policy paper on sss

Addressing the problem of Social Security System

with regards to the Delinquency of the Employers

in the Remittance of their Employees’ Social Security System

Contributions

by

REHOM P. PIMENTEL

A Practicum Paper (Organizational Analysis) submitted in

Partial Fulfilment of the requirements for the Degree of

Bachelor in Public Administration and Governance

to

the College of Political Science and Public Administration

Polytechnic University of the Philippines

Sta. Mesa, Manila

April 4, 2014

CHAPTER I

INTRODUCTION AND SOURCE OF BACKGROUND OF THE STUDY

A. Organization Profile

Social Security System was created, as mandated by R.A. 8282 or the

Social Security Act of 1997, to establish, develop, promote and perfect a sound

and viable tax-exempt social security system suitable to the needs of the people

throughout the Philippines which shall promote social justice and provide

meaningful protection to members and their families against the hazards of

disability, sickness, maternity, old age, death and other contingencies resulting in

loss of income or financial burden. Toward this end, the State shall endeavor to

extend social security protection to workers and their beneficiaries.

It is tasked to implement meaningful programs so that all workers in the

private sector, including those in the informal sector are covered and provided

with the social protection that they deserve. The SSS envisioned a viable social

security institution providing universal and equitable social protection through

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world-class services. It also aims to institutionalize a corporate culture that instills

the core values of trust, empowerment and teamwork.

The SSS covers all the Private Sector Employee (whether permanent,

temporary or provisional, who is not 60 years old; household helper; employee of

foreign government or organization based in the Philippines which entered into

an administrative agreement with SSS; public utility driver and operator; self-

employed; farmer, fisherman or worker in the informal market; OFWs; non-

working spouses of SSS members; and separated members. The corporation

provides, once proven qualified, a daily cash allowance which is paid for the

number of days a member is unable to work due to sickness or injury; a daily

cash allowance granted to a female member who is unable to work due to

childbirth or miscarriage; a cash benefit granted either as a monthly pension or a

lump sum amount to a member who becomes permanently disabled, either

partially or totally; a cash benefit granted either as a monthly or a lump sum

amount to the beneficiaries of a deceased member; and a funeral grant is given

to whoever paid for the burial expenses of the deceased member.

Moreover, SSS also provides loan programs such as Salary Loan which is

granted to an employed, currently paying, self-employed or voluntary member to

meet the member’s short-term merit credit needs; financial assistance to enable

SSS members and their dependents to defray enrolment costs for college,

vocational, and technical courses; and lending programs established to provide

funds thru SSS accredited participating financial institutions (PFIs), development

of facilities and establishment of institutions that caters quality education or other

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academic training program and affordable medical or health care related services

to the general population and to SSS members and their dependents; support for

business enterprises and industries for the purpose of increasing productivity and

enhancing potential earnings through expansions, diversification and other

business development projects, and assistance and empowerment of the micro,

small and medium enterprises (MSMEs) in the country.

B. Situation Analysis

The Social Security System is expected only to operate at its profitable

situation in twenty years from now, and until then, the corporation can no longer

sustain and provides security. This notion was formulated due to the problems

that corporation is trying to cope up with. One of factor that contributes to this

problem is the delinquency of the members, specifically the employer, in

remitting the contributions of their employees. There are so many cases wherein

there are companies which are not remitting their contributions properly and

regularly. Employees, who are victims of this non-remittance and compliance of

their employer with regards to proper contributions, suffers at the end of the day

for they (employees) expect that after the long years of hardworking, they would

get enough benefits from SSS such as pension, but the problem is their

employers are not paying their contributions.

The delinquency of employers in paying the contributions of their

employees is the main factor that leads to the notion of the SSS incapability of

sustaining their operations and provide security. The SSS serves as a large

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insurance company in the economy among the private entities, informal sectors,

laborers, farmers, fishermen, household helpers and OWFs. Having this present

status of SSS would affects the nation as a whole especially with regards to

economic growth since it plays a vital role in the nation in providing services to

the private sectors and informal sectors of the economy such as corporate loans,

housing loans, educational loans, financial assistance and the like, to mention a

few.

