2010 - Social Security System

Transcription

SOCIAL SECURITY SYSTEM
2010 annual report
Kabalikat sa Tuwid na Landas
sa Pagbangon ng Pilipinas
Highlights of Operations
(Amounts in Million Pesos)
Consolidated
For the Year
Increase/(Decrease)
2010
2009
Amount
%
A. REVENUES & EXPENDITURES
Revenues
107,120.75 95,336.51 11,784.24 12.4
Contributions
79,272.86 72,350.89 6,921.97 9.6
Investment and Other Income, net
27,847.89 22,985.62 4,862.28 21.2
Expenditures
84,288.57 79,124.55 5,164.02 6.5
Benefit Payments
77,174.16 72,049.96 5,124.20 7.1
Operating Expenses
7,114.41 7,074.59 39.82 0.6
Net Revenue/(Loss)
22,832.19 16,211.96 6,620.22 40.8
B. ASSETS & RESERVES
Assets
297,591.34 272,610.65 24,980.69 9.2
Investments
273,265.61 248,641.45 24,624.16 9.9
SSS Properties
3,318.75 3,413.69 (94.94)
(2.8)
Others
21,006.98 20,555.52 451.47 2.2
Liabilities
8,496.31 7,280.83 1,215.47 16.7
Reserves
289,095.03 265,329.82 23,765.22 9.0
Social Security System
Contents
01
02
Highlights of Operations
Statement of Mission and Vision
Messages
03 Message of the President of the Republic
of the Philippines
04 Message of the SSC Chairman
06 Message of the SSS President and CEO
2010 in Review
10 Changing of the Guards
11 Expressing Corporate Social Responsibility
12 Forging Partnership for Better Service
13 Nurturing Relationships with Stakeholders
14 Developing SSS Employees
15 Celebrating SSS’ 53 years
2 0 1 0
a n n u a l
r e p o r t
Special Articles
16 Implementation of the Condonation Law
on Penalty on Contributions
17 The UMID: Its Mandate
19 2010 SSS Family Day
20 2010 Staffing and other Human Resource
Management Directions
21 The SSS Museum and SSS Library
22 SSS In 2011 and Beyond: Heeding the
Call for Transformational Change
Financial
26 Statement of Management’s Responsibility
for the Financial Statements
27 State Auditor’s Report on the
Financial Statements
28
29
30
31
32
45
46
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Reserves
Statement of Cash Flows
Notes to Financial Statements Internal Auditor’s Report
Historical Data
Management
48 Photo of the Social Security Commission
50 Photos of the SSS Senior Management
55 SSC and SSS Management Directory
57 Photo of Annual Report Committee and
Secretariat
About the Cover
Kabalikat sa Tuwid na Landas
sa Pagbangon ng Pilipinas
Kabalikat sa Tuwid na Landas sa Pagbangon ng Pilipinas
For 53 years, the Filipino has in the Social Security System of the Philippines or the SSS an ally, a partner and a friend.
Through its valuable aid and assistance programs, the institution has become a key player in the government’s program
of nation building.
Our cover features an SSS member and his family, the recipient of SSS benefits, programs and services. He is a symbol
of the care and protection that SSS aims to provide its network of members nationwide. A bright tomorrow for the SSS
member is promised as depicted by a backdrop of a modern, progressive cityscape; a long straight road symbolizes
the nurturing support of SSS which is in line with the new administration’s “Tuwid na Landas”.
For the Year
Increase/(Decrease)
2010
2009
Amount
%
Revenues
104,973.40 93,155.25 11,818.15 12.7
Contributions
77,956.99 71,166.95 6,790.04 9.5
27,016.41 21,988.30 5,028.10 22.9
Expenditures
83,102.24 77,931.69 5,170.55 6.6
Benefit Payments
76,088.14 70,963.92 5,124.22 7.2
Operating Expenses
7,014.10 6,967.77 46.33 0.7
Net Revenue/(Loss)
21,871.16 15,223.56 6,647.60 43.7
Assets
271,267.54 247,891.34 23,376.20 9.4
Investments
252,630.57 228,919.53 23,711.04 10.4
SSS Properties
3,318.75 3,413.69 (94.94)
(2.8)
Others
15,318.21 15,558.12 (239.91)
(1.5)
Liabilities
8,604.29 7,389.38 1,214.91 16.4
Reserves
262,663.25 240,501.96 22,161.29 9.2
Employees’ Compensation and State Insurance Fund
For the Year
Increase/(Decrease)
2010
2009
Amount
%
Revenues
2,147.35 2,181.26 (33.90)
(1.6)
Contributions
1,315.87 1,183.94 131.92 11.1
831.49 997.31 (165.83)
(16.6)
Expenditures
1,186.33 1,192.86 (6.53)
(0.5)
Benefit Payments
1,086.02 1,086.03 (0.02)
(0.0)
Operating Expenses
100.31 106.83 (6.51)
(6.1)
Net Revenue/(Loss)
961.02 988.40 (27.37)
(2.8)
Assets
26,431.84 24,827.91 1,603.93 6.5
Investments
20,635.03 19,721.92 913.12 4.6
Others
5,796.81 5,106.00 690.81 13.5
Liabilities
0.06 0.05 0.01 11.8
Reserves
26,431.79 24,827.86 1,603.92 6.5
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 taxexempt 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 non-citizens alike, regardless of race, creed, gender, age, geographic location and socioeconomic status. Attention will be given specially the disadvantaged and overseas Filipino
workers (OFWs).
Message
of the President of the
Republic of the Philippines
My warmest greetings to the Social Security System on the
publication of your 2010 Annual Report.
I commend the SSS in your more than 50 years as a key
partner of government, fulfilling our collective mission to
improve the lives of our people. Through the protection that
you provide your members and your programs supporting
their respective enterprises, your institution has proved
crucial not only to the public welfare but also to our
common goal of revitalizing the economy. It is my fervent
hope that you will carry on in your thrust to empowering
our citizenry and making them vital participants, as we set
out to rebuild our country in this daylight of hope.
We have the momentum to sustain this movement for
national transformation, to report our government and
society and to restore our country’s place in the community
of nations. Let us stay united as one people in realizing our
dream of a stable, progressive Philippines.
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.
TUWID NA LANDAS AGENDA:
BENIGNO S. AQUINO III
1.Transform the organization and
its employees;
2.Simplify/Innovate to reduce corruption
and improve efficiency; and,
3. Optimize resources.
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2010 AN N UAL REPORT
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Responding to a Sublime Advocacy
Message of the Chairman
T
he year 2010 was a promising one. We witnessed a
turning point in our national history that heeded the call
for genuine change in society filled with hope.
dedicated officers and employees who had toiled throughout
the decades for the benefit of its current members and their
beneficiaries and future generations.
The Social Security System is an ideal template for one to
renew his enthusiasm and entrepreneurial spirit. A government
financial institution immersed with the working man’s vision of
perpetual social protection. The SSS is energetic, professional
and has achieved and still much capable of attaining greater
heights that can make a real difference in our country.
Also in 2010, the Social Security Commission laid down policies
to put in effect the laws passed by Congress, R.A. No. 9903
or the Social Security Condonation Law of 2009 and R.A. No.
9507 or the Socialized and Low-Cost Housing Restructuring
and Condonation Program. These two laws were designed to
encourage employers and member-borrowers to update their
records with SSS, while benefitting from the condonation of
accumulated penalties and loan restructuring schemes.
So it was with great honor that I accepted the challenge, after
spending nearly four decades of my professional life using
whatever management and leadership skills I honed in the
private sector while steering the course of the biggest food
company in the country.
The historic change in national leadership in 2010, together
with laudable performance of the SSS allowed the net revenue
of the fund to soar from Php16.21 Billion in 2009 to Php22.83
Billion in 2010.
The new Commissioners of the Social Security Commission,
together with the highly-capable President and Chief Executive
Officer look forward to further improve the health of the fund,
inspired by the commitment and efforts of its competent and
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The implementation of the Member Loan Penalty Condonation
Program for Employers restored employees’ access to benefits
and privileges that SSS provides for its members while allowing
member-employers to update and remain compliant.
Further initiatives are likewise underway to encourage nonpaying members to return to the fold through intensive coverage
drives directed at local government units, government agency
partners and special sectors all over the country. The OFW
Caravan will also send several hard-working commissioners,
together with SSS officials and staff, to conduct drives in key
countries with high concentrations of overseas Filipino workers
to bring in other coverable employed members to the fold.
A commitment to strike a balance between our corporate
goals and institutional responsibilities is magnified through
the policies that the present Commission formulates and
passes. More than just strengthening the fund’s financial
condition through optimum compliance, realizing investment
earnings thru prudent investment mechanisms of the SSS and
advancing economic and social development, the Commission
is determined to adhere to the principle of promoting social
justice in the country.
The SSS workforce expresses its support and adherence to the
Quality Policy of the SSS, in line with the mandate of the Citizen’s
Charter where a commitment to provide prompt, convenient,
reliable and meaningful social protection services to our current
and future members and their beneficiaries is emphasized. We
also commit to follow international standards and the AntiRed Tape Act in rendering service to our constituents through
continuing improvements of our work processes founded on
good governance, public accountability and transparency.
I am confident that we can sustain this positive growth as we
all work together towards a bigger, better and more professional
SSS for our members.
On behalf of my fellow Commissioners, I thank the Management
and all the hardworking officers and employees for their
remarkable work and steadfast commitment to the SSS.
JUAN B. SANTOS
The SSC will continue to initiate policy reforms to remove
needless obstacles that are counter-productive to the concept of
universal coverage. The board committees composed of Audit,
Investment Oversight, OFW Coverage, Information Technology,
and Coverage and Collection strengthens communication lines
with management and amplify the thrust of this Commission as
an enabler of worthy plans and programs.
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REDEFINING THE DYNAMICS OF SOCIAL SECURITY
Message of the President and CEO
Magic Key that Opens Countless Doors
In 2010, when I accepted the position as President and CEO of
the SSS, I knew what I was getting into. I knew that if there is
any place where one’s mettle for service is truly tested, it is in
government service where the challenges are often multifold
and where time and resources are always not enough to get
the job done. I knew that leading a public institution that is as
challenging and as complex as the SSS with over 28 million
membership is not going to be easy. I knew that I have to chart
a roadmap that will serve as our guidepost in refreshing the
institution, reinvigorating its sense of mission and reaffirming
its mandate of social protection.
My resolve to serve was bolstered by a magic key that helped
me to steer SSS to the direction where it should go. This was
President Benigno S. Aquino III’s “matuwid na daan” which
opened a lot of challenges and opportunities that signaled that
2010 was the propitious time to intensify work in the SSS and
to regain its focus.
So while I recognize what my predecessor did, that is, bringing
SSS to its prime position in the field of social security which was
indeed no mean feat, we started work. We moved to fortify SSS
financial standing by enhancing our financial viability through
reinforced investment portfolios. We improved our operations
through enhancing our service capabilities through delineation
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of functions in some areas of the organization and through
the use of the latest computer technology. We also enhanced
our benefits and privileges to our members through growth in
our earnings and resources. And we moved to create a more
humane and responsive social security for all generations to
come for all Filipinos in all parts of the world.
SSS as Bastion of Civic Responsibility
Workers all over the country have different stories to tell, yet
their stories share a common theme. This is – that every hardearned peso is needed in the present time. Essentials such as
food, shelter, clothing, and, if possible, education, cannot be
put off for tomorrow. Worst, more often than not, there is seldom
enough money left over to prepare for the unpredictable, but
imminent future.
But the future will come. That is the harsh reality of life and it
will not always be rosy and bright when it arrives. Breadwinners
may fall ill, debilitating accidents may occur, and the youthful
intensity and vigor with which we work today will someday
give way to old age.
In the midst of all these, social security fund is probably the
least expensive yet most feature-rich insurance package a
worker will ever find and can rely on to tide him over until
times become normal.
I would like SSS to be always ready to attend to our members in
times like these – making sure that benefits and privileges are
not only adequate to the basic minimum level but also given
expeditiously and without unnecessary effort on the part of the
claimant. I would like SSS employees to be in the position to
assure all our valued members that we will walk with them
through economically trying times, that we will assist them in
every way we can so that they can fully avail themselves of
the benefits and privileges due them. I would like the whole
SSS workforce to make our members feel that SSS is their
stronghold, their bastion of hope, theirs and their loved ones’
security for a better future.
Despite the immensity in breadth and scope of the work, 2010
saw our commitment to pursue our mandate with dedication
and zeal. We were ever forward-looking and started putting in
place social protection strategies specifically in the following
requisite action areas: social security coverage expansion; more
meaningful benefits; investments optimization; continuous
improvement of our work processes following international
standards in service delivery to qualify for ISO certification
from international certifying body; adherence to the SSS
Quality Policy in line with the mandate of the Citizen’s Charter;
organization re-engineering; and, charter amendments pursuit,
among others.
I made the whole workforce cognizant of the fact that the
road towards these may be a long and arduous one. The SSS
employees felt the heavy load, too. Yet we agreed that we will
not hesitate to take that road, for the reward of an enduring SSS
is well worth it.
Contribution Collections
In 2010, collection of contributions continued to rise to a recordhigh of over 79 billion pesos as compared with over 72 billion
pesos in 2009. This was realized through the implementation of
RA 9903 or the Social Security Condonation Law of 2009 and
RA 9507 or the Socialized and Low-cost Housing Restructuring
and Condonation Program. Efforts of collecting delinquent
member contributions and loan amortizations were intensified
and the installment payment scheme and dacion-en-pago
guidelines for delinquent employers were revised to liberalize
installment terms. This strategy brought in over a billion pesos
that exceeded the target of 900 million pesos.
This increase in contribution collection was also attributed
through the expansion of the coverage of the public transport
sector and the seafarers when a partnership between the Land
Transportation Franchising Regulatory Board (LTFRB) and the
Philippine Overseas Employment Administration (POEA) was
forged. Another source was the completion of the agreement
7
Message of the President and CEO
between SSS and Portugal that provided voluntary social
security coverage to Filipinos residing in that country. The
marked increase in contribution collection was complemented
by expanding the network of e-payment facilities that ensures
steady inflow of collection.
Benefit Payments
SSS paid over 77 billion pesos worth of benefits to its members
reflecting a seven per cent increase in 2010 from the previous
72 billion pesos released in 2009. The bulk of the releases
went to retirement and death claims which accounted for
nearly 85 per cent of total disbursements for the year. Parallel
to this, measures to strengthen control in benefit payments
were undertaken to ensure that the right benefits were afforded
to the right beneficiaries at the right time. These measures
were through the following programs: Enhanced Annual
Confirmation of Pensioners; Revisions in the New Disability
Program; Expansion of Sickness, Maternity and Employees
Compensation (SMEC) payments through the banks; conduct
of meetings with the banks for the Electronic Data Interchange
(EDI); Database Clean-up as a result of erroneous contingency
date, mismatched records in claims information, employee
static and pension database.
