Beruflich Dokumente
Kultur Dokumente
sa Pagbangon ng Pilipinas
Highlights of Operations
(Amounts in Million Pesos)
Consolidated
For the Year
Increase/(Decrease)
2010
2009
Amount
%
A. REVENUES & EXPENDITURES
Revenues
107,120.75
95,336.51
11,784.24
12.4
Contributions
79,272.86
72,350.89
6,921.97
9.6
Investment and Other Income, net
27,847.89
22,985.62
4,862.28
21.2
Expenditures
84,288.57
79,124.55
5,164.02
6.5
Benefit Payments
77,174.16
72,049.96
5,124.20
7.1
Operating Expenses
7,114.41
7,074.59
39.82
0.6
Net Revenue/(Loss)
22,832.19
16,211.96
6,620.22
40.8
B. ASSETS & RESERVES
Assets
297,591.34
272,610.65
24,980.69
9.2
Investments
273,265.61
248,641.45
24,624.16
9.9
SSS Properties
3,318.75
3,413.69
(94.94)
(2.8)
Others
21,006.98
20,555.52
451.47
2.2
Liabilities
8,496.31
7,280.83
1,215.47
16.7
Reserves
289,095.03
265,329.82
23,765.22
9.0
Social Security System
Contents
01
02
Highlights of Operations
Statement of Mission and Vision
Messages
03 Message of the President of the Republic
of the Philippines
04 Message of the SSC Chairman
06 Message of the SSS President and CEO
2010 in Review
10 Changing of the Guards
11 Expressing Corporate Social Responsibility
12 Forging Partnership for Better Service
13 Nurturing Relationships with Stakeholders
14 Developing SSS Employees
15 Celebrating SSS 53 years
a n n u a l
r e p o r t
Special Articles
16 Implementation of the Condonation Law
on Penalty on Contributions
17 The UMID: Its Mandate
19 2010 SSS Family Day
20 2010 Staffing and other Human Resource
Management Directions
21 The SSS Museum and SSS Library
22 SSS In 2011 and Beyond: Heeding the
Call for Transformational Change
Financial
26 Statement of Managements Responsibility
for the Financial Statements
27 State Auditors Report on the
Financial Statements
28
29
30
31
32
45
46
Management
48 Photo of the Social Security Commission
50 Photos of the SSS Senior Management
55 SSC and SSS Management Directory
57 Photo of Annual Report Committee and
Secretariat
sa Pagbangon ng Pilipinas
For the Year
Increase/(Decrease)
2010
2009
Amount
%
A. REVENUES & EXPENDITURES
Revenues
104,973.40
93,155.25
11,818.15
12.7
Contributions
77,956.99
71,166.95
6,790.04
9.5
Investment and Other Income, net
27,016.41
21,988.30
5,028.10
22.9
Expenditures
83,102.24
77,931.69
5,170.55
6.6
Benefit Payments
76,088.14
70,963.92
5,124.22
7.2
Operating Expenses
7,014.10
6,967.77
46.33
0.7
Net Revenue/(Loss)
21,871.16
15,223.56
6,647.60
43.7
B. ASSETS & RESERVES
Assets
271,267.54
247,891.34
23,376.20
9.4
Investments
252,630.57
228,919.53
23,711.04
10.4
SSS Properties
3,318.75
3,413.69
(94.94)
(2.8)
Others
15,318.21
15,558.12
(239.91)
(1.5)
Liabilities
8,604.29
7,389.38
1,214.91
16.4
Reserves
262,663.25
240,501.96
22,161.29
9.2
Employees Compensation and State Insurance Fund
For the Year
Increase/(Decrease)
2010
2009
Amount
%
A. REVENUES & EXPENDITURES
Revenues
2,147.35
2,181.26
(33.90)
(1.6)
Contributions
1,315.87
1,183.94
131.92
11.1
Investment and Other Income, net
831.49
997.31
(165.83)
(16.6)
Expenditures
1,186.33
1,192.86
(6.53)
(0.5)
Benefit Payments
1,086.02
1,086.03
(0.02)
(0.0)
Operating Expenses
100.31
106.83
(6.51)
(6.1)
Net Revenue/(Loss)
961.02
988.40
(27.37)
(2.8)
B. ASSETS & RESERVES
Assets
26,431.84
24,827.91
1,603.93
6.5
Investments
20,635.03
19,721.92
913.12
4.6
Others
5,796.81
5,106.00
690.81
13.5
Liabilities
0.06
0.05
0.01
11.8
Reserves
26,431.79
24,827.86
1,603.92
6.5
Statement of Mission
The mission of the SSS is spelled out in Section 2 of the Social Security Law (Republic Act No.
1161), as amended by the Social Security Act of 1997 (Republic Act No. 8282):
It is the policy of the State to establish, develop, promote and perfect a sound and viable taxexempt 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
beneficiaries against the hazards of disability, sickness, maternity, old age, death and other
contingencies resulting in loss of income or financial burden. Towards this end, the State shall
endeavor to extend social security protection to workers and their beneficiaries.
Statement of Vision
The SSS aims to develop and promote a viable, universal and equitable social protection
scheme through world-class service.
VIABLE means that it is financially sustainable, non-distortionary, and requires no government
subsidy. Current and future generations of workers and retirees are also assured of meaningful
benefits in return for their contributions.
UNIVERSAL means that protection shall be provided to all residents of the Philippines, citizens
and non-citizens alike, regardless of race, creed, gender, age, geographic location and socioeconomic status. Attention will be given specially the disadvantaged and overseas Filipino
workers (OFWs).
Message
of the President of the
Republic of the Philippines
EQUITABLE means fair and uniform coverage shall be made available to all. Benefit entitlements
shall be closely linked with contributions.
WORLD-CLASS SERVICE means that the highest standards of service shall be used to ensure
total member satisfaction. A multi-skilled, forward-looking and generalist SSS workforce shall
provide service that is prompt, accurate and courteous.
JUAN B. SANTOS
Contribution Collections
In 2010, collection of contributions continued to rise to a recordhigh of over 79 billion pesos as compared with over 72 billion
pesos in 2009. This was realized through the implementation of
RA 9903 or the Social Security Condonation Law of 2009 and
RA 9507 or the Socialized and Low-cost Housing Restructuring
and Condonation Program. Efforts of collecting delinquent
member contributions and loan amortizations were intensified
and the installment payment scheme and dacion-en-pago
guidelines for delinquent employers were revised to liberalize
installment terms. This strategy brought in over a billion pesos
that exceeded the target of 900 million pesos.
This increase in contribution collection was also attributed
through the expansion of the coverage of the public transport
sector and the seafarers when a partnership between the Land
Transportation Franchising Regulatory Board (LTFRB) and the
Philippine Overseas Employment Administration (POEA) was
forged. Another source was the completion of the agreement
Benefit Payments
SSS paid over 77 billion pesos worth of benefits to its members
reflecting a seven per cent increase in 2010 from the previous
72 billion pesos released in 2009. The bulk of the releases
went to retirement and death claims which accounted for
nearly 85 per cent of total disbursements for the year. Parallel
to this, measures to strengthen control in benefit payments
were undertaken to ensure that the right benefits were afforded
to the right beneficiaries at the right time. These measures
were through the following programs: Enhanced Annual
Confirmation of Pensioners; Revisions in the New Disability
Program; Expansion of Sickness, Maternity and Employees
Compensation (SMEC) payments through the banks; conduct
of meetings with the banks for the Electronic Data Interchange
(EDI); Database Clean-up as a result of erroneous contingency
date, mismatched records in claims information, employee
static and pension database.
disciplined. And they are not so much those who are brilliant as
much as those who are balanced. We have a huge membership
to serve so we have to have a workforce who looks at service as
not merely a task but a calling, a privilege and an honor.