C. Problem Statement

This study aims to address the problem of the Social Security System with

regards to the non-remittances of the employers of their employees’ SSS

contributions, especially those agencies in line with manpower services such as

security guards, construction workers and the like.

Non-remittances of the employers usually happen in the outsourcing

company or agency wherein these companies are reported by their employee for

not remitting the percentage that is being deducted from the employee’s salary.

This is usually happening in the employees who are engaged in the construction,

security and janitorial services since these employees doesn’t have further

knowledge regarding on the membership of SSS. There are even employees of

this services who doesn’t claim anymore of the benefits they are entitled to

because they are not aware that they are earning such benefits from the day they

started to work in certain company or agency. Aside from that, the information

regarding the SSS membership is not well disseminated to all the members. It

only appears to most of the employees as a mere requirement for applying a job

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in the private sector but not as an insurance or a social security that is being

provided by the state. Apparently, it is the main reason also why they are

vulnerable to the delinquency of the employers in paying their contributions. In

this case, the unclaimed benefits and all the contributions of the members remain

in the SSS and were use to allot to another operations such as to supporting

orphanage.

This problem could be detrimental on one side but could also be beneficial

on the other side. But we have to be reminded that the sacrifices and efforts of

the members in their years of hardworking to earn those benefits should not be

set aside. In the first place, they worked for it and they are therefore entitled to

those benefits. Perhaps, we just need these employers, employees, and all other

members to pay their contributions properly in order to supports all the

operations of the corporation.

D. Stakeholders Analysis

In addressing this problem, there must be coordination between the SSS

and its members especially the employers. The SSS shall formulate a policy

regarding on the delinquency of the employers or non-remittance of contributions

of their respective employee. This policy shall be mandated to be observed by all

the employers that took administrative agreement with the SSS for effective

implementation and a penalty shall be given to those employers in violation of

such. The members will be likewise given a proper orientation regarding SSS

membership especially on the benefits or lending program they may be qualified

to.

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E. Goals and Objectives

This paper, at the end of the day, aims, firstly, to let the employees

especially those who are engaged in construction, janitorial and security services

to be informed about the SSS and its program; secondly, to let the employers be

responsible enough in promoting the social security of their employees by

remitting their employees’ contribution with all fairness and justness; and lastly,

to promote a quality social security service that is being provided by the SSS.

F. Methodology

The researcher conducted an inquiry to the SSS - OPSD and an interview

with an employee in Operations Legal Department in order to know the main

function of the corporation, relevance in the economy, performance, and the

issues and problem that the corporation is currently facing.

The inquiry was conducted on January 27, 2014 by means of a formal

letter addressed to Ms. Helen Abolencia, the Officer-In-Charge in SSS - OPSD

at Diliman, Quezon City, having the following information being requested to be

disclosed for academic purposes: the SSS legal framework; organizational

structure; function of the major offices; and the performance of the corporation.

The researcher received those pertinent data after one week upon the approval

the of the request letter.

The interview was likewise conducted on January 27, 2014 having Sir

Vernie Forteza, a legal Assistant 4 in the Operations Legal Department, as the

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respondent. A form of survey questionnaire was given to the respondent having

series of questions regarding on the operations and performance of the SSS.

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CHAPTER II

ALTERNATIVE COURSES OF ACTION

A. Alternative Courses of Action (ACA)

In order to avoid the delinquency of the employers, especially those who

are engaged in the construction, janitorial and security services, in remitting the

contributions of their employees, the following courses of action are being

proposed:

ACA 1: SSS Resolution mandating all the employers and private companies to

conduct an SSS membership orientation to all of their employees.