Surge in Investments Income
SSS optimized its investments and managed to post a moderate
of over 27 billion pesos worth of investment income which
was 34 per cent higher than the targeted 20 billion pesos for
2010. Bulk of the income was contributed by SSS investments
in government securities and equities that amounted to over
22 billion or 82 per cent of the total investment income. The
SSS has also begun efforts to implement a trading system for
equities and other tradable investments. It has also started
exploring prospective foreign investments for diversification.
SSS has also engaged in developing programs that aimed to
improve the management of member loans. We have started
closing our Direct Housing Loan Program while establishing
the guidelines for the implementation of the Member Loan
Penalty Condonation Program for Employers. The full-scale
implementation of RA 9507 or the Socialized and Low-cost
Housing Loan Restructuring and Condonation Act has likewise
greatly improved SSS’ liquidity. It is notable, however, that the
ratio of the social benefits through increased ownership and
liberalizing access to home loans far outweighs financial profits.
Improved Service Delivery vis-a-vis Lean
Spending
In line with the government’s campaign for enhanced public
service and observance of judicious spending measures, SSS
showed a lower actual operating expenditure recorded at 7.11
billion pesos compared with the projected figure of 8.65 billion
for 2010.
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As countries in the world achieve higher levels of economic
development, their social security systems also advance in
parallel, extending the scope, level and quality of benefits and
services provided. SSS lives with this principle as it started
implementing RA 9485 or the Anti-Red Tape Act (ARTA) where
the step-by-step processes of its operations as well as the ideal
processing time are laid out. It also provided a yardstick within
which to measure the performance of our frontline services.
In line with this was the beginning of the efforts to inculcate
in the consciousness of every SSS employee the essence
of the Quality Policy and the significance of the continual
improvement of the work processes and orienting them in
installing the Quality Management System (QMS) in our
operations as a requirement towards ISO certification by an
international certifying body.
Our effort in upgrading our Information and Communication
Technology (ICT) system was notably a huge success. Twelve
of its application systems from BSS to M9000 servers have
already been migrated and completed. The new server allows
the enhancement of online capabilities while ensuring data
integrity through stricter server security. Microfilming of our
members’ records has also been started to enhance functionality
and accessibility.
SSS has deployed and installed 290 ID card readers in
different branches to facilitate faster transactions and eliminate
fraudulent claims. These card readers are compliant with
the specifications of the Unified Multi-Purpose ID (UMID)
system. SSS, as member of the core group, has participated in
various technical working meetings and seminars to ascertain
the smooth transition of the SS ID to the UMID system. The
UMID, which aims to streamline, harmonize, and unify existing
ID systems in the government, has been envisioned as the
government’s springboard in infusing the benefits of ICT to
improve public service.
I and the rest of the SSS workforce have been made aware that
we have much to be grateful for, and that we still have much
to strive for.
disciplined. And they are not so much those who are brilliant as
much as those who are balanced. We have a huge membership
to serve so we have to have a workforce who looks at service as
not merely a task but a calling, a privilege and an honor.
2010 was the year when efforts to reinvigorate the human
resource machinery happened. This was through the
implementation of the Staffing Plan by promoting and absorbing
deserving employees as well as upgrading and reclassifying
executive positions. It was also in this year that various training
programs were implemented to enhance the technical skills of
the whole workforce.
The new Performance Evaluation System (PES) was also
designed in order to enhance institutional productivity. This
was followed by the development of a PES customized for the
executives.
On a lighter side, we encouraged our employees to indulge
in various athletic, cultural and arts appreciation activities to
renew camaraderie, foster teamwork and develop unifying
spirit and just have fun.
most important thing is to be unified by a common purpose,
a common commitment. Challenges are enormous. Speed is
critical, therefore, focus is key.
As SSS enters 2011, it braces itself to face more challenges even
while we thank our valued members and their beneficiaries,
our pensioners, our partner banks and other business partners,
the SSS personnel, the Social Security Commission, and His
Excellency President Benigno S. Aquino III for their unrelenting
support, trust, confidence and inspiration.
We commit to continue to rejuvenate the SSS by infusing
innovative and productive strategies that would secure the
health of our funds while we make our operations respond
to the call of the government towards transformation. We are
confident we shall be able to build a groundswell of support for
our efforts, for we look at this as a rewarding endeavor.
I exhort everyone in SSS to feel a winner – never giving up.
A wise man says: “The one who finishes the race is not the
strongest of all but the one who never gave up.”
Nurturing Competence and Professionalism in
the Organization
Exhortation
The transformations that are unfolding in the country serve as a
constant reminder of the need to keep the skills and competence
of our employees abreast with the evolving social security
needs of our constituents. Based on what we have experienced,
progress happens by fits and starts, zigzagging upward with
many reverses. This is why in a complex organization such as
the SSS, we need effective, balanced people who know how to
adapt to this dynamics. In the corporate world, highly successful
people are not so much those who are experienced in terms of
years of tenure as much as those who are effective. They are not
so much those who are determined as much as those who are
The greatness of a nation does not only depend on the
advancement of its technologies, the expanse of its conquests
or the wealth inside its coffer. The greatness of a nation lies in
the moral fiber of its number one resource – its people. In the
same breath, I would like to exhort everyone in the SSS that
we be guided by this adage. While we work hard to improve
the management of our assets, enhance fiscal standing and
efficiency in our work processes, post remarkable growths in
all areas of operations, adapt to the ambivalent socio-economic
landscape of the country, or even earn the status of being the
economic backbone in the field of social security, still the
EMILIO S. DE QUIROS, JR.
9
2010 IN REVIEW
PROPELLING NATIONAL
GROWTH
THROUGH EFFICIENT SERVICES
Expressing Corporate Social Responsibility
Corporate Social Responsibility is not just a passing trend
or once-a-year event in SSS; it is a serious and continuing
commitment by both the management and workforce to
exercise good corporate citizenship by helping the lesser
privileged through community work and public service. For
the SSS employees, their passion for volunteer work found
fruition in the SSS Kabalikat ng Bayan Volunteer Corps, which
conducted humanitarian missions in various cities throughout
the year, some of which were sponsored by SSS as an institution.
Changing of the Guards
The year 2010 was marked by a change of government
leadership of the country, after the May 2010 elections. With
President Benigno S. Aquino III at the helm, the entire nation
rallied support for his call for reforms and to follow “ang
matuwid na landas” (the straight road). A change of leadership
of the SSS also ensued in 2010, with veteran banker and
insurance executive Emilio S. de Quiros, Jr. appointed as SSS
President and Chief Executive Officer by President Aquino.
The head may have changed, but the mandate of SSS remains
the same: provide meaningful protection to members and their
families against the hazards of life.
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2010 IN REVIEW
Nurturing Relationships with Stakeholders
Forging Partnerships for Better Service
The SSS cannot perform its mandate of service alone. Despite
the breadth of its reach, SSS still requires partnerships with
other agencies and institutions so that social security benefits
and services meet the members’ needs in a timely and accurate
manner. In 2010, SSS continued developing and enhancing
its electronic and Internet-based-services in order to serve
members faster and easier. The SSS management also met with
other social security, business and economic experts during
various conferences to share ideas, knowhow and experiences
in order to improve services, policies and programs.
12
Employers, individual members (whether based inside or
outside the country), and pensioners: these are among the
important stakeholders that SSS must always keep in mind as it
continues to improve its programs, enhance its services, extend
its coverage, or strengthen its fund life. After all, without these
stakeholders, SSS would not have lasted all these years.
13
2010 IN REVIEW
Celebrating SSS’ 53 years
Developing SSS Employees
The SSS celebrated its 53rd Anniversary on 01 September 2010.
Anchored on the theme “SSS: Kabalikat sa Tuwid na Landas
sa Pagbabangon ng Pilipinas”, this celebration highlighted SSS’
continued commitment in promoting the welfare of all Filipino
workers and their families, alongside the government’s efforts
to eliminate poverty and improve the quality of life of every
Filipino through good governance.
Going hand-in-hand with strengthening SSS as an institution is
developing the skills and knowledge of its employees, as well as
looking after their well-being. In 2010, the SSS Rationalization
program was fully implemented, which saw the reorganization
of key units in the main office and branches, the realignment
of positions and job levels, as well as the absorption of longserving service bureau personnel into the regular workforce.
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SPECIAL ARTICLE
SPECIAL EVENTS.
SPECIAL
PROJECTS.
IMPLEMENTATION OF THE CONDONATION
LAW ON PENALTY ON CONTRIBUTIONS
Republic Act No. 9903, otherwise known as the “Social Security
Condonation Act of 2009,” was signed into law by former President
Gloria Macapagal-Arroyo on 07 January 2010. It took effect on
01 February 2010. Pursuant to the law, the Social Security
Commission (SSC), under its Resolution No. 110 s.2010 dated 10
February 2010, issued the rules and regulations for the effective
implementation of the said Act.
The success of the program was brought about by the conduct of
a massive information campaign–both at national and local levels.
The campaign consisted of print replacements; brochures and
flyers; posters, banners and streamers; press releases; and radio/TV
interviews. The guidelines for the Program were published in the
SSS website and intranet.
Under the said condonation law, any employer who is
delinquent on his payment or has not remitted all contributions
due and payable to the SSS, must, within six (6) months from its
effectivity, (a) remit said contributions; or (b) submit proposal to
pay the same in installment within a period not exceeding fortyeight (48) months.
The implementing rules provided measures that ensure the
protection of the rights of SSS members. Should the settlement
of contributions through full payment or installment result in
additional benefits for contingencies that have occurred prior to
the date of settlement or shall occur within the installment period,
the employer shall pay the SSS damages in accordance with the
provision of the Social Security Act.
As of 02 August 2010, the last day of the six-month availment
period, a total of 24,043 employers availed of the Program, with
total obligation of P3,545,916,077 and condoned penalty of
P3,423,935,010. Of those who availed, 15,591 (65%) employers
with total obligation of P710,345,281 (20%) paid in cash, while
8,451 (35%) employers availed of an installment scheme where
the current obligation of P500,118,723 (14.1%) was paid in cash,
and the remaining obligation of P2,335,452,073 (66%) to be paid
on installment basis. Excluded from the count of availees are those
“who, before the effectivity of the Act, have settled all contributions
but with accrued penalties” or those whose obligation consists of
penalty only. The penalties of employers who belong to this group
are condoned by operation of law.
16
Although the availment period for the Condonation Program has
already ended, a delinquent employer may still avail of other
payment modes either under SSC Circular No. 6-P (Amended
Dacion en Pago pursuant to Res. No. 29 dated 16 January 2002),
or Circular No. 2011-002 (Revised Guidelines in the Installment
Payment Scheme for Employers pursuant to Res. No. 976-s.2010
dated 08 December 2010).
THE UMID: ITS MANDATE
SSS as lead agency: From SS card to UMID
The UMID stands for “Unified Multi-Purpose Identification.” This
idea was initiated by the Executive Department of the National
Government and the effort was reinforced through the issuance
of an Executive Order (EO) No. 420 s.2005, that mandated all
government agencies and government-owned and controlled
corporations to streamline and harmonize their ID system.
Initially, the National Economic Development Authority (NEDA)
took the lead in conceptualizing the machinery of UMID up to
the preparation of the initial draft of the implementing Rules
and Regulations (IRR). In 2008, however, an amendment
to EO 420-s,2005 was issued identifying the social security
Identification system as the core of the UMID and directing the
SSS to lead in its implementation. This is because in 1998, the
SSS acquired a fingerprint biometric-based system for the social
security card. Over 11 million social security cards, so far, had
been generated and issued through this system until April 2010
when card production was stopped due to facility breakdown.
UMID aims to:
(1) reduce costs and thereby lessen the financial burden
on both the government and the public brought about
by the use of multiple ID cards and the maintenance
of redundant databases containing the same or related
information;
(2) ensure greater convenience for those transacting
business with the government and those availing of
government’s services;
(3) facilitate private businesses and promote the wider use
of the unified ID card;
(4) enhance the integrity and reliability of governmentissued ID cards; and
(5) facilitate access to, and delivery of, quality and effective
government service.
The UMID system includes minimum safeguards, as follows:
(1) The data to be recorded and stored, which shall be
used only for purposes of establishing the identity of
a person, shall be limited to those specified in the EO;
(2) In no case shall the collection or compilation of other
data in violation of a person’s right to privacy be
allowed or tolerated;
(3) Stringent systems of access control to data in the
identification system shall be instituted;
(4) Data collected and stored for this purpose shall be
kept and treated as strictly confidential. A written
authorization of the Owner of the identification card
shall be required for access and disclosure of data as
well as for any correction or revision of relevant data,
or under such conditions as the participating agency
issuing the identification card may prescribe; and
(5) The identification card to be issued shall be protected
by advanced security features and cryptographic
technology.
The UMID is not a national ID nor is it compulsory to all
Filipino citizens. It will be issued only for the constituents
of the participating agencies – Social Security System (SSS),
Government Service Insurance System (GSIS), Philippine
Health Insurance Corporation (PHIC), and National Home
Mortgage Finance Corporation (NHMFC). Licenses issued by
the Land Transportation Office (LTO), Professional Regulation
Commission (PRC), and ID issued in conformity with treaties
and international law, like passports and seaman’s ID, are
excluded in the system. These agencies, however, may join the
UMID, if they so desire, by adopting the Common Reference
Number (CRN) into their own system and by following other
legal pertinent requirements.
The social security card has gained integrity as a reliable ID
card. Through the years, banks, business establishments, the
courts and other government agencies, including the passportissuing office use this for identification of its holder, who
transacts business with them.
The SSS endeavored to upgrade its system, factoring in the
availability of new technologies that observe international
standards, similar to the machine-readable travel documents
by the International Civil Aviation Organization.
After painstaking efforts to upgrade the system that uses
biometric technology and fingerprint matching to determine a
person’s identity, an over-all system design came to the fore
with the concurrence of UMID participating-agencies. This
UMID card has three core components:
(1) The CRN, the unique number generated and assigned
by the central verification system to an individual
upon successful enrollment into CRN Registry. CRN
is needed for cross-verification to ensure integrity and
reliability of identification. Once assigned, the CRN is
permanent;
(2) The CRN Registry, which contains the records of
individuals enrolled and assigned with CRN; and
(3) The UMID Card, the secured medium which contains
the CRN. This can be presented by the individual as
proof of his identity.