2010 was the year when efforts to reinvigorate the human
resource machinery happened. This was through the
implementation of the Staffing Plan by promoting and absorbing
deserving employees as well as upgrading and reclassifying
executive positions. It was also in this year that various training
programs were implemented to enhance the technical skills of
the whole workforce.
The new Performance Evaluation System (PES) was also
designed in order to enhance institutional productivity. This
was followed by the development of a PES customized for the
executives.
On a lighter side, we encouraged our employees to indulge
in various athletic, cultural and arts appreciation activities to
renew camaraderie, foster teamwork and develop unifying
spirit and just have fun.
Exhortation
2010 IN REVIEW
PROPELLING NATIONAL
GROWTH
THROUGH EFFICIENT SERVICES
10
11
2010 IN REVIEW
12
13
2010 IN REVIEW
14
15
SPECIAL ARTICLE
SPECIAL EVENTS.
SPECIAL
PROJECTS.
16
17
SPECIAL ARTICLE
18
The 2010 SSS Family Day for the Main Office was concluded in
four (4) separate events. This was divided into four (4) groups,
namely (1) the Social Security Commission and Presidents
Group, (2) IT Management Group and the Program Management Group, (3) the Controllership Group and Branch Operation (Corporate Offices), and (4) the Administration Group and
Investments Sector.
The Social Security Commission and Presidents Group conducted theirs at the MAC building, Diliman, Quezon City on 20
November 2010. Major activities included installing a photo
booth, parlor games and entertainment/videoke-singing. The
group had a total of 339 attendees. (322 employees and family
members).
The IT Management and the Program Management Groups,
respectively, conducted their Family Day at the SSS Canteen,
Main Office Bldg., Quezon City on 26 November 2010. Major
activities included bingo sosyal, raffle draw, fun games, and
videoke-singing. The group had a total of 465 attendees. (438
employees and family members).
The Controllership Group and Branch Operations (Corporate
Offices) conducted their Family Day at the SSS Main Office
Building (Front Lobby) on 20 November 2010. Major activities
included film showing, raffle draw, team activities, and photo
souvenir. The group had a total of 534 attendees. (275 employees and family members).
The Administration Group and Investments Sector conducted
their family day at Club Manila East Resort and Hotel at Taytay,
Rizal on 20 November 2010. Major activities included parlor
games and water sports, cheering contest, videoke challenge
raffle draw and swimming. The group had 570 attendees. (458
employees and family members).
There were a total of 1,891 regular employees, Service Bureau
and Job Order personnel who attended the SSS Family Day.
Over-all the number of attendees including family members
were 1,510.
19
SPECIAL ARTICLE
20
21
SPECIAL ARTICLE
22
Optimize Investments
The change of the national stewardship last year paved way
to the renewal of investor sentiment in the country evidenced
by the record high performance of the local bourse as well as
the surging inflow of foreign portfolio investments. The SSS
will harness the benefits of this opportunity to enhance the
productivity of its investments which play a crucial role in the
well-being of the fund.
This year, SSS is looking at tapping the expertise of local fund
managers in identifying the most optimal investment strategy
for SSS as well as establishing a benchmark in evaluating the
performance of the adapted strategy. Moreover, the SSS is ardent
on upgrading its trading system complemented with state-of-theart facilities that will further bolster its equities income.
The governments advocacy of promoting economic
development in the country by forging partnership with the
private sector will also be heeded by SSS through optimizing its
institutional lending facility as an alternative investment outlet.
This endeavor will allow the SSS to balance its bureaucratic
commitment and its institutional responsibilities.
23
2010
FINANCIAL
STATEMENTS
24
FINANCIAL STATEMENTS2010
S t a t e m e n t o f M a n a g e m e n t s R e s p o n s i b i l i t y f o r
S t a t e A u d i t o r s R e p o r t o n
We have audited the accompanying financial statements of Social Security System, which comprise the statement of financial position as at December 31,
2010, and the statement of comprehensive income, statement of changes in reserves and statement of cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting
Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
The Management of Social Security System is responsible for all information and representations contained in the consolidated
financial statements as of December 31, 2010 and 2009. The financial statements have been prepared in conformity with the
accounting principles generally accepted in the Philippines, and reflect amounts that are based on the best estimates and informed
judgement of Management with an appropriate consideration to materiality.
In this regard, management maintains a system of accounting and reporting which provides for the necessary internal controls to
ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition, and
liabilities are recognized.
Auditors Reponsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International
Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
The Social Security Commission reviews the consolidated financial statements before such statements are approved and submitted
As reported in Observation Nos. 2, 4, 5, 6, 7 and 8 of the audit report, the accuracy of the Receivable - Member Loans (ML), Housing Loan and Receivable-Real
and Other Property Acquired (ROPA), Regular Real Estate Loans (REL), Receivable - Collecting Bank-Regular, Cash Collecting Officer (CCO) and the Cash in Bank
(CIB) accounts with balances of P43.292 billion, P5.255 billion, P3.502 billion, P3.044 billion, P683.706 million and P11.041 million, respectively, cannot be
ascertained due to, among others:
Collections from members of P5.793 billion that were not yet deducted from their loan accounts, of which P3.586 billion were distributed based on
estimate and without corresponding posting to members accounts, and the P926.714 million variance between the general ledger and aging schedule;
JUAN B. SANTOS
EMILIO S. DE QUIROS, JR.
Chairman, SS Commission
President and CEO
ELVIRA G. ALCANTARA-RESARE
Officer-in-Charge
Controllership Division
REL repayments of P2.018 billion remained not recorded or posted to the ledgers, and the REL regular account were not disabled in the REL System
when these were restructured and new accounts were created, resulting in the distribution of repayments to both accounts totaling P165.224 million;
A temporary subsidiary ledger account of P3.018 billion and a negative balance of P5.194 billion from 88 banks, some already closed or merged with
other banks, representing collections already remitted to SSS but not yet posted to members accounts;
Discrepancy of P528.479 million between the balances of the CCO Main Office account and the Cashbook and the Report of Undeposited Collections
due to prior and current years collections not matched with deposits, delayed validation of OFW collections, and deposit not closed to clearing
account; and
Unaccounted Migration Cash in Bank (MIG-CIB) affecting the CIB-Euro/Dollar/Peso Savings/Current Account in the amount of negative P626.41
million and the CIBWorking Fund account of P643.834 million.
Opinion
In our opinion, except for the effects of the matter described in the Bases for Qualified Opinion paragraph, the financial statements present fairly, in all
material respects, the financial position of the Social Security System as at December 31, 2010, and its financial performance and its cash flows for the year
then ended in accordance with Philippine Financial Reporting Standards.