This program shall be done quarterly in order to disseminate the

information very well to all the employees regarding the SSS membership, its

program and the benefits they could claim from it. There shall be a resource

speaker coming from the SSS who shall give further knowledge and facilitate the

information dissemination in a way that is appropriate to the level of thinking or

analysis of the audience. The resource speaker shall also be responsible in

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answering the questions that will be raised by the audience during and even after

the orientation proper. A counter penalty shall be given to any employer or

company that will not conduct such orientation and adheres to the policy set by

the corporation. The penalty will be in the form of deprival of the privileges on

certain program being offered by the SSS such as lending or loan program. The

violating employer or company shall also be administratively liable for such

offense. This may lead to suspension of officers of the employer or company or

restraining the company itself to operate.

ACA 2: A definite program of SSS conducting an SSS orientation caravan to all

the big colleges and universities in the country.

This program shall be regularly conducted every semester in partnership

with the concern colleges and universities. This program shall be participated by

all the graduating students or the seniors in order to give them prior knowledge

even before being employed to certain private companies or whenever they

planned to operate their own businesses. This shall be a memorandum of

agreement between the SSS and the participating Colleges and Universities for

the effective facilitation of this program.

ACA 3: Integrated Orientation Program to all the applicants of SSS membership.

This program will be implemented during the process of membership

wherein the applicants will be given a proper orientation regarding the function of

the SSS, the programs it offers, the benefits that the members could claim and

the ways or steps on how the members could monitor or checks if their

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contributions are being paid regularly by their employers and so with how should

they file a petition against their employer. The orientation shall be made effective

and efficient to the applicant so that proper information dissemination shall be

done. All the applicants who undergo the said orientation will be given a

certificate of attendance which will serve as a primary requirement in the

issuance of the SSS number. There shall be also a basic written and oral

examination in order to qualify the applicants of the privilege of being an SSS

member. Failure of such examination would deprive them of having an SSS

number.

B. Analysis of the Courses of Action

ACA 1 will mandate the employers and the company to be responsible

enough in protecting the social security of their employees. This policy, on the

other hand, is vulnerable to improper monitoring since there are so many

companies and employers registered in the Securities and Exchange

Commission.

ACA 2 will be a preparation to all the graduating students and could help

the future employees in the private sectors or future businessmen to be

responsible enough and to be well informed about the SSS membership. On the

contrary, this action could be selective and is not intended for the benefit of many

since not all the SSS members are even College graduates such as those

employed in the outsourcing agencies or companies like janitors, security guards

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and construction workers. Another point, this policy could be hardly implemented

well since we have so many colleges and universities in the country.

ACA 3 would be effective since it will filter all the members and give them

the knowledge about all the important information they have to learn from the

SSS which will be given prior to the issuance of their SSS number. This would

assure that the member would not be ignorant of the possible benefits they could

claim from the SSS and making them safe from fraud that could be initiated by

their employers. The burden of this policy is having an additional process and

making it hard for the applicants to have an easy or immediate access to SSS

membership.

C. The Chosen Course of Action

Among the three Alternative Courses of Action, ACA 3 is chosen by the

researcher on the basis of applicability, efficiency and practicability.

The said ACA will be implemented to all the SSS branches serving an

SSS number. There shall be a specific function in the SSS organization that will

serve for that purpose and a venue such as a room where the orientation will

took place shall be likewise provided. The orientation shall be done in a group of

applicants in order to maximize time and effort in both part of the applicants and

SSS personnel. The orientation shall be made simple and friendly to the

audience in order to facilitate the information dissemination properly. The

orientation shall take two to three hours only to avoid too much consumption of

time and for the SSS personnel to make use of the simplest approach.

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D. Challenges and Solutions

CHALLENGES SOLUTIONS

Proper implementation Specific function shall be made for that purpose

Longer processing of membership Simplest approach shall be used in the facilitation of the orientation

Criticism regarding on being restrictive of the SSS

Giving them enough knowledge on the importance of having further knowledge regarding SSS membership and demonstrating also the risks of being ignorant to such program.

