. de la PazBernardo, also the former president of SSS.
•
ISSA-RSSF Meeting.
•
RP Portugal open talks on social security. The Philippines
and Portugal drafted a bilateral social security agreement
during a meeting on 28 to 30, October. General Directorate
for Social Security (GDSS) Vice General Director of Social
Security Manuel Pinto (front row, 3rd from left) led the
Portuguese delegation that met with Social Security
System (SSS) officials at the SSS corporate headquarters
in Quezon City. Photo shows Pinto and Commissioner
Jose Sonny Matula (front row, 3rd from right), head of the
Philippine delegation and labor representative to the Social
Security Commission, during the signing of the minutes
of the meeting. Also present were (front row, from left)
GDSS Expert Eurico Rodrigues, GDSS Division Chief on
International Relations Maria de Sousa, SSS Vice President
for International Affairs and Branch Expansion and Chief
Negotiator Judy Frances See, Government Service Insurance
System (GSIS) Vice President for Membership Arni Mercado
and representatives from the Foreign Affairs and Labor and
Employment departments, SSS, GSIS and the Philippine
Health Insurance Corporation.
•
UMID Project underway. The Unified Multi-Purpose
Identification (UMID) Project took more concrete form
in 2009, starting with the signing of a Memorandum
of Agreement with the National Statistic Office (NSO)
for the design, development and installation of an
automated fingerprint identification system (AFIS). SSS
President Romulo Neri and NSO Administrator Carmelita
Ericta signed a MOU on 16 March 2009 at the National
Economic Development Authority (NEDA) office in Pasig
City, with NEDA Secretary Ralph Recto and other SSS
officers as witnesses.
•
•
The shift to UMID IDs also upgrades the present SSS
ID system, which has been
using the same card
technology since it was introduced over a decade ago.
Photo shows SSS President and Chief Executive Officer
(CEO) Romulo Neri (4th from left) and All Card General
Manager Roy Ebora (4th from right) shake hands after
the signing ceremony at the SSS corporate headquarters
in Diliman, Quezon City on 14 December. Also present
were (from left) Special Assistant to SSS President and
CEO Antonio Echavarria Jr; SSS Officer-in-Charge of the
General Accounting Department Anastacia Mañalac; All
Card President Allieta Cue; Stradcom Chairman and CEO
Cezar Quiambao; Teco Deputy Executive Vincent Hsien;
and Stradcom Director Jorge Yulo.
51st anniversary of SSS Hypertension clinic with
Philhealth President and CEO Dr. Rey Aquino. Social
Security System (SSS) President and CEO Romulo Neri
(center) presents a plaque of appreciation to Philippine
Health Insurance Corporation (PhilHealth) President and
Chief Executive Officer Dr. Rey Aquino (2nd from left), who
was guest-of-honor at the 5th anniversary celebration of
the SSS hypertension clinic on 28 October at the agency’s
main office in Quezon City. Aquino warned employees
of increasing prevalence of lifestyle diseases such as
hypertension, which is the 7th most common cause of
confinement of PhilHealth members. “Unfortunately,
people only appreciate good health when they or their
family members get sick,” he said. About 17% of SSS
employees in the National Capital Region suffer from
hypertension. Also present were (from left) SSS Health
Care Department Officer-in-Charge Dr. Victoria Poquiz,
SSS Assistant Vice President (AVP) for Human Resource
Jesse Caberoy and SSS AVP for Medical Operations
Vicente Curimao, Jr.
15
2009
IN REVIEW
Expressing corporate social responsibility
•
•
•
16
Feeding Program - Sisters of the Poor of St. Catherine of Siena
Distribution of relief goods to victims of Typhoon Ondoy in Taguig, Metro Manila
Humanitarian mission in Bani, Pangasinan
Celebrating Special Events
•
•
•
Opening of SSS 52nd anniversary lobby display
Balikat ng Bayan Awards
Flag raising ceremonies
Developing SSS employees
•
•
•
•
•
SSS Kabalikat ng Bayan Volunteer Corps oath taking ceremony
Best SSS employees awarded during the employees’ program
Healing mass with Fr. Fernando Suarez
PhilSSAligsahan sports event at the GSIS
Sining Laya gallery exhibit with Napoleon Abueva
17
2009
SPECIAL ARTICLES
strength
Our
A multi-skilled,
forward-looking
and generalist SSS
WORKFORCE is
constantly motivated
to be prompt, accurate
and courteous.
OPENING DOORS
T O B U S I N E S S O P P O R T U N I T I E S
Anti-Red Tape Act
E-Centers
Republic Act 9485: Anti-Red Tape Act 2007 in the Social
Security System.
SSS is quick to take advantage of advances in technology
as it enables the agency to improve efficiency and boost
productivity. The institution has in fact maximized the use
of telephones, mobile phones, and the internet to allow its
members to inquire and receive information wherever they are.
These new Technologies have permitted frontline personnel to
concentrate on critical services such as evaluating of loans &
benefit applications, insuance of SSS number among others.
During the past year, SSS has allowed members to access
their membership records online through the My-SSS portal in
the SSS website. The website also provides general news and
information to any one who would browse the site. Members
can also access their records through SSS-connect by dialing
917-7777 on any Globe or PLDT landlines.
Republic Act 9485 or the Anti-Red Tape Act of 2007 is a
policy measure meant to inform and simplify forms and
procedures for the public. The law primarily aims to promote
transparency in critical frontline services of the government.
In fact, SSS is one of the first state agencies to streamline its
systems under its Commitment of Service (COS) which was
implemented in 2001.
ARTA was officially implemented nationwide during the last
quarter of 2009. All SSS branches and cluster offices have posted
the mission, vision of the institution as well as the enhanced
COS details in their respective offices. Corollary to this, SSS
created public assistance lanes and have put up special posters
warning the public against transacting with “fixers”.
Moreover, members can use any of the 19 self-service
information terminals nationwide to verify contributions and
status of loan payments. These Info Terminals never get tired,
and thus are able to serve members and the public unceasingly
and in the same manner.
For the past two years, SSS has already reaped the benefits of
the automated Brand Queue Management System (BQMS) –
an IT-based capacity management system that regulates and
monitors customer flow through the issuance of queue tickets
to transacting members. The adoption of the BQMS on selected
branch offices has reduced the number of complaints registered
by the branches that are directly related to queuing. The queuing
system is a simple electronic system and yet it has enabled
members to wait more patiently for their turn which has eased
member concerns as it allowed them to go on breaks, and free
from the anxiety of losing their place in the queue.
The System has also completed a draft of its Citizen’s Charter,
which is in compliance with the provisions of ARTA. The Charter
presents the step-by-step procedures of high volume services in
order to guide the public in their transactions with the System
and to provide them with relevant information such as the
individuals responsible for each service step and the reasonable
expectations for a satisfactorily completed service.
The institution is confident that member satisfaction would
continue to improve as more ARTA provisions are implemented
during the next few months.
19
2009
SPEC IAL ARTIC LE
SLERP –An SSS Response to Catastrophe
Last year, typhoons Ondoy and Pepeng inundated parts of Metro
Manila and nearby provinces, leaving in its wake, countless
deaths and untold destruction. One of the responses of SSS to
alleviate the plight of members was to make funds available
for members in affected areas through the Salary Loans Early
Renewal Program (SLERP). The program amended the existing
Salary Loan Program by relaxing the rules on loan renewal,
allowing members to renew their loans even if they have an
existing balance.
As of end- December, SSS processed a total 95,000 loan
applications and disbursed P1.3 billion in loans to members
who were severely affected by the calamities. The program
ended on 31 December 2009.
During the month of October, SSS branches in Marikina, Cainta,
Antipolo and Pasig fielded mobile centers to the various areas
under their respective jurisdictions. Marikina went to five (5)
main areas namely: Bgy. Tanong; Bgy. Concepcion 1; Tanong
Bgy. Hall Tanong basketball Court; Concepcion Uno; Nangka,
Montalban, Rizal. The branch had a total of 3,991 transactions
wherein 169 applications were received, 1,730 forms were
issued to the members and 1,248 were on inquires.
Mobile SSS Centers: A Tangible Response
The damages to roads, communities, including SSS offices, were
extensive, which prevented members from transacting with
SSS. In response, SSS branches in badly affected areas brought
SSS services to these members through the mobile SSS Centers.
Mobile Centers are like mini-branches that offer basic services
to the members. Members can inquire, check status of their
loan and benefit applications and file their claims through
these “mini-branches”. These centers are staffed by two to five
SSS personnel who are equipped with laptops with wireless
fidelity (Wi-Fi) capability.
20
The Taguig mobile office, on the other hand, recorded the
highest transaction count of 6,007. The mobile branch visited
these areas: Taguig Municipal Hall: Palingon, Tipas Bgy. Hall;
Bgy. Hall, Bagumbayan, Taguig; Bgy. Lower Bicutan, Taguig;
BF Homes, Parañaque; Bgy. Moonwalk, Paranaque. SSS Taguig
reported that it received 316 applications, issued forms to
1,835 members, responded to 2,306 general inquiries and
advised 1,550 members on the status of their loans and
number of contributions.
For the month of October, there were 18,779 total transactions
for the five mobile offices with 1,054 forms received for
processing and 5,800 forms issued to members. About 6,489
were provided with information on general inquiries while
5,304 were apprised on their loans and contributions.
SSS Cebu Guitar-shaped building brings music to worker’s ears
People claiming benefits and seeking to enjoy their privileges as
members of the Social Security System (SSS) can look forward
to convenient and more comfortable facilities in a new building
that combines the soft curves of the guitar with the first three
letters of the institution’s name.
The three-storey glass and aluminum-clod building situated
along Osmeña Boulevard could accommodate big crowds. It
is painted mango yellow, a reference to a local export product
and the building exudes a golden hue during the day which
signifies the SSS golden anniversary in 2007.
The new building stands on the site of the old SSS regional
office building, a former Cebu landmark that was torn down in
the 1990’s because of structural damage caused by a powerful
earthquake. It will be the headquarters of the SSS Central
Visayas Cluster, which supervises 15 branches in the provinces
of Cebu, Samar, Bohol and Leyte.
SSS Cebu started as a field representative office at the Labucay
Building in 1958, a few months after the pension fund was
established on 1 September 1957. It has been occupying the
three-storey Suarez Building at the corner of Gorordo Avenue
and Escario Street since 1997.
The building’s guitar design, which is clearly discernible from an
aerial view, is a tribute to Cebuanos and the musical instrument
that is one of the most popular products made in the province.
The love for music and a strong religious background are
known Cebuano traits that may characterize Cebu’s economic
development and the guitar, together with other export
products such as furniture and fashion accessories are major
drivers of the local economy.
Local officials in Cebu led by its Mayor Tomas Osmeña
and Vice Mayor Michael Rama commended the SSS for
acknowledging local values and showing it in tangible
terms such as a guitar–shaped building in recognition of the
Cebuano indomitable spirit.
Executive Vice President for Branch Operations Horacio
T. Templo said that SSS is “indispensable” in progressive
cities, adding: “You cannot have a progressive city without
businesses, and when there are businesses, SSS will not be far
behind. Productivity of the people will always result if they are
taken care of by their management, and SSS is a watchdog in
that connection.”
21
2009
SPEC IAL ARTIC LE
Taking Social Security in the Heart of National Development:
The National Social Welfare and Protection Program
Last year, the SSS played an integral role in formulating an
integrated, well-funded and focused national social welfare
and protection and anti-poverty program that aims to mitigate
the impact of the Global Financial crisis on the poor and the
most vulnerable sectors of society.
SSS worked closely with the Department of Social Welfare and
Development (DSWD) and the National Economic Development
Authority (NEDA) and other partner agencies under the
auspices of the National Social Welfare and Protection Program
(NSWPP) Cluster of the Cabinet. The NSWPP was created by
virtue of Executive Order 232 and 232-A. It is considered as
the government’s centerpiece Action Plan to rationalize the
overlapping social protection programs of the government and
to come up with concrete actions on how to enhance coverage
of the efficient programs and how to complement it with
existing anti-poverty projects and policies of the country.
The study, which was undertaken by the Development
Academy of the Philippines and funded by the United Nations
Development Program, sought to examine the efficacy and
efficiency of existing social welfare and protection programs
in the country and to recommend which programs are to be
scaled-up, retained, streamlined, abolished and harmonized.
It involved validation workshops, actual agency visits and indepth consultations with key stakeholders including NonGovernmental Organizations. SSS hosted the main validation
exercise on 20 May at the Ramon Magsaysay Hall, which
was participated in by close to 50 representatives from 16
government agencies.
The project culminated in a symbolic turnover of the copy of
the study by SSS President and CEO Secretary Romulo L. Neri
and DSWD Secretary Esperanza Cabral to President Gloria
Macapagal-Arroyo in Malacañang on 7 July coinciding with
the closing ceremonies of the Strategic Social Security Forum
organized by the National Security Council. The turnover was
witnessed by all senior members of Cabinet, highlighting the
importance and magnitude of the Cluster’s work. The study
is envisioned to be the blueprint of future policy actions on
the provision of social safety nets, promotion of labor market
interventions, granting of social welfare assistance and relevant
social insurance schemes.
On October, SSS was included as a permanent member of the
Sub-Committee on Social Protection under the Cabinet-level
Social Development Committee of NEDA. Among the tasks
of the Sub-Committee is to develop a comprehensive 5-year
22
Social Protection Plan which are consistent with national
development objectives and would harmonize existing social
protection and anti-poverty programs.
SSS’ inclusion in the Committee accentuates the integral role
of pension funds in alleviating the plight of the poor as well as
those who are more susceptible to the risks brought about by
economic shocks, disasters and calamities. As the world gradually
recovers from the economic crisis, SSS will again play pivotal role
as a source of safety net for the poor and the vulnerable and as a
catalyst for the mobilization of resources to create employment
and to promote industries, through its investment activities that
could raise the country’s productive capacity.
SSS Corporate Social Responsibility Programs
Beyond its mandate of service to its members, the SSS has
always been aware of its corporate social responsibility (CSR)
towards the greater public and its role as an instrument
of humanitarian, environmental, and social work. Starting
from simple financial donations to socio-civic and charitable
institutions every Christmas, the SSS has since expanded its
CSR to social welfare programs that address the basic needs
of Filipinos, especially the poor and vulnerable, activities that
protect the environment and preserve natural resources, and
initiatives that encourage volunteerism among individual SSS
employees and employee organizations.
On a local level, the SSS was the lead agency in creating the
Government Responsible for East Avenue Task Force (GREAT)
in 2001, which aimed to ensure cleanliness, peace and order
along the stretch of East Avenue, Quezon City, where the SSS
Main Office, and other government agencies, are located. Being
a responsible corporate citizen in Quezon City, the SSS has also
institutionalized the practice of proper waste management
and waste segregation, as well as water resource and energy
conservation. In relation to this, the Department of Energy, the
Department of Environment and Natural Resources, the Quezon
City government and other institutions have consistently
cited and awarded SSS “for walking the talk” in protecting the
environment as part of its corporate social responsibility.