COMMISSION ON AUDIT
DELIA D. AGATEP
State Auditor V
Supervising Auditor
26
27
Statement of
Financial Position
Comprehensive Income
Notes
2010
ASSETS
Current Assets
Cash and cash equivalents
3
7,378,656,013
Held-to-maturity investments
4
7,397,607,090
Held-for-trading financial assets
5
3,330,769,671
Receivables
6
6,999,366,607
Other current assets
7
88,945,464
25,195,344,845
Non-Current Assets
Non-current Financial assets
8
250,408,102,813
Investment property
9
12,129,126,734
Property and equipment
10
3,318,749,960
Intangible assets
11
208,582,776
Non-current assets held for sale
12
5,771,908,785
Other non-current assets
13
559,524,623
272,395,995,691
Total Assets
297,591,340,536
LIABILITIES
Current Liabilities
Accounts payable and accrued expenses
14
3,238,381,868
Funds held in trust
15
778,135,832
Deferred income
16
83,210,203
Other current liabilities
17
3,002,051,161
7,101,779,064
Non Current Liabilities
Accrued retirement benefits
18
1,384,768,341
Rent payable
19
9,759,875
1,394,528,216
Total Liabilities
8,496,307,280
RESERVES
20
289,095,033,256
Total Liabilities and Reserves
297,591,340,536
2009
8,995,402,491
13,293,628,605
979,839,420
5,334,882,298
117,762,834
28,721,515,648
223,472,303,766
10,895,675,521
3,413,685,287
164,934,237
5,404,768,660
537,767,300
243,889,134,771
272,610,650,419
3,248,103,762
623,290,176
93,384,621
1,947,038,162
5,911,816,721
1,359,174,889
9,840,971
1,369,015,860
7,280,832,581
265,329,817,838
272,610,650,419
Notes
2010
Revenues
Members contribution
79,272,860,300
Investment and other income
21
27,847,894,686
107,120,754,986
Expenditures
Benefit Payments
22
Retirement
38,226,764,028
Death
27,648,690,657
Maternity
3,634,831,332
Disability
3,362,393,087
Funeral grant
2,488,203,147
Sickness
1,777,593,577
Medical services
35,565,635
Rehabilitation services
115,985
77,174,157,448
Operating Expenses
Personal services
23
5,271,665,639
Maintenance and other operating expenses
24
1,842,745,190
7,114,410,829
Net Revenues
2009
72,350,893,036
22,985,618,802
95,336,511,838
35,126,490,608
25,962,639,582
3,589,163,852
3,253,748,170
2,377,398,534
1,703,782,723
36,651,721
82,815
72,049,958,005
4,730,723,529
2,343,867,852
7,074,591,381
84,288,568,277
79,124,549,386
22,832,186,709
16,211,962,452
28
29
Statement of
Changes in Reserves
Cash Flows
Notes
Reserve fund
Gain/(loss) on fair
value adjustment
of available for-sale
financial assets
Property
valuation
Contingent
Donated
reserve
surplus
property
Total reserves
Notes
Cash flows from operating activities
Members contribution
Investment and other income
21
Payments to members and beneficiaries
Payments for operations
Operating income before changes in
operating assets and liabilities
(Increase)/decrease in operating assets
Held-for-trading financial assets
Receivables
6
Other operating assets
Increase/(decrease) in operating liabilities
Funds held in trust
Other current liabilities
Net cash generated from operating activities
Cash flows from investing activities
Loan releases and other investment purchases, net
Acquisition of property and equipment, net
10
Acquisition of intangible assets, net
11
Net cash used in investing activities
Cash flows from financing activities
Corporate operating budget of Employees Compensation
Commission and Occupational Safety and Health Center
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
3
Cash and cash equivalents at end of year
3
2010
2009
79,272,860,300
16,099,119,714
(77,278,979,616)
(7,154,956,505)
72,350,893,036
14,689,520,657
(72,061,527,723)
(6,531,397,668)
10,938,043,893
8,447,488,302
(835,334,809)
(991,909,512)
(458,135,984)
717,013,283
992,815,389
(26,484,820)
154,845,656
1,055,012,999
101,026,873
(568,583,093)
9,862,522,243
9,663,275,934
(11,147,603,134)
(158,721,227)
(47,298,033)
(7,018,112,473)
(408,964,165)
(33,592,244)
(11,353,622,394)
(7,460,668,882)
(125,646,327)
(81,315,097)
(1,616,746,478)
2,121,291,955
8,995,402,491
6,874,110,536
7,378,656,013
8,995,402,491
30
31
Financial Statements
(All amounts in Philippine peso unless otherwise stated)
1. REPORTING ENTITY
a. Date of recognition
b.
b. Basis of measurement
The financial statements have been prepared on the historical
cost basis except for the following items:
32
d. Classification
Classification
Unclassified
Loans especially mentioned
Substandard
Secured
Unsecured
Doubtful
Loss
Allowances
0%
5%
10%
25%
50%
100%
33
34
Assets
Building
/building improvements
10-30
Furniture and equipment
/computer hardware
5-10
Land improvements
10
Transportation equipment
7
Leasehold improvements
10-30
b. Interest income
Revenue is recognized as the interest accrues, taking into
account the effective yield on the asset.
c. Dividend income
Dividend income is recognized at the time the right to
receive the payment is established.
d. Rental income
Rental income is recognized on a straight-line basis over the
lease term.
2.12 Expense recognition
years
years
years
years (or the term
of lease whichever
is shorter)
Life
years
commencement of owner-occupation
end of owner-occupation
commencement of an operating lease to another party
35
2009
3,313,776,021
5,779,018,770
7,378,656,013
5,681,626,470
8,995,402,491
Cash in banks earn interest at the respective bank deposit rates. Time
and special savings deposits are made for varying periods of up to 90
days depending on the immediate cash requirements of SSS and earn
interest at the prevailing time and special savings deposit rates.
In consideration of the banks making their deposit pick up facility
available to the SSS, the latter agreed to maintain an average daily
balance of P1 million in a non-drawing interest bearing current
account/savings account (CASA) with each of the banks servicing
branches. As of 31 December 2010, P94 million is being maintained
in several banks for such purpose.
4. HELD-TO-MATURITY INVESTMENTS
2010
2009
Short-term money placements
6,174,075,669 11,270,800,000
Treasury bills
1,223,531,421 2,022,828,605
7,397,607,090 13,293,628,605
Short-term money placements are short-term investments with
original maturities of more than 90 days.
6. RECEIVABLES
Collecting banks/agents/
bayad center
Interest receivable
Other receivables
2010
2009
3,483,825,943
2,564,234,272
951,306,392
6,999,366,607
2,435,277,439
2,218,145,921
681,458,938
5,334,882,298
2010
2009
Available-for-sale
financial assets
77,414,883,712 69,294,782,362
Held-to-maturity investments
Notes and bonds
105,676,840,914 82,289,672,152
Accumulated impairment loss
(809,701,706) (884,701,706)
104,867,139,208 81,404,970,446
Loans and receivables
Member loans
43,292,288,927 44,407,118,536
Loan to National
Home Mortgage
Finance Corporation
14,003,355,778 14,990,587,912
Sales contract receivable
5,262,750,215 5,224,529,406
Housing loans
4,620,116,641 4,661,268,782
Loan to Home Development
Mutual Fund
2,739,484,368 3,316,217,919
Commercial and
industrial loans
681,392,501
888,778,261
Loan to other government
agencies
110,086,039
122,198,032
Program MADE
17,219,220
17,219,220
70,726,693,689 73,627,918,068
Accumulated impairment loss
(2,600,613,796) (855,367,110)
68,126,079,893 72,772,550,958
250,408,102,813 223,472,303,766
Supplies and materials inventory
Prepaid expenses
Advances-officials and employees
Revolving fund
36
2010
77,551,114
5,975,871
4,396,305
1,022,174
88,945,464
2009
107,185,948
5,563,231
3,937,188
1,076,467
117,762,834
Fair value, 01 January 2010
Additions
Cancellation of contract
Disposals
Fair value gain
Fair value, 31 December 2010
Fair value, 31 December 2009
Land
8,109,319,990
-
-
(140,000,000)
927,585,210
8,896,905,200
8,109,319,990
Total
10,895,675,521
38,677,663
6,155,510
(184,076,780)
1,372,694,820
12,129,126,734
10,895,675,521
The costs of investment property as at 31 December 2010 and 2009 stood at P7.58 billion and P7.73 billion, respectively.
