when i was studying actuarial math in the University of the Philippines at Diliman, i learnt that insurance companies are required to have their chief actuary, not the chief accountant, sign the Financial Statement. the reason for that is very simple, only an actuary can vouch for its reserve as the accountant is NOT qualified to do that. Even the CFO supposedly cannot, since he does not understand about reserves. reserves form a large chunk of an insurance company's assets ---- which the company is supposed to invest properly.
same thing for SSS, however - as HTT points, SSS is a pay-as-you-go system and he puts that succinctly when he says that current benefits are paid for by current contributions.
this system of going after the marginalized sector, is great for universal coverage, but rather poor fiscal responsibility ... so, do the needs of some outweigh the responsible others?
Click here for the full article in the manilastandardtoday.com/2013/02/15/straightway-deterioration-into-a-ponzi-scheme
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