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CHAPTER III

REFLECTIONS AND LESSONS LEARNED

A. Summary and Conclusion of the Central Knowledge Gained from the

Study

This study as a whole tackles the very important aspect of good

governance which is the information dissemination. It emphasizes how the power

of information could affect your life such as your social security and how

ignorance could risk your own sake form the abusive and powerful sector of the

economy. Meanwhile, the researcher also learned about the importance of SSS

to one’s life and the benefits that a member could avail of. As a whole, the

researcher, as a student of Public Administration and Governance, learned not

just to criticize the policies or programs of the government but rather to dig

deeper and analyse it well before creating a scholastic criticism followed by

counter policies or programs proposing an alternative courses of action that

could be considered out of further studies that have been made.

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REFERENCES

R.A. 8282 or the Social Security Act of 1997

SSS Annual Report 2012

SSS pamphlets published by Corporate Communications Department

www.sss.gov.ph

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APPENDICES

Appendix A: Student Profile

REHOM PAAS PIMENTEL4882-B Guadal Canal St., Brgy. 597, Zone 59, Sta. Mesa, Manila

+639.917.353.0577/+63.912.237.0877 [email protected]

Objective

To gain an extra training and experience in the field of public service and apply my knowledge and learning from the discipline of Public Administration.

Qualifications

Capable of communicating/writing effectively using English language Computer-literate performer Personnel Administration Leadership and decision making Policy making Service-oriented Basic Military Training

Personal Information

Age: 19 years old

Gender: Male

Height: 5”6’

Civil Status: Single

Date of Birth: November 24, 1993

Place of Birth: Sablayan, Occidental Mindoro

Language/Dialect: Tagalog, Ilocano, English

Father’s Name: Dioscoro M. Pimentel

Mother’s Name: Elvie P. Pimentel

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Education

2010 – Present Polytechnic University of the Philippines

Sta. Mesa, Manila

Bachelor of Public Administration and Governance2006 – 2010 Sablayan National Comprehensive High School

Sablayan, Occidental Mindoro

Special Science Class Third Honourable Mention Leadership Award Outstanding Student Award

2000 – 2006 Yapang Elementary School

Sablayan, Occidental Mindoro

Salutatorian

Trainings and Seminars

2012 Summer Debate Challenge

Polytechnic University of the Philippines

Sta. Mesa, Manila

2012 IMPEACHMENT: The Truth behind the Lies

Communication Foundation for Asia

Sta. Mesa, Manila

2012 The FOI: A step towards genuine Transparency and Accountability

UP National College of Public Administration and Governance

Diliman, Quezon City

2012 Philippine-China Territorial and Maritime Disputes

GT Toyota Asian Culture Center

Diliman, Quezon City

2012 VAT ganun? Bakit ako may Tax?

A nationwide caravan on tax reform towards nation building

Bulwagang Balagtas, PUP Manila

2012 Social Dialogue with Senator Trillanes

Claro M. Recto Hall

North Wing, PUP Manila

2013 The RUNDOWN 2013

A youth-oriented senate election forum

GT Toyota Auditorium, UP Diliman

2013 National Paper Conference on Public Administration

Investing in Philippine Progress through Effective Public Administration

17


2013 Symposium: Head of the State

Claro M. Recto Hall

North Wing, PUP Manila

2013 Epal – I-kick: Ousting the Trapos para Problema’y Tapos

Ninoy Aquino Library and Learning Resource Center (NALLRC)


2013 Reforms on Education



2013 Voter’s Education



2013 KABALANGAY 2013

A youth-oriented forum on politics in Sanguniang Kabataan


2013 PORK ANATOMY

A meaty discourse dissecting Priority Development Assistance Fund

PUP Theatre, College of Communication

2013 WALANG KU-CORRUPT

A symposium on the Philippine Anti-Graft and Corrupt Practices Act

Amaia Hotel, Sta. Mesa, Manila

Work Experience

2013 National Bureau of Investigation (NBI), Personnel Division

On the Job Training

Taft Avenue, Manila

Affiliations

2012 Reserved Force, Philippine Army

Private First Class (ML-R12-003082)