The SSS is also one of the first government institutions to
heed the call of Republic Act 9418, “Volunteer Act of 2007”,
which mandates national government agencies, among other
institutions, to establish volunteer programs to promote and
encourage volunteerism in government programs, as well as
enjoin government employees to render volunteer service in
social, economic and humanitarian development undertakings
in the community.
Employee organizations abound in the SSS, catering to varied
interests, whether in sports, arts and culture, hobbies, or
religious faiths. Aside from their respective areas of interest,
these employee organizations also have their own social
responsibility programs which are funded and implemented
through their members’ volunteer efforts. Thus, employee
organizations such as the SSS Amateur Golfers Association,
the SSS Writers’ Guild, the Knights of Rizal-SSS Chapter, the
SSS Riders Club, the SSS Dance Troupe, the SSS Chorale Society,
the SSS Provident Fund, and the ACCESS Union have their own
socio-civic programs.
during which elementary students aged 6 to 12 years old would
be given supplementary feeding, to be conducted inside the
premises of the selected beneficiary school and facilitated by
the school’s personnel.
The spirit of volunteerism is alive and well in the various
SSS employee organizations. In times of natural disasters,
SSS employees are always ready and willing to share their
time, resources and efforts to aid needy victims. In 2007, the
SSS, through its Public Affairs and Special Events Division,
formalized the creation of an employee-volunteer organization:
the SSS Kabalikat ng Bayan Volunteer Corps composed of both
regular and contractual employees in SSS. This Volunteer
Corps provides the needed manpower in implementing
humanitarian and community development works that are
funded through donations.
To date, the SSS has signed several Memoranda of
Understanding (MOU) with the beneficiary schools selected
by SS Commissioners, including President Neri who also sits as
Vice Chairman of the SSC.
The Volunteer Corps, encourages SSS employees to volunteer
their time, resources, and energies in worthwhile socio-civic
programs that will benefit greater communities, while ensuring
the SSS-funded projects reach their intended beneficiaries and
are completed as envisioned. Among the socio-civic programs
that the SSS Kabalikat Volunteer Corps has undertaken are
humanitarian and medical missions at Payatas, Quezon City,
Bani, Pangasinan, Numancia, Aklan, and Cabatuan, Iloilo.
In 2009, as part of its CSR activities, the SSS has started the
funding of feeding programs for undernourished children in
selected schools. SSS President and Chief Executive Officer
Romulo L. Neri noted that the SSS is responding to the social
and economic needs of the times, and to the order of President
Gloria Macapagal-Arroyo to push stronger the Accelerated
Hunger Mitigation Program, which is a strategy under the
Medium-Term Philippine Development program for 2004 to
2010. Through the SSS-sponsored feeding programs, SSS hopes
to significantly bring down the rate of undernourished Filipino
children, who will be future workforce and SSS members.
The SSS Supplementary Feeding Program (SFP) was approved
by the Social Security Commission (SSC) under SSC Resolution
No. 686-s.2008. Under the Resolution, each of the seven SS
Commissioners will be allotted P500,000 to be used for the SFP
in the schools of their choice. The SFP would run for six months,
The SSS shall provide the funds to the selected school for the
purchase of foodstuff and related commodities deemed necessary
for the feeding program. The selected school, on the other hand,
shall be accountable to SSS for the utilization of the funds and
shall submit to SSS monthly monitoring of the students’ nutrition
status and reports on the program’s accomplishments.
As chosen by Commissioner Donald Dee and President Neri,
the SSS partnered with the Department of Education (DepEd)
Division of Negros Occidental and the 303rd Infantry Brigade,
3rd Infantry Division of the Philippine Army, for the program
called “Gatas para sa Maayong Lawas.” In the said program, SSS
would provide milk bars to supplement the DepEd’s ongoing
feeding program in 31 public schools in Negros Occidental and
Oriental provinces, that benefits around 11,134 children. The
MOU between the parties was signed on September 11, 2009.
On 5 October 2009, the SSS, through Commissioner Sergio
Ortiz-Luis, Jr., then signed the MOU with Alay Buhay Community
Development Foundation and the Rotary Clubs of QC- Southwest,
QC-Southeast, South Triangle, and Metro San Francisco Del
Monte, for the SFP in six public elementary schools for over
373 children. At the same date, as directed by Commissioner
Fe Tibayan-Palileo, Camp Claudio Elementary School, Tambo
Elementary School – Main, and Tambo Elementary School –
Unit 1, all in Parañaque, were the chosen beneficiaries of the SFP,
which would benefit some 300 students of the three schools.
More recently, the SSS partnered with San Francisco West
Central Elementary School and Moto Elementary Schools,
which were chosen by Commissioner Jose Sony Matula, for the
implementation of the SFP in the Agusan del Sur-based schools.
Their MOU was signed on 26 October 2009.
The SSS Supplementary Feeding Programs are being
implemented and monitored by the Corporate Communications
Department, under Vice President Marissu G. Bugante of the
Public Affairs and Special Events Division.
23
2009
SPEC IAL ARTIC LE
The Philippines Welcomes Social Security Experts for Regional
Forum for Asia and the Pacific
The Philippines hosted the gathering of social security policymakers, administrators, researchers and representatives of
regional and international organizations for the “Regional
Social Security Forum for Asia and the Pacific,” on 21 to 23
October 2009 at the Dusit Thani Manila in Makati City.
investment consulting of Watson Wyatt-Hong Kong, gave the
keynote address on governance and the social security reform
process. The topic on the imperatives of healthcare services
was handled by Professor Soonman Kwon of the Seoul National
University of South Korea, while Professor Christian Aspalter of
the Beijing Normal University of China delivered the keynote
address on pension coverage and demographic ageing.
The Forum ended with a high-level Social Security Summit
and showcased the recent advances in social security that
were achieved through new ideas, innovations, and effective
strategies. The ISSA Good Practice Awards for Asia and the
Pacific were also handed out to outstanding organizations
for their exemplary practices in the administration of social
security. The winning good practices will be featured at the
World Social Security Forum in Cape Town, South Africa in 2010.
Over 200 delegates from Asia and Pacific countries attended
the Fourm. Aside from technical sessions, there were also
fellowship events, cocktails, and guided tours of Makati City
hotspots for the foreign participants.
Sponsored by the International Social Security Association (ISSA)
and organized by the Philippine Social Security Association
(PHILSSA), the Regional Social Security Forum for Asia and the
Pacific focused on the role of social security amidst the current
milieu of globalization, internal and external migration, growth
of informal economies, changes in family structures, and the
impact of the global financial crisis.
The member institutions of PHILSSA, who hosted the Forum,
include the SSS, GSIS, HDMF, Employees’ Compensation
Commission, Philippine Health Insurance Corporation, Armed
Forces of the Philippines-Retirement and Separation Benefits
System, and the Philippine Charity Sweepstakes Office.
The Opening Ceremonies was graced by the Philippines’
second highest official, Vice President Noli de Castro, who is
also known as the “Housing Czar” being the chairman of the
Housing Development and Coordinating Council and the Home
Development Mutual Fund (HDMF). Delegates were welcomed
by PHILSSA Chairman Winston F. Garcia, who is the president
and general manager of the Government Service Insurance
System (GSIS), and by ISSA President Corazon S. de la PazBernardo, and former SSS Head.
The approval of the SSS Rationalization Plan (RatPlan) by
the Department of Budget and Management (DBM) on
18 May 2009 marked the conclusion of more than four
(4) years of rationalization efforts spearheaded by the SSS
Change Management Team. The SSS has embarked on a
strategic review of its organization to refocus its resources on
core functions, improve quality and efficiency of services and
improve organizational performance in line with the mandate
of Executive Order No. 366.
According to Forum Coordinator and Social Security System (SSS)
Vice President May Catherine Ciriaco, four main themes were
tackled in the three-day event: social security developments and
trends in the Asia and Pacific; governance and social security
reform processes; the imperatives of healthcare coverage; and
pension coverage and demographic aging.
In preparation for the Plan’s implementation, the Social
Security Commission (SSC) created a Committee on the
Rationalization Plan to review the DBM-approved Plan in the
light of organizational and environmental changes that have
happened since the time the Plan was crafted in 2005 until its
approval in 2009. The Committee was headed by Department of
Labor and Employment Undersecretary Lourdes M. Trasmonte
with Commissioners Fe Tibayan-Palileo, Donald G. Dee, Sergio
R. Ortiz-Luis and Jose Sonny G. Matula as members.
ISSA Secretary General Hans-Horst Konkolewsky of Geneva
delivered the keynote address on social security developments
and trends in Asia and the Pacific, while Ms. Yvonne Sin, head of
24
The SSS Rationalization Plan and 2009 Staffing
The direction pursued by the SSC Committee on the
Rationalization Plan was to implement the Plan by phases.
The first phase included the processing of applications for
voluntary retirement, absorption of qualified and deserving
service bureau contractuals, and promotion of qualified and
deserving Officers-in-Charge to executive positions.
As recommended by the SSC Committee on the Rationalization
Plan, the SSC, pursuant to Resolution No. 508, s. 2009, approved
the payment of benefits of 230 officials and employees who
opted for voluntary retirement under the Plan effective at the
close of office hours of 15 July 2009.
and the staffing and compensation review. These initiatives
are all geared towards the identified corporate strategic
directions which were developed in response to current and
future business challenges and embodied in the Plan with the
ultimate vision of an efficient and effective SSS organization.
* The SSS Organizational Structure which was recommended by the SSC
Committee on the Rationalization Plan was approved and confirmed by
the SSC on 25 March 2010 in Resolution No. 229, s. 2010
The New Performance Evaluation System
In line with the Civil Service Commission’s approval of the new
SSS Performance Evaluation System (PES) on 1 August 2008, the
last quarter of 2008 and the first quarter of 2009 was devoted
to the conduct of the System-wide orientation and briefing on
the new SSS-PES to all SSS executives and supervisors and 50%
of the rank and file employees. The first quarter of 2009 also
kicked off the development of the automated system for the
PES implementation.
The SSC then approved and confirmed the authority of the
Human Resource Management Division, thru AVP Jesse J.
Caberoy, to process the regularization/absorption of qualified
and deserving service bureau contractuals pursuant to
Resolution No. 509, s. 2009. The SSC Resolution paved the way
for the announcement of 1,282 vacancies, which was done in
four batches. From these announced vacancies, a total of 1,199
positions were filled wherein a total of 1,131 service bureau
contractuals were absorbed while 68 regular employees were
promoted and approved for lateral transfer with their position
titles amended.
The 2009 staffing was primarily anchored to the Plan in which
the Rationalized Plantilla of Personnel, which consisted of 7,652
positions, would be gradually filled over a period of ten years.
The projected increase in the workforce is aligned with the
expected increase in membership and contributions collection
for the next decade.
The end of 2009 marked the beginning of initiatives to
proceed with the execution of the remaining phases of the
Plan, which involves the promotion of qualified and deserving
OICs as well as rank-and-file employees, reassignment and retraining of affected employees, conduct of job leveling study
In preparation for the targeted implementation of the new
SSS-PES by the year 2010, Office Order No. 2009-022 on the
Approved PES Guidelines on the Implementation of the New
Performance Evaluation System and Additional PES Policies was
issued on 18 March 2009.
A pilot dry run of the new PES was conducted from April to
June 2009 for the following selected departments: Quality
Management Department, Management Information Systems
Department, and branches of Makati 1, San Pablo, Bacolod and
Cagayan de Oro.
To prepare for the System-wide dry run of the new PES,
orientation sessions were conducted from August to October
2009. Taking off from the results of the pilot dry run of the new
PES for selected departments and branches, enhancements
were recommended and approved pursuant to Office Order
No. 2009-115 dated 16 November 2009 on the Additional
Guidelines for the System-wide PES Dry Run.
SSS likewise conducted orientation sessions from August
to October 2009 to prepare employees for the System-wide
dry run of the new PES. Enhancements to the PES were then
recommended and approved pursuant to Office Order No.
2009-115 dated 16 November 2009. These enhancements
were based on the results of a four-month dry run.
25
SSS
2 0 1 0 A N D B E YO N D
Catapulting SSS into the Next Decade:
SSS in 2010 and Beyond
2009 was marred by highly destructive natural calamities that
compounded job losses and company closures as the country
teetered on the brink of recession. However, as the year came to a
close, glimmers of hope flashed in the horizon: a healthy banking
system, resilient remittances from overseas workers and a sturdy
services sector that enabled the economy to post a modest
growth of 0.9 percent.
Last year’s turbulent economic environment compelled
institutions such as the SSS to calibrate their strategies
and devote their energies as well as resources to bolstering
organizational capabilities while optimizing available
opportunities in the market.
In 2010, SSS shall undertake its mission with a renewed sense
of purpose notwithstanding the new set of challenges it has
to face – one that deals with preserving institutional integrity
and maintaining stability in the face of a looming change in
political leadership. The conduct of the National Elections in May
signals not only a change of leaders but also a change in overall
thrusts, plans and priorities – changes that have far-reaching
consequences on public organizations such as the SSS.
Taking into account this challenge, SSS programs remain firmly
anchored on The Five Enabling Forces namely Product, Process,
People/Organizational Culture, Communications and Physical
Facilities. However for the coming year, SSS would operationalize
these initiatives with greater prudence and discretion – pouring
resources only in mission-critical areas to ensure greater success
and participation from our stakeholders.
Seizing opportunities; changing the paradigm on
customer service
The economic crisis that hit the country was worsened by the
series of calamities and threatened stable institutions such
as the SSS. This prompted SSS to explore alternative means to
boost collection and secure cashflows despite the slowdown in
economic activity.
In this regard, SSS would be working for the passage of a new
law allowing erring employers to settle their delinquencies
without penalties. The policy is meant to reinstate the rights
and privileges lost by the employees as members of the SSS. This
policy initiative is borne out of a realization that to endure the
economic crisis, government and business institutions should
find a sensible solution to problems spawned by the crisis. While
we consider the condonation program as a focal point of our
collection strategy for the coming year, we shall not abandon
time-tested tactics that rely on the passion and astuteness of
our Accounts Officers and Legal Officers.
26
Along with this, SSS would zealously pursue collection of salary
loan delinquencies to generate liquidity that can finance more
member borrowers. SSS would likewise continue to leverage on
its existing partnerships with key institutions and third-party
collecting agents to broaden the scope of so-called special sectors
such as public transport drivers, cooperatives and overseas
workers while beefing up its payment mechanisms through the
implementation of Phase V of the Tellering Program.
SSS shall also formulate a clear-cut approach to reactivate
members, whose membership has remained dormant over the
years. We shall draw inspiration from the marketing strategies
of firms and companies, which flesh out insights from available
customer data to come up with targeted campaigns to increase
revenues and regularity of payment. With the changing socioeconomic environment, it is imperative for SSS to take a paradigm
shift with regards to its coverage and collection campaigns by
treating our members as customers whose tastes and preferences
change according to their specific needs or wants. SSS should no
longer rely on the power of Law to draw in new members but
rather look at our programs as products that compete for a share
in the expenditures of prospective members.