The fair value of investment property is determined based on valuations performed by independent appraisers.
2010
1,372,694,820
458,511,931
63,132,286
2,170,411
2009
186,376,519
394,624,497
5,438,485
1,556,391
1,825,566,052
498,309,719
Furniture and
equipment,
transportation
equipment,
Land, Buildings and
computer
land/building/leasehold
hardware and
improvements
others
Construction
in progress
Total
(70,943,396)
(89,686,173)
2010
Marketable securities
Cost
49,523,683,085
Unrealized gain
27,406,102,250
76,929,785,335
Ordinary and preference shares
Cost
1,208,710,857
Accumulated impairment loss
(723,612,480)
485,098,377
77,414,883,712
7. OTHER CURRENT ASSETS
9. INVESTMENT PROPERTY
2009
42,462,256,771
26,347,427,214
68,809,683,985
1,208,710,857
(723,612,480)
485,098,377
69,294,782,362
2,591,520,094
2,638,135,414
680,892,518
752,709,814
46,337,348
22,840,059
7,071,853,029
167,106,429
168,774
(347,452,010)
6,891,676,222
3,601,443,992
256,232,228
(341,473,708)
3,516,202,512
56,723,750
56,723,750
3,318,749,960
3,413,685,287
Land, buildings and building improvements were last revalued in December 2009 by independent valuers. Valuations were made on the basis of
market value.
37
If land, buildings and building improvements were stated on the historical cost basis, the carrying amount would be as follows:
Cost
Accumulated depreciation
2010
1,694,194,129
(548,450,914)
1,145,743,215
Lease rentals amounting to P12.63 million and P13.09 million for the year ended 31 December 2010 and 2009, respectively were included in the
statement of comprehensive income.
Licenses Software
Cost
01 January 2010
291,020,968
138,757,006
Additions
4,239,649
81,672,847
Retirement/disposals/cancellation
(80,596,996)
-
31 December 2010
214,663,621
220,429,853
Accumulated amortization
01 January 2010
29,303,384
39,398,930
Amortization charge for the period
22,988,142
13,572,715
31 December 2010
52,291,526
52,971,645
Accumulated impairment loss
01 January 2010
151,195,023
44,946,400
Retirement/disposals/cancellation
(74,893,896)
-
31 December 2010
76,301,127
44,946,400
Net book value, 31 December 2010
86,070,968
122,511,808
Net book value, 31 December 2009
110,522,561
54,411,676
The carrying amount of intangible assets with indefinite lives as at 31 December 2010 amounted to P36.66 million.
Total
Interest receivable
Accumulated impairment loss
Advances-fire/MRI/
foreclosure proceedings
Accumulated impairment loss
Others
Accumulated impairment loss
165,588,834
(953,811)
164,635,023
909,879,048
(516,149,501)
393,729,547
559,524,623
179,145,923
(953,811)
178,192,112
871,800,363
(516,149,501)
355,650,862
537,767,300
68,702,314
36,560,857
105,263,171
On 8 March 2010, the SSS returned the P10 million fund to the
Commission on Higher Education (CHEd) through its Chairman
Emmanuel Y. Angeles. The return of the fund was agreed upon during
the 3 February 2010 meeting of the SSS Investments Group with
some members of the LEB led by its Chairman and the representatives
of CHEd. In the said meeting, they agreed that the SSS has no legal
authority to hold the fund since it represents the remaining funds in
the books of CHEd for purposes of LEBs operational requirements and
does not form part of the LEF.
2010
2009
12,708,798,008 12,744,155,258
(12,707,637,955) (12,740,230,932)
1,160,053
3,924,326
429,777,974
85,912,496
(80,596,996)
435,093,474
196,141,423
(74,893,896)
121,247,527
208,582,776
164,934,237
Total
5,427,690,471
(22,921,811)
5,404,768,660
434,897,916
(67,660,384)
(97,407)
5,771,908,785
5,404,768,660
Accounts payable
Accrued expenses
2009
1,986,268,116
1,261,835,646
3,248,103,762
38
2010
2,135,812,426
1,102,569,442
3,238,381,868
Flexi-fund
Officials and employees
Borrowers and other payors
Unified multi-purpose ID fund
Due to other government units
Supplies and creditors
Dividend - stock investment
loan program
Educational loan fund - DECS
2010
269,057,470
130,020,909
120,522,057
99,392,076
94,043,739
48,020,831
2009
228,026,818
131,980,533
113,877,011
-
86,757,756
35,643,494
15,501,904
1,576,846
15,501,904
1,497,104
778,135,832
623,290,176
Breakdown as follows:
2010
Member loan (ML) collection
1,380,694,777
Real estate loan collection
534,281,784
Undistributed collection
428,831,056
ML collection deducted from
benefits payments
330,410,838
OFW collections
265,672,623
Sales contract receivable
61,091,057
Rental receivable
855,145
Employees housing loan program
117,227
Express padala
96,654
3,002,051,161
2009
898,748,166
270,324,207
377,824,043
41,705,930
273,012,229
81,741,630
2,809,290
31,163
841,504
1,947,038,162
10,005,556
39
The Social Security Act of 1997 requires the Actuary of the System
to submit a valuation report every four (4) years, or more frequently
as may be necessary, to determine the actuarial soundness of the
reserve fund of the SSS and to recommend measures on how to
improve its viability.
18.3 Retirement incentive award
In its Resolution No. 402 s. 2007, the SSC, adopted the use of
acquisition cost of shares of stock as the basis for computing the
30% limit in equity investments, based on the opinion dated 25
June 2007 of the Legal and Adjudication Sector of COA.
20. RESERVES
40
All revenues of the SSS that are not needed to meet the current
administrative and operational expenses are accumulated in the
reserve fund. Such portion of the reserve fund as are not needed
to meet the current benefit obligations is known as the IRF which
the SSC manages and invests with the skill, care, prudence and
diligence necessary under the circumstances then prevailing that a
prudent man acting in like capacity and familiar with such matters
would exercise in the conduct of an enterprise of a like character
and with similar aims, subject to prescribed ceilings under Section
26 of the SS Law (the Act).
No portion of the IRF or income thereof shall accrue to the general
fund of the National Government or to any of its agencies or
instrumentalities, including government-owned or controlled
corporations, except as may be allowed under the SS Law Act.