The data to be collected and recorded by the UMID
participating-agencies are the following:
(1) Name;
(2) Home Address;
(3) Sex;
(4) Picture;
(5) Signature;
(6) Date and place of birth;
(7) Marital status;
(8) Names of parents;
(9) Height;
(10)Weight;
(11)Two index fingers and two thumbmarks;
(12)Any prominent distinguishing features; and
(13)Taxpayer Identification Number.
17
SPECIAL ARTICLE
The UMID System: Its Targets
2010 SSS FAMILY DAY
All participating agencies are allowed to undertake enrollment
or data capture subject to the set of enrollment standards
developed by the National Technical Working Group for record
formats of demographic and biometric data. Prior to deployment
of enrollment stations, the compliance with such standards shall
undergo a test by a conformance laboratory and a Certification
process. For its part, the SSS deployed 131 enrollment stations
in 95 SSS branches which have an individual capacity of 70
captures per day on an eight-hour basis.
The SSS Family Day is an annual System-wide activity
that encourages camaraderie and the strengthening of the
relationship and familiarity among SSS employees and their
families. The 2010 SSS Family Day mirrored such an interaction
and the SSS compound became a venue for what we considered
as a momentous and joyful event the memory of which we
shall always treasure.
All outputs by the enrollment stations are inputs to a central
verification system (CVS). The CVS employs a civilian automated
two-fingerprint identification system (AFIS). The accuracy
requirement of the AFIS is 99.5% true accept rate and 0.01%
false accept rate. The “True Accept rate” is the percentage of
times the AFIS correctly verifies a true claim of identity. On
the other hand, “False accept rate” is the percentage of times
the AFIS produces a negative claim of identity. In statistics, the
former is the probability of acceptance given that the claim of
identification is true, while the latter refers to the probability
that the claim is false. The CVS has a matching speed of 1,000
enrollments per hour 24/7. The 11.5 million person-records in
the old SSS AFIS were already migrated in the CVS. The capacity
of CVS with Blade System as primary server, is scalable up to 25
million person-records within five years.
The corresponding ID number issued by the participating
agencies and the CRN shall form part of the stored ID data in
the CRN Registry. The custodian of the registry is the National
Statistics Office (NSO).
The task is to move from the social security card, the core of
the System to UMID card, to the one-look, one-format card
for all. The dimension of both cards complies with the ISO
standards. The social security card is basically teslin, while
UMID is Polyethylene Terephthalate Glycol/Poly Vinyl Chloride
(PETG/PVC). The former is 2D-barcode-based, while the latter
is a contactless card. Both cards are with a guaranteed life of
five years.
The data that appear on the front side of both card the Republic
of the Philippines, the face and ghost image of the member, his
full name and his signature. The printing of birthdate is optional
in the social security card, but mandatory in the UMID. The
social security card shows the social security number of the
member, while the UMID shows the CRN. The address of the
member is not printed on the social security card, while it is in
the UMID card. There is a magnetic stripe on the back side of
both cards, basically for ATM-type of transactions.
18
Upon successful enrollment, the applicant shall be issued
with CRN. For practical reasons, the agreed upon CRNformat adopts the algorithm in the social security number.
The CRN and the enrollment data shall be sent to the card
production system. All participating agencies can establish
its own card factory.
In the case of the SSS card production system it has a Card
Management System (CMS) that maintains ID card applications
and a Key Management System (KMS) which grants the authority
to load application in the card. The KMS has the capability
to implement Public Key Infrastructure (PKI) solutions. The
card chip operating system can run applications which are
developed by third-parties. This is another initiative by the
National Government.
The use of the UMID card may be in the form of visual
inspection, a one-to-one AFIS verification through an ATM
machine, or a contactless card reader.
The UMID targets: 70 enrollments per eight-hour day; 25
million enrollees in five years; and 12 million UMID cards in
five years. As a matter of strategic procedure, priority shall be
given to those who have no social security card yet.
The 2010 SSS Family Day for the Main Office was concluded in
four (4) separate events. This was divided into four (4) groups,
namely (1) the Social Security Commission and President’s
Group, (2) IT Management Group and the Program Management Group, (3) the Controllership Group and Branch Operation (Corporate Offices), and (4) the Administration Group and
Investments Sector.
The Social Security Commission and President’s Group conducted theirs at the MAC building, Diliman, Quezon City on 20
November 2010. Major activities included installing a photo
booth, parlor games and entertainment/videoke-singing. The
group had a total of 339 attendees. (322 employees and family
members).
The IT Management and the Program Management Groups,
respectively, conducted their Family Day at the SSS Canteen,
Main Office Bldg., Quezon City on 26 November 2010. Major
activities included bingo sosyal, raffle draw, fun games, and
videoke-singing. The group had a total of 465 attendees. (438
employees and family members).
The Controllership Group and Branch Operations (Corporate
Offices) conducted their Family Day at the SSS Main Office
Building (Front Lobby) on 20 November 2010. Major activities
included film showing, raffle draw, team activities, and photo
souvenir. The group had a total of 534 attendees. (275 employees and family members).
The Administration Group and Investments Sector conducted
their family day at Club Manila East Resort and Hotel at Taytay,
Rizal on 20 November 2010. Major activities included parlor
games and water sports, cheering contest, videoke challenge
raffle draw and swimming. The group had 570 attendees. (458
employees and family members).
There were a total of 1,891 regular employees, Service Bureau
and Job Order personnel who attended the SSS Family Day.
Over-all the number of attendees including family members
were 1,510.
19
SPECIAL ARTICLE
The SSS Museum and SSS Library:
More than repositories of artifacts
and documents
Visiting a museum is often stereotyped as an activity confined
to those going on a school trip or for members of the middle or
upper classes. In reality, however, a trip to a museum can be
enjoyed by all and can be both a pleasurable and educational
experience. The primary role of a museum is to be a source of
education, whether through showcasing collections of cultural
products such as pieces of art, telling the story of something
important, such as an historical event, or raising awareness of
a societal concern, such as poverty. The goal of a museum is
to ensure that upon leaving, each visitor knows something that
they did not know when they entered.
The documentary materials held in museums constitute a
vast resource. At a minimum, they consist of institutional
records, operational and personnel records, documentation
of collections, manuscripts and photographs – in short, the
historical memory of an institution and its activities. Museums
generally collect, preserve, use and house artifacts for the benefit
of society. Museums can be chartered as independent, non-profit
organizations, or in special cases, as part of a corporation.
2010 STAFFING AND OTHER HUMAN
RESOURCE MANAGEMENT DIRECTIONS
The implementation of the Staffing Plan which started in 2009
paved the way for another milestone in the implementation of
the SSS approved Rationalization Plan.
One of the roll-out activities was to gradually fill-in the
vacant positions created as a result of the restructuring and
the movements and separation of employees, over a period of
ten years. The initial phase of the staffing plan focused on the
absorption of qualified and deserving Service Bureau personnel
as directed by the Social Security Commission through SSC
Resolution No. 509, s. 2009 which led to the regularization of
1,131 SBs and the promotion of 68 rank and file employees.
In 2010, a total of 1,089 positions were filled through the
promotion and lateral transfer of 853 regular employees,
absorption of 206 SB personnel and direct-hiring of 30 external
applicants for technical and specialized positions as well as
promotion of qualified and deserving Officers-in-Charge (OICs)
to 117 executive positions.
An assistance plan was implemented by the Management
to further support the SBs preparation to complete their
qualification requirements. This assistance included the
conduct of review sessions for CSC Examination and Qualifying
20
and Specialized Examinations, scheduling for CSC Professional
eligibility examination and counseling for their college
academic course completion.
Human Resource Management (HRM) Division’s priorities
focus on the review and enhancement of job functions
and qualification requirements of plantilla positions and in
the formulation of intensified approaches to training and
development programs. This is pursuant to the call of the
Management to streamline and automate processes towards
enhanced governance and operational efficiency that would
redound to meeting members’ expectation and satisfaction.
Along with these, the new Performance Evaluation System
for both Executives and Rank & File employees will be ready
for implementation before the end of 2011. This will ensure
the continuous improvement of individual and organizational
performance and will serve as basis for performance-based
personnel actions (promotions, training & development,
scholarships) and incentives and rewards. Likewise, the
implementation of the Human Resource Information System
(HRIS) will address critical human resource and organizational
requirements and ensure maximized productivity of the SSS
workforce.
On 01 September 2010, as part of its 53rd Anniversary
celebration, the SSS inaugurated its twin facilities for the public:
the new SSS Museum and the expanded SSS Library. Located
at the basement of the SSS Main Office in Diliman, the two
facilities serve as more than a repository of documents, paintings
or memorabilia. They are the institutional memory bank of
the SSS.
The SSS Museum is a special kind of museum in that it
holds original documents, printings, photographs and other
memorabilia that show a vivid picture of the SSS and the
development of social security in the Philippines.
Meanwhile, the SSS Library, formerly housed at the 12th floor
of the Main Building, was moved to the basement in a more
spacious area beside the SSS Museum in response to the
growing number of users interested in social security. The SSS
Library contains an expansive collection of books, magazines,
journals, and other reference materials on social security,
business and economics, social sciences, labor, and law.
Publications from the World Bank, the International Labour
Organization, the International Social Security Association,
and other international institutions are likewise available.
As a way to cater to the information needs of the public, both the
SSS Museum and Library have no entrance or user fees. The SSS
Museum is open to visitors from Tuesdays to Fridays, 9:00 am to
5:00pm, and Saturdays, 9:00am to 12 pm. Meanwhile, the SSS
Library is open from Tuesdays to Fridays, 9:00 am to 6:00pm.
21
SPECIAL ARTICLE
SSS in 2011 and Beyond
HEEDING THE CALL FOR
TRANSFORMATIONAL CHANGE
Truly, 2010 was the year of transformation as the nation faced
a decisive point to ameliorate the helm of the country. As
soon as the first automated elections concluded the historic
endeavor, the Philippines became a realm of reform as the new
administration has made transformation as the cornerstone of
its agenda.
As such, the arising transformational trend immediately crawled
its way through the labyrinths of the government as the different
institutions and agencies of the state like the SSS embraced the
refreshing direction.
For its part, the SSS witnessed a major change in its leadership
as it welcomed a new set of stewards who are expected to
steer the fund to greater heights. Building on the foundations of
transformational change, the SSS is geared to continue pursuing
its mission of promoting the country’s development through the
provision of meaningful social protection and sound investment
decisions.
This year, the SSS is poised to revitalize its idea of service delivery
by concentrating its efforts on six action areas identified by the
renewed management: (1) Expand Social Security Coverage, (2)
Make SSS benefits more meaningful, (3) Optimize investments,
(4) Improve service delivery, (5) Re-engineer the organization,
and (6) Pursue charter amendments.
Expand Social Security Coverage
As the country’s premier social security provider, the role of SSS
in raising the level of coverage to social security in the country
is vital. Every attempt to keep SSS closer to the members must
be astute to, gradually, achieve its vision of universal coverage
to social security in the country.
In 2011, the SSS shall embark on heightened efforts of
stimulating members to actively pay their contributions and
regain their entitlement to the package of benefits under the
social security program through the expansion of payment
schemes and self-service terminals. Inspired by the efficiency
of today’s technology, the SSS shall continue to empower its
members by providing easier access to information on their
social security through the expansion of various self-service
facilities. Moreover, the SSS shall continue to forge partnerships
with various government and non-government institutions for
the coverage of special sectors as well as continue accrediting
cooperatives and associations as collecting agents to boost
collections.
22
Driven by the insurance principle that gave expression to the
solidarity of workers and employers, the SSS aims to increase
the participation of both parties in securing a viable social
security protection. SSS shall pursue on increasing the existing
monthly salary credit to PHP 20,000. Also, an increase in the
contribution rate by 0.6 percent that will be equally shared
between the covered employee and employer will also be
pursued to rev up the financial viability of the fund and keep
it at par with its international counterparts. Furthermore, the
SSS plans to increase its collection efforts on erring employers
through the implementation of the revised installment payment
and dacion-en-pago guidelines.
The arising trend on labor migration in the Philippines is also
highlighted in the planned priorities of SSS in 2011. In this
regard, SSS plans to serve the growing number of overseas
Filipino workers (OFW) by opening more foreign branches in
countries mostly flanked by our migrant workers. In addition,
the SSS will also review the manning levels of existing foreign
branches to increase the efficiency of each of these branches.
The welfare of our sea-based members will also be prioritized
through the development and implementation of the revised
policy requiring their mandatory coverage to SSS. Moreover, the
SSS shall pursue on forging a memorandum of agreement with
the Department of Labor and Employment and the Philippine
Overseas Employment Administration on the attempt of
mandatorily covering both newly hired and rehired OFWs. SSS
also intends to delineate the functions of its Foreign Operations,
International Affairs and Online Support Services, which, in the
meantime, are the departments catering to all the transactional
needs of OFW members.
Make SSS Benefits More Meaningful
The advent of a revitalizing change promulgated by the new
administration inspired state agencies and institutions like the
SSS in incorporating the newfound advocacy in performing their
respective mandates. With this, the SSS will further its earnest
commitment in providing meaningful benefits to its members
by developing policies and programs that would reaffirm the
role of SSS as a reliable partner in times of distress.
In this regard, the SSS shall develop a voluntary provident fund
program for the retirement of local workers benchmarked from
the success of retirement programs of various agencies as well
as the existing provident fund program of the OFW members
of SSS. This endeavor is envisioned to be a means of promoting
individual savings as a catalyst of growth.
In 2011, the SSS shall introduce new policies that would
ascertain our prompt response to the growing call for
transformational change in the country through better public
service. These policies will revolve within the bounds of
better administration of benefits and more efficient delivery of
service. In particular, the SSS is determined to implement the
new Disability Program, the enhanced Annual Confirmation
of Pensioners, and the new guidelines on the Funeral Benefit
of members. This year will also mark the full implementation
of the Anti-Red Tape Act that will ensure fast delivery of SSS
services to its members while expanding the Branch Queue
Management System which aims to manage the queuing
system of the SSS as transacting stakeholders crowd our offices.
Optimize Investments
The change of the national stewardship last year paved way
to the renewal of investor sentiment in the country evidenced
by the record high performance of the local bourse as well as
the surging inflow of foreign portfolio investments. The SSS
will harness the benefits of this opportunity to enhance the
productivity of its investments which play a crucial role in the
well-being of the fund.