Cashing in on a revitalized economy
As the world economy gradually emerges from a long slump,
SSS is poised to take full advantage of a reinvigorated domestic
market by accelerating the sale of non-performing assets,
including properties received as payment for delinquencies. SSS
remains open to joint development of prime parcels of land with
renowned developers to increase the value of these properties.
The Institution shall also continue to diversify its portfolio
through venturing into non-traditional investment instruments
such as index or mutual funds and buying shares of promising
and efficiently managed small and medium-sized firms. SSS
is cognizant of the inherent responsibility that its investments
should not only generate ample financial returns but also create
greater economic and social value through employment and
livelihood especially for the marginalized.
One of the significant lessons from the crisis is the need to hedge
against systemic risks in order to mitigate the impact of sudden
market fluctuations that could have far-ranging implications to
SSS’ financial standing. At the crux of this concern is investing
on meticulous research that has foresight and that takes into
account not just the fundamentals of a given investment project
but also risk-return factors and possible pay-offs.
Unraveling complexities in service delivery through IT
Last year, SSS augmented existing service delivery systems to
enhance the degree of satisfaction of our transacting members.
At the core of these mechanism is the more extensive use of
Information Technology for both sensitive frontline operations
and crucial backroom activities. This year, the institution is set
to reap the gains from these timely investments with the full
implementation of the Unified Multi-Purpose Identification
System (UMID), the enhanced user interface of the SSS Web
and the deployment of Self-Service Information Terminals
to key branches nationwide. Plans are well underway for the
establishment of a dedicated Call Center to provide 24 X 7 service
to our members.
These IT-backed service management system is seen as a
boon to SSS’ efforts to re-channel precious resources specially
at the branch level to core services such as benefits and
loans applications screening and processing. Moreover, the
mobilization of IT resources serves to reduce the probability of
error and lessen human intervention leading to a more seamless,
predictable and cost-effective means of processing.
The overhaul of the IT framework comes at an opportune time
as the institution begins the system-wide implementation of the
Anti-Red Tape Act, which specifies standards by which members
can gauge the quality of service rendered by state agencies
with frontline services. The main intent of the law is to promote
transparency in government processes and transactions, which
are often criticized for ambiguity. At our end, SSS has completed
the draft of its Citizen’s Charter which contains the step-by-step
procedures and detailed timelines for services classified as “high
volume.” The promulgation of the Charter is expected to buttress
the institutionalized Covenant of Service (CoS), which simplified
procedures and streamlined processes for key SSS transactions
since its inception in 2001.
Revamping the organization: Changing from within
Last year, SSS began its long-delayed reorganization with
the execution of the initial phase of the Rationalization Plan,
which saw the absorption of more than 1,100 service bureau
contractuals. In the coming year, we would forge ahead with
the absorption of more qualified SBs including the promotion
of deserving regular employees, whose careers have remained
static since the institution had implemented cost-cutting
measures in 2001.
SSS is likewise determined to fill in the void created by the
retirement of senior and middle management officials under
the RatPlan. The immediate replacement of these officials would
ensure continuity in strategic aspects of SSS operations while
maintaining a clear line of accountability. This effort, which
would be complemented by the Performance Evaluation System
(PES) and the Merit Selection Plan, form an integrative policy
covering personnel selection and deployment, performance
evaluation and manpower training and development. SSS shall
veer away from the piecemeal approaches to organizational
reform and would instead be guided by a more holistic scheme
to bring about real change in work life
More than filling the gaps in the organization, SSS shall push for
a comprehensive review of the human resources complement of
the institution. More than reviewing the adequacy of manpower
of each unit or office, the focus of the assessment would be on
the relevance of the duties performed by each employee in light
of the advances in technology and the shift in service delivery
strategies. The RatPlan would merely serve as a springboard for
more radical changes in the organization. These modifications
would hinge on the Staffing and Levelling Plans, which
would hopefully culminate in the conduct of a system-wide
compensation and benefits review.
Admittedly, the reorganization itself would encounter some
obstacles during the course of its implementation. However,
management is determined to implement these Plans to the
letter for the welfare of the employees and for good of the
institution as a whole. The financial crisis has underscored the
need to strengthen the organization from within to make it more
relevant to the call of the times.
Managing transition and dealing with change
2010 not only signals a change in political leadership, it also
indicates a change in the priorities and overall thrust of the
institution. The institution should be able to take specific
actions on emerging economic patterns and find new sources
of growth in the midst of a widening clamor for increased
benefits among our members.
SSS shall remain open to tapping unconventional markets for
its investments provided that it falls within our criteria. The
institution shall persevere with efforts to strengthen social
protection coverage of workers in the most vulnerable sectors
of society – seafarers and those in high-risk industries such as
mining and quarrying -- while balancing it with the need to
maintain equity and financial health. SSS shall also play a larger
role in the policy arena through the crafting of relevant national
policies directed at promoting social welfare and protection as
these should be included in the country’s development agenda.
However, we shall not allow contingencies to dictate the
course of our actions. Prudence and discretion shall remain the
primordial guiding factors in carrying out policies and programs.
We are still primarily a custodian of the members’ Fund with a
fiduciary responsibility to our stakeholders.
Institutional integrity shall be bolstered and mechanisms
for transparency shall be strengthened. This is why we shall
continue advancing the needed modifications in our Charter,
lest our programs would fall into obsolescence and erode
institutional memory.
27
S tatement o f M anagement ’ s R esp o nsibilit y f o r the Financial Statements
SOCIAL SECURITY SYSTEM
The Management of the Social Security System is responsible for all information and representations contained in the consolidated
financial statements as of 31 December 2009 and 2008. The financial statements have been prepared in conformity with the
accounting principles generally accepted in the Philippines, and reflect amounts that are based on the best estimates and informed
judgement of Management with an appropriate consideration to materiality.
In this regard, management maintains a system of accounting and reporting which provides for the necessary internal controls to
ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition, and
liabilities are recognized.
The Social Security Commission reviews the consolidated financial statements before such statements are approved and submitted
to the President of the Philippines and to the Congress of the Philippines.
THELMO Y. CUNANAN
ROMULO L. NERIELVIRA G. ALCANTARA-RESARE
Chairman, SS Commission
President and CEO
Officer-in-Charge
Controllership Division
28
S tate A u dit o r ’ s R ep o rt o n the Financial Statements
The Social Security Commission
Social Security System
East Avenue, Quezon City
We have audited the accompanying financial statements of the Social Security System (SSS), which comprise the statement of financial
position as at December 31, 2009, and the statement of comprehensive income, statement of changes in reserves and statement of cash
flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial
Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects the financial position of the Social Security System as at
December 31, 2009, and of its financial performance and its cash flows for the year then ended in accordance with Philippine Financial
Reporting Standards.
Emphasis of Matter
We draw attention to Notes 3.1 (d.3) and 9 to the financial statements, which disclosed, among others, that the SSS does not provide an
allowance for impairment loss on delinquent member loan accounts since they are backed/secured by members’ equity and benefits. As
stated in Note 3.1, all outstanding obligations of members at the time of their application for final claim are being deducted from their
claim proceeds. Had Management opted to provide an allowance for impairment, SSS would have reduced its income by P4.86 billion;
representing 25 per cent of delinquent salary, educational, calamity, separated and emergency loan accounts, using the latest available
aging of accounts.
COMMISSION ON AUDIT
LUZ LORETO - TOLENTINO
Director IV
Cluster A - Financial
Corporate Government Sector
7 May 2010
29
S tatement o f Financial Position
DECEMBER 31, 2009
(In Philippine Peso)
Notes
2009
2008
ASSETS
Current assets
Cash and cash equivalents
4
8,995,402,491
6,874,110,536
Held-to-maturity investments
5
13,293,628,605
45,054,604,483
Held for trading financial assets
6
979,839,420
1,340,056,328
Receivables
7
5,334,882,298
5,546,601,810
Other current assets
8
117,762,834
109,136,631
28,721,515,648
58,924,509,788
Non-current assets
Non-current financial assets
9
223,472,303,766
154,160,153,724
Investment property
10
10,895,675,521
10,800,414,790
Property and equipment
11
3,413,685,287
2,876,316,627
Intangible assets
12
164,934,237
344,648,464
Non-current assets held for sale
13
5,404,768,660
5,442,125,162
Other non-current assets
14
537,767,300
574,022,005
243,889,134,771
174,197,680,772
TOTAL ASSETS
272,610,650,419
233,122,190,560
LIABILITIES
Current liabilities
Accounts payable and accrued expenses
15
3,248,103,762
2,771,931,896
Funds held in trust
16
623,290,176
522,263,303
Deferred income
17
93,384,621
61,201,822
Other current liabilities
18
1,947,038,162
2,515,621,255
5,911,816,721
5,871,018,276
Accrued retirement benefits
19
1,359,174,889
1,634,415,796
Rent payable
20
9,840,971
13,811,542
7,280,832,581
7,519,245,614
RESERVES
21
265,329,817,838 225,602,944,946
TOTAL LIABILITIES AND RESERVES
The notes on pages 7 to 31 form part of these financial statements
30
272,610,650,419
233,122,190,560
S tatement o f
Comprehensive income
FOR THE YEAR ENDED DECEMBER 31, 2009
(In Philippine Peso)
Notes 2009
2008
REVENUES
Members’ contribution
72,350,893,036
68,879,273,075 Investment and other income
22
22,985,618,802
29,089,046,778 95,336,511,838
97,968,319,853 EXPENSES
Benefit payments
Retirement
35,126,490,608
32,679,728,053 Death
25,962,639,582
24,676,874,967 Maternity
3,589,163,852
3,274,003,551 Disability
3,253,748,170
3,286,724,247 Funeral grant
2,377,398,534
2,253,246,907 Sickness
1,703,782,723
1,705,535,321 Medical services
36,651,721
41,133,193 Rehabilitation services
82,815
116,025 72,049,958,005
67,917,362,264 Operating Expenses
Personal services
23
4,730,723,529
4,605,567,109 Maintenance and other operating expenses
24
2,343,867,852
2,140,059,343 7,074,591,381
6,745,626,452 79,124,549,386 74,662,988,716 NET REVENUES
16,211,962,452
23,305,331,137
OTHER COMPREHENSIVE INCOME/(LOSS)
Available-for-sale financial assets
Reclassification adjustments
(3,869,835,841)
(14,300,275,929)
Unrealized gain/(loss)
27,199,674,473
(26,316,228,197)
Revaluation increase - land
277,700,739
-
Land acquired through donation
-
6,300,000 Settlement of claims for disallowed payments
(11,313,834)
(418,475)
23,596,225,537
(40,610,622,601)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR
39,808,187,989
(17,305,291,464)
The notes on pages 7 to 31 form part of these financial statements.
31
S tatement o f Changes in Reserves
FOR THE YEAR ENDED DECEMBER 31, 2009
(In Philippine Peso)
Notes
Reserve fund
Unrealized gains
on Property available-sale for valuation Contingent
Donated financial assets
reserve
surplus
propertyTotal reserves
Balance, 1 January 2009
221,327,786,968 3,017,588,582 1,227,822,935 18,354,481 11,391,980 225,602,944,946
Corporate operating budget
of Employees’ Compensation
Commission and Occupational
Safety and Health Center
(81,315,097)
-
-
-
-
(81,315,097)
Total comprehensive
income/(loss) for the year
16,211,962,452 23,329,838,632
277,700,739 (11,313,834)
- 39,808,187,989
BALANCE, 31 DECEMBER 2009
21
237,458,434,323 26,347,427,214 1,505,523,674
7,040,647 11,391,980 265,329,817,838
BALANCE, 31 DECEMBER 2008
21
221,327,786,968 3,017,588,582 1,227,822,935 18,354,481 11,391,980 225,602,944,946
The notes on pages 7 to 31 form part of these financial statements.
32
S tatement o f Cash Flows
FOR THE YEAR ENDED DECEMBER 31, 2009
(In Philippine Peso)
Notes
2009
2008
CASH FLOWS FROM OPERATING ACTIVITIES
Members’ contribution
72,350,893,036
68,879,273,075
Investment and other income
22
14,689,520,657
12,849,378,667
Payments to members and beneficiaries
(72,061,527,723)
(67,899,749,398)
Payments for operations
(6,531,397,668)
(6,300,622,928)
Operating income before changes in operating assets and liabilities
8,447,488,302
7,528,279,416
(Increase)/decrease in operating assets
Held-for-trading financial assets
717,013,283
(877,118,056)
Receivables
7
992,815,389
(1,061,427,824)
Other operating assets
(26,484,820)
204,571,435
Increase/(decrease) in operating liabilities
Funds held in trust
101,026,873
47,762,844
Other current liabilities
(568,583,093)
2,280,775,775
Net cash generated from operating activities
9,663,275,934
8,122,843,590
CASH FLOWS FROM INVESTING ACTIVITIES
Loan releases and other investment purchases, net
(7,018,112,473)
(9,432,889,052)
Acquisition of property and equipment, net
11
(408,964,165)
(489,032,703)
Acquisition of intangible assets, net
12
(33,592,244)
(101,032,327)
Net cash used in investing activities
(7,460,668,882)
(10,022,954,082)
CASH FLOWS FROM FINANCING ACTIVITIES
Corporate operating budget of Employees’ Compensation Commission and Occupational
Safety and Health Center
(81,315,097)
(108,420,130)
NET INCREASE (DECREASE) FROM CASH AND CASH EQUIVALENTS
2,121,291,955
(2,008,530,622)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
4
6,874,110,536
8,882,641,158
CASH AND CASH EQUIVALENTS AT END OF YEAR
4
8,995,402,491
6,874,110,536
The notes on pages 7 to 31 form part of these financial statements.
33
N ot e s to
Financial Statements
(All amounts in Philippine peso unless otherwise stated)
1.
REPORTING ENTITY
As a result, the SSS presents in the statement of changes in
reserves all reserve fund-related movements, whereas all non
reserve fund-related changes are presented in the statement
of comprehensive income.
The Social Security System (SSS) administers social security protection
to workers in the private sector. Social security provides replacement
income for workers in times of death, disability, sickness, maternity
and old age. On 1 September 1957, the Social Security Act of 1954 was
implemented. Thereafter, the coverage and benefits given by SSS have
been expanded and enhanced through the enactment of various laws.
On 1 May 1997, Republic Act (RA) No. 8282, otherwise known as the
“Social Security Act of 1997”, was enacted to further strengthen the
SSS. Under this Act, the government accepts general responsibility for
the solvency of the SSS and guarantees that prescribed benefits shall
not be diminished. Section 16 of RA 8282 exempts the SSS and all its
benefit payments from all kinds of taxes, fees or charges, customs or
import duty.
The SSS is a financial institution in the Philippines. Its principal office is
in East Avenue, Quezon City.
The financial statements include the accounts of Employees’
Compensation and State Insurance Fund, which is being
administered by the SSS, as provided for by Presidential Decree
No. 626, as amended. All inter-fund accounts have been eliminated.
The financial statements are authorized for issue by the Social
Security Commission on May 5, 2010 under its Resolution
No. 356-s.2010.
2.
BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements of the SSS are prepared in accordance
with Philippine Financial Reporting Standards (PFRS)/Philippine
Accounting Standards (PAS), where practicable.