The Act also provides that no portion of the IRF shall be invested
for any purpose or in any instrument, institution or industry over
and above the prescribed cumulative ceilings as follows: 40%
in private securities, 35% in housing, 30% in real estate related
investments, 10% in short and medium-term member loans, 30%
in government financial institutions and corporations, 30% in
infrastructure projects, 15% in any particular industry and 7.5% in
foreign-currency denominated investments.
Key Projection Results 2003 Valuation 2007 Valuation
Original * Updated **
No Across-the- Year Fund Will Last 2031 2036
2039
Board Increase Year Net Revenue
2022 2026
2030
in Pensions
Becomes Negative
2010
2009
Investment income
Income from current
investments
Held-to-maturity investments
Interest income
452,568,941 1,897,400,081
Held-for-trading financial assets
Dividend income
25,923,712
19,836,699
Gain on fair value adjustment
1,515,595,442
356,796,375
Gain on sale/disposal
459,704,837
899,084,322
Investments expense
(24,191,069)
(57,424,537)
1,977,032,922 1,218,292,859
2,429,601,863 3,115,692,940
Income from non-current
investments
Available-for-sale
financial assets
Dividend income
3,414,379,491 2,916,145,314
Gain on sale/disposal
10,066,595,622 6,231,014,237
Investment expense
(1,473,850)
Impairment loss
-
(24,217,590)
13,479,501,263 9,122,941,961
Held-to-maturity investments
Interest income
7,634,139,077 5,553,592,672
Penalty on overdue amortization
608
3,646
Gain on sale/disposal
-
166
Investment expense
(604,162)
(566,323)
7,633,535,523 5,553,030,161
Loans and receivable
Interest income
2,908,825,689 2,871,301,566
Penalty on overdue
amortization
807,264,456
713,694,415
Investment expense
(303,060)
(602,887)
Impairment loss
(1,746,332,726)
(4,081,582)
1,969,454,359 3,580,311,512
Investment property
1,825,566,052
498,309,719
27,337,659,060
21,870,286,293
Other income
Interest income from
cash in bank and
cash equivalents
389,047,630
448,511,170
Directors fee
23,359,055
11,885,142
Non-current assets held for sale
Rental income
35,089,798
12,241,523
Gain on sale/disposal
86,756,509
117,796,135
Related expense
(5,668,009)
(3,858,714)
Impairment loss
(1,479,330)
(17,150,920)
Reversal of impairment
loss/revaluation decrease
108,710,662
377,533,793
Service fee - salary loan
111,066,521
134,739,300
Others-net
(236,647,210)
33,635,080
510,235,626 1,115,332,509
Total investment and
other income
27,847,894,686 22,985,618,802
2010
2,207,761,858
1,178,847,346
749,088,274
506,303,033
352,977,335
157,514,093
119,173,700
5,271,665,639
2009
2,042,390,245
985,359,489
743,792,358
465,204,453
226,048,594
139,666,890
128,261,500
4,730,723,529
operating assets
2010
338,871,378
2009
415,053,615
292,793,085
223,998,558
280,436,866
178,527,241
275,404,010
143,671,599
164,366,293
138,001,528
128,000,180
127,171,098
106,884,216
37,843,695
227,988,659
378,396,095
124,087,159
135,151,280
121,470,027
36,753,557
24,935,126
24,914,484
22,845,061
42,906,809
196,141,423
1,842,745,190
2,343,867,852
41
The SSS leases offices for its various branches under cancellable
operating lease agreements. The leases have varying terms,
escalation clauses and renewal rights.
The SSS leases out portion of its office space to various tenants
under cancellable operating lease agreements. The leases have
varying terms, escalation clauses and renewal rights.
The SSC and SSS management are active in the evaluation, scrutiny and
credit approval process on all investments being undertaken by the SSS.
The SSC has adopted adequate policies on investment procedures, risk
assessment and measurement and risk monitoring by strict observance
on the statutory limit provided under the RA 8282 and compliance
to the investment procedures. Internal controls are also in place and
comprehensive audit is being done by Internal Audit Services.
The main risk arising from the SSS financial instruments are interest
rate risk, credit risk, liquidity risk and market price risk. The SSC and SSS
management review and agree on the policies for managing these risks as
summarized below.
a.3 The stockbroker shall be profitable for three of the last five
years of operation. However, stockbrokers not able to meet
the profitability requirement may be qualified provided that
capitalization is at least thirty million pesos for those with
losses.
a.4 The stockbroker shall have a positive track record of service to
other institutional clients.
Cash flow interest rate risk is the risk that the future cash flows of
a financial instrument will fluctuate because of changes in market
interest rates. Fair value interest rate risk is the risk that the value of
a financial instrument will fluctuate because of changes in market
interest rates.
The SSS strictly adheres to the provisions of Section 26 of the
RA 8282 which states that the funds invested in various corporate
notes/bonds, loan exposures and other financial instruments shall
earn an annual income not less than the average rates of treasury
bills or any acceptable market yield indicator. Currently, the SSS has
achieved a mix of financial investments with interest rates that are
within acceptable level. Significant investments in said instruments
have fixed interest rates while repricing rates of investments in
corporate notes/bonds that carry floating interest rates are always
based on acceptable yield (i.e. prevailing 3 months Philippine Dealing
System Transaction-Fixing Rate plus a spread of not less than 0.50%).
42
Credit risk is the risk of suffering financial loss should any of the SSS
counterparties fail to fulfill its contractual obligations to the SSS.
This includes risk of non-payment by issuers and borrowers, failed
settlement of transactions and default on outstanding contracts.
The following table shows the latest aging analysis of some financial assets:
2010
Past due but not impaired (Age in months)
Neither
past due
nor
impaired 3-12
13-36 37-48
49-60
Over 60 Expired Impaired
Total
(In Millions)
Held-for-trading financial assets
3,331
-
-
-
-
-
-
-
3,331
Available-for-sale financial assets
77,415
723
78,138
Held-to-maturity investments
Short-term money placements
6,174
-
-
-
-
-
-
-
Treasury bills
1,224
-
-
-
-
-
-
-
Corporate notes and bonds
12,349
-
-
-
-
-
-
810
Government notes and bonds
92,518
-
-
-
-
-
-
-
6,174
1,224
13,159
92,518
69,295
723
70,018
Held-to-maturity investments
Short-term money placements
11,271
-
-
-
-
-
-
-
Treasury bills
2,023
-
-
-
-
-
-
-
Corporate notes and bonds
12,665
-
-
-
-
-
-
885
Government notes and bonds
68,740
-
-
-
-
-
-
-
11,271
2,023
13,550
68,740
43
Internal
Liquidity risk arises from the possibility that the SSS may encounter
difficulties in raising funds to meet its payment obligations (i.e.
payment of benefits, working capital requirements and planned
capital expenditures) when they fall due. The SSS manages this risk
through daily monitoring of cash flows in consideration of future
payment due dates and daily collection amounts. The SSS also
maintains sufficient portfolio of highly marketable assets that can
easily be liquidated as protection against unforeseen interruption
to cash flow.