Hqs 1304th CDC, NCRRCDG, ARESCOM, 4th Floor, City Hall, Manila

2013 Circle of Public Administration and Governance Student (CPAGS)

Vice-President for Internal Affairs

PUP, Manila

Character References

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Name: MR. ROLAND SISON

Occupation: Supervisor

Company: Max’s Restaurant

Contact Number: +63.928.237.2130

Name: PROF. ANTONIUS C. UMALI

Occupation: Chief, Center for Public Administration and Governance

Company: Polytechnic University of the Philippines


Name: MS. REMEDIOS DELA CRUZ

Occupation: Administrative Officer

Company: National Bureau of Investigation, Personnel Division


I hereby certify that the above stated information is true and correct to the best of my knowledge and abilities.

REHOM P. PIMENTEL

Applicant’s Signature

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Appendix B: Letter Request

January 27, 2014

MS. HELEN L. ABOLENCIAOfficer-In-Charge, OPSDSocial Security System, Diliman, Quezon City

Dear Ma’am:

Greetings of political excellence and good governance!

I am a fourth year student of Bachelor in Public Administration and Governance of Polytechnic University of the Philippines – Manila and a current student trainee in Social Security System Main Office under the Operations Legal Department

In this regard, we are required in this course to submit an OJT report in partial requirement for the fulfilment of our Internship subject. The OJT report to be presented will constitute the following information from the SSS:

a. the legal framework;

b. the organizational structure;

c. the function of the major offices; and

d. the performance of the corporation.

The following information are provided in the SSS website and library except the organizational structure and the function of the major offices which could only be accessed from your department.

I am therefore submitting my formal request to allow me to get a copy of the said documents for academic purpose.

I am hoping for your favourable consideration. Thank you!

Very truly yours,

REHOM P. PIMENTEL

Noted by:

DR. SANJAY P. CLAUDIO

Dean, CPSPA

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Appendix C: Survey Questionnaire

Name of Interviewee: Vernie Forteza Position: Legal Assistant II Department: Operations Legal DepartmentInterviewer: Rehom P. Pimentel1. What is the contribution of the corporation to the national economy?

SSS does not only provide security to all private employees and employer including those self employed but also provide services to other companies or businesses such as loans, capitals and shares. Having said that, SSS does really contribute to the stability of economy especially with regards to support to all private companies. 2. Is the objective of the corporation be realized in a scale of 10 with regards to performance?

Yes. 10. As it is reflected in their annual report showing their excellent performance having an income of P36.2B as of 2012 which has 42% increased from P25.5B as of 2011. 3. Is the corporation subsidize by the national government or does it generates its own income? How much? Is it enough? If not, How does the corporation make ways in order to cover up the deficiency.

No. The corporation is not subsidize because it has its own income generating programs and projects such as investment, loans and share holder of big companies such as San Miguel Corporations and the like. 4. Is this corporation earning?

Yes. 5. Is the corporation getting external support like donations, etc? From what entities

No. The SSS do not get external support. It is rather the SSS who give support to some NGOs, other agencies like DSWD. (Support to Yolanda Victims)6. Do you think your corporation should be privatized?

No, because once the corporation is privatized, there is no more assurance that it is already safe from bankruptcy. When the corporation was bankrupt, all employees, employers, self-employed will be directly affected; hence, there is no more security that can be provided by the corporation. 7. Do you agree that the government should retain only those agency or corporation performing well?

Yes. 8. What is the agency supervising your performance?

Governance Commission for GOCCs 9. What is your program, policy or plan in order to improve the performance of the corporation?

Investment and incentives provided to all employees. 10. What are the issues and problems of the corporation?

Non-remittance of contributions of the Agencies or employers especially those in line with manpower services such as security guards, construction workers, janitors, and the like.

policy paper on sss

Documents

social security protection

social security act

social justice

equitable social protection

deceased member

female member

voluntary member

sss public utility driver