2.2 Basis of measurement
The financial statements are prepared on historical cost basis
except for the following items:
financial assets at fair value through profit or loss are
measured at fair value
marketable securities classified as available-for-sale are
measured at fair value
investment property accounts are measured at fair value
land under property and equipment are measured at revalued
amount
2.3 Use of estimates and judgments
The preparation of the financial statements in conformity with
PFRS/PAS requires Management to make judgments, estimates
and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income
and expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change in an accounting estimate
is recognized prospectively by including it in profit or loss in
the period of the change, if the change affects that period only
or the period of the change and future periods, if the change
affects both.
2.4 Change in accounting policies
Starting as of 1 January 2009, the SSS has adopted the following
amendments to existing PAS/PFRS:
a. Revised PAS 1, Presentation of Financial Statements. The
revised standard prohibits the presentation of items of
income and expenses (i.e. non reserve fund changes in
reserves) in the statement of changes in reserves, requiring
non reserve fund changes in reserves to be presented
separately from reserve fund changes in reserves in a
statement of comprehensive income.
34
Comparative information has been re-presented so that it
also is in conformity with the revised standard. The change in
accounting policy only impacts presentation aspects.
b. PAS 40, Investment Property. The standard revises the scope
such that property under construction or development
for future use as an investment property is classified as
investment property. Adoption of this amendment does not
have material impact on the financial statements.
3.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently
to all periods presented in these financial statements.
3.1 Financial assets
a. Date of recognition. The SSS initially recognizes loans and
receivables and deposits on the date that they are originated.
All other financial assets (including assets designated at fair
value through profit or loss) are recognized initially on the
trade date at which the SSS becomes a party to the contractual
provisions of the instrument.
b. Initial recognition. The SSS initially recognizes a financial
asset at fair value. Transaction costs are included in the initial
measurement, except for financial assets measured at fair
value through profit or loss.
c. Determination of fair value. The fair value of investments
that are actively traded in organized financial markets is
determined by reference to quoted market bid prices. When
current bid prices are not available, the price of the most
recent transaction provides evidence of the current fair
value as long as there has not been a significant change in
economic circumstances since the time of the transaction.
For investments where there is no active market, fair value
is determined using valuation techniques. Such techniques
include using recent arm’s-length market transactions,
reference to the current market value of another instrument,
which is substantially the same, discounted cash flow analysis
and option pricing models.
d. Classification. The SSS has the following non-derivative
financial assets: financial assets at fair value through profit or
loss, held-to-maturity financial assets, loans and receivables
and available-for-sale financial assets.
d.1 Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss
consist of held-for-trading financial assets. Held-fortrading financial assets are financial assets acquired
or held for the purpose of selling in the short term or
for which there is a recent pattern of short-term profit
taking.
Upon initial recognition, attributable transaction costs
are recognized in profit or loss as incurred. Financial
assets at fair value through profit or loss are measured
at fair value and changes therein are recognized in
profit or loss.
d.2 Held-to-maturity financial assets
Held-to-maturity financial assets are non-derivative
financial assets with fixed or determinable payments
and fixed maturity for which there is the positive
intention and ability to hold to maturity. They are
recognized initially at fair value plus any directly
attributable transaction costs. Subsequent to initial
recognition
held-to-maturity
investments
are
measured at amortized cost using the effective interest
method, less any impairment in value.
Gains and losses are recognized in profit or loss
when the held-to-maturity financial assets are
derecognized or impaired, as well as through the
amortization process.
d.3 Loans and receivables
Loans and receivables are financial assets with fixed
or determinable payments that are not quoted in
an active market. Such assets are carried at cost or
amortized cost less impairment in value.
A loan or receivable is deemed impaired when it
is considered that it will probably not be possible
to recover all the amounts due according to the
contractual terms, or equivalent value. Significant
financial difficulties of the debtor, probability that the
debtor will enter bankruptcy and default or delinquency
in payments are considered indicators that such loans
and receivables are impaired.
The SSS does not provide an allowance for impairment
loss on delinquent member loan accounts since they
are backed/secured by members’ equity and benefits.
All outstanding obligations of members at the time
of their application for final claim are being deducted
from their claim proceeds.
The SSS’ cash and cash equivalents, member and
business loans and other receivables are included in
this category.
d.4 Available-for-sale financial assets
Available-for-sale financial assets are non-derivative
financial assets that are designated as availablefor-sale and that are not classified in any of the
other categories. Subsequent to initial recognition,
available-for-sale financial assets are carried at fair
value in the statement of financial position. Changes
in the fair value of such assets are recognized in other
comprehensive income and presented within reserves
in the unrealized gain or loss on available-for-sale
financial assets portion. When an available-for-sale
financial asset is derecognized, the cumulative gains
or losses are transferred to profit or loss and presented
as a reclassification adjustment within the statement
of comprehensive income. Dividends on available-forsale equity instruments are recognized in profit or loss
when the right to receive payments is established.
If an available-for-sale financial asset is impaired, an
amount comprising the difference between its cost
(net of any principal payment and amortization) and its
current fair value, less any impairment loss previously
recognized in profit or loss, is transferred from reserves
to profit or loss and presented as a reclassification
adjustment within the statement of comprehensive
income. Reversals in respect of equity instruments
classified as available-for-sale are not recognized in
profit or loss.
e. Derecognition of financial assets. Financial assets are
derecognized when the rights to receive cash flows from
the asset have expired or have been transferred and the SSS
either has transferred substantially all risks and rewards
of ownership or has neither transferred nor retained
substantially all the risks and rewards of ownership, but has
transferred control of the asset.
3.2 Cash equivalents
Cash equivalents comprise short-term, highly liquid investments
that are readily convertible to known amounts of cash with
original maturities of 90 days or less and are subject to an
insignificant risk of change in value.
3.3 Supplies and materials
Supplies and materials are valued at cost using the weighted
average method.
3.4 Investment property
Investment property account consists of property held to earn
rentals and/or for capital appreciation.
An investment property is initially measured at cost, including
transaction costs. Such cost should not include start-up costs,
abnormal waste, or initial operating losses incurred before the
investment property achieves the planned level of occupancy.
After initial recognition, it is measured at fair value with any
change therein recognized in profit or loss.
Transfers to or from investment property are made when there is
a change in use, evidenced by:
 commencement of owner-occupation
 end of owner-occupation
 commencement of an operating lease to another party
3.5 Property and equipment
Property and equipment, except land, are stated at cost less
accumulated depreciation, amortization and any impairment
in value. Land is carried at revalued amount. Increase in value
as a result of revaluation is credited to reserves under property
valuation reserve unless it represents the reversal of a revaluation
decrease of the same asset previously recognized as an expense,
in which case it is recognized as income. On the other hand, a
decrease arising as a result of a revaluation is recognized as an
expense to the extent that it exceeds any amount previously
credited to property valuation reserve relating to the same asset.
Cost includes all costs necessary to bring the asset to working
condition for its intended use. This would include not only
its original purchase price but also costs of site preparation,
delivery and handling, installation, related professional fees for
architects and engineers, and the estimated cost of dismantling
and removing the asset and restoring the site.
The cost of replacing a part of an item of property and equipment
is recognized in the carrying amount of the item if it is probable
that the future economic benefits embodied within the part will
flow to the SSS, and its cost can be measured reliably. The carrying
amount of the replaced part is derecognized. The costs of the
day-to-day servicing of property and equipment are recognized in
profit or loss as incurred.
Depreciation is calculated over the depreciable amount less its
residual value. It is recognized in profit or loss on a straight-line
basis over the estimated useful lives of each part of an item of
property and equipment.
The estimated useful lives of property and equipment are as
follows:
Assets
Life
Building/building improvements
10-30 years
Furniture and equipment/
Computer hardware
5-10 years
Land improvements
10 years
Transportation equipment
7 years
Leasehold improvements
10-30 years (or the
term of the lease
whichever is shorter)
35
Building and building improvements have residual value
equivalent to ten percent of the acquisition/appraised value
while other items of property and equipment except land have
one peso as their residual value.
3.9 Revenue recognition
Revenue is recognized to the extent that it is probable that
the economic benefits will flow to the SSS and the amount
of revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is
recognized:
Construction in progress (CIP) represents building, building and
leasehold improvements under construction and is stated at
cost. CIP is not depreciated until such time as the relevant assets
are completed and put into operational use.
3.6 Intangible assets
Acquired computer software licenses are capitalized on the basis
of the costs incurred to acquire and bring to use the specific
software. Computer software licenses with finite lives are
amortized on a straight-line basis over their estimated useful
lives, while those with indefinite useful lives or those used
perpetually or for as long as there are computers compatible with
them are carried at cost and tested annually for impairment.
3.7 Non-current assets held for sale
b.
Interest income. Revenue is recognized as the interest
accrues, taking into account the effective yield on the asset.
c.
Dividend income. Dividend income is recognized at the
time the right to receive the payment is established.
d.
Rental income. Rental income is recognized on a straightline basis over the lease term.
Expenses are recognized in the statement of comprehensive income
upon utilization of the service or at the date they are incurred.
3.11 Operating Leases
The determination of whether an arrangement is, or contains
a lease is based on the substance of the arrangement at the
inception date of whether the fulfillment of the arrangement
is dependent on the use of a specific asset or the arrangement
conveys a right to use the asset.
Assets classified as held for sale are measured at the lower of
carrying amount and fair value less costs to sell. Any excess
of carrying amount over fair value less costs to sell is an
impairment loss. No depreciation is recognized for these assets
while classified as held for sale.
a. SSS as lessee. Leases which do not transfer to the SSS
substantially all the risks and benefits of ownership of the
asset are classified as operating leases. Operating lease
payments are recognized as expense on a straight-line basis
over the lease term.
Non-current assets held for sale include real and other properties
acquired (ROPA) in settlement of contribution and member and
housing loan delinquencies through foreclosure or dation in
payment. They are initially booked at the carrying amount of the
contribution/loan delinquency plus transaction costs incurred
upon acquisition. When the booked amount of ROPA exceeds
the appraised value of the acquired property, an allowance for
impairment loss equivalent to the excess of the amount booked
over the appraised value is set up.
b. SSS as lessor. Leases where the SSS does not transfer to the
lessee substantially all the risk and benefits of ownership of
the asset are classified as operating leases. Lease income from
operating leases is recognized as income on a straight-line
basis over the lease term.
3.8 Impairment of non-financial assets
4. CASH AND CASH EQUIVALENTS
Cash on hand and in banks Time and special
savings deposits 2009
3,313,776,021 2008
574,973,044
5,681,626,470 8,995,402,491 6,299,137,492
6,874,110,536
Cash in banks earn interest at the respective bank deposit rates. Time and
special savings deposits are made for varying periods of up to 90 days
depending on the immediate cash requirements of SSS and earn interest
at the prevailing time and special savings deposit rates.
Impairment loss is recognized if the carrying amount of an
asset exceeds its estimated recoverable amount. The carrying
amount of the asset is reduced through the use of an allowance
account and the amount of loss is recognized in profit or loss
unless it relates to a revalued asset where the value changes are
recognized in other comprehensive income/loss and presented
within reserves in the property valuation reserve portion.
Depreciation and amortization charge for future periods is
adjusted.
An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or
amortization, if no impairment loss had been recognized in
prior years.
Member’s contribution. Revenue is recognized upon
collection.
3.10 Expense recognition
Non-current assets are classified as held for sale if their carrying
amount will be recovered through a sale transaction rather
than through continuing use. This condition is regarded as met
when the sale is highly probable and the asset is available for
immediate sale in its present condition.
The carrying amount of non-financial assets, other than
investment property and non-current assets held for sale
is assessed to determine whether there is any indication of
impairment or an impairment previously recognized may no
longer exist or may have decreased. If any such indication exists,
then the asset’s recoverable amount is estimated. Recoverable
amount is the higher of an asset’s fair value less costs to sell and
its value in use.
a.
In consideration of the banks’ making their deposit pick up facility
available to the SSS, the latter agreed to maintain an average daily
balance of P1 million in a non-drawing interest bearing current account/
savings account (CASA) with each of the banks’ servicing branches. As of
31 December 2009, P92 million is being maintained in several banks for
such purpose.
5. HELD-TO-MATURITY INVESTMENTS
Short-term
money placements Treasury bills 2009 2008
11,270,800,000
2,022,828,605
13,293,628,605
12,111,258,391
32,943,346,092
45,054,604,483
Short-term money placements are short-term investments with original
maturities of more than 90 days.
36
6. HELD-FOR-TRADING FINANCIAL ASSETS
The cost of held-for-trading financial assets as at 31 December 2009 and
2008 are P1,037.17 million and P1,754.19 million, respectively.
7. RECEIVABLES
Collecting banks/
agents/bayad center
Interest receivable Other receivables 8.
2009 2008
2,435,277,439
2,218,145,921
681,458,938
5,334,882,298
3,745,233,147
1,624,255,456
177,113,207
5,546,601,810
OTHER CURRENT ASSETS
Supplies and materials
inventory Prepaid expenses Advances - officials and
employees Revolving fund Receivable - International Social
Security Association
9.
2009
2008
107,185,948
5,563,231
97,411,879
5,272,026
3,937,188
1,076,467
5,009,493
1,133,614
-
117,762,834
309,619
109,136,631
4,661,268,782
4,615,224,268
888,778,261
17,219,220
750,395,390
17,970,859
122,198,032
5,224,529,406
73,627,918,068
133,012,310
523,581,507
67,673,607,576
(855,367,110)
(852,372,445)
72,772,550,958 66,821,235,131
223,472,303,766 154,160,153,724
The carrying amount of available-for-sale financial assets is as follows:
2009 2008
Marketable securities
Cost
42,462,256,771 37,056,663,073
Unrealized gain
26,347,427,214
3,017,588,582
68,809,683,985 40,074,251,655
Ordinary and preference
shares Cost
1,208,710,857
1,208,710,587
Accumulated impairment loss
(723,612,480)
(699,394,890)
485,098,377
509,315,967
69,294,782,362 40,583,567,622
The current portion of held-to-maturity investments as at 31 December 2009
and 2008 are P8.20 Billion and P4.10 Billion, respectively.
NON-CURRENT FINANCIAL ASSETS
Available-for-sale
financial assets
Held-to-maturity
investments
Notes and bonds Accumulated
impairment loss Loans and receivable
Members loans Loan to National Home
Mortgage Finance
Corporation Loan to Home Development
Mutual Fund Housing loans Commercial and industrial
loans Program MADE
Loan to other government
agencies Sales contract receivable Accumulated
impairment loss 2009
2008
69,294,782,362
40,583,567,622
82,289,672,152
47,815,052,677
(884,701,706)
81,404,970,446
(1,059,701,706)
46,755,350,971
44,407,118,536
40,630,131,602
14,990,587,912
17,110,340,170
3,316,217,919
3,892,951,470
Member loans were not provided with allowance for impairment loss
because they are backed/secured by members’ equity. In order to ensure
prompt collection of outstanding loans, SSS now takes a more active stance
and aims to collect P19 billion in the next three years mainly from active
delinquent members who are covered employees. The basic strategies will be
to improve collection through a combination of (a) policy changes, followed
with strict enforcement, (b) procedural enhancement and (c) utilization of
appropriate information technology solutions that would enable the SSS to
track, monitor and promptly collect from member-borrowers.