The SSS market price risk arises from its investments carried at
fair value (fair value through profit or loss and available-for-sale
financial assets). It manages this risk by monitoring the changes in
the market price of the investments.
c. Data capture
27.2 Unified Multi-purpose ID (UMID)
a. Central verification system
In line with Executive Order No. 700 dated 16 January 2008 which
mandates the SSS President and CEO to take over the work of
the National Economic Development Authority (NEDA) DirectorGeneral to implement the streamlining and harmonization of the
ID systems of all Government-Owned and Controlled Corporations
(GOCCs) towards a unified multi-purpose ID system, the SSS
signed a Memorandum of Understanding (MOU) with National
Statistics Office (NSO) on 9 September 2009. In pursuance to the
objectives of the UMID, the parties shall build jointly, in favor of
the NSO, a central verification and enrollment system (CVES) for
the UMID. All direct and indirect costs of CVES shall be charged
against the funds provided by the NSO who in turn shall allocate a
total amount of P650 million to fund the project. Implementation
shall commence upon execution of the MOU and shall end upon
the complete turnover of the system from the SSS to the NSO.
Relative thereto, the SSS signed an Agreement with winning
bidder A LAMCO-EUROLINK JOINT VENTURE (LAMCO) on 6 May
2010. The agreement covers the supply, delivery and installation of
the central verification system (CVS) with a total contract price of
P279.97 million to be delivered within 90 days from signing of the
agreement.
An Advice of Complete Installation for SSS CVS Project was provided
by LAMCO last 24 August 2010. This gave SSS thirty (30) calendar
days within which to conduct Inspection and Acceptance Testing.
As of December 2010, the testing of the project in accordance with
the criteria described in the Agreement as well as the Acceptance
Test based on mutually agreed test procedures and parameters
were still on-going.
44
27.3 Tax compliance
Internal Audit Service considers total member satisfaction as the most important gauge of the performance of SSS instead of
figures that signify improved collections and maximum investment yields. Determining client satisfaction, however, is not an easy
task as members have different standards in terms of service delivery. In this vein, we choose carefully each audit project by having
in mind the welfare of members and making sure that what we do redounds ultimately to their benefit.
Based on the completed and submitted audit reports for 2010, hereunder are the most significant observations:
1) Opening tellering SSS in branches is a clear strategy designed to afford members the convenience to pay their contributions
and loan amortizations. However, vital requirements should not be compromised for the sake of convenience. The security and
safety of the funds and personnel are paramount considerations in the decision to open a tellering branch. Hence, it requires a
standard layout with all the necessary facilities to prevent incidents resulting in the loss of funds. Clear policy guidelines and
comprehensive operating procedures are also a prerequisite.
2) The examination of the records of the National Home Mortgage and Finance Corporation (NHMFC) not only conforms with the
provisions of the Restructuring Agreement between SSS and NHMFC, but also runs parallel to the legal mandate of ensuring
prudent management of SSS investments. The SSS Lock box account was opened exclusively for the deposit of collections from the
Unified Home Lending Program and for the payment of management fees and necessary expenses. Audit covered transactions
in 2004 and 2005. The positive outcome of this project is that both management and NHMFC committed to institutionalize
mechanism for the periodic reconciliation of records.
3) The Accounts Monitoring System (AMS) is an automated system design to facilitate management of employers contributions
delinquency. However, the technology has yet to be fully utilized by the intended users due to perceived hitches. Audit has proven
that while there are some deficiencies in AMS most of the major functionalities are available and working. IAS is convinced that
the AMS is an effective tool in monitoring employer delinquency.
4) In 2011, IAS will channel its energy back to the basics. Convinced that the new management will not give any stone unturned as
far as improving corporate governance and operating systems are concerned, IAS will perform its role with even more enthusiasm.
After all, customer satisfaction is what drives IAS to perform beyond limits and play a crucial role in the attainment of corporate
goals.
b. Card production
Auditors Report
ANTONETTE L. FERNANDEZ
Assistant Vice President
45
Historical Data
W
401,769
2,329,315
7,381,193
11,775,459
21,325,966
22,630,832
23,532,666
24,308,033
25,051,234
25,666,386
26,227,636
26,739,282
27,241,220
27,759,568
28,217,932
28,766,123
AS OF DECEMBER 31
E
10,956
88,064
221,000
327,354
573,314
600,182
633,306
668,039
702,574
734,810
757,971
781,763
803,335
830,355
850,391
879,758
P**
632
1,996
2,328
3,456
4,041
3,996
3,942
3,896
4,058
4,043
4,169
4,135
4,145
4,182
4,905
5,143
AS OF DECEMBER 31
W/P
E/P
636
17
1,167
44
3,171
95
3,407
95
5,277
142
5,663
150
5,970
161
6,239
171
6,173
173
6,348
182
6,291
182
6,467
189
6,572
194
6,638
199
5,753
173
5,593
171
* net of termination
** regular SSS employees only
Worker (W), Employer (E), SSS Personnel (P)
Year
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
AMT
68.2
963.2
7,258.2
48,200.9
176,875.1
181,741.0
163,113.6
162,606.4
170,875.3
179,084.1
199,713.2
228,444.5
247,737.2
233,122.2
272,610.7
297,591.3
ASSETS
% INC / (DEC)
67.6
1,313.3
653.6
564.1
267.0
2.8
(10.2)
(0.3)
5.1
4.8
11.5
14.4
8.4
(5.9)
16.9
9.2
RESERVES INVESTMENTS
AMT
% INC/ (DEC)
AMT
% INC / (DEC)
66.2
953.7
1,310.3
919.7
1,288.9
7,142.6
648.9
7,098.2
671.8
47,693.6
567.7
46,944.2
