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News Press Releases GIVING SOCIAL SECURITY COMMISSION POWER TO CONDONE DELINQUENT CONTRIBUTIONS, AN IMPORTANT PROVISION OF NEW SSS LAW - GORDON

GIVING SOCIAL SECURITY COMMISSION POWER TO CONDONE DELINQUENT CONTRIBUTIONS, AN IMPORTANT PROVISION OF NEW SSS LAW - GORDON


February 22, 2019 Press Releases

Senator Richard J. Gordon pointed out that giving the Social Security Commission (SSC) the power to condone delinquent contributions is a very significant provision of Republic Act (RA) 11199 or the Social Security Act of 2019, which was signed by President Rodrigo R. Duterte into law last week.

Gordon, chairman of the Committee on Government Corporations and Public Enterprises, explained that with the SSS able to launch a condonation program without having to wait for authority from the President, the state pension fund would be able to generate more funds faster and ensure its long-term viability.

"Kailangan natin ang perang malilikom sa condonation. Dahil sa dagdag na P1,000 na pensyon na binigay natin sa mga retiradong miyembro ng SSS, na talaga namang kailangan nila, lumiit ang fund life ng SSS mula 2042 at ito'y naging hanggang 2032 na lamang. Ang ibig sabihin nito, kung wala tayong gagawing karampatang hakbang, hanggang 2032 na lang ang pondo ng SSS," he said.

Condonation programs in the past had been a very good source of revenue for the SSS. In 2010, when the SSS implemented RA 9903 or Gordon's "Social Security Condonation Law of 2009," the SSS collected P3.5-billion from 24,042 delinquent employers. In similar condonation programs, the SSS collected P159-million in 1986 and P859-million in 1997 when it implemented Executive Order No. 28 and RA 8282, respectively.

Gordon, author of the new SSS law, stressed that the law wants employers to contribute for the welfare of their employees, hence its intention is to collect and not to put employers to jail.

"Lalaki ang pondo, hahaba ang buhay ng SSS. Matutuwa ang mga negosyante dahil imbes na lumaki ng lumaki ang utang nila, mako-condone, magbabayad sila at makakapagsimula ulit sila," he said.

However, the law provides sanctions for employers who will persist on being delinquent. Penalties include imprisonment ranging from not less than six years and one day to twelve and fine ranging from not less than P5,000 to P20,000.

"We don't want to put employers into jail. But if they insist on being delinquent employers WE WILL NOT HESITATE TO PUT THEM IN JAIL," Gordon said.