Using the latest aging of accounts (i.e. 30 September 2009), the SSS would have
posted P4.86 billion loss, representing 25% of P19.43 billion delinquent (three
years and above) salary, educational, calamity, separated and emergency loan
accounts, had it opted to provide an allowance for impairment.
10. INVESTMENT PROPERTY
Fair value, 1 January 2009
Additions
Disposals
Cancellation of contracts
Fair value gain/(loss)
Fair value, 31 December 2009
Fair value, 31 December 2008
Land 7,869,877,895
-
(91,085,700)
-
330,527,795
8,109,319,990
7,869,877,895
Building 2,921,119,274
-
(6,964,160)
6,755,020
(144,151,276)
2,776,758,858
2,921,119,274
Development cost 9,417,621
179,052
-
-
-
9,596,673
9,417,621
Total
10,800,414,790
179,052
(98,049,860)
6,755,020
186,376,519
10,895,675,521
10,800,414,790
The costs of investment property as at 31 December 2009 and 2008 are P7.73 billion and P7.81 billion, respectively.
The Investment Property account balance as at 31 December 2008 is restated due to the reclassification of Property and Equipment-Building to Investment
Property-Development Cost to conform with the latest pronouncement of PAS 40, as shown below:
Total Investment Property – December 31, 2008 – restated
Total Investment Property – December 31, 2008
Restatement – Development Cost
10,800,414,790
10,790,997,169
9,417,621
The fair value of investment property is determined based on valuations performed by independent appraisers.
The following amounts are recognized in the statement of comprehensive income:
Rental income
Penalty on rentals
Fair value gains Realized gain
Direct operating expenses
2009
394,624,497
1,556,391
186,376,519
5,438,485
(89,686,173)
498,309,719
2008
397,673,910
5,826,946
842,781,139
10,844,700
(82,802,821)
1,174,323,874
37
11. PROPERTY AND EQUIPMENT
Furniture & equipment,
Land, buildings, and land/ transportation
building/leasehold equipment, computer
Construction in
improvements hardware & others progress Total
Gross carrying amount:
1 January 2009
2,855,003,955 3,468,220,494 52,787,613 6,376,012,062
Additions/transfers
142,045,072 293,461,201 (29,003,312) 406,502,961
Retirement/disposals/adjustments
-
(26,267,867)
(944,242)
(27,212,109)
Appraisal increase
277,700,740
-
-
277,700,740
Recovery of impairment loss
38,849,375
-
-
38,849,375
31 December 2009
3,313,599,142
3,735,413,828
22,840,059
7,071,853,029
Accumulated depreciation/amortization:
1 January 2009
571,213,444 2,849,529,716 - 3,420,743,160
Charge for the period
47,526,534 159,306,976 - 206,833,510
Retirement/disposals/adjustments
- (26,132,678)
(26,132,678)
31 December 2009
618,739,978 2,982,704,014 - 3,601,443,992
Accumulated impairment loss:
1 January 2009
78,952,275 - - 78,952,275
Recovery of impairment loss
(22,228,525) - - (22,228,525)
31 December 2009
56,723,750 - - 56,723,750
Net book value, 31 December 2009
2,638,135,414
752,709,814
22,840,059
3,413,685,287
Net book value, 31 December 2008
2,204,838,236 618,690,778 52,787,613 2,876,316,627
Land, buildings and building improvements were last revalued in December 2009 by independent valuers. Valuations were made on the basis of market value.
Any revaluation surplus was credited to Property Valuation Reserves.
If land, buildings and building improvements were stated on the historical cost basis, the carrying amount would be as follows:
2009
1,694,222,606
(508,769,669)
1,185,452,937
Cost
Accumulated depreciation
2008
1,566,483,313
(473,456,840)
1,093,026,473
Lease rentals amounting to P13.09 million and P12.75 million for the year ended 31 December 2009 and 2008, respectively were included in the statement
of comprehensive income.
The Investment Property acquisition cost for 2008 was restated to 7.808 billion for the reclassification of PE-Building as shown below:
Total IP Acquisition Cost – December 31, 2008 – restated
Total IP Acquisition Cost – December 31, 2008
Restatement – Development Cost (Acquisition)
12.
7,808,245,507
7,798,827,886
9,417,621
INTANGIBLE ASSETS
Cost:
1 January 2009
Additions/transfers
31 December 2009
Accumulated amortization
1 January 2009
Amortization charge for the period
31 December 2009
Accumulated impairment loss
1 January 2009
Impairment loss
31 December 2009
Net book value, 31 December 2009
Net book value, 31 December 2008
Licenses
Software
Total
286,591,368
4,429,600
291,020,968
109,594,362
29,162,644
138,757,006
396,185,730
33,592,244
429,777,974
16,688,766
12,614,618
29,303,384
34,848,500
4,550,430
39,398,930
51,537,266
17,165,048
68,702,314
-
151,195,023
151,195,023
110,522,561
269,902,602
-
44,946,400
44,946,400
54,411,676
74,745,862
196,141,423
196,141,423
164,934,237
344,648,464
Cost and accumulated amortization as at 1 January 2009 was adjusted by P2.82 million and P4.50 million, respectively due to reclassification.
The carrying amount of intangible assets with indefinite lives as at 31 December 2009 amounted to P42.37 million.
38
13. NON-CURRENT ASSETS HELD FOR SALE
Carrying amount, 1 January 2009
Accumulated impairment loss
Net carrying amount, 1 January 2009
Additions/adjustments
Disposals
Impairment (loss)/recovery
Carrying amount, 31 December 2009
Carrying amount, 31 December 2008
Land 4,913,271,115
(2,116,394)
4,911,154,721
8,661,066
(10,007,602)
(3,240,400)
4,906,567,785
4,911,154,721
14. OTHER NON-CURRENT ASSETS
Building 158,262,102
(3,101,000)
155,161,102
4,025,505
-
(12,072,429)
147,114,178
155,161,102
2008
12,876,578,663
(12,870,303,585)
6,275,078
Total
5,450,109,172
(7,984,010)
5,442,125,162
73,275,467
(95,694,168)
(14,937,801)
5,404,768,660
5,442,125,162
This account includes among others collections credited to the accounts
pending receipt of collecting agencies’ documents and actual distribution
of collections and payments whose nature are not indicated by payors.
Breakdown as follows:
184,911,686
(874,728)
184,036,958
909,184,470
(525,474,501)
383,709,969
574,022,005
2009 1,986,268,116
1,261,835,646
3,248,103,762
2008
1,740,345,430
1,031,586,466
2,711,931,896
16. FUNDS HELD IN TRUST
Member loans (ML) collection
Undistributed collection
OFW collections
Real estate loans collection
Sales contract receivable
ML collection deducted from
benefit payments
Rental receivable
Express padala
Employees’ housing
loan program
15. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
2009
2008
898,748,166
377,824,043
273,012,229
270,324,207
81,741,630
1,618,962,347
690,746,724
134,633,708
63,749,103
41,705,930
2,809,290
841,504
258,886
7,183,619
31,163
1,947,038,162
86,868
2,515,621,255
19. ACCRUED RETIREMENT BENEFITS
This account includes among others bidders’ deposits, withholding
taxes and retention withheld from suppliers and creditors to answer for
defective deliveries or services, contributions to GSIS, PHIC, HDMF and SSS
Provident Fund and equity of Flexi-fund members.
Breakdown as follows:
Flexi-fund
Officials and employees
Borrowers and other payors
Due to other
government units
Suppliers and creditors
Dividend - stock investment
loan program
Legal education fund
Educational loan fund - DECS
Acquired assets/
registered 378,575,955
(2,766,616)
375,809,339
60,588,896
(85,686,566)
375,028
351,086,697
375,809,339
18. OTHER CURRENT LIABILITES
2009
Interest receivable
12,744,155,258
Accumulated impairment loss
(12,740,230,932)
3,924,326
Advances-fire/MRI/foreclosure
proceedings
179,145,923
Accumulated impairment loss
(953,811)
178,192,112
Others
871,800,363
Accumulated impairment loss
(516,149,501)
355,650,862
537,767,300
Accounts payable
Accrued expenses
2009
228,026,818
131,980,533
113,877,011
2008
187,260,481
114,752,446
99,899,315
86,757,756
35,643,494
65,783,730
37,690,912
15,501,904
10,005,556
1,497,104
623,290,176
15,501,904
1,374,515
522,263,303
The Flexi-fund represents equities of members under the voluntary
supplementary benefits program of the SSS for Overseas Filipino Workers
and authorized under Section 4.a.2 of RA 8282. The Social Security
Commission, in its Resolution No. 288 dated 18 April 2001, approved the
establishment of this supplementary benefits program.
The Legal Education Fund (LEF) is a special endowment fund under the
control of the Legal Education Board (LEB), which was created under RA
7662. It is being administered by the SSS, which invests the same with due
and prudent regard to its solvency, safety and liquidity.
17. DEFFERED INCOME
19.1 Retirement benefits
Retirement benefits are available to qualified employees under
any one of RA 1616, RA 660 and RA 8291.
19.2Terminal leave benefits
This represents the cash value of the accumulated vacation
and sick leave credits of employees, 50 percent of which
can be monetized once a year and the balance payable upon
resignation/retirement.
19.3 Retirement incentive award
Employees with at least 20 years of creditable service are entitled to
P2,000 for every year of service upon retirement.
The accrued retirement benefits of employees at 31 December 2009
and 2008 are as follows:
Retirement benefits/gratuity
Terminal leave pay
Retirement incentive award
2009 2008
677,779,595
593,323,045
88,072,249
1,359,174,889
683,113,108
859,128,178
92,174,510
1,634,415,796
20. RENT PAYABLE
This account represents future rent payments for lease contracts entered
by the SSS for its various branches.
This account represents advance rental payments from tenants of
SSS property.
39
21. RESERVES
21.1 Investment reserve fund (IRF)
All revenues of the SSS that are not needed to meet the current
administrative and operational expenses are accumulated in
the reserve fund. Such portion of the reserve fund as are not
needed to meet the current benefit obligations is known as
the Investment Reserve Fund (IRF) which the Social Security
Commission (SSC) manages and invests with the skill, care,
prudence and diligence necessary under the circumstances
then prevailing that a prudent man acting in like capacity and
familiar with such matters would exercise in the conduct of
an enterprise of a like character and with similar aims, subject
to prescribed ceilings under section 26 of RA 8282 (the Act).
No portion of the IRF or income thereof shall accrue to the
general fund of the National Government or to any of its
agencies or instrumentalities, including government-owned or
controlled corporations, except as may be allowed under the Act.
The Act also provides that no portion of the IRF shall be invested
for any purpose or in any instrument, institution or industry over
and above the prescribed cumulative ceilings as follows: 40%
in private securities, 35% in housing, 30% in real estate related
industries, 10% in short and medium-term member loans, 30%
in government financial institutions and corporations, 30% in
infrastructure projects, 15% in any particular industry and 7.5%
in foreign-currency denominated investments.
In its Resolution No. 402 s. 2007, the SSC, adopted the use of
acquisition cost of shares of stock as the basis for computing
the 30% limit in equity investments, based on the opinion dated
25 June 2007 of the Legal and Adjudication Sector of COA.
21.2 Actuarial valuation of the reserve fund of the SSS
The Social Security Act of 1997 requires the Actuary of the
System to submit a valuation report every four years, or more
frequently as may be necessary, to determine the actuarial
soundness of the reserve fund of the SSS and to recommend
measures on how to improve its viability.
The reserve fund is affected by (a) changes in demographic
factors (such as increased life expectancy, ageing of
population, declining fertility level and delay in retirement)
and (b) the economic conditions of the country. Taking
into account the uncertainty of future events, economic
assumptions on interest rates, inflation rates and salary wage
increases, among others, are projected.
In the 1999 Actuarial Valuation, the Social Security Fund
(SSF) was projected to last until 2015. Since then, parametric
measures (e.g. increases in the contribution rate from 8.4% to
9.4% in March 2003 and to 10.4% in January 2007, increase
in the maximum salary base for contributions from P12,000
to P15,000 and the redefinition of Credited Years of Service)
and operational developments (e.g. Tellering System, more
accounts officers, cost saving measures, improved investment
portfolio and management, etc.) were implemented to
strengthen the SSF.
The System’s concerted efforts have resulted in improved
actuarial soundness. Results of the 2003 Actuarial Valuation
indicate an extension on the life of the fund by sixteen years,
from 2015 to 2031.
The increase in contribution rate to 10.40%, effective January
2007, has extended further the SSF life to 2036, taking already
into account the grant of 10% across-the-board increases in
pension effective September 2006 and September 2007.
In 2009, the Actuarial Department has submitted to the Chief
Actuary the initial results of the 2007 Valuation, based on
membership data as of 31 December 2006. The 2007 actuarial
valuation however, is still in progress, as the results have to be
reviewed and verified, and the final report to be submitted to
the Social Security Commission.
40
The following table presents the initial results of the 2007
actuarial valuation, compared to the previous 2003 valuation
results. There are two columns under the 2003 valuation: (1)
the original results as published in the 2003 actuarial valuation
report; and (2) the updated results that take into consideration
the across-the-board pension increases in 2006 and 2007 and
the contribution rate increase at the start of 2007.
Actuarial Valuation
Comparison of Key Projection Results
2007 Valuation versus 2003 Valuation
Under the Baseline Scenario
2003 Valuation
Original*
Updated**
2007
Valuation
(Initial
Results)
Year Fund Will
Last
2031
2036
2039
Year Net Revenue
Becomes Negative
2022
2026
2030
Key Projection
Results
No Acrossthe-Board
Increase in
Pensions
* As published in the 2003 actuarial valuation report
** Updated results after the increase in contribution rate to 10.40% in January 2007 and the 10% across-the-board pension increases in 2006 and 2007
22. INVESTMENT AND OTHER INCOME
2009
Investment Income
Income from current investments
Held to maturity investments
Interest income
1,897,400,081
Held-for-trading financial assets
Dividend income
19,836,699
Fair value gain/(loss)
356,796,375
Realized gain – net
899,084,322
Investment expense
(57,424,537)
1,218,292,859
3,115,692,940
Income from non-current
investments
Available-for-sale financial assets
Dividend income
(net of investment expense)
2,916,145,314
Realized gain – net
6,231,014,237
Interest income from
escrow deposit - BDO
-
Impairment loss
(24,217,590)
9,122,941,961
Held to maturity investments
Interest income
(net of investment expense)
5,553,030,161
Impairment loss
-
5,553,030,161
Loans and receivable
Interest and penalty - net
3,584,393,094
Impairment loss
(4,081,582)
3,580,311,512
Investment property
498,309,719
21,870,286,293
Other income
Interest income from cash in
bank and cash equivalents
448,511,170
Reversal of impairment
loss/revaluation decrease
377,533,793
Realized gain from non-current
assets held for sale
(net of related expense)
126,178,944
Impairment loss-non current
assets held for sale
(17,150,920)
Others
180,259,522
1,115,332,509
22,985,618,802
2008
2,353,469,423
3,166,949
(437,236,649)
113,500,571
(320,569,129)
2,032,900,294
2,561,796,788
14,288,650,985
135,225,916
16,985,673,689
3,886,243,868
(384,687,671)
3,501,556,197
3,897,938,850
(409,096)
3,897,529,754
1,174,323,874
27,591,983,808
476,353,907
15,670,042
167,570,091
(1,850,023)
839,318,952
1,497,062,970
29,089,046,778
23. PERSONAL SERVICES
Salaries and wages
Mandatory contributions
Incentive award
Bonus and rice grant
Allowances
Retirement and terminal
leave pay
Other personal services
26.1 Interest rate risk
2009 2,042,390,245
985,359,489
743,792,358
465,204,453
226,048,594
2008
1,957,051,863
845,027,493
708,372,030
450,282,867
202,688,796
128,261,500
139,666,890
4,730,723,529
313,257,700
128,886,360
4,605,567,109
Provident fund (part of mandatory contributions) is a defined
contribution plan made by both the SSS and its officers and employees.