561.4
165,820.6
247.7
168,336.8
258.6
170,408.7
2.8
166,183.1
(1.3)
161,234.3
(5.4)
151,015.0
(9.1)
159,547.7
(1.0)
149,211.0
(1.2)
168,137.3
5.4
155,939.7
4.5
176,386.1
4.9
160,500.4
2.9
196,287.5
11.3
181,775.4
13.3
224,995.9
14.6
205,225.5
12.9
243,016.7
8.0
225,565.3
9.9
225,602.9
(7.2)
211,355.2
(6.3)
265,329.8
17.6
248,641.4
17.6
289,095.0
9.0
273,265.6
9.9
Year
Contributions
1957 - 1959
72.5
1960 - 1969
959.9
1970 - 1979
5,599.3
1980 - 1989
25,114.6
1990 - 1999
158,632.2
2000
30,320.5
2001
31,371.8
2002
34,187.7
2003
39,420.4
2004
43,935.8
2005
47,483.4
2006
52,543.6
2007
61,829.1
2008
68,879.3
2009
72,350.9
2010
79,272.9
Investment and
Other Income
Benefits
4.0
2.8
232.3
187.9
2,677.9
1,584.0
32,879.0
15,791.1
139,020.1
158,355.9
12,341.1
33,889.2
14,238.9
39,015.0
11,705.0
40,871.6
12,763.1
42,806.4
8,853.3
44,882.5
12,316.3
46,269.8
12,107.9
52,122.0
17,870.0
60,746.6
29,089.0
67,917.4
22,985.6
72,050.0
27,847.9
77,174.2
* Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC
46
Operating Expenses
& Others
6.1
118.3
504.4
1,852.7
17,177.0
4,202.1
4,447.4
4,591.5
4,776.6 *
5,327.3 *
5,638.4 *
6,379.9 *
6,819.3 *
6,745.6 *
7,074.6 *
7,114.4 *
Net Revenue
67.7
886.0
6,188.8
40,349.9
122,119.4
4,570.4
2,148.2
429.6
4,600.5
2,579.3
7,891.4
6,149.6
12,133.2
23,305.3
16,212.0
22,832.2
Year
1959
1969
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
ASSETS
AMT
% INC / (DEC)
68.2
963.2
1,312.3
6,750.7
600.9
42,974.2
536.6
159,688.2
271.6
163,325.7
2.3
144,823.8
(11.3)
143,098.5
(1.2)
150,618.9
5.3
158,007.4
4.9
177,719.6
12.5
205,878.6
15.8
224,928.6
9.3
209,535.8
(6.8)
247,891.3
18.3
271,267.5
9.4
RESERVES INVESTMENTS
AMT
% INC / (DEC)
AMT
% INC / (DEC)
67.6
66.2
953.7
1,310.8
919.7
1,289.3
6,641.6
596.4
6,608.6
618.6
42,466.9
539.4
41,781.2
532.2
148,633.8
250.0
151,801.8
263.3
152,002.7
2.3
149,226.1
(1.7)
141,957.2
(6.6)
134,521.0
(9.9)
139,660.0
(1.6)
130,967.2
(2.6)
147,730.9
5.8
138,909.2
6.1
155,159.4
5.0
143,304.7
3.2
174,144.2
12.2
166,535.0
16.2
202,316.0
16.2
187,759.5
12.7
220,097.1
8.8
211,167.9
12.5
201,907.9
(8.3)
192,663.2
(8.8)
240,502.0
19.1
228,919.5
18.8
262,663.2
9.2
252,630.6
10.4
Investment and
Year
Contributions
Other Income
Benefits
1957 - 1959
72.5
4.0
2.8
1960 - 1969
959.9
232.3
187.9
1970 - 1979
5,122.3
2,573.0
1,511.8
1980 - 1989
23,081.0
29,353.0
15,058.7
1990 - 1999
154,417.9
123,034.2
152,474.4
2000
29,885.5
10,217.3
32,735.1
2001
30,912.0
12,390.1
37,813.5
2002
33,702.1
9,901.2
39,566.3
2003
38,634.7
11,694.6
41,622.9
2004
43,083.6
7,530.1
43,743.3
2005
46,714.9
10,872.9
45,180.8
2006
51,633.4
10,953.0
51,051.6
2007
60,769.5
17,117.8
59,665.4
2008
67,668.2
27,848.4
66,820.3
2009
71,166.9
21,988.3
70,963.9
2010
77,957.0
27,016.4
76,088.1
Operating Expenses
& Others
6.1
118.3
495.6
1,751.6
16,091.3
4,014.9
4,211.5
4,340.5
4,644.8
5,192.0
5,505.9
6,249.1
6,697.9
6,636.3
6,967.8
7,014.1
Net Revenue
67.7
886.0
5,687.9
35,623.7
108,886.4
3,351.2
1,277.0
(303.5)
4,061.6
1,678.4
6,781.4
5,285.8
11,524.0
22,059.9
15,223.6
21,871.2
EMPLOYEES COMPENSATION AND STATE INSURANCE FUND GROWTH OF ASSETS, RESERVES & INVESTMENTS
(Amounts in Million Pesos)
Year
1979
1989
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
ASSETS
AMT
% INC / (DEC)
507.5
5,226.7
929.8
17,186.9
228.8
18,415.3
7.1
19,303.0
4.8
19,508.0
1.1
20,406.4
4.6
21,226.7
4.0
22,143.3
4.3
22,679.9
2.4
22,919.6
1.1
23,695.1
3.4
24,827.9
4.8
26,431.8
6.5
RESERVES INVESTMENTS
AMT
% INC / (DEC)
AMT
% INC / (DEC)
501.0
489.6
5,226.7
943.2
5,163.0
954.6
17,186.8
228.8
16,535.0
220.3
18,406.0
7.1
16,956.9
2.6
19,277.1
4.7
16,494.0
(2.7)
19,887.7
3.2
18,243.8
10.6
20,406.4
2.6
17,030.5
(6.7)
21,226.7
4.0
17,195.7
1.0
22,143.3
4.3
15,240.4
(11.4)
22,679.9
2.4
17,466.1
14.6
22,919.6
1.1
14,397.4
(17.6)
23,695.1
3.4
18,692.0
29.8
24,827.9
4.8
19,721.9
5.5
26,431.8
6.5
20,635.0
4.6
Investment and
Year
Contributions
Other Income
Benefits
1975 - 1979
477.0
104.9
72.2
1980 - 1989
2,033.6
3,526.0
732.3
1990 - 1999
4,214.3
15,985.9
5,881.6
2000
435.0
2,123.9
1,154.1
2001
459.8
1,848.8
1,201.5
2002
485.6
1,803.8
1,305.3
2003
785.7
1,068.5
1,183.5
2004
852.2
1,323.2
1,139.2
2005
887.1
1,444.4
1,089.0
2006
910.2
1,154.9
1,070.4
2007
1,059.6
752.2
1,081.2
2008
1,211.1
1,240.6
1,097.0
2009
1,183.9
997.3
1,086.0
2010
1,315.9
831.5
1,086.0
* Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC
Operating Expenses
& Others
8.8
100.8
1,085.7
185.7
235.8
251.0
131.8 *
135.3 *
132.5 *
130.8 *
121.4 *
109.3 *
106.8 *
100.3 *
Net Revenue
500.9
4,726.5
13,233.0
1,219.2
871.2
733.0
538.9
900.9
1,110.0
863.9
609.2
1,245.4
988.4
961.0
2010 AN N UAL REPORT
47
48
49
50
From Left to Right: (top photo) President and CEO Emilio S. de Quiros, Jr., VP Marissu G. Bugante, Special
Assistant to the President and CEO Edmund P. Lee, Department Manager 3 Joselito A. Vivit,
Special Assistant to the President and CEO Maria Lourdes N. Mendoza, AVP Santiago Dionisio R. Agdeppa,
and SVP Amador M. Monteiro
From Left to Right: (top photo) VP Nicholas C. Balbuena, VP Alfredo S. Villasanta, AVP Hidelza B. Castillo,
AVP Renato N. Malto, AVP Elvira G. Alcantara-Resare, SVP Miguel E. Roca, Jr.
From Left to Right: (bottom photo) AVP Joel P. Palacios, AVP Antonette L. Fernandez, CEO V Juanita L. Reyes,
VP Rizaldy T. Capulong, and VP May Catherine C. Ciriaco
From Left to Right: (bottom photo) VP Gwen Marie Judy D. Samontina, VP Antonio G. Maralit, VP Jesse J. Caberoy,
AVP Daisy S. Real, AVP Johnsy L. Mangundayao
51
SSC CHAIRMAN, SSS PRESIDENT & CEO AND SECRETARY TO THE COMMISSION
From Left to Right: AVP Renato M. Custodio, Vice Chairman Emilio S. De Quiros, Jr.,
Chairman Juan B. Santos, VP Milagros M. Pagayatan
52
INVESTMENTS SECTOR
From Left to Right: OIC Emmanuel A. Trinidad, AVP Ma. Luz C. Generoso, AVP Mariano Pablo S. Tolentino,
EVP Edgar B. Solilapsi, AVP Lilia S. Marquez, VP Rizaldy T. Capulong, VP Gamelin Z. Oczon
53
Management Directory
SOCIAL SECURITY COMMISSION
JUAN B. SANTOS
Chairman
EMILIO S. DE QUIROS, JR.