This year, SSS is looking at tapping the expertise of local fund
managers in identifying the most optimal investment strategy
for SSS as well as establishing a benchmark in evaluating the
performance of the adapted strategy. Moreover, the SSS is ardent
on upgrading its trading system complemented with state-of-theart facilities that will further bolster its equities income.
The government’s advocacy of promoting economic
development in the country by forging partnership with the
private sector will also be heeded by SSS through optimizing its
institutional lending facility as an alternative investment outlet.
This endeavor will allow the SSS to balance its bureaucratic
commitment and its institutional responsibilities.
Improve Service Delivery
The SSS is cognizant of its duty to provide its members with
more value to their social security. With the magnitude of
transactions within the institution, a complex system of
information and communication technology (ICT) is vital to
improving the efficiencies and maintaining the integrity of the
institution.
This year, the SSS shall embark on efforts to re-engineer
the business processes of the system as well as deploy the
appropriate ICT resources needed in the frontline and backroom
services. Also, the SSS plans to instigate the automation of office
procedures through the implementation of the Automated
Records Management System. This is crucial to the goal of SSS
in providing faster and more accurate delivery of services by
reducing human intervention in its procedures.
As we strive to develop and maintain the trust of our members,
it is imperative that the SSS upholds utmost integrity of its
database. The SSS shall revive its database clean-up project
23
Re-engineer the Organization
Last year marked the changing of the guards of the country’s
premiere social security provider. The highest policy making
body and the chief executive post of the SSS was rejuvenated
with highly-experienced individuals chosen for their sheer
competence and fervor to lead the fund towards greater
success. As a result, the call for a system-wide reinvigoration
was accentuated to respond to the changes in the bureaucratic
and corporate environment.
In this regard, the SSS is set to implement an appropriate
organizational structure responsive to times as well as
establish an organization-wide performance evaluation system
benchmarked on the best practices of other agencies and
organizations. Inspired by the ergonomic design of private
banks, the SSS shall review the functions as well as the layout
of its branches to determine the standards in improving service
delivery to its members.
These programs are the working manifestations that the SSS is
ardent in responding to the rousing call for transformational
change within the country’s bureaucracy.
Pursue Charter Amendments
which aims to correct inaccurate member information which is
crucial in determining the level of benefits that a member can
be entitled with. To boost its efforts in upholding the integrity
of its database, SSS shall establish links with the databases of
other government agencies which will also serve as a ground
for cooperation in achieving overall improvement of public
service. This inter-agency cooperation is also in time with the
plans of SSS to fully implement the Unified Multi-Purpose
Identification System in its transactions.
Along with the synchronized efforts of extending access and
ensuring the viability of social security, improving service
delivery through the employment of the proper ICT makes
the SSS one step closer to achieving its mandate of universal
coverage to social security in the country. This only proves that
the ICT structure is considered the backbone of efficient SSS
operations.
As we continue to scout for ways to advance the social security
protection in the country, the charter that dictates our very
purpose must also be receptive to the changing times. The
charter itself must institutionalize the ability of SSS to respond
and innovate as changes occur in the context of social security
in the Philippines.
With this, the SSS shall undertake measures to pursue its charter
amendments to keep it abreast with the growing social security
demands of the country. We will be attentive to these needs as
we finalize our recommendations on the charter amendments.
To ensure the incessant progress, we will actively participate
in public hearings and dialogues concerning our charter’s
amendments.
2010
FINANCIAL
STATEMENTS
Conclusion: Responding to the Eminent Call
Over the years, SSS has remained consistent with its efforts of
enhancing the insurance fund of its hardworking members.
With the advent of transformational reforms, the coverage of our
efforts have extended from simple social security coverage to
promoting the social security in the country through impeccable
and professional delivery of service and more meaningful
benefits to our members. Indeed, the SSS is dedicated to help
its members maximize each hard-earned peso to secure a stable
future for him and his beneficiaries.
24
FINANCIAL STATEMENTS2010
S t a t e m e n t o f M a n a g e m e n t ’s R e s p o n s i b i l i t y f o r
S t a t e A u d i t o r ’s R e p o r t o n
the Financial Statements
the Financial Statements
The Social Security Commission
Social Security System
East Avenue, Diliman, Quezon City
We have audited the accompanying financial statements of Social Security System, which comprise the statement of financial position as at December 31,
2010, 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 information.
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, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
The Management of Social Security System is responsible for all information and representations contained in the consolidated
financial statements as of December 31, 2010 and 2009. 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.
Auditor’s Reponsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International
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 misstatements.
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.
The Social Security Commission reviews the consolidated financial statements before such statements are approved and submitted
Bases for Qualified Opinion
to the President of the Philippines and to the Congress of the Philippines.
As reported in Observation Nos. 2, 4, 5, 6, 7 and 8 of the audit report, the accuracy of the Receivable - Member Loans (ML), Housing Loan and Receivable-Real
and Other Property Acquired (ROPA), Regular Real Estate Loans (REL), Receivable - Collecting Bank-Regular, Cash Collecting Officer (CCO) and the Cash in Bank
(CIB) accounts with balances of P43.292 billion, P5.255 billion, P3.502 billion, P3.044 billion, P683.706 million and P11.041 million, respectively, cannot be
ascertained due to, among others:
• Collections from members of P5.793 billion that were not yet deducted from their loan accounts, of which P3.586 billion were distributed based on
estimate and without corresponding posting to members’ accounts, and the P926.714 million variance between the general ledger and aging schedule;
JUAN B. SANTOS
Chairman, SS Commission
President and CEO
ELVIRA G. ALCANTARA-RESARE
Officer-in-Charge
Controllership Division
• REL repayments of P2.018 billion remained not recorded or posted to the ledgers, and the REL regular account were not disabled in the REL System
when these were restructured and new accounts were created, resulting in the distribution of repayments to both accounts totaling P165.224 million;
• A temporary subsidiary ledger account of P3.018 billion and a negative balance of P5.194 billion from 88 banks, some already closed or merged with
other banks, representing collections already remitted to SSS but not yet posted to members’ accounts;
• Discrepancy of P528.479 million between the balances of the CCO – Main Office account and the Cashbook and the Report of Undeposited Collections
due to prior and current years’ collections not matched with deposits, delayed validation of OFW collections, and deposit not closed to clearing
account; and
• Unaccounted Migration Cash in Bank (MIG-CIB) affecting the CIB-Euro/Dollar/Peso Savings/Current Account in the amount of negative P626.41
million and the CIB–Working Fund account of P643.834 million.
Opinion
In our opinion, except for the effects of the matter described in the Bases for Qualified Opinion paragraph, the financial statements present fairly, in all
material respects, the financial position of the Social Security System as at December 31, 2010, and its financial performance and its cash flows for the year
then ended in accordance with Philippine Financial Reporting Standards.
COMMISSION ON AUDIT
DELIA D. AGATEP
State Auditor V
Supervising Auditor
26
August 26, 2011
27
FINANCIAL STATEMENTS 2010
Statement of
Statement of
Financial Position
Comprehensive Income
DECEMBER 31, 2010
(In Philippine Peso)
FOR THE YEAR ENDED DECEMBER 31, 2010
(In Philippine Peso)
Notes 2010 ASSETS
Current Assets
Cash and cash equivalents
3
7,378,656,013 Held-to-maturity investments
4
7,397,607,090 Held-for-trading financial assets
5
3,330,769,671 Receivables
6
6,999,366,607 Other current assets
7
88,945,464 25,195,344,845 Non-Current Assets
Non-current Financial assets
8
250,408,102,813 Investment property
9
12,129,126,734 Property and equipment
10
3,318,749,960 Intangible assets
11
208,582,776 Non-current assets held for sale
12
5,771,908,785 Other non-current assets
13
559,524,623 272,395,995,691 Total Assets
297,591,340,536 LIABILITIES
Current Liabilities
Accounts payable and accrued expenses
14
3,238,381,868 Funds held in trust
15
778,135,832 Deferred income
16
83,210,203 Other current liabilities
17
3,002,051,161 7,101,779,064 Non Current Liabilities
Accrued retirement benefits
18
1,384,768,341 Rent payable
19
9,759,875 1,394,528,216 Total Liabilities
8,496,307,280 RESERVES
20
289,095,033,256 Total Liabilities and Reserves
297,591,340,536 2009
8,995,402,491
13,293,628,605
979,839,420
5,334,882,298
117,762,834
28,721,515,648
223,472,303,766
10,895,675,521
3,413,685,287
164,934,237
5,404,768,660
537,767,300
243,889,134,771
272,610,650,419
3,248,103,762
623,290,176
93,384,621
1,947,038,162
5,911,816,721
1,359,174,889
9,840,971
1,369,015,860
7,280,832,581
265,329,817,838
272,610,650,419
Notes 2010 Revenues
Members’ contribution
79,272,860,300 Investment and other income
21
27,847,894,686 107,120,754,986 Expenditures
Benefit Payments
22
Retirement
38,226,764,028 Death
27,648,690,657 Maternity
3,634,831,332 Disability
3,362,393,087 Funeral grant
2,488,203,147 Sickness
1,777,593,577 Medical services
35,565,635 Rehabilitation services
115,985 77,174,157,448 Operating Expenses
Personal services
23
5,271,665,639 Maintenance and other operating expenses
24
1,842,745,190 7,114,410,829 Net Revenues
2009
72,350,893,036
22,985,618,802
95,336,511,838
35,126,490,608
25,962,639,582
3,589,163,852
3,253,748,170
2,377,398,534
1,703,782,723
36,651,721
82,815
72,049,958,005
4,730,723,529
2,343,867,852
7,074,591,381
84,288,568,277 79,124,549,386
22,832,186,709 16,211,962,452
Other Comprehensive Income/(loss)
Available-for-sale financial assets
Reclassification adjustments
(6,497,262,229)
(3,869,835,841)
Gain on fair value adjustment
7,555,937,265 27,199,674,473
Revaluation increase - land
-
277,700,739
Settlement of claims for disallowed payments
-
(11,313,834)
1,058,675,036 23,596,225,537
Total Comprehensive Income for the Year
23,890,861,745 39,808,187,989
See accompanying notes to financial statements.
28
29
Statement of
Statement of
Changes in Reserves
Cash Flows
(In Philippine peso)
(In Philippine peso)
Notes
Reserve fund Gain/(loss) on fair
value adjustment
of available for-sale
financial assets Property valuation Contingent Donated reserve surplus property Total reserves
Balance, 1 January 2010
237,458,434,323
26,347,427,214
1,505,523,674
7,040,647
11,391,980 265,329,817,838
Corporate operating budget of
Employees’ Compensation
Commission and Occupational
Safety and Health Center
(125,646,327)
-
-
-
-
(125,646,327)
Total comprehensive income
for the year
22,832,186,709
1,058,675,036 -
-
- 23,890,861,745
BALANCE, 31 DECEMBER 2010
20
260,164,974,705
27,406,102,250
1,505,523,674
7,040,647 11,391,980 289,095,033,256
BALANCE, 31 DECEMBER 2009
20
237,458,434,323
26,347,427,214 1,505,523,674
7,040,647
11,391,980 265,329,817,838
Notes
Cash flows from operating activities
Members’ contribution
Investment and other income
21
Payments to members and beneficiaries
Payments for operations
Operating income before changes in
operating assets and liabilities
(Increase)/decrease in operating assets
Held-for-trading financial assets
Receivables
6
Other operating assets
Increase/(decrease) in operating liabilities
Funds held in trust
Other current liabilities
Net cash generated from operating activities
Cash flows from investing activities
Loan releases and other investment purchases, net
Acquisition of property and equipment, net
10 Acquisition of intangible assets, net
11
Net cash used in investing activities
Cash flows from financing activities
Corporate operating budget of Employees’ Compensation Commission and Occupational Safety and Health Center Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
3
Cash and cash equivalents at end of year
3
2010 2009
79,272,860,300 16,099,119,714 (77,278,979,616)
(7,154,956,505)
72,350,893,036
14,689,520,657
(72,061,527,723)
(6,531,397,668)
10,938,043,893 8,447,488,302
(835,334,809)
(991,909,512)
(458,135,984)
717,013,283
992,815,389
(26,484,820)
154,845,656 1,055,012,999 101,026,873
(568,583,093)
9,862,522,243 9,663,275,934
(11,147,603,134)
(158,721,227)
(47,298,033)
(7,018,112,473)
(408,964,165)
(33,592,244)
(11,353,622,394)
(7,460,668,882)
(125,646,327)
(81,315,097)
(1,616,746,478)
2,121,291,955
8,995,402,491 6,874,110,536
7,378,656,013 8,995,402,491
30
31
Notes to
Financial Statements
(All amounts in Philippine peso unless otherwise stated)
1. REPORTING ENTITY
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.
policies and the reported amounts of assets, liabilities, revenue
and expenses. However, uncertainty about these assumptions
and estimates could result in outcomes that could require a
material adjustment to the carrying amount of the affected
asset or liability in the future
Judgments, estimates and assumptions are continually
evaluated and are based on historical experience and other
factors, including expectations of future events that are believed
to be reasonable under the circumstances.
2.2 New standards, interpretations and amendments to published
standards
a.1 2009 Annual Improvements to PFRS
The Financial Reporting Standards Council (FRSC)
has adopted the Improvements to PFRS 2009. Among
those improvements, only the following amendments
were identified to be relevant but not expected to have
material effects on the financial statements:
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies that have been used in the
preparation of these financial statements are summarized below. These
policies have been consistently applied to all the years presented, unless
otherwise stated.
The amendment clarifies that only an expenditure
that results in a recognized asset can be classified as
a cash flow from investing activities. Presently, the
SSS classified only recognized assets as cash flow
from investing activities.
Equity instruments that are held for trading will be
measured at fair value through profit or loss. For all
other equity investments, an irrevocable election can
be made at initial recognition, to recognize unrealized
and realized fair value gains and losses through other
comprehensive income rather than profit or loss. There
shall be no recycling of fair value gains and losses
to profit or loss. This election may be made on an
instrument-by-instrument basis. Dividends are to be
presented in profit or loss as long as they represent a
return on investment.
While adoption of PFRS 9 is mandatory from 1 January
2013, earlier application is permitted. The SSS is
currently assessing the implications and impact of PFRS
9 and it is not practicable to provide reasonable estimate
of the effect until a detailed review has been completed.
or held for the purpose of selling in the short term or
for which there is a recent pattern of short-term profit
taking.