The affairs and business of the fund are directed, managed and
administered by a Board of Trustees. Upon retirement, death or
resignation, the employee or his heirs will receive from the fund
payments equivalent to his contributions, his proportionate share of
the SSS’ contributions and investment earnings thereon. However,
effective 28 January 2005, retired and separated members have the
option to retain part or all of his total equity in the fund for a maximum
period of five years.
24. MAINTENANCE AND OTHER OPERATING EXPENSES
Maintenance and repairs
Other operating expenses
Service bureau expenses
Light and water,
communication expense
Depreciation/amortization
expense
Impairment loss-intangible
assets
Office space rentals
Supplies and materials
Impairment loss-property
and equipment/other
assets
2009 526,237,730 494,713,981 378,396,095 2008
545,139,151
357,785,136
360,423,942
278,822,879 294,909,392
223,998,558 172,824,811
196,141,423
124,087,159 121,470,027 113,487,084
117,391,123
- 2,343,867,852
178,098,704
2,140,059,343
25. OPERATING LEASE COMMITMENTS
25.1 SSS as lessee
The SSS leases offices for its various branches under cancellable
operating lease agreements. The leases have varying terms,
escalation clauses and renewal rights.
25.2 SSS as lessor
The SSS leases out portion of its office space to various tenants
under cancellable operating lease agreements. The leases have
varying terms, escalation clauses and renewal rights.
Cash flow interest rate risk is the risk that the future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. Fair value interest rate risk is the risk that the value of
a financial instrument will fluctuate because of changes in market
interest rates.
The SSS strictly adheres to the provisions of Section 26 of RA 8282
which states that the funds invested in various corporate notes/
bonds, loan exposures and other financial instruments shall earn an
annual income not less than the average rates of treasury bills or any
acceptable market yield indicator. Currently, the SSS has achieved a mix
of financial investments with interest rates that are within acceptable
level. Significant investments in said instruments have fixed interest
rates while repricing rates of investments in corporate notes/bonds
that carry floating interest rates are always based on acceptable yield
(i.e. prevailing 3 months Philippine Dealing System Transaction-Fixing
Rate plus a spread of not less than 0.50%).
26.2 Credit risk
Credit risk is the risk of suffering financial loss should any of the SSS’
counterparties fail to fulfill its contractual obligations to the SSS.
This includes risk of non-payment by issuers and borrowers, failed
settlement of transactions and default on outstanding contracts.
The SSS implements structured and standardized evaluation guidelines,
credit ratings and approval processes. Investments undergo technical
evaluation to determine their viability/acceptability. Due diligence
process (i.e. credit analysis, evaluation of the financial performance
of the issuer/borrower to determine financial capability to pay
obligations when due, etc.) and information from third party (e.g. CIBI
Information, Inc., banks and other institutions) are used to determine if
counterparties are credit-worthy.
With respect to stockbrokers, the SSS has adopted the following
mitigating measures:
a. Minimum requirements for stockbroker evaluation
a.1 Stockbroker is a Member of Good Standing of the Exchange
as defined under Rule 3(g) of the Securities Regulation Code.
a.2 The stockbroker shall have a minimum capitalization of
fifteen million pesos
a.3 The stockbroker shall be profitable for three of the last five
years of operation. However, stockbrokers not able to meet
the profitability requirement may be qualified provided
that capitalization is at least thirty million pesos for those
with losses.
a.4 The stockbroker shall have a positive track record of service
to other institutional clients.
b. Stockbroker transactions, allocations and limits
The SSC and SSS management are active in the evaluation, scrutiny and
credit approval process on all investments being undertaken by the SSS.
The SSC has adopted adequate policies on investment procedures, risk
assessment and measurement and risk monitoring by strict observance
on the statutory limit provided under RA 8282 and compliance to
the investment guidelines. Internal controls are also in place and
comprehensive audit is being done by Internal Audit Services.
b.1 Total daily transactions, excluding block transactions,
per stockbroker shall not exceed 50% of stockbroker
capitalization/stockholder’s equity, whichever is lower.
b.2 Total transactions, excluding negotiated block transactions, for
each of the accredited stockbrokers, during the accreditation
period, shall not exceed 15% of total SSS transactions.
b.3 Transactions, excluding negotiated block transactions, with
the SSS by the stockbroker, within the year of accreditation,
shall not exceed 40% of its total market transactions. This
ensures that the stockbroker does not rely heavily on SSS for
its business.
The main risk arising from the SSS’ financial instruments are interest
rate risk, credit risk, liquidity risk and market price risk. The SSC and SSS
management review and agree on the policies for managing these risks as
summarized below.
To avoid significant concentrations of exposures to specific industries or
group of issuers and borrowers, SSS investments are regularly monitored
so that in no time shall they exceed the prescribed cumulative ceilings
specified in Section 26 of RA 8282.
26. FINANCIAL RISK MANAGEMENT
41
The following table shows the aging analysis of some financial assets:
2009
Neither
past due
Past due but not impaired (Age in months)
nor
impaired
3-12
13-36 37-48
49-60
Over 60
Expired
Impaired
(In Millions)
Held for trading financial assets
980
-
-
-
-
-
-
-
Available-for-sale financial assets
69,021
-
-
-
-
-
-
997
Held-to-maturity investments
79,948
-
-
-
-
-
-
2,342
Loans and receivable
National Home Mortgage Finance Corporation
14,855
-
-
-
-
-
-
136
Home Development Mutual Fund
3,316
-
-
-
-
-
-
-
Commercial and industrial loans
808
1
-
-
-
-
-
80
Program MADE
-
-
-
-
-
-
-
17
Other government agencies
122
-
-
-
-
-
-
-
Sales contract receivable
292
162
90
17
13
17
9
-
169,342
163
90
17
13
17
9
3,572
2008
Neither
past due
Past due but not impaired (Age in months)
nor
impaired
3-12
13-36 37-48
49-60
Over 60
Expired
Impaired
(In Millions)
Held for trading financial assets
1,340
-
-
-
-
-
-
-
Available-for-sale financial assets
42,744
-
-
-
-
-
-
995
Held-to-maturity investments
45,123
-
-
-
-
-
-
2,692
Loans and receivable
National Home Mortgage Finance Corporation
16,974
-
-
-
-
-
-
136
Home Development Mutual Fund
3,893
-
-
-
-
-
-
-
Commercial and industrial loans
664
1
-
-
-
-
-
85
Program MADE
-
-
-
-
-
-
-
18
Other government agencies
133
-
-
-
-
-
-
-
Sales contract receivable
259
98
60
18
5
13
15
-
111,130
99
60
18
5
13
15
3,926
26.3 Liquidity risk
Liquidity risk arises from the possibility that the SSS may encounter
difficulties in raising funds to meet its payment obligations (i.e.
payment of benefits, working capital requirements and planned capital
expenditures) when they fall due. The SSS manages this risk through
daily monitoring of cash flows in consideration of future payment due
dates and daily collection amounts. The SSS also maintains sufficient
portfolio of highly marketable assets that can easily be liquidated as
protection against unforeseen interruption to cash flow.
26.4 Market price risk
The SSS’ market price risk arises from its investments carried at fair
value (fair value through profit or loss and available-for-sale financial
assets). It manages this risk by monitoring the changes in the market
price of the investments.
27. EVENT AFTER THE REPORTING PERIOD
In the 3 February 2010 meeting of the SSS Investments Group with some
members of the Legal Education Board (LEB) led by its Chairman, Justice
Hilarion L. Aquino and the representatives of the Commission on Higher
Education led by Atty. Carmelita Y. Sison it was agreed upon that the SSS
shall return the P10 million to CHEd since it represents the remaining funds
in the books of CHEd for purposes of LEB’s operational requirements. The
SSS has no legal authority to hold the said amount since it does not form
part of the Legal Education Fund (LEF).
28.OTHER MATTERS
28.1 Commitments
Amount authorized but not yet disbursed for capital expenditures as of
31 December 2009 is approximately P1.51 billion.
42
28.2 Memorandum
Office (NSO)
of
Understanding
with
National
Total
980
70,018
82,290
14,991
3,316
889
17
122
600
173,223
Total
1,340
43,739
47,815
17,110
3,893
750
18
133
468
115,266
Statistics
On 9 September 2009, the SSS signed a Memorandum of Understanding
with NSO. This in line with Executive Order No. 700 dated 16 January
2008 which mandates the SSS President and CEO to take over the work
of the National Economic Development Authority (NEDA) DirectorGeneral to implement the streamlining and harmonization of the
ID systems of all Government-Owned and Controlled Corporations
(GOCC) towards a unified multi-purpose ID (UMID) system. The parties,
in pursuance to the objectives of the UMID, shall build jointly, in favor
of the NSO, a central verification and enrollment system (CVES) for the
UMID. All direct and indirect costs of CVES shall be charged against the
funds provided by the NSO.
28.3 Agreement with the Joint Venture composed of the ALLCARD
PLASTICS PHILIPPINES, INC., the STRADCOM CORPORATION and
the TECO ELECTRIC AND MACHINERY CO., LTD
On 14 December 2009, the SSS signed an Agreement with the Joint
Venture composed of the ALLCARD PLASTICS PHILIPPINES, INC., the
STRADCOM CORPORATION and the TECO ELECTRIC AND MACHINERY
CO., LTD. The agreement covers/involves the (a) production, supply
and delivery of SSS UMID contactless smartcards and plastic card
jackets (b) supply, delivery, installation, customization, operation
and maintenance of a card management system (CMS) and a key
management system (KMS) (c) supply, delivery and maintenance of
two hundred ninety (290) contactless smartcard readers/writers (d) set
up of training facility and the conduct of personnel training and (e) all
other items that can be reasonably inferred as being required for the
completion of CMS and KMS.
I nternal Auditor’s report
2009 is another fulfilling year for the Internal Audit Service (IAS) as we bore witness to the continuing effort of management,
particularly in the area of risk management, control and governance processes that resulted in the substantial reduction of system
and operational errors. Management has a reason to celebrate this victory, however, it should continue to be vigilant and take
appropriate action to address the deficiencies that have already been pointed out by IAS.
Following are the significant observations:
1. The Annual Confirmation of Pensioners (ACOP), a program designed to determine pensioners’ benefit entitlement, was successful
in terms of compliance and savings to the tune of more or less P6 million in monthly disbursements. However, management
must take immediate action against pensioners who have failed to comply with the requirements of the program despite notice.
IAS also strongly believes that the gains of the program should be sustained through the implementation of the Enhanced
Confirmation of Pensioners (ECOP) in 2010.
2. Client survey results in Alabang, Kalookan, Makati 1, Manila, Pasig, La Union, Bacoor, Malolos, Dagupan, Iloilo, Tacloban, Butuan
and General Santos validated previous years’ high approval ratings on SSS delivery of service given by the members-respondents
in surveys conducted by IAS in selected SSS Branch Offices. This only affirms that efforts geared toward improving quality service
are appreciated by members. With the completion of the Citizen’s Charter, in compliance with the Anti-Red Tape Act, SSS has
shifted its commitment level from satisfying to delighting the members; but, this commitment requires a competent, committed
and well-trained workforce, a working PC-based Queue and Management System and self-service terminals.
3. The perennial problems related to unreconciled real estate loan account records which haunted the SSS for years may finally
be resolved with the development of the Real Estate Loan (REL) System. Even as the completion of this automated system may
take some time, management should be lauded for its resolve in putting into place measures designed to simplify records
maintenance and administration.
In 2010, IAS will implement an Audit Program aligned with the Five I’s of the Neri Administration, as follows: Interface with Members;
Integrity of Systems and Information; Investment Management; Interpersonal and Technical Skills; and Information Technology.
Included in the program are the audit of payment facilities (e.g. Bayad Center, I-Remit, SM payment, etc.); Internal Quality Audit for
ISO Certification for SSS Registration Process; audit of initial benefit payment through the Mag-impok Program; and audit of the
implementation of the Accounts Monitoring System, among others. With the demonstrated willingness of Management to pursue
efforts in improving governance, we at IAS will do our best to match this dynamism with the implementation of audit projects
which will impact on the attainment of corporate objectives.