Vice-Chairman
DIANA PARDO-AGUILAR
DANIEL L. EDRALIN
ELIZA BETTINA R. ANTONINO
BIENVENIDO E. LAGUESMA
MARIANITA O. MENDOZA
IBARRA A. MALONZO
ROSALINDA D. BALDOZ
Members
SSS MANAGEMENT
LUZVIMINDA J. LIMCAUCO
Binondo Branch
ROBERTO B. BAUTISTA
International Affairs Department
CECILIA S. ROA*
Contributions Accounting Department
AUREA G. BAY
Office of the EVP for Branch Operations
Sector
MARILOU M. BETIC
Investments Accounting Department
NESTOR R. SACAYAN
Engineering and Maintenance
Department
RENATO M. CUSTODIO
Commission Legal Department - I
REGINALD G. CANDELARIA*
Equities Department
ELEONORA Y. CINCO
Quality Management Department
NILO D. DESPUIG
Bicol Division
ROSA T. CRISOSTOMO
Planning and Standards Department
ANTONETTE L. FERNANDEZ
Internal Audit Services Division
GLORIA Y. CUISIA
Branch Evaluation Department
RODRIGO B. FILOTEO
Western Mindanao Division
EDDIE A. JARA
Visayas and Mindanao Operations Group
AMADOR M. MONTEIRO
Chief Legal Counsel
MIGUEL E. ROCA, JR.
Information Technology Management
Group
JUDY FRANCES A. SEE
Program Management Group
VICE PRESIDENT & EQUIVALENT RANK
ANTONIO S. ARGABIOSO
Coverage and Collection Program
Management Division
NICHOLAS C. BALBUENA
Computer Operations Division
MARISSU G. BUGANTE
Public Affairs and Special Events Division
JESSE J. CABEROY
Human Resource Management Division
RIZALDY T. CAPULONG
Capital Market Division/Actuarial
Department and concurrent Deputy
Chief Actuary
MAY CATHERINE C. CIRIACO
Management Services and Planning
Division
ANTONIO G. MARALIT
Planning and Research Division
MARIA LOURDES N. MENDOZA
Office of the President and CEO
NACIANCINO L. MONREAL
NCR Operations Group
GAMELIN Z. OCZON
Treasury Division
MILAGROS M. PAGAYATAN
Office of the Commission Secretary
GWEN MARIE JUDY D. SAMONTINA
Technical Support Division
54
VILMA P. AGAPITO
Luzon Central Division
JOSE B. BAUTISTA
Luzon Operations Group
From Left to Right: AVP Emmanuel R. Palma, AVP Helen C. Solito, AVP Rodrigo B. Filoteo, EVP and
Chief Actuary Horacio T. Templo, SVP Eddie A. Jara, AVP Josefina O. Fornilos, AVP Manolito C. Tagalog
AMELIA A. GUILLERMO
Welcome Branch
HIDELZA B. CASTILLO
Application Systems Division
HYDEE R. RAQUID
Support Services Audit Department
HORACIO T. TEMPLO
Branch Operations Sector
From Left to Right: EVP and Chief Actuary Horacio T. Templo, AVP Aida V. Delos Santos, SVP Jose B. Bautista,
Cluster Head Vilma P. Agapito, Cluster Head Nilo D. Despuig, AVP Luis V. Olais
FELIPE R. CABAERO
Computer Resource Management
Department
EDGAR B. SOLILAPSI
Investments Sector
ADELINA A. LIQUE
Malabon Branch
MA. LUZ N. BARROS-MAGSINO
Manila YMCA Branch
PRISCILA F. MARALIT
Cainta Branch
FELIZARDO B. MINOR, JR.
San Mateo Branch
FERNANDO O. NICOLAS*
Marikina Branch
CARMEN O. SORIANO
Management Support Services
Department
SYLVETTE C. SYBICO
Foreign Branch Expansion and
Monitoring Department
SONIA C. ABRERA
Makati-Gil Puyat Branch
HELEN L. ABOLENCIA
San Juan Branch
MARISSA L. TIZON
Human Resource Services Department
CELSO C. CUNANAN
Data Center Operations Department
ARNOLD A. TOLENTINO
Management Information Services
Department
TERESITA L. ARAOS
Pasay-Roxas Boulevard Branch
JOSEFINA O. FORNILOS
Northern Mindanao Division
ELPIDIO S. DE CHAVEZ
Branch Support Services Department
IKE A. TUBIO
Fraud Investigation Department
JOY A. VILLACORTA
Overseas Filipino Workers Program
Management Department
MARIVIC S. VILLARAMA
Enterprise Systems Support Department
NORMITA M. DOCTOR
Sickness, Maternity and Disability
Program Management Department
ANITA A. VILLENA
Office Services Department
EDMUND D. LEE
Office of the President and CEO
JOSIE G. MAGANA
NCR North Division
RENATO N. MALTO
Records and Information Management
Department
JOHNSY L. MANGUNDAYAO
Operations Accounting Division
LILIA S. MARQUEZ
Corporate Bonds and Loans Department
LUIS V. OLAIS
Luzon North Division
LETICIA B. ONG
Medical Program Management
Department
REYNALDO C. ORIEL
Office of the EVP for Branch Operation
Sector
JOEL P. PALACIOS
Media Affairs Department
EMMANUEL R. PALMA
Southern Mindanao Division
DAISY S. REAL
Human Resource Staffing and
Development Department
JUANITA L. REYES
Office of the President and CEO
HELEN C. SOLITO
Central Visayas Division
MANOLITO C. TAGALOG
Western Visayas Division
MARIANO PABLO S. TOLENTINO
Asset Management Department
EMMANUEL A. TRINIDAD*
Cash Department
BELINDA B. ELLA
General Accounting Department
JOCELYN M. EVANGELISTA
Branch Operations Audit Department
ROGELIO A. FUNTELAR
Front-End IT Support Department
JEAN V. LAGRADA
Budget Department
BRANCH HEAD/OFFICER-IN-CHARGE
NATIONAL CAPITAL REGION (NCR)
OPERATIONS GROUP
NCR CENTRAL DIVISION
SONIA P. GUINTO*
Corporate Communications Department
ARTHUR O. ABARY
Novaliches Branch
ROSALINA C. MANANSALA
Collection Data Processing and
Reconciliation Department
JOCELYN Q. GARCIA
San Francisco Del Monte Branch
LETICIA G. BARBERS
Alabang Branch
RHODORA G. BONITA
Pasay-Taft Branch
MA. LOURDES T. FLORES
Makati JP Rizal Branch
CRISTINE GRACE B. FRANCISCO
Paraaque Branch
FE MARIE F. GERALDO
Taguig Branch
LIBERTY A. GORDOVEZ*
San Juan Branch
MARCIANA A. MARQUEZ
Mandaluyong Branch
AMALIA N. TOLENTINO
Las Pias Branch
LUZON OPERATIONS GROUP
LUZON NORTH DIVISION
JOSEPHINE C. ABRIL
La Union Branch
ESTRELLA R. ARAGON
Cauayan Branch
PORFIRIO M. BALATICO
Tuguegarao Branch
JANET D. CANILLAS
Vigan Branch
BENEDICTA B. GARCIA
Bangued Branch
BENJAMIN R. LOPEZ
Baguio Branch
ROMEO E. REYES