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.
a. Date of recognition
The SSS initially recognizes loans and receivables and
deposits on the date that they are originated. All other
financial assets are recognized initially on the trade date
at which the SSS becomes a party to the contractual
provisions of the instrument.
d.3Loans and receivables
b. Initial recognition
a.1.2 PAS 17 (Amendment), Leases (effective
1 January 2010)
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 provides an allowance for impairment loss for
5 years and above delinquent member loan accounts. It
adopts the Bangko Sentral ng Pilipinas (BSP) Circulars
210 Series of 1999 and 313 Series of 2001 in identifying
and monitoring problem loans and risk assets and
setting up of allowance for probable losses. BSP outlines
the following rates for the setting up of allowance for
probable losses:
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
2.1 Basis of preparation
a. Statement of compliance
The financial statements of the SSS have been prepared in
accordance with Philippine Financial Reporting Standards
(PFRS), Philippine Accounting Standards (PAS) and Philippine
Interpretations issued by the Financial Reporting Standards
Council (FRSC), where applicable
b.
The amendment clarifies that when a lease includes
both land and building elements, an entity assesses
the classification of each element as finance or
operating lease separately in accordance with the
general guidance on lease classification set out in
PAS 17.
Effective subsequent to 2010 that are relevant to SSS but not
adopted early
b. Basis of measurement
The financial statements have been prepared on the 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 properties are measured at fair value
land under property and equipment are measured at
revalued amount
c. Estimates and judgments
The preparation of the financial statements in confirmity with
PFRS/PAS requires management to make judgements, estimates
and assumptions that affect the application of accounting
32
b.1PFRS 9 Financial Instruments
Issued in November 2009 and amended in October
2010, PFRS 9 introduces new requirements for the
classification and measurement of financial assets and
financial liabilities and for derecognition.
PFRS 9 requires all recognized financial assets that are
within the scope of PAS 39 Financial Instruments:
Recognition and Measurement to be subsequently
measured at amortized cost or fair value. Specifically,
debt investments that are held within a business
model whose objective is to collect the contractual cash
flows and that have contractual cash flows from solely
payments of principal and interest on the principal
outstanding are generally measured at amortized
cost at the end of subsequent accounting periods. All
other debt investments and equity investments are
measured at their fair values at the end of subsequent
accounting periods.
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.2Held-to-maturity financial assets
2.3 Financial assets
a.1.1 PAS 7 (Amendment), Statement of Cash Flows
(effective from 1 January 2010)
The accompanying financial statements were approved and
authorized for issue by the Social Security Commission on 25 May
2011 under its Resolution No. 591-s.2011.
a. Effective in 2010 that are relevant to SSS
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, heldto-maturity financial assets, loans and receivables and
available-for-sale financial assets.
d.1 Financial assets at fair value through profit or loss
Classification
Unclassified
Loans especially mentioned
Substandard
Secured
Unsecured
Doubtful
Loss
Allowances
0%
5%
10%
25%
50%
100%
Financial assets at fair value through profit or loss
consist of held-for-trading financial assets. Held-fortrading financial assets are financial assets acquired
33
Member loan accounts that are subjected to
impairment fall under substandard which is defined
as loans or portions thereof which appear to involve
a substantial and unreasonable degree of risk to
the institution because of unfavorable record or
unsatisfactory characteristics. They are secured/backed
by members’ equity and benefits (i.e. all outstanding
obligations of members at the time of their application
for final claim are being deducted from their claim
proceeds).
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.
2.4 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.
2.5 Supplies and materials
Supplies and materials are valued at cost using the weighted
average method.
34
Investment property account consists of property held to earn
rentals and/or for capital appreciation.
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 straightline 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
Building
/building improvements
10-30 Furniture and equipment
/computer hardware 5-10
Land improvements
10
Transportation equipment
7
Leasehold improvements
10-30
2.6 Investment property
Transfers to or from investment property are made when
there is achange in use, evidenced by:
Construction in progress (CIP) represents building and
building/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.
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.
Building and building improvements have residual value
equivalent to 10% of the acquisition/appraised value while
other items of property and equipment except land have one
peso as their residual value.
2.11 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:
a.Member’s contribution
Revenue is recognized upon collection.
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.
b.Interest income
Revenue is recognized as the interest accrues, taking into
account the effective yield on 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.
Non-current assets held for sale include real and other
properties acquired (ROPA) in settlement of contribution
and member/housing/other 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.
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 straight-line basis over the
lease term.
2.12 Expense recognition
Expenses are recognized in the statement of comprehensive
income upon utilization of the service or at the date they are
incurred.
2.10 Impairment of non-financial assets
2.13 Operating Leases
years
years
years
years (or the term of lease whichever
is shorter)
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.
2.9 Non-current assets held for sale
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.
Life
years
2.8 Intangible assets
2.7 Property and equipment
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.
• commencement of owner-occupation
• end of owner-occupation
• commencement of an operating lease to another party
d.4 Available-for-sale financial assets
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.
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.
The determination of whether an arrangement is, or contains
a lease is based on the substance of the arrangement at
inception date of whether the fulfillment of the arrangement
is dependent on the use of a specific asset or assets and the
arrangement conveys a right to use the asset.
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.
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.
35
3. CASH AND CASH EQUIVALENTS
Cash on hand and in banks
Time and special
savings deposits
8. NON-CURRENT FINANCIAL ASSETS
2010
1,599,637,243 2009
3,313,776,021
5,779,018,770 7,378,656,013 5,681,626,470
8,995,402,491
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.
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 2010, P94 million is being maintained
in several banks for such purpose.
4. HELD-TO-MATURITY INVESTMENTS
2010
2009
Short-term money placements
6,174,075,669 11,270,800,000
Treasury bills
1,223,531,421 2,022,828,605
7,397,607,090 13,293,628,605
Short-term money placements are short-term investments with
original maturities of more than 90 days.
5. HELD-FOR-TRADING FINANCIAL ASSETS
The cost of held-for-trading financial assets as at 31 December 2010
and 2009 are P1,872.51 million and P1,037.17 million, respectively.
6. RECEIVABLES
Collecting banks/agents/
bayad center
Interest receivable
Other receivables
2010
2009
3,483,825,943 2,564,234,272 951,306,392 6,999,366,607 2,435,277,439
2,218,145,921
681,458,938
5,334,882,298
2010
2009
Available-for-sale
financial assets
77,414,883,712 69,294,782,362
Held-to-maturity investments
Notes and bonds
105,676,840,914 82,289,672,152
Accumulated impairment loss
(809,701,706) (884,701,706)
104,867,139,208 81,404,970,446
Loans and receivables
Member loans
43,292,288,927 44,407,118,536
Loan to National
Home Mortgage
Finance Corporation
14,003,355,778 14,990,587,912
Sales contract receivable
5,262,750,215 5,224,529,406
Housing loans
4,620,116,641 4,661,268,782
Loan to Home Development
Mutual Fund
2,739,484,368 3,316,217,919
Commercial and
industrial loans
681,392,501 888,778,261
Loan to other government
agencies
110,086,039 122,198,032
Program MADE
17,219,220 17,219,220
70,726,693,689 73,627,918,068
(2,600,613,796) (855,367,110)
68,126,079,893 72,772,550,958
250,408,102,813 223,472,303,766
Supplies and materials inventory
Prepaid expenses
Advances-officials and employees
Revolving fund
36
2010
77,551,114 5,975,871 4,396,305 1,022,174 88,945,464 2009
107,185,948
5,563,231
3,937,188
1,076,467
117,762,834
Fair value, 01 January 2010
Additions
Cancellation of contract
Disposals
Fair value gain
Fair value, 31 December 2010
Fair value, 31 December 2009
Land 8,109,319,990 - - (140,000,000)
927,585,210 8,896,905,200 8,109,319,990 BuildingDevelopment cost
2,776,758,858 9,596,673 38,588,498 89,165 6,155,510 - (44,076,780)
- 445,109,610 - 3,222,535,696 9,685,838 2,776,758,858 9,596,673 Total
10,895,675,521
38,677,663
6,155,510
(184,076,780)
1,372,694,820
12,129,126,734
10,895,675,521
The costs of investment property as at 31 December 2010 and 2009 stood at P7.58 billion and P7.73 billion, respectively.
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
Gain on sale/disposal
Penalty on rentals
Direct operating expenses
2010
1,372,694,820 458,511,931 63,132,286 2,170,411 2009
186,376,519
394,624,497
5,438,485
1,556,391
1,825,566,052 498,309,719
Furniture and
equipment,
transportation
equipment,
Land, Buildings and
computer
land/building/leasehold
hardware and
improvements
others
Construction
in progress
Total
(70,943,396)
(89,686,173)
10. PROPERTY AND EQUIPMENT
The carrying amount of available-for-sale financial assets is as
follows:
2010
Marketable securities
Cost
49,523,683,085 Unrealized gain
27,406,102,250 76,929,785,335 Ordinary and preference shares
Cost
1,208,710,857 Accumulated impairment loss
(723,612,480)
485,098,377 77,414,883,712 7. OTHER CURRENT ASSETS
9. INVESTMENT PROPERTY
2009
42,462,256,771
26,347,427,214
68,809,683,985
1,208,710,857
(723,612,480)
485,098,377
69,294,782,362
Gross carrying amount
01 January 2010
3,313,599,142 3,735,413,828 22,840,059 Additions
- 140,109,224 26,997,205 Transfers
3,668,690 - (3,499,916)
Retirement/disposals/cancellation
(197,251)
(347,254,759)
- 31 December 2010
3,317,070,581 3,528,268,293 46,337,348 Accumulated depreciation/amortization
01 January 2010
618,739,978 2,982,704,014 - Charge for the period
50,086,759 206,145,469 - Retirement/disposals/cancellation
- (341,473,708)
- 31 December 2010
668,826,737 2,847,375,775 - Accumulated impairment loss
01 January 2010
56,723,750 -
31 December 2010
56,723,750 -
The current portion of held-to-maturity government notes and bonds
as at 31 December 2010 and 2009 are P3.61 billion and P8.20 billion,
respectively.
Using the BSP guidelines in identifying and monitoring problem
loans and risk assets and setting up of allowance for probable losses,
impairment provision amounting to P1.75 billion was recognized in
2010 for 5 years and above delinquent member loan accounts.
Net book value, 31 December 2010
Net book value, 31 December 2009
2,591,520,094 2,638,135,414 680,892,518
752,709,814
46,337,348
22,840,059
7,071,853,029
167,106,429
168,774
(347,452,010)
6,891,676,222
3,601,443,992
256,232,228
(341,473,708)
3,516,202,512
56,723,750
56,723,750
3,318,749,960
3,413,685,287
Land, buildings and building improvements were last revalued in December 2009 by independent valuers. Valuations were made on the basis of
market value.
37
If land, buildings and building improvements were stated on the historical cost basis, the carrying amount would be as follows:
Cost
Accumulated depreciation
2010
1,694,194,129 (548,450,914)
1,145,743,215 13. OTHER NON-CURRENT ASSETS
2009
1,694,222,606
(508,769,669)
1,185,452,937
Lease rentals amounting to P12.63 million and P13.09 million for the year ended 31 December 2010 and 2009, respectively were included in the
statement of comprehensive income.
11. INTANGIBLE ASSETS
Licenses Software
Cost
01 January 2010
291,020,968 138,757,006 Additions
4,239,649 81,672,847 Retirement/disposals/cancellation
(80,596,996)
- 31 December 2010
214,663,621 220,429,853 Accumulated amortization
01 January 2010
29,303,384 39,398,930 Amortization charge for the period
22,988,142 13,572,715 31 December 2010
52,291,526 52,971,645 Accumulated impairment loss
01 January 2010
151,195,023 44,946,400 Retirement/disposals/cancellation
(74,893,896)
- 31 December 2010
76,301,127 44,946,400 Net book value, 31 December 2010
86,070,968 122,511,808 Net book value, 31 December 2009
110,522,561 54,411,676 The carrying amount of intangible assets with indefinite lives as at 31 December 2010 amounted to P36.66 million.
Total
Interest receivable
Advances-fire/MRI/
foreclosure proceedings
Others
165,588,834 (953,811)
164,635,023 909,879,048 (516,149,501)
393,729,547 559,524,623 179,145,923
(953,811)
178,192,112
871,800,363
(516,149,501)
355,650,862
537,767,300
Non-current interest receivable includes those originated from Home
Guaranty Corporation (HGC) guaranteed corporate notes and loan to
National Home Mortgage Finance Corporation (NHMFC) amounting
to P120.44 million and P12.58 billion, respectively.
68,702,314
36,560,857
105,263,171
The Department of Finance is still evaluating HGC’s request to
issue bonds to settle its guaranty obligations with the SSS. HGC
also offered, subject to SSS evaluation, to settle all outstanding
guaranteed obligations through assignment and conveyance of its
acquired assets in various locations.
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 the RA 8282. The Social
Security Commission (SSC), 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.
On 8 March 2010, the SSS returned the P10 million fund to the
Commission on Higher Education (CHEd) through its Chairman
Emmanuel Y. Angeles. The return of the fund was agreed upon during
the 3 February 2010 meeting of the SSS Investments Group with
some members of the LEB led by its Chairman and the representatives
of CHEd. In the said meeting, they agreed that the SSS has no legal
authority to hold the fund since it represents the remaining funds in
the books of CHEd for purposes of LEB’s operational requirements and
does not form part of the LEF.
The Unified Multi-purpose ID (UMID) fund represents amount
provided by the National Statistics Office (NSO), which will be used
to pay all direct and indirect costs of the central verification and
enrollment system for the UMID as well as all costs necessary and
incidental thereto, including all expenses to be incurred related to the
formulation, drafting recommendation and approval of the project
implementation and information campaign plans.
2010
2009
12,708,798,008 12,744,155,258
(12,707,637,955) (12,740,230,932)
1,160,053 3,924,326
429,777,974
85,912,496
(80,596,996)
435,093,474
196,141,423
(74,893,896)
121,247,527
208,582,776
164,934,237
The non-current interest receivable from loan to NHMFC represents
portion of the total restructured loan amount that SSS and NHMFC
have allocated to unpaid interest and penalty as of cut-off date, 31
March 2002, payment of which shall be sourced from the residuals of
the cash flows of the remaining accounts upon full payment of low,
moderate and high delinquency outstanding obligations.
