Trending SSS

As an avid reader of all things SSS - i am after all, a member of good standing (meaning i am still contributing at the highest MSC even)  - well, i have to safeguard my future pension, which is why i read - or try to read everything i can about SSS.  Also, i make sure i know about the benefits.... it is important to know one's rights and privileges, after all...

i find SSS in the news.  3 issues are being discussed -

1. the Board bonus of about 1 million each
2. the sale of BGC
3. the increase in contribution - and the state of the Fund

you better believe that i watch over the state of the Fund.  i do because i want to be assured of my pension in the future.  i have a ways to go before i can have a pension

so ... here goes ...... on the state of the fund

first of all, i read the last actuarial valuation of the SSS. well, actually, i am not sure this is the last.  this was the last valuation that Horacio T. Templo (EVP) signed as Chief Actuary.  i read the draft of the next valuation, that was signed by then Deputy Actuary Rizaldy Capulong (VP).  (btw, SSS has a new Chief Actuary. His name is Conrado de la Cruz - SVP)

this is fine and good and basically explains the state of the Fund.  a lot of things are discussed in a valuation report.  As the word valuation implies, the assets of the Fund are valued or priced, and uses factors such as interest rate, interest rate trends, mortality rates (rate of dying, based on probabilities), morbidity rates (rate of diseases...), labor force and all that -

however, this is a subjectual evaluation, meaning if things such as interest rates change, the value of the funds also change.  it is therefore mandatory to re-evaluate it at specific periods. i think sss does it every 3 years, but definitely at least every 4 years as this is required by RA 8282, which is the SSS Law. .you will find words like present value in assessments of assets.

To make a long story short, one cannot take a  once-in-a-lifetime windfall to shore up reserves.  No, that is not done.  liabilities and assets must match. you cannot match say. the sale of the BGC with pensions.  one is a one-time event, the other is a forever (or almost forever, when taken in bulk) stream of money out.
Do you know how much SSS pays in benefits?

tbc......