ANTONETTE L. FERNANDEZ
Assistant Vice President
43
Historical Data
SSS Coverage and PersonNel FORCE
YEAR
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
W
24,719 243,857 612,712 704,665 1,152,049 1,304,866 901,834 775,367 743,201 615,152 561,250 511,646 501,938 518,348 458,364
FOR THE YEAR*
E
1,211 5,063 11,909 30,358 25,894 26,868 33,124 34,733 34,535 32,236 23,161 23,792 21,572 27,020 20,036
W
401,769 2,329,315 7,381,193 11,775,459 21,325,966 22,630,832 23,532,666 24,308,033 25,051,234 25,666,386 26,227,636 26,739,282 27,241,220 27,759,568 28,217,932
AS OF DECEMBER 31
E
10,956 88,064 221,000 327,354 573,314 600,182 633,306 668,039 702,574 734,810 757,971 781,763 803,335 830,355 850,391
P
632 1,996 2,328 3,456 4,041 3,996 3,942 3,896 4,058 4,043 4,169 4,135 4,145 4,182 5,900
AS OF DECEMBER 31
W/P
E/P
636 17
1,167 44
3,171 95
3,407 95
5,277 142
5,663 150
5,970 161
6,239 171
6,173 173
6,348 182
6,291 182
6,467 189
6,572 194
6,638 199
4,783
144
* net of termination
Worker (W), Employer (E), SSS Personnel (P)
CONSOLIDATED GROWTH OF ASSETS, RESERVES & INVESTMENTS
(Amounts in Million Pesos)
Year
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
AMT
68.2 963.2 7,258.2 48,200.9 176,875.1 181,741.0 163,113.6 162,606.4 170,875.3 179,084.1 199,713.2 228,444.5 247,737.2 233,122.2
272,610.7
ASSETS
% INC / (DEC)
-
1,313.3 653.6 564.1 267.0 2.8 (10.2)
(0.3)
5.1 4.8 11.5 14.4 8.4 (5.9)
16.9
AMT
67.6
953.7 7,142.6 47,693.6 165,820.6 170,408.7 161,234.3 159,547.7 168,137.3 176,386.1 196,287.5 224,995.9 243,016.7 225,602.9 265,329.8
RESERVES
% INC/ (DEC)
-
1,310.3 648.9 567.7 247.7 2.8 (5.4)
(1.0)
5.4 4.9 11.3 14.6 8.0 (7.2)
17.6
AMT
66.2
919.7 7,098.2 46,944.2 168,336.8 166,183.1 151,015.0 149,211.0 155,939.7 160,500.4 181,775.4 205,225.5 225,565.3 211,355.2 248,641.4
INVESTMENTS
% INC / (DEC)
1,288.9 671.8 561.4 258.6 (1.3)
(9.1)
(1.2)
4.5 2.9 13.3 12.9 9.9 (6.3)
17.6
CONSOLIDATED PROGRESS OF OPERATIONS
(Amounts in Million Pesos)
Year
1957 - 1959
1960 - 1969
1970 - 1979
1980 - 1989
1990 - 1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Contributions
72.5 959.9 5,599.3 25,114.6 158,632.2 30,320.5 31,371.8 34,187.7 39,420.4 43,935.8 47,483.4 52,543.6 61,829.1
68,879.3 72,350.9
Investment and
Other Income
4.0 232.3 2,677.9 32,879.0 139,020.1 12,341.1 14,238.9 11,705.0 12,763.1 8,853.3 12,316.3 12,107.9 17,870.0 29,089.0 22,985.6
* Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC
44
Benefits
2.8 187.9 1,584.0 15,791.1 158,355.9 33,889.2 39,015.0 40,871.6 42,806.4 44,882.5 46,269.8 52,122.0 60,746.6 67,917.4 72,050.0
Operating Expenses
& Others
6.1 118.3 504.4 1,852.7 17,177.0 4,202.1 4,447.4 4,591.5 4,776.6* 5,327.3* 5,638.4* 6,379.9* 6,819.3* 6,745.6* 7,074.6*
Net Revenue
67.7
886.0
6,188.8
40,349.9
122,119.4
4,570.4
2,148.2
429.6
4,600.5
2,579.3
7,891.4
6,149.6
12,133.2
23,305.3
16,212.0
SSS GROWTH OF ASSETS, RESERVES & INVESTMENTS
(Amounts in Million Pesos)
Year
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
AMT
68.2 963.2 6,750.7 42,974.2 159,688.2 163,325.7 144,823.8 143,098.5 150,618.9 158,007.4 177,719.6 205,878.6 224,928.6 209,535.8 247,891.3
ASSETS
% INC / (DEC)
-
1,312.3 600.9 536.6 271.6 2.3 (11.3)
(1.2)
5.3 4.9 12.5 15.8 9.3 (6.8)
18.3
AMT
67.6 953.7 6,641.6 42,466.9 148,633.8 152,002.7 141,957.2 139,660.0 147,730.9 155,159.4 174,144.2 202,316.0 220,097.1 201,907.9 240,502.0
RESERVES
% INC / (DEC)
-
1,310.8 596.4 539.4 250.0 2.3 (6.6)
(1.6)
5.8 5.0 12.2 16.2 8.8 (8.3)
19.1
AMT
66.2
919.7 6,608.6 41,781.2 151,801.8 149,226.1 134,521.0 130,967.2 138,909.2 143,304.7 166,535.0 187,759.5 211,167.9 192,663.2 228,919.5
INVESTMENTS
% INC / (DEC)
1,289.3
618.6
532.2
263.3
(1.7)
(9.9)
(2.6)
6.1
3.2
16.2
12.7
12.5
(8.8)
18.8
SSS Progress of Operations
(Amounts in Million Pesos)
Year
1957 - 1959
1960 - 1969
1970 - 1979
1980 - 1989
1990 - 1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Contributions
72.5 959.9 5,122.3 23,081.0 154,417.9 29,885.5 30,912.0 33,702.1 38,634.7 43,083.6 46,714.9 51,633.4 60,769.5 67,668.2 71,166.9
Investment and
Other Income
4.0 232.3 2,573.0 29,353.0 123,034.2 10,217.3 12,390.1 9,901.2 11,694.6 7,530.1 10,872.9 10,953.0
17,117.8 27,848.4 21,988.3
Benefits
2.8 187.9
1,511.8 15,058.7 152,474.4 32,735.1 37,813.5 39,566.3 41,622.9 43,743.3 45,180.8
51,051.6 59,665.4 66,820.3 70,963.9
Operating Expenses
& Others
6.1 118.3 495.6 1,751.6
16,091.3 4,014.9 4,211.5 4,340.5 4,644.8 5,192.0 5,505.9 6,249.1 6,697.9 6,636.3 6,967.8
Net Revenue
67.7
886.0
5,687.9
35,623.7
108,886.4
3,351.2
1,277.0
(303.5)
4,061.6
1,678.4
6,781.4
5,285.8
11,524.0
22,059.9
15,223.6
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND GROWTH OF ASSETS, RESERVES & INVESTMENTS
(Amounts in Million Pesos)
Year
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
AMT
507.5
5,226.7 17,186.9 18,415.3 19,303.0 19,508.0 20,406.4 21,226.7 22,143.3 22,679.9 22,919.6 23,695.1 24,827.9
ASSETS
% INC / (DEC)
-
929.8 228.8 7.1 4.8 1.1 4.6 4.0 4.3 2.4 1.1 3.4 4.8
AMT
501.0 5,226.7 17,186.8 18,406.0 19,277.1 19,887.7 20,406.4 21,226.7 22,143.3 22,679.9 22,919.6 23,695.1 24,827.9
RESERVES
% INC / (DEC)
-
943.2 228.8 7.1 4.7 3.2 2.6 4.0 4.3 2.4 1.1 3.4 4.8
AMT
489.6 5,163.0 16,535.0 16,956.9 16,494.0 18,243.8 17,030.5 17,195.7 15,240.4 17,466.1 14,397.4 18,692.0 19,721.9
INVESTMENTS
% INC / (DEC)
954.6
220.3
2.6
(2.7)
10.6
(6.7)
1.0
(11.4)
14.6
(17.6)
29.8
5.5
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND PROGRESS OF OPERATIONS
(Amounts in Million Pesos)
Year
1975 - 1979
1980 - 1989
1990 - 1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Contributions
477.0 2,033.6 4,214.3 435.0 459.8 485.6 785.7 852.2 887.1 910.2 1,059.6 1,211.1 1,183.9
Investment and
Other Income
104.9 3,526.0 15,985.9 2,123.9 1,848.8 1,803.8 1,068.5 1,323.2 1,444.4 1,154.9 752.2 1,240.6 997.3
* Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC
Benefits
72.2 732.3 5,881.6 1,154.1 1,201.5 1,305.3 1,183.5 1,139.2 1,089.0 1,070.4 1,081.2 1,097.0 1,086.0
Operating Expenses
& Others
8.8 100.8 1,085.7 185.7 235.8 251.0 131.8* 135.3* 132.5* 130.8* 121.4* 109.3* 106.8*
Net Revenue
500.9
4,726.5
13,233.0
1,219.2
871.2
733.0
538.9
900.9
1,110.0
863.9
609.2
1,245.4
988.4
45
S o cial S ec u rit y
Commission
Seated from Left to Right:
Chairman Thelmo Y. Cunanan
Vice Chairman Romulo L. Neri
Standing from Left to Right:
Commissioner Victorino F. Balais
Commissioner Fe Tibayan-Palileo
Commissioner Jose Sonny G. Matula
Commissioner Sergio R. Ortiz-Luis, Jr.
Commissioner Marianito D. Roque
Commissioner Marianita O. Mendoza
Commissioner Donald G. Dee
SEN I O R
MANAGEMENT
OFFICE OF THE PRESIDENT AND CEO/OFFICES DIRECTLY UNDER PRESIDENT AND CEO
Standing from Left to Right: AVP Antonette L. Fernandez, AVP Joel P. Palacios, CEO-IV Juanita L. Reyes, VP May Catherine C. Ciriaco,
President & CEO Romulo L. Neri, VP Marissu G. Bugante,Special Assistant to the President and CEO Antonio N. Echevarria, Jr.,
CEO-V Lourdes C. Reyes, OIC Elvira G. Alcantara-Resare
48
PRESIDENT AND CEO AND INFORMATION TECHNOLOGY MANAGEMENT GROUP (ITMG)
Seated from Left to Right: VP Nicholas C. Balbuena, SVP Miguel E. Roca, Jr.
Standing from Left to Right: President & CEO Romulo L. Neri, Special Assistant to the President and CEO Antonio N. Echevarria, Jr.
Not in Photo: VP Antonio G. Maralit, AVP Gwen Marie Judy D. Samontina, OIC Van Rene M. Orpilla
CORPORATE SERVICES SECTOR AND OFFICE OF THE SECRETARY TO THE COMMISSION
Seated from Left to Right: AVP Milagros M. Pagayatan, SVP Amador M. Monteiro, OIC Marissa L. Tizon
Standing from Left to Right: OIC Joselito A. Vivit, AVP Jesse J. Caberoy, VP Alfredo S. Villasanta, OIC Nestor R. Sacayan,
AVP Santiago Dionisio R. Agdeppa, AVP Daisy S. Real, AVP Renato M. Custodio
INVESTMENTS GROUP
Seated from Left to Right: AVP Ma. Luz C. Generoso, AVP & Deputy Chief Actuary Rizaldy T. Capulong
Standing from Left to Right: Special Assistant to the Executive Officer
Investment and Finance Sector Emmanuel A. Trinidad, AVP Mariano Pablo S. Tolentino,
AVP Lilia S. Marquez, SVP Edgar B. Solilapsi, VP Gamelin Z. Oczon
BRANCH OPERATIONS SECTOR NATIONAL CAPITAL REGION GROUP / LUZON GROUP / INTERNATIONAL AFFAIRS AND BRANCH EXPANSION DIVISION
Standing from Left to Right First Row: AVP Josie G. Magana, OIC-Cluster Head Vilma P. Agapito, AVP Aida V. delos Santos, EVP & Chief Actuary Horacio T. Templo, VP Judy Frances A. See, AVP Naciancino L. Monreal
Standing from Left to Right Second Row:AVP Consolacion M. Cancio, AVP Alberto C. Alburo, VP Jose B. Bautista, OIC-Cluster Head Nilo D. Despuig
Not in Photo: AVP Luis V. Olais
BRANCH OPERATIONS SECTOR VISAYAS / MINDANAO GROUPS
Standing from Left to Right: AVP Rodrigo B. Filoteo, OIC-Cluster Head Manolito C. Tagalog, AVP Helen C. Solito,
AVP Emmanuel R. Palma, AVP Josefina O. Fornilos, VP Eddie A. Jara, EVP & Chief Actuary Horacio T. Templo
BRANCH OPERATIONS SECTOR PROGRAM MANAGEMENT GROUPS AND OTHER OFFICES UNDER EXECUTIVE VICE PRESIDENT & CHIEF ACTUARY
Standing from Left to Right First Row: AVP Agnes E. San Jose, VP Mario R. Sibucao, EVP & Chief Actuary Horacio T. Templo,
VP Judy Frances A. See, OIC Elpidio S. De Chavez, OIC Victoria U. Poquiz, AVP Antonio S. Argabioso, AVP & Deputy Chief Actuary Rizaldy T. Capulong
Standing from Left to Right Second Row: Special Assistant to the Executive Officer Branch Operation Sector Reynaldo C. Oriel, OIC Leticia B. Ong
Standing from Left to Right Third Row: AVP Vicente A. Curimao, OIC Marilou M. Betic
SSC & SSS
Management Directory
SOCIAL SECURITY COMMISSION
THELMO Y. CUNANAN
Chairman
ROMULO L. NERI
Vice-Chairman
VICTORINO F. BALAIS
DONALD G. DEE
JOSE SONNY G. MATULA
MARIANITA O. MENDOZA
SERGIO R. ORTIZ-LUIS, JR.
FE TIBAYAN-PALILEO
MARIANITO D. ROQUE
Members
SSS MANAGEMENT
PRESIDENT and CEO
ROMULO L. NERI
President and Chief Executive Officer
EXECUTIVE VICE PRESIDENT &
EQUIVALENT RANK
HORACIO T. TEMPLO
Chief Actuary and Executive Vice
President for Branch Operations Sector
ANTONIO N. ECHEVARRIA, JR.
Special Assistant to the President and
CEO
CONSOLACION M. CANCIO
NCR South Cluster
RIZALDY T. CAPULONG
Securities Trading and Management
Department and Concurrent Deputy
Chief Actuary
VICENTE A. CURIMAO, JR.
Medical Operations Department and
Officer-In-Charge, Medical Program
Division
AIDA V. DELOS SANTOS
Luzon South Cluster
GLORIA Y. CUISIA
Local Branch Expansion Department
ANTONETTE L. FERNANDEZ
Internal Audit Service Division
CELSO C. CUNANAN
Data Center Operations Department
RODRIGO B. FILOTEO
Western Mindanao Cluster
MARIE ADA ANGELIQUE T. DE SILVA
Member Loans Program Management
Department
JOSEFINA O. FORNILOS
Northern Mindanao Cluster
MA. LUZ C. GENEROSO
Loans Program Management Division
JOSIE G. MAGANA
NCR North Cluster
AMADOR M. MONTEIRO
Legal and Collection Group
NACIANCINO L. MONREAL
NCR Central
MIGUEL E. ROCA, JR.