12. NON-CURRENT ASSETS HELD FOR SALE
16. DEFERRED INCOME
14. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Acquired assets/
Land
Building
registered
Carrying amount, 01 January 2010
4,911,924,579 162,287,607 353,478,285 Accumulated impairment loss
(5,356,794)
(15,173,429)
(2,391,588)
Net carrying amount, 01 January 2010
4,906,567,785 147,114,178 351,086,697 Additional/adjustments
381,513,420 - 53,384,496 Disposals
(9,159,558)
(3,384,986)
(55,115,840)
Impairment (loss)/recovery
174,482 (271,889)
Carrying amount, 31 December 2010
5,279,096,129 143,729,192 349,083,464 Carrying amount, 31 December 2009
4,906,567,785 147,114,178 351,086,697 Total
5,427,690,471
(22,921,811)
5,404,768,660
434,897,916
(67,660,384)
(97,407)
5,771,908,785
5,404,768,660
Accounts payable
Accrued expenses 2009
1,986,268,116
1,261,835,646
3,248,103,762
17. OTHER CURRENT LIABILITIES
15. FUNDS HELD IN TRUST
38
2010
2,135,812,426 1,102,569,442 3,238,381,868 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
Unified multi-purpose ID fund
Due to other government units
Supplies and creditors
Dividend - stock investment
loan program
Educational loan fund - DECS
2010
269,057,470 130,020,909 120,522,057 99,392,076 94,043,739 48,020,831 2009
228,026,818
131,980,533
113,877,011
- 86,757,756
35,643,494
Legal education fund
15,501,904 1,576,846 15,501,904
1,497,104
778,135,832 623,290,176
- This account represents advance rental payments from tenants of SSS
property.
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:
2010
Member loan (ML) collection
1,380,694,777 Real estate loan collection
534,281,784 Undistributed collection
428,831,056 ML collection deducted from
benefits payments
330,410,838 OFW collections
265,672,623 Sales contract receivable
61,091,057 Rental receivable
855,145 Employees’ housing loan program
117,227 Express padala
96,654 3,002,051,161 2009
898,748,166
270,324,207
377,824,043
41,705,930
273,012,229
81,741,630
2,809,290
31,163
841,504
1,947,038,162
10,005,556
39
18. ACCRUED RETIREMENT BENEFITS
18.1 Retirement benefits
Retirement benefits are available to qualified employees under
any one of RA 1616, RA 660 and RA 8291.
18.2 Terminal leave benefits
20.2 Actuarial valuation of the reserve fund of the SSS
This represents the cash value of the accumulated vacation and
sick leave credits of employees, 50% of which can be monetized
once a year and the balance payable upon resignation/
retirement.
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 (CYS) 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.
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 2010
and 2009 are as follows:
2010
2009
Retirement benefits/gratuity
673,544,852 677,779,595
Terminal leave pay
621,563,865 593,323,045
Retirement incentive award
89,659,624 88,072,249
1,384,768,341 1,359,174,889
The Social Security Act of 1997 requires the Actuary of the System
to submit a valuation report every four (4) 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.
18.3 Retirement incentive award
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.
19. RENT PAYABLE
This account represents future rent payments for lease contracts
entered by the SSS for its various branches.
20. RESERVES
20.1 Investment reserve fund (IRF)
40
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 IRF which
the 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 the SS Law (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 SS Law 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
investments, 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.
The increase in contribution rate to 10.4%, 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.
The following table presents the 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
Key Projection Results2003 Valuation 2007 Valuation
Original *Updated **
No Across-the- Year Fund Will Last 2031 2036
2039
Board Increase Year Net Revenue
2022 2026
2030
in Pensions
Becomes Negative
21. INVESTMENT AND OTHER INCOME
22. BENEFIT PAYMENTS
2010
2009
Investment income
Income from current
investments
Interest income
452,568,941 1,897,400,081
Dividend income
25,923,712
19,836,699
1,515,595,442
356,796,375
459,704,837
899,084,322
Investments expense
(24,191,069)
(57,424,537)
1,977,032,922 1,218,292,859
2,429,601,863 3,115,692,940
Income from non-current
investments
Available-for-sale
financial assets
Dividend income
3,414,379,491 2,916,145,314
10,066,595,622 6,231,014,237
Investment expense
(1,473,850)
Impairment loss
-
(24,217,590)
13,479,501,263 9,122,941,961
Interest income
7,634,139,077 5,553,592,672
Penalty on overdue amortization
608
3,646
-
166
Investment expense
(604,162)
(566,323)
7,633,535,523 5,553,030,161
Loans and receivable
Interest income
2,908,825,689 2,871,301,566
Penalty on overdue
amortization
807,264,456
713,694,415
Investment expense
(303,060)
(602,887)
Impairment loss
(1,746,332,726)
(4,081,582)
1,969,454,359 3,580,311,512
Investment property
1,825,566,052
498,309,719
27,337,659,060 21,870,286,293
Other income
Interest income from
cash in bank and
cash equivalents
389,047,630
448,511,170
Director’s fee
23,359,055
11,885,142
Non-current assets held for sale
Rental income
35,089,798
12,241,523
86,756,509
117,796,135
Related expense
(5,668,009)
(3,858,714)
Impairment loss
(1,479,330)
(17,150,920)
Reversal of impairment
loss/revaluation decrease
108,710,662
377,533,793
Service fee - salary loan
111,066,521
134,739,300
Others-net
(236,647,210)
33,635,080
510,235,626 1,115,332,509
Total investment and
other income
27,847,894,686 22,985,618,802
This account represents payments to members and their beneficiaries
in the event of disability, sickness, maternity, old age, death and other
contingencies resulting in loss of income or financial burden.
23. PERSONAL SERVICES
Salaries and wages
Madatory contributions
Incentive award
Bonus and rice grant
Allowances
Other personal services
Terminal leave pay
2010
2,207,761,858
1,178,847,346
749,088,274
506,303,033
352,977,335
157,514,093
119,173,700
5,271,665,639
2009
2,042,390,245
985,359,489
743,792,358
465,204,453
226,048,594
139,666,890
128,261,500
4,730,723,529
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
Other operating expenses
Depreciation
/amortization expense
Maintenance and repairs building/leased offices
Light and water
Maintenance and repairs furniture and equipment
Service bureau expenses
Office space rentals
Communication expenses
Supplies and materials
COA audit services
Maintenance and repairs transportation equipment
Special Project
Impairment loss -
operating assets
2010
338,871,378
2009
415,053,615
292,793,085
223,998,558
280,436,866
178,527,241
275,404,010
143,671,599
164,366,293
138,001,528
128,000,180
127,171,098
106,884,216
37,843,695
227,988,659
378,396,095
124,087,159
135,151,280
121,470,027
36,753,557
24,935,126
24,914,484
22,845,061
42,906,809
-
196,141,423
1,842,745,190
2,343,867,852
* As published in the 2003 Actuarial Valuation Report
** Updated results after the increase in contribution rate to 10.4% in January 2007 and the 10% across-the-board pension increases in 2006 and 2007
41
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.
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.
26. FINANCIAL RISK MANAGEMENT
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 the RA 8282 and compliance
to the investment procedures. Internal controls are also in place and
comprehensive audit is being done by Internal Audit Services.
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.
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.
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 the
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
42
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.
b. Stockbroker transactions, allocations and limits
b.1 Total daily transactions, excluding block transactions, per
stockbroker shall not exceed 50% of stockbroker capitalization/
stockholder’s equity, whichever is lower.
26.1 Interest rate risk
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.
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.
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 the RA 8282.
The following table shows the latest aging analysis of some financial assets:
2010
Past due but not impaired (Age in months)
Neither
past due
nor
impaired 3-12
13-36 37-48
49-60
Over 60 ExpiredImpaired
Total
(In Millions)
3,331
-
-
-
-
-
-
-
3,331
77,415
-
-
-
-
-
-
723
78,138
6,174
-
-
-
-
-
-
-
Treasury bills
1,224
-
-
-
-
-
-
-
Corporate notes and bonds
12,349
-
-
-
-
-
-
810
Government notes and bonds
92,518
-
-
-
-
-
-
-
6,174
1,224
13,159
92,518
National Home Mortgage Finance Corporation 13,867
-
-
-
-
136 14,003
Home Development Mutual Fund
2,739
-
-
-
-
2,739
Commercial and industrial loans
602
-
-
-
2
8
4
65
681
Program MADE
17
17
Other government agencies
110
-
-
-
-
-
-
-
110
Investment property
87
4
1
-
-
-
-
-
92
285
140
117
30
17
35
11
-
635
4,535
-
-
-
-
-
-
-
4,535
Employee housing loan program
421
4
1
-
-
2
-
2
430
215,657
148
119
30
19
45
15
1,753 217,786
2009 Restated
Past due but not impaired (Age in months)
Neither
past due
nor
impaired 3-12
13-36 37-48
49-60
Over 60 ExpiredImpaired
Total
(In Millions)
980
-
-
-
-
-
-
-
980
69,295
-
-
-
-
-
-
723
70,018
11,271
-
-
-
-
-
-
-
Treasury bills
2,023
-
-
-
-
-
-
-
Corporate notes and bonds
12,665
-
-
-
-
-
-
885
Government notes and bonds
68,740
-
-
-
-
-
-
-
11,271
2,023
13,550
68,740
National Home Mortgage Finance Corporation 14,855
-
-
-
-
-
-
136 14,991
Home Development Mutual Fund
3,316
-
-
-
-
-
-
-
3,316
Commercial and industrial loans
808
1
-
2
4
9
-
65
889
Program MADE
-
-
-
-
-
-
-
17
17
Other government agencies
122
-
-
-
-
-
-
-
122
Investment property
84
4
1
-
-
-
-
-
89
292
162
90
17
13
17
9
-
600
4,535
-
-
-
-
-
-
-
4,535
Employee housing loan program
345
1
-
-
-
-
-
7
353
189,331
168
91
19
17
26
9
1,833 191,494
43
Internal
26.3 Liquidity risk
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. Set-up and delivery of various deliverables shall be
made within 90 days from signing of the agreement.
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.
c. Data capture
27. OTHER MATTERS
27.1 Commitments
Amount authorized but not yet disbursed for capital expenditures
as of 31 December 2010 is approximately P734.53 million.
27.2 Unified Multi-purpose ID (UMID)
a. Central verification system
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
(GOCCs) towards a unified multi-purpose ID system, the SSS
signed a Memorandum of Understanding (MOU) with National
Statistics Office (NSO) on 9 September 2009. In pursuance to the
objectives of the UMID, the parties 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 who in turn shall allocate a
total amount of P650 million to fund the project. Implementation
shall commence upon execution of the MOU and shall end upon
the complete turnover of the system from the SSS to the NSO.
Relative thereto, the SSS signed an Agreement with winning
bidder A LAMCO-EUROLINK JOINT VENTURE (LAMCO) on 6 May
2010. The agreement covers the supply, delivery and installation of
the central verification system (CVS) with a total contract price of
P279.97 million to be delivered within 90 days from signing of the
agreement.
An Advice of Complete Installation for SSS CVS Project was provided
by LAMCO last 24 August 2010. This gave SSS thirty (30) calendar
days within which to conduct Inspection and Acceptance Testing.
As of December 2010, the testing of the project in accordance with
the criteria described in the Agreement as well as the Acceptance
Test based on mutually agreed test procedures and parameters
were still on-going.
44
After an open and competitive bidding, 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 on 14 December
2009. The agreement with a total contract price of P1.69 billion
The SSS signed a Memorandum of Agreement (MOA) with
Philippine Postal Corporation (PhilPost) on 12 May 2010 for the
outsourcing of the data capture and enrollment component
of the UMID project with an estimated cost of P1.26 billion
through Negotiated Procurement. Under the agreement, PhilPost
shall provide SSS with a biometric data services facility that will
capture biometric or demographic data to be used by the SSS in
the issuance of UMID-compliant ID cards to its members. This
shall include SSS members and applicants whose biometric data
have not yet been previously captured and/or whose data need
to be updated. PhilPost shall likewise deploy such data capture
workstations, personnel and other resources so as to adequately
service the enrollment capture/update needs of SSS ID cards
applicants and holders. The MOA shall be effective for a period of 5
years unless extended in writing by mutual agreement of SSS and
PhilPost.
As of December 2010, PhilPost has set-up for testing purposes
a data capture workstation in Diliman Branch. This is to ensure
that the output with respect to the fingerprint, signature
and demographic data are compliant with the requirements,
specifications, terms and conditions provided for in the Terms of
Reference found in the Agreement.
27.3 Tax compliance
The amount of taxes withheld (net of adjustments) for the year
2010 amounted to as follows:
Internal Audit Service considers total member satisfaction as the most important gauge of the performance of SSS instead of
figures that signify improved collections and maximum investment yields. Determining client satisfaction, however, is not an easy
task as members have different standards in terms of service delivery. In this vein, we choose carefully each audit project by having
in mind the welfare of members and making sure that what we do redounds ultimately to their benefit.
Based on the completed and submitted audit reports for 2010, hereunder are the most significant observations:
1)Opening tellering SSS in branches is a clear strategy designed to afford members the convenience to pay their contributions
and loan amortizations. However, vital requirements should not be compromised for the sake of convenience. The security and
safety of the funds and personnel are paramount considerations in the decision to open a tellering branch. Hence, it requires a
standard layout with all the necessary facilities to prevent incidents resulting in the loss of funds. Clear policy guidelines and
comprehensive operating procedures are also a prerequisite.
2)The examination of the records of the National Home Mortgage and Finance Corporation (NHMFC) not only conforms with the
provisions of the Restructuring Agreement between SSS and NHMFC, but also runs parallel to the legal mandate of ensuring
prudent management of SSS investments. The SSS Lock box account was opened exclusively for the deposit of collections from the
Unified Home Lending Program and for the payment of management fees and necessary expenses. Audit covered transactions
in 2004 and 2005. The positive outcome of this project is that both management and NHMFC committed to institutionalize
mechanism for the periodic reconciliation of records.
3)The Accounts Monitoring System (AMS) is an automated system design to facilitate management of employers contributions
delinquency. However, the technology has yet to be fully utilized by the intended users due to perceived hitches. Audit has proven
that while there are some deficiencies in AMS most of the major functionalities are available and working. IAS is convinced that
the AMS is an effective tool in monitoring employer delinquency.
4)In 2011, IAS will channel its energy back to the basics. Convinced that the new management will not give any stone unturned as
far as improving corporate governance and operating systems are concerned, IAS will perform its role with even more enthusiasm.
After all, customer satisfaction is what drives IAS to perform beyond limits and play a crucial role in the attainment of corporate
goals.
Income taxes withheld on compensation 583,621,430.68
Value added tax 83,664,319.54
Expanded withholding tax 60,978,852.88
728,264,603.10
b. Card production
As of September 2010, 290 units contactless card readers were
delivered and paid for in the amount of P2.32 million. However, the
local card production facility that should have been set-up is still
not compliant with the following requirements: (1) submission of
permit to operate generator set and other mechanical equipment
and (2) dedicated 24/7 data communication line between the
facility and SSS CMS.
