Tuesday, January 19, 2016

WHY President Aquino vetoes SSS PENSION FUND hike

President Benigno S. Aquino III vetoed the SSS pension fund hike not because of fears that the fund will dissipate by 2024, but because it will AFFECT THE BILLIONS OF INVESTMENTS put forth by the Social Security Systems (SSS) to numerous blue-chip companies, most of which, invested their monies to Aquino's 2010 presidential campaign.

SSS Executive Vice president Edgar Sollipsi said in July of 2013, that SSS plans to boost their investments in stocks. Currently, SSS invests the funds in banking, telecommunications, real estate, utilities, infrastructure, mining and power generation. 

Sollipsi says SSS plans to boost its investments in mining from 25 to 30%, or from 85BILLION TO 95 BILLION PESOS. The fact is, the fund is earning so much monies in stock investments. Pensioners are just asking for 56 billion pesos every year. 

SSS Chief Executive Edgar de Quiros Jr. boasts that the fund manager has 350 billion pesos in total investible funds, including 18 to 19 billion invested in stocks. In just six months, SSS earned 16 billion pesos, 13 billion earned from stocks. Again, pensioners are just asking for 56 billion pesos, or just 16% of the total investible funds. 

When we say investible funds, we mean funds allocated to be put in the stock market.

The fact is--in 2014, De Quiros even said that they are planning to put 3 billion pesos in the capital markets, invested in peso denominated equities and fixed income instruments.

Now, we ask---where did the SSS invested its funds? You guessed right--majority of the firms owned by people who supported Aquino III in his presidential campaign last 2010.

That explains why SSS and the President do not want to hike pensioners pay because it will dilute the monies being invested by the SSS in these firms.