Information Technology Management
Group
LUIS V. OLAIS
Luzon North Cluster
REYNALDO C. ORIEL
Special Assistant to the Executive Officer,
Branch Operations Sector
NICHOLAS C. BALBUENA
Computer Operations Division
MILAGROS M. PAGAYATAN
Commission Legal Staff II and Acting
Commission Secretary/Clerk of the
Commission
JOSE B. BAUTISTA
Luzon Group
JOEL P. PALACIOS
Media Affairs Department
MARISSU G. BUGANTE
Public Affairs and Special Events Division
EMMANUEL R. PALMA
Southern Mindanao Cluster
MAY CATHERINE C. CIRIACO
Management Services Division and
Concurrent Head of Corporate Policy
and Planning Office
DAISY S. REAL
Competency and Performance
Management Department
EDDIE A. JARA
Visayas and Mindanao Group
ANTONIO G. MARALIT
Planning and Research Division
GAMELIN Z. OCZON
Treasury Division
JUDY FRANCES A. SEE
Coverage and Collection Program
Division and Concurrent Head of
International Affairs and Branch
Expansion Division
MARIO R. SIBUCAO
Member Assistance Center Program
Management Department and
Concurrent Head of Benefits Program
Division
ARNOLD A. TOLENTINO
Management Information Service
Department
CHRISTINE GRACE B. FRANCISCO*
Paranaque Receiving Center
JOHNSY L. MANGUNDAYAO
Makati 1 Processing Center
NORMITA M. DOCTOR
SMEC and Disability Program
Management Department
ANITA A. VILLENA
Office Services Department
MARCIANA A. MARQUEZ
Mandaluyong Receiving Center
AGNES P. VIVIT*
Budget Department
AMALIA N. TOLENTINO*
Las Piñas Receiving Center
JOSELITO A. VIVIT*
Legal Department
LUZON NORTH CLUSTER
JOCELYN M. EVANGELISTA
Operations and Financial Audit
Department
ROGELIO A. FUNTELAR
Member Assistance Center Program
Management Department
MA. VIANNEY O. GO*
Investments Accounting Department
SONIA P. GUINTO*
Corporate Communications Department
FERNANDO P. GUTIERREZ*
System Software Administration
Department
BRANCH HEAD/OFFICER-IN-CHARGE
NCR CENTRAL CLUSTER
ARTHUR O. ABARY
Novaliches Receiving Center
JOCELYN Q. GARCIA*
San Francisco del Monte Receiving Center
JOSEFINA EDITA F. MATA*
Commonwealth Receiving Center
NORA M. MERCADO
Membership Program Management
Department
GWEN MARIE JUDY D. SAMONTINA
Technical Support Division
LETICIA B. ONG*
Medical Program Department
AGNES E. SAN JOSE
Retirement, Death and Funeral Program
Management
VAN RENE M. ORPILLA
Applications Development and
Maintenance I and Officer-In-Charge
of Applications System Division
AUREA G. BAY
Office of the EVP for Branch Operations
Sector
RHODORA G. BONITA*
Pasay Taft Receiving Center
MARIVIC S. VILLARAMA
Database Administration Department
LOURDES C. REYES
Corporate Executive Officer V
Office of the President and CEO
ROBERTO B. BAUTISTA
International Affairs Department
LETICIA G. BARBERS
Alabang Processing Center
EUGENIA D. DELA CRUZ
Member Relations Department
AVELINA M. BAUTISTA*
Valenzuela Receiving Center
ELVIRA G. ALCANTARA-RESARE
Officer-In-Charge of Controllership
Division
TERESITA L. ARAOS
Pasay Roxas Blvd. Processing Center
FE MARIE FERNANDEZ-GERALDO*
Taguig Receiving Center
ROSALINA C. MANANSALA
Contributions Accounting Department
and OAD-CDPU
LEO CALIXTO C. ABAYON*
Network and Communications
Department
MA. RITA S. AGUJA*
Makati 3 Receiving Center
GUILLERMO M. URBANO, JR.*
Real Estate Department
JUANITA L. REYES
Corporate Executive Officer IV
Office of the President and CEO
MARIANO PABLO S. TOLENTINO
Asset Management Department
HELEN L. ABOLENCIA
San Juan Receiving Center
MA. LOURDES T. FLORES
Makati 2 Receiving Center
CYNTHIA O. BARCELON
Pasig Processing Center
HELEN C. SOLITO
Central Visayas Cluster
NCR SOUTH CLUSTER
IKE A. TUBIO*
Anti Fraud Department
ANASTASIA V. MANALAC
General Accounting Department
SANTIAGO DIONISIO R. AGDEPPA
Cluster Legal Support Unit
52
MARISSA L. TIZON
Human Resource Administration
Department and Concurrent Officer-InCharge, Relationship Management
Department
LORELEI B. SOLIDUM
Cubao Processing Center
DEPARTMENT HEAD/OFFICERIN-CHARGE
* Officer-In-Charge (OIC)
SYLVETTE C. SYBICO
Foreign Branch Expansion and
Monitoring Department
RENATO N. MALTO
Technology Research Department and
Concurrent Officer-In-Charge,
Information Systems Security Office
ASSISTANT VICE PRESIDENT, EQUIVALENT
RANK & CLUSTER HEAD
JESSE J. CABEROY
Human Resource Management Division
CARMEN O. SORIANO
Operations Research Department
ELIZABETH C. REYES
Diliman, Quezon City Processing Center
ALFREDO S. VILLASANTA
Office and General Services Division
ANTONIO S. ARGABIOSO
Contributions Collection Program
Management Department
ELIZABETH L. SAVELLANO*
Commission Secretariat Department
EVELYN S. MALAZARTE
Cashiering Department
EMMANUEL A. TRINIDAD
Special Assistant to the Executive Officer
Investments and Finance Sector
ALBERTO C. ALBURO
Officer-In-Charge, National Capital
Region (NCR) Group
HIDELZA B. CASTILLO
Records and Information Management
Center
ELEONORA Y. CINCO
Quality Management Department
SENIOR VICE PRESIDENT
VICE PRESIDENT
FELIPE R. CABANERO
Branch Computer Operations
Department
RENATO M. CUSTODIO
Commission Legal Staff I
LILIA S. MARQUEZ
Institutional Loans Department
EDGAR B. SOLILAPSI
Investments Group
MARILOU M. BETIC
Real Estate Loans Accounting
Department and Officer-In-Charge of
Operations Accounting Division
ALAN GENE O. PADILLA
Applications Development and
Maintenance III
VENUS D. PASCUAL
Branch Accounting Department
VICTORIA U. POQUIZ*
Health Care Department
DAMIANA M. QUEZON
Applications Development and
Maintenance II
NCR NORTH CLUSTER
ELLEN BUSTAMANTE*
Pateros Receiving Center
VIRGINIA F. CALASAHAN*
Pasig 2 Receiving Center
MILAGROS N. CASUGA
Kalookan Processing Center
ZARA M. DIZON*
Recto Recieving Center
BERLITA F. FABRERO
Antipolo Receiving Center
EVELYNA P. GONZALO
Marikina Processing Center
ADELINA A. LIQUE
Malabon Receiving Center
MA. LUZ N. BARROS-MAGSINO
Manila Processing Center
PRISCILA F. MARALIT*
Cainta Receiving Center
HYDEE R. RAQUID*
Information Systems Audit Department
FELIZARDO B. MINOR, JR.*
San Mateo Receiving Center
MA. SALOME E. ROMANO*
Planning and Standards Department
TERESITA V. SOLIMAN*
Welcome Receiving Center
NESTOR R. SACAYAN*
Engineering and Maintenance
Department
OSCAR S. VILLAROMAN, JR.*
Binondo Receiving Center
JOSE ANTONIO L. SALAZAR
ID Card Center
JOSEPHINE C. ABRIL
La Union Processing Center
ESTRELLA R. ARAGON
Cauayan Receiving Center
PORFIRIO M. BALATICO
Tuguegarao Receiving Center
JANET D. CANILLAS*
Vigan Receiving Center
MACARIO U. CATIPON, JR.*
Solano Receiving Center
BENEDICTA B. GARCIA*
Bangued Receiving Center
BENJAMIN R. LOPEZ
Baguio Processing Center
ROMEO E. REYES
Santiago Receiving Center
NANCY M. UMOSO
Laoag Receiving Center
ABELARDO C. YOGYOG
Bontoc Receiving Center
LUZON CENTRAL CLUSTER
VILMA P. AGAPITO*
Cluster Head Luzon Central
JOSE ALVIN M. ALTRE
Urdaneta Receiving Center
SIMPLICIA M. BANIAGO
Malolos Processing Center
JULIUS CESAR Y. BASBAS*
Baler Receiving Center
NORMITA M. CRUZ*
Mariveles (BEPZ) Receiving Center
MARITES A. DALOPE*
Sta. Maria Receiving Center
PABLITA A. DAVID*
Meycauayan Receiving Center
CORITA M. GADUANG
San Fernando Receiving Center
ELIZABETH R. GARCIA
Balanga Receiving Center
MA. MAXIMA C. MACARAEG
Olongapo Receiving Center
ALBINA LEAH C. MANAHAN*
Baliuag Receiving Center
LAURA M. MARIANO
Angeles Receiving Center
NARCISO M. MARTINEZ, JR.*
Alaminos Receiving Center
ANTONIO V. SORIANO
Biñan Receiving Center
BENJAMIN A. POMBO
Calbayog Receiving Center
SUKARNO D. PENDALIDAY
Cotabato Receiving Center
GODOFREDO M. MARTINEZ
Pagadian Receiving
MONALIZA C. NARDO
Camiling Receiving Center
WENCESLAO G. VIRTUCIO, JR.
San Pablo Processing Center
MARINO B. TALICTIC*
Tagbilaran Receiving Center
ROSELANE B. PLAZA*
Mati (Davao Oriental) Receiving Center
FERDAUSI A. SALASA *
Jolo (Sulu) Receiving Center
CEASAR P. SALUDO
Dagupan Processing Center
LUZON BICOL CLUSTER
WESTERN VISAYAS CLUSTER
ELVIRA B. BANICO
Iloilo Processing Center
SUZETTE H. PURIFICACION*
Tacurong Receiving Center
SSS FOREIGN REPRESENTATIVE OFFICES
NILO D. ALMOSERA*
Masbate Receiving Center
DIVINA T. AVILA
Virac (Catanduanes) Receiving Center
LILANI B. BENEDIAN*
Bais Receiving Center
ALBERTO R. BONAFE, JR. *
Sorsogon Receiving Center
RAUL A. CASIANO
Bacolod Processing Center
LUZON SOUTH CLUSTER
ANTONIO A. CASIMIRO*
Tabaco Receiving Center
ISAAC P. CIOCON, JR.
Kalibo (Aklan) Receiving Center
JESREL H. ANCHETA*
Boac (Marinduque) Receiving Center
ELIZABETH A. DE GUZMAN*
Goa (Camarines Sur) Receiving Center
FELICITAS A. DEMANDANTE*
SagayReceiving Center
EDWIN M. ALO*
Cagayan de Oro Processing Center
GREGORIO P. ASENDIDO
Calapan Receiving Center
NILO D. DESPUIG*
Cluster Head Luzon Bicol
REYNALDO V. ESPINOSA*
Roxas (Capiz) Receiving Center
PERKINS B. CALIXTO*
Camiguin Receiving Center
SANTISIMA ROSARIO C. BAAC*
Puerto Pricesa (Palawan) Receiving Center
CLARIBEL L. REBUENO
Naga Processing Center
JANE T. GARGOLES*
Victorias Receiving Center
BENIGNO J. DAGANI, JR.*
Surigao City Receiving Center
CORAZON L. BALAGBIS
Batangas Receiving Center
ELENITA SAMBLERO
Legaspi Receiving Center
MELITA S. MEDINA*
Bago City Receiving
ANTONIO G. FABIA*
Valencia Receiving Center
VICTORINA G. CARLOS*
Tagaytay Receiving Center
VIRGILIO A. SANTIAGO*
Daet (Camarines Norte) Receiving Center
VICTOR M. NICOR*
Kabankalan Receiving Center
ANNA PEARL J. FUENTES
Ozamis Receiving Center
VIRGINIA S. CRUZ
Bacoor Processing Center
PRISCO S. SORSONA*
Iriga Receiving Center
ESTEBAN L. PANES*
Antique Receiving Center
JOSE ROEL J. HERBIETO*
Oroquiete Receiving Center
IMELDA G. FAMILARAN*
Romblon Receiving Center
CENTRAL VISAYAS CLUSTER
EMELIA B. SOLINAP*
San Carlos Receiving Center
MA. RAINE L. JAMERO
Butuan Processing Center
MANOLITO C. TAGALOG*
Cluster Head Western Visayas
CHERYL V. JARIOL*
Iligan Receiving Center
IRENEO T. VILLAFLOR*
Dumaguete Receiving Center
INESIA S. MARQUEZ*
San Francisco
SOUTHERN MINDANAO CLUSTER
OSWALDO B. MONTENEGRO*
Tandag Receiving Center
MARILOU M. SANTOS *
Iba Receiving Center
GUILLERMO S. TARUC
Cabanatuan Receiving Center
GERARDA N. TERRIBLE
Tarlac Processing Center
JOSEPHINE S. HIPOLITO*
Sta. Cruz Receiving Center
NELSON P. IBARRA
Calamba Receiving Center
VICTORIA A. LIWANAG
Lipa Receiving Center
ROBERTO D. MARCELO*
San Jose (Occ. Mindoro) Receiving Center
TITO A. NAVA
Carmona Receiving Center
ROBERTO S. PAGAYUNAN*
Lucena Receiving Center
EXEQUIEL O. PANGANIBAN*
Rosario (EPZA) Receiving Center
MARINA PAULINA G. PANTE*
Infanta Receiving Center
GEMMA C. CABERTE*
Ormoc Receiving Center
LILIBETH A. CAJUCOM. M.D.*
Tacloban Processing Center
NICETA M. CARRETAS*
Catbalogan Receiving Center
JULIOUS J. WALES, M.D.*
Bislig Receiving Center
VALERIANO P. WENCESLAO, JR.
Tagum Receiving Center
REDENTOR S. VIOLA*
Koronadal Receiving Center
NORTHERN MINDANAO CLUSTER
ERIC A. CORONADO*
Toledo Receiving Center
JOSE S. CATOTO, JR.
General Santos Processing Center
MARIO V. CORRO*
Cebu Processing Center
JOVE L. COLASITO
Davao Processing Center
JOAQUIN B. DESCARTIN*
Bogo Receiving Center
RIZALITO ALBERTO C. DE LEON*
Toril (Davao II) Receiving Center
JAMES B. BUCKLY*
Basilan Receiving Center
RODRIGO B. GREGANA*
Maasin Receiving Center
SERAFIN G. HINGCO*
Kidapawan Receiving Center
ELIZABETH G. CABATINGAN
Zamboanga Processing Center
ALBERTO L. MONTALBO*
Lapu-lapu Receiving Center
EDGAR P. JUANICH
Digos Receiving Center
JAIME S. CASUMPANG*
Dipolog Receiving Center
REMIGIO B. MONTEMAYOR*
Mandaue Receiving Center
MARILYN O. TAMAYO*
Gingoog Receiving Center
WESTERN MINDANAO CLUSTER
RUDY M. LACANDALO*
Ipil Receiving Center
FOREIGN BRANCH EXPANSION
MONITORING DEPARTMENT & POEA
SONIA S. DOMINGO*
SSS POEA OFFICE
ASIA & PACIFIC
MARIVIC G. RUTOR
Brunei Representative Office
ROBERTO V. ROLDAN
Hongkong Representative Office
JOSEFINA A. MADURO
Singapore Representative Office
FRENELIE ANN L. ONG
Taipei, Taiwan Representative Office
MIDDLE EAST
WILMA M. ORTIZ
Abu Dahbi, UAE Representative Office
ABDAWIYA K. NAVARRO
Al--‐khobar, KSA Representative Office
BENNETTE A. CUETO
Doha, Qatar Representative Office
BENGIE P. HERMOSO
Jeddah, KSA Representative Office
FRANCISCO U. UY
Kuwait Representative Office
DANILO Q. CALAPE
Riyadh, KSA Representative Office
EUROPE
ALFREDO JOSE I. RECIO, JR.
London, United Kingdom Representative
Office
THELMA V. VENTURANZA
Milan, Italy Representative Office
FRANCISCO B. BACOL
Rome, Italy Representative Office
USA
MANUEL B. LLANES
San Francisco, California Representative
Office
SSS Building, East Avenue, Diliman
Quezon City, Philippines
Tel. Nos. 920-6401 / 920-6446
E-mail: [email protected]
www.sss.gov.ph