Auditor’s Report
Income taxes withheld on compensation and expanded
withholding tax are remitted on or before the 15th day of the
following month except those withheld for the month of December
which should be remitted on or before the 20th day of January of
the following year. On the other hand, value added taxes withheld
are remitted on or before the 10th day of the following month. Of
the total taxes withheld by SSS, P670,620,317.97 was remitted to
the Bureau of Internal Revenue (BIR) in 2010, while the balance of
P57,644,285.13 was remitted in 2011.
ANTONETTE L. FERNANDEZ
Assistant Vice President
45
Historical Data
SSS GROWTH OF ASSETS, RESERVES & INVESTMENTS
SSS Coverage and PersonNel FORCE
FOR THE YEAR*
YEAR
W
E
1959
24,719 1,211 1969
243,857 5,063 1979
612,712 11,909 1989
704,665 30,358 1999
1,152,049 25,894 2000
1,304,866 26,868 2001
901,834 33,124 2002
775,367 34,733 2003
743,201 34,535 2004
615,152 32,236 2005
561,250 23,161 2006
511,646 23,792 2007
501,938 21,572 2008
518,348 27,020 2009
458,364 20,036 2010
548,191 29,367 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 28,766,123 AS OF DECEMBER 31
E
10,956 88,064 221,000 327,354 573,314 600,182 633,306 668,039 702,574 734,810 757,971 781,763 803,335 830,355 850,391 879,758 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 4,905 5,143 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 5,753 173 5,593 171
* net of termination
** regular SSS employees only
Worker (W), Employer (E), SSS Personnel (P)
CONSOLIDATED GROWTH OF ASSETS, RESERVES & INVESTMENTS
Year
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
AMT
68.2 963.2 7,258.2 48,200.9 176,875.1 181,741.0 163,113.6 162,606.4 170,875.3 179,084.1 199,713.2 228,444.5 247,737.2 233,122.2 272,610.7 297,591.3 ASSETS
% INC / (DEC)
67.6 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 9.2 RESERVESINVESTMENTS
AMT
% INC/ (DEC)
AMT
% INC / (DEC)
66.2 953.7 1,310.3 919.7 1,288.9 7,142.6 648.9 7,098.2 671.8 47,693.6 567.7 46,944.2 561.4 165,820.6 247.7 168,336.8 258.6 170,408.7 2.8 166,183.1 (1.3)
161,234.3 (5.4)
151,015.0 (9.1)
159,547.7 (1.0)
149,211.0 (1.2)
168,137.3 5.4 155,939.7 4.5 176,386.1 4.9 160,500.4 2.9 196,287.5 11.3 181,775.4 13.3 224,995.9 14.6 205,225.5 12.9 243,016.7 8.0 225,565.3 9.9 225,602.9 (7.2)
211,355.2 (6.3)
265,329.8 17.6 248,641.4 17.6 289,095.0 9.0 273,265.6 9.9
CONSOLIDATED PROGRESS OF OPERATIONS
Year
Contributions
1957 - 1959
72.5 1960 - 1969
959.9 1970 - 1979
5,599.3
1980 - 1989
25,114.6
1990 - 1999
158,632.2
2000
30,320.5
2001
31,371.8
2002
34,187.7 2003
39,420.4 2004
43,935.8 2005
47,483.4 2006
52,543.6 2007
61,829.1 2008
68,879.3 2009
72,350.9 2010
79,272.9 Investment and
Other Income
Benefits
4.0 2.8 232.3 187.9 2,677.9
1,584.0
32,879.0
15,791.1
139,020.1
158,355.9
12,341.1
33,889.2
14,238.9
39,015.0
11,705.0 40,871.6 12,763.1 42,806.4 8,853.3 44,882.5 12,316.3 46,269.8 12,107.9 52,122.0 17,870.0 60,746.6 29,089.0 67,917.4 22,985.6 72,050.0 27,847.9 77,174.2 * Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC
46
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 *
7,114.4 *
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
22,832.2
Year
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
ASSETS
AMT
% INC / (DEC)
68.2 963.2 1,312.3 6,750.7 600.9 42,974.2 536.6 159,688.2 271.6 163,325.7 2.3 144,823.8 (11.3)
143,098.5 (1.2)
150,618.9 5.3 158,007.4 4.9 177,719.6 12.5 205,878.6 15.8 224,928.6 9.3 209,535.8 (6.8)
247,891.3 18.3 271,267.5 9.4 RESERVESINVESTMENTS
AMT
% INC / (DEC)
AMT
% INC / (DEC)
67.6 66.2
953.7 1,310.8 919.7 1,289.3
6,641.6 596.4 6,608.6 618.6 42,466.9 539.4 41,781.2 532.2 148,633.8 250.0 151,801.8 263.3 152,002.7 2.3 149,226.1 (1.7)
141,957.2 (6.6)
134,521.0 (9.9)
139,660.0 (1.6)
130,967.2 (2.6)
147,730.9 5.8 138,909.2 6.1 155,159.4 5.0 143,304.7 3.2 174,144.2 12.2 166,535.0 16.2 202,316.0 16.2 187,759.5 12.7 220,097.1 8.8 211,167.9 12.5 201,907.9 (8.3)
192,663.2 (8.8)
240,502.0 19.1 228,919.5 18.8 262,663.2 9.2 252,630.6 10.4
SSS Progress of Operations
Investment and
Year
Contributions
Other Income
Benefits
1957 - 1959
72.5 4.0 2.8 1960 - 1969
959.9 232.3 187.9 1970 - 1979
5,122.3 2,573.0 1,511.8 1980 - 1989
23,081.0 29,353.0 15,058.7 1990 - 1999
154,417.9 123,034.2 152,474.4 2000
29,885.5 10,217.3 32,735.1 2001
30,912.0 12,390.1 37,813.5 2002
33,702.1 9,901.2 39,566.3 2003
38,634.7 11,694.6 41,622.9 2004
43,083.6 7,530.1 43,743.3 2005
46,714.9 10,872.9 45,180.8 2006
51,633.4 10,953.0 51,051.6 2007
60,769.5 17,117.8 59,665.4 2008
67,668.2 27,848.4 66,820.3 2009
71,166.9 21,988.3 70,963.9 2010
77,957.0 27,016.4 76,088.1 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 7,014.1 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
21,871.2
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND GROWTH OF ASSETS, RESERVES & INVESTMENTS
Year
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
ASSETS
AMT
% INC / (DEC)
507.5 5,226.7 929.8 17,186.9 228.8 18,415.3 7.1 19,303.0 4.8 19,508.0 1.1 20,406.4 4.6 21,226.7 4.0 22,143.3 4.3 22,679.9 2.4 22,919.6 1.1 23,695.1 3.4 24,827.9 4.8 26,431.8 6.5 RESERVESINVESTMENTS
AMT
% INC / (DEC)
AMT
% INC / (DEC)
501.0 489.6 5,226.7 943.2 5,163.0 954.6 17,186.8 228.8 16,535.0 220.3 18,406.0 7.1 16,956.9 2.6 19,277.1 4.7 16,494.0 (2.7)
19,887.7 3.2 18,243.8 10.6 20,406.4 2.6 17,030.5 (6.7)
21,226.7 4.0 17,195.7 1.0 22,143.3 4.3 15,240.4 (11.4)
22,679.9 2.4 17,466.1 14.6 22,919.6 1.1 14,397.4 (17.6)
23,695.1 3.4 18,692.0 29.8 24,827.9 4.8 19,721.9 5.5 26,431.8 6.5 20,635.0 4.6
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND PROGRESS OF OPERATIONS
Investment and
Year
Contributions
Other Income
Benefits
1975 - 1979
477.0 104.9 72.2 1980 - 1989
2,033.6 3,526.0 732.3 1990 - 1999
4,214.3 15,985.9 5,881.6 2000
435.0 2,123.9 1,154.1 2001
459.8 1,848.8 1,201.5 2002
485.6 1,803.8 1,305.3 2003
785.7 1,068.5 1,183.5 2004
852.2 1,323.2 1,139.2 2005
887.1 1,444.4 1,089.0 2006
910.2 1,154.9 1,070.4 2007
1,059.6 752.2 1,081.2 2008
1,211.1 1,240.6 1,097.0 2009
1,183.9 997.3 1,086.0 2010
1,315.9 831.5 1,086.0 * Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC
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 *
100.3 *
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
961.0
47
SOCIAL SECURITY COMMISSION
From Left to Right: Com. Marianita O. Mendoza, Com. Daniel L. Edralin, Com. Eliza Bettina R. Antonino,
President and CEO and Vice Chairman Emilio S. De Quiros, Jr., Chairman Juan B. Santos, Secretary of Labor and
Com. Rosalinda Dimapilis-Baldoz, Com. Diana Pardo-Aguilar, Com. Bienvenido E. Laguesma, Com. Ibarra A. Malonzo
48
49
50
OFFICES UNDER PRESIDENT AND CEO
corporate serviceS sector
From Left to Right: (top photo) President and CEO Emilio S. de Quiros, Jr., VP Marissu G. Bugante, Special
Assistant to the President and CEO Edmund P. Lee, Department Manager 3 Joselito A. Vivit,
Special Assistant to the President and CEO Maria Lourdes N. Mendoza, AVP Santiago Dionisio R. Agdeppa,
and SVP Amador M. Monteiro
From Left to Right: (top photo) VP Nicholas C. Balbuena, VP Alfredo S. Villasanta, AVP Hidelza B. Castillo,
AVP Renato N. Malto, AVP Elvira G. Alcantara-Resare, SVP Miguel E. Roca, Jr.
From Left to Right: (bottom photo) AVP Joel P. Palacios, AVP Antonette L. Fernandez, CEO V Juanita L. Reyes,
VP Rizaldy T. Capulong, and VP May Catherine C. Ciriaco
From Left to Right: (bottom photo) VP Gwen Marie Judy D. Samontina, VP Antonio G. Maralit, VP Jesse J. Caberoy,
AVP Daisy S. Real, AVP Johnsy L. Mangundayao
51
SSC CHAIRMAN, SSS PRESIDENT & CEO AND SECRETARY TO THE COMMISSION
From Left to Right: AVP Renato M. Custodio, Vice Chairman Emilio S. De Quiros, Jr.,
Chairman Juan B. Santos, VP Milagros M. Pagayatan
PRESIDENT & CEO AND PROGRAM MANAGEMENT GROUP
From Left to Right: VP Mario R. Sibucao, AVP Leticia B. Ong, President and CEO Emilio S. de Quiros, Jr.,
SVP Judy Frances A. See, VP Antonio S. Argabioso, VP Agnes E. San Jose
52
INVESTMENTS SECTOR
From Left to Right: OIC Emmanuel A. Trinidad, AVP Ma. Luz C. Generoso, AVP Mariano Pablo S. Tolentino,
EVP Edgar B. Solilapsi, AVP Lilia S. Marquez, VP Rizaldy T. Capulong, VP Gamelin Z. Oczon
BRANCH OPERATIONS SECTOR - NATIONAL CAPITAL REGION OPERATIONS
GROUP AND OFFICES UNDER EVP BOS
From Left to Right: AVP Alberto C. Alburo, AVP Vicente A. Curimao, AVP Josie G. Magana,
EVP and Chief Actuary Horacio T. Templo, AVP Consolacion M. Cancio, VP Naciancino L. Monreal,
Special Assistant to the Executive Officer BOS Reynaldo C. Oriel
53
SSC & SSS
Management Directory
SOCIAL SECURITY COMMISSION
JUAN B. SANTOS
Chairman
Vice-Chairman
DIANA PARDO-AGUILAR
DANIEL L. EDRALIN
ELIZA BETTINA R. ANTONINO
BIENVENIDO E. LAGUESMA
MARIANITA O. MENDOZA
IBARRA A. MALONZO
ROSALINDA D. BALDOZ
Members
SSS MANAGEMENT
LEO CALIXTO C. ABAYON
Network and Communications
Department
GUILLERMO M. URBANO, JR.*
Investments Research and Support
Department
LUZVIMINDA J. LIMCAUCO
Binondo Branch
ROBERTO B. BAUTISTA
International Affairs Department
CECILIA S. ROA*
Contributions Accounting Department
AUREA G. BAY
Office of the EVP for Branch Operations
Sector
MA. SALOME E. ROMANO
Information Systems Security
Department
MARILOU M. BETIC
Investments Accounting Department
NESTOR R. SACAYAN
Engineering and Maintenance
Department
SANTIAGO DIONISIO R. AGDEPPA
Operations Legal Department
ALBERTO C. ALBURO
NCR Central Division
ELVIRA G. ALCANTARA-RESARE
Financial and Budget Division
CONSOLACION M. CANCIO
NCR South Division
RENATO M. CUSTODIO
Commission Legal Department - I
REGINALD G. CANDELARIA*
Equities Department
EXECUTIVE VICE PRESIDENT
AIDA V. DELOS SANTOS
Luzon South Division
ELEONORA Y. CINCO
Quality Management Department
NILO D. DESPUIG
Bicol Division
ROSA T. CRISOSTOMO
Planning and Standards Department
ANTONETTE L. FERNANDEZ
Internal Audit Services Division
GLORIA Y. CUISIA
Branch Evaluation Department
RODRIGO B. FILOTEO
Western Mindanao Division
EDDIE A. JARA
Visayas and Mindanao Operations Group
AMADOR M. MONTEIRO
Chief Legal Counsel
MIGUEL E. ROCA, JR.
Information Technology Management
Group
JUDY FRANCES A. SEE
Program Management Group
VICE PRESIDENT & EQUIVALENT RANK
ANTONIO S. ARGABIOSO
Coverage and Collection Program
Management Division
NICHOLAS C. BALBUENA
Computer Operations Division
MARISSU G. BUGANTE
Public Affairs and Special Events Division
JESSE J. CABEROY
Human Resource Management Division
RIZALDY T. CAPULONG
Capital Market Division/Actuarial
Department and concurrent Deputy
Chief Actuary
MAY CATHERINE C. CIRIACO
Management Services and Planning
Division
ANTONIO G. MARALIT
Planning and Research Division
MARIA LOURDES N. MENDOZA
Office of the President and CEO
NACIANCINO L. MONREAL
NCR Operations Group
GAMELIN Z. OCZON
Treasury Division
MILAGROS M. PAGAYATAN
Office of the Commission Secretary
GWEN MARIE JUDY D. SAMONTINA
Technical Support Division
54
VILMA P. AGAPITO
Luzon Central Division
President and Chief Executive Officer
JOSE B. BAUTISTA
Luzon Operations Group
From Left to Right: AVP Emmanuel R. Palma, AVP Helen C. Solito, AVP Rodrigo B. Filoteo, EVP and
Chief Actuary Horacio T. Templo, SVP Eddie A. Jara, AVP Josefina O. Fornilos, AVP Manolito C. Tagalog
AMELIA A. GUILLERMO
Welcome Branch
HIDELZA B. CASTILLO
Application Systems Division
SENIOR VICE PRESIDENT
BRANCH OPERATIONS SECTOR – VISAYAS AND MINDANAO OPERATIONS GROUP
HYDEE R. RAQUID
Support Services Audit Department
PRESIDENT and CEO
HORACIO T. TEMPLO
Branch Operations Sector
From Left to Right: EVP and Chief Actuary Horacio T. Templo, AVP Aida V. Delos Santos, SVP Jose B. Bautista,
Cluster Head Vilma P. Agapito, Cluster Head Nilo D. Despuig, AVP Luis V. Olais
DEPARTMENT HEAD AND OFFICER-INCHARGE
FELIPE R. CABAÑERO
Computer Resource Management
Department
EDGAR B. SOLILAPSI
Investments Sector
BRANCH OPERATIONS SECTOR - LUZON OPERATIONS GROUP
ASSISTANT VICE PRESIDENT, DIVISION
HEAD AND EQUIVALENT RANK
AGNES E. SAN JOSE
Benefits Program Management Division
MARIO R. SIBUCAO
Service Delivery Program Management
Department
ADELINA A. LIQUE
Malabon Branch
MA. LUZ N. BARROS-MAGSINO
Manila YMCA Branch
PRISCILA F. MARALIT
Cainta Branch
FELIZARDO B. MINOR, JR.
San Mateo Branch
JOSE ANTONIO L. SALAZAR
ID Card Production Department
FERNANDO O. NICOLAS*
Marikina Branch
CARMEN O. SORIANO
Management Support Services
Department
NCR SOUTH DIVISION
SYLVETTE C. SYBICO
Foreign Branch Expansion and
Monitoring Department
SONIA C. ABRERA
Makati-Gil Puyat Branch
HELEN L. ABOLENCIA
San Juan Branch
MARISSA L. TIZON
Human Resource Services Department
MARIA RITA S. AGUJA
Makati Ayala Branch
CELSO C. CUNANAN
Data Center Operations Department
ARNOLD A. TOLENTINO
Management Information Services
Department
TERESITA L. ARAOS
Pasay-Roxas Boulevard Branch
JOSEFINA O. FORNILOS
Northern Mindanao Division
ELPIDIO S. DE CHAVEZ
Branch Support Services Department
IKE A. TUBIO
Fraud Investigation Department
MA. LUZ C. GENEROSO
Housing Department
MARIE ADA ANGELIQUE T. DE SILVA
Member Loans Program Management
Department
JOY A. VILLACORTA
Overseas Filipino Workers Program
Management Department
EUGENIA D. DELA CRUZ
Member Relations Department
MARIVIC S. VILLARAMA
Enterprise Systems Support Department
NORMITA M. DOCTOR
Sickness, Maternity and Disability
Program Management Department
ANITA A. VILLENA
Office Services Department
EDMUND D. LEE
JOSIE G. MAGANA
NCR North Division
RENATO N. MALTO
Records and Information Management
Department
JOHNSY L. MANGUNDAYAO
Operations Accounting Division
LILIA S. MARQUEZ
Corporate Bonds and Loans Department
LUIS V. OLAIS
Luzon North Division
LETICIA B. ONG
Medical Program Management
Department
REYNALDO C. ORIEL
Office of the EVP for Branch Operation
Sector
JOEL P. PALACIOS
Media Affairs Department
EMMANUEL R. PALMA
Southern Mindanao Division
DAISY S. REAL
Human Resource Staffing and
Development Department
JUANITA L. REYES
HELEN C. SOLITO
Central Visayas Division
MANOLITO C. TAGALOG
Western Visayas Division
MARIANO PABLO S. TOLENTINO
Asset Management Department
EMMANUEL A. TRINIDAD*
Cash Department
BELINDA B. ELLA
General Accounting Department
JOCELYN M. EVANGELISTA
Branch Operations Audit Department
ROGELIO A. FUNTELAR
Front-End IT Support Department
JEAN V. LAGRADA
Budget Department
BRANCH HEAD/OFFICER-IN-CHARGE
NATIONAL CAPITAL REGION (NCR)
OPERATIONS GROUP
NCR CENTRAL DIVISION
SONIA P. GUINTO*
Corporate Communications Department
ARTHUR O. ABARY
Novaliches Branch
ROSALINA C. MANANSALA
Collection Data Processing and
Reconciliation Department
JOCELYN Q. GARCIA
San Francisco Del Monte Branch
MARY ANN R. MANDAP
Commission Secretariat Department
NORA M. MERCADO
Self-Employed and Voluntary Member
Program Management Department
VAN RENE M. ORPILLA
Applications Development and
Maintenance Department - I
ALAN GENE O. PADILLA
Maintenance Department - III
VENUS D. PASCUAL
Branch Accounting Department
FAUSTINO P. PICONES*
Technology Research Department
VICTORIA A. POQUIZ
Health Care Department
DAMIANA A. QUEZON
Maintenance Department - II
JOSEFINA EDITA F. MATA
Commonwealth Branch
ELIZABETH C. REYES
Diliman Branch
LORELEI B. SOLIDUM
Cubao Branch
NCR NORTH DIVISION
CYNTHIA O. BARCELON
Pasig Shaw Branch
AVELINA M. BAUTISTA
Valenzuela Branch
VIRGINIA F. CALASAHAN
Pasig Palatiw Branch
MILAGROS N. CASUGA
Kalookan Branch
ZARA M. DIZON
Legarda Branch
BERLITA F. FABRERO
Antipolo Branch
LETICIA G. BARBERS
Alabang Branch
RHODORA G. BONITA
Pasay-Taft Branch
MA. LOURDES T. FLORES
Makati JP Rizal Branch
CRISTINE GRACE B. FRANCISCO
Parañaque Branch
FE MARIE F. GERALDO
Taguig Branch
LIBERTY A. GORDOVEZ*
San Juan Branch
MARCIANA A. MARQUEZ
Mandaluyong Branch
AMALIA N. TOLENTINO
Las Piñas Branch
LUZON OPERATIONS GROUP
LUZON NORTH DIVISION
JOSEPHINE C. ABRIL
La Union Branch
ESTRELLA R. ARAGON
Cauayan Branch
PORFIRIO M. BALATICO
Tuguegarao Branch
JANET D. CANILLAS
Vigan Branch
BENEDICTA B. GARCIA
Bangued Branch
BENJAMIN R. LOPEZ
Baguio Branch
ROMEO E. REYES
Santiago, Isabela Branch
PAULINA YG. SANTOS*
Solano Branch
NANCY M. UMOSO
Laoag Branch
ABELARDO C. YOGYOG
Bontoc Branch
JOSELITO A. VIVIT
Corporate Legal Department
ALFREDO S. VILLASANTA
General Services Division
*Officer-in-Charge
55
LUZON CENTRAL DIVISION
JOSE ALVIN M. ALTRE
Urdaneta Branch
SIMPLICIA M. BANIAGO
Malolos Branch
MARILOU M. SANTOS*
Iba Branch
NORMITA M. CRUZ
Mariveles-BEPZ Branch
FELICITAS A. DEMANDANTE
Sagay Branch
MARINA PAULINA G. PANTE
Infanta Branch
REYNALDO V. ESPINOSA
Roxas Branch
ANTONIO V. SORIANO
Biñan Branch
SOCORRO B. FERRER
Kabankalan Branch
WENCESLAO G. VIRTUCIO, JR.
San Pablo Branch
JANE T. GARGOLES
Victorias Branch
JAIME S. CASUMPANG
Basilan Branch
BICOL DIVISION
VICTOR M. NICOR
Bago City Branch
RUDY M. LACANDALO
Ipil Branch
ESTEBAN L. PANES, JR.
San Jose, Antique Branch
GODOFREDO M. MARTINEZ
Dipolog Branch
EMILIA B. SOLINAP
San Carlos Branch
FERDAUSI A. SALASA
Jolo Branch
IRENEO T. VILLAFLOR
Dumaguete Branch
SSS FOREIGN REPRESENTATIVE OFFICES
MARITES A. DALOPE
Sta. Maria Branch
NILO D. ALMOSERA
Masbate Branch
PABLITA A. DAVID
Meycauayan Branch
DIVINA T. AVILA
Virac Branch
CORITA M. GADUANG
Pampanga Branch
ALBERTO R. BONAFE, JR.
Sorsogon Branch
ELIZABETH R. GARCIA
Balanga Branch
ANTONIO A. CASIMIRO
Tabaco Branch
ROLANDO C. MENDOZA
Baler Branch
WESTERN MINDANAO DIVISION
JAMES B. BUCKLY
Pagadian Branch
ELIZABETH G. CABATINGAN
Zamboanga Branch
NORTHERN MINDANAO DIVISION
FOREIGN BRANCH EXPANSION
MONITORING DEPARTMENT & POEA
BEATRIZ C. GUMABAO
Goa Branch
EDWIN M. ALO
Cagayan de Oro Branch
SONIA A. DOMINGO
SSS POEA Office
MARIA MAXIMA C. MACARAEG
Olongapo Branch
CLARIBEL L. REBUENO
Naga Branch
PERKINS B. CALIXTRO
Camiguin Branch
ASIA & PACIFIC
ALBINA LEAH C. MANAHAN
Baliuag Branch
ELENITA S. SAMBLERO
Legaspi Branch
BENIGNO J. DAGANI, JR.
Surigao Branch
LAURA M. MARIANO
Angeles Branch
VIRGILIO A. SANTIAGO
Daet Branch
ANTONIO G. FABIA
Valencia Branch
NARCISO M. MARTINEZ, JR.
Alaminos Branch
PRISCO S. SORSONA
Iriga Branch
ANNA PEARL J. FUENTES
Ozamis Branch
MONALISA C. NARDO
Camiling Branch
VISAYAS AND MINDANAO OPERATIONS
GROUP
JOSE ROEL J. HERBIETO
Oroquieta Branch
CEASAR P. SALUDO
Dagupan Branch
CENTRAL VISAYAS DIVISION
MA. RAINE L. JAMERO
Butuan Branch
MARILOU M. SANTOS*
Iba Branch
GUILLERMO S. TARUC
Tarlac Branch
GEMMA C. CABERTE
Ormoc Branch
LILIBETH A. CAJUCOM
Tacloban Branch
LUZON SOUTH DIVISION
NICETA M. CARRETAS
Cabalogan Branch
JESREL H. ANCHETA
Boac Branch
ERIC A. CORONADO
Toledo Branch
GREGORIO P. ASENDIDO
Calapan Branch
MARIO V. CORRO
Cebu Branch
SANTISIMA ROSARIO C. BAAC
Puerto Princesa, Palawan Branch
MAGDALENA H. DINCILLO*
Mandaue Branch
CORAZON L. BALAGBIS
Batangas Branch
RODRIGO B. GREGANA
Maasin Branch
VICTORINA G. CARLOS
Tagaytay Branch
ALBERTO L. MONTALBO
Lapu-Lapu Branch
VIRGINIA S. CRUZ
Bacoor Branch
BENJAMIN A. POMBO
Calbayog Branch
JOSEPHINE S. HIPOLITO
Sta. Cruz Branch
MARINO B. TALICTIC
Tagbilaran Branch
NELSON P. IBARRA
Calamba Branch
WESTERN VISAYAS DIVISION
VICTORIA A. LIWANAG
Lucena Branch
ROBERTO D. MARCELO
San Jose, Occidental Mindoro Branch
ROBERTO S. PAGAYUNAN
Lipa Branch
EXEQUIEL O. PANGANIBAN
EPZA Branch
*Officer-in-Charge
56
TITO A. NAVA
Carmona Branch
ELVIRA B. BANICO
Iloilo Branch
LILANI B. BENEDIAN
Bais Branch
RAUL A. CASIANO
Bacolod Branch
ISAAC P. CIOCON, JR.
Kalibo, Aklan Branch
CHERYL V. JARIOL
Iligan Branch
OSWALDO B. MONTENEGRO
Tandag Branch
MARILYN O. TAMAYO
Gingoog Branch
SOUTHERN MINDANAO DIVISION
JOSE S. CATOTO, JR.
General Santos City Branch
JOVE L. COLASITO
Davao Branch
RIZALITO ALBERTO C. DE LEON
Toril Branch
SERAFIN G. HINGCO
Kidapawan Branch
EDGAR P. JUANICH
Digos Branch
SUKARNO D. PENDALIDAY
Cotabato City Branch
MARIVIC G. RUTOR
Brunei Representative Office
ROBERTO V. ROLDAN
Hong Kong Representative Office
JOSEFINA A. MADURO
Singapore Representative Office
FRENELIE ANN L. ONG
Taipei, Taiwan Representative Office
MIDDLE EAST
WILMA M. ORTIZ
Abu Dhabi, UAE Representative Office
ABDAWIYA K. NAVARRO
Al-khobar, KSA Representative Office
BENNETTE A. CUETO
Doha, Qatar Representative Office
HARRY A. RACHO
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
2010 ANNUAL REPORT COMMITTEE
THELMA V. VENTURANZA
Milan, Italy Representative Office
Chairperson: VP May Catherine C. Ciriaco
FRANCISCO B. BACOL
Rome, Italy Representative Office
Vice Chairperson: VP Marissu G. Bugante
JULIOUS J. WALES
Bislig Branch
Members:SVP Jose B. Bautista
VP Antonio S. Argabioso
VP Rizaldy T. Capulong
AVP Ma. Luz C. Generoso
AVP Elvira G. Alcantara-Resare
Atty. Joselito A. Vivit
Ms. Marissa L. Tizon
VALERIANO P. WENCESLAO, JR.
Tagum Branch
Consultant:
Ms. Maria Lourdes N. Mendoza
Secretariat:
Ms. Grace B. Burgos
Mr. Virgilio M. Macapagal
Ms. Guia O. Ongchangco
Ms. Gilby G. Oribello
Mr. Zandro Carlos P. Sison
Mr. Ireneo Ma. P. Taala II
ROSELANE B. PLAZA
Mati Branch
SUZETTE H. PURIFICACION
Tacurong Branch
REDENTOR S. VIOLA
Koronadal Branch
SSS Building, East Avenue, Diliman
Quezon City, Philippines
Tel. Nos. 920-6401 / 920-6446
E-mail: [email protected]
www.sss.gov.ph

2010 - Social Security System

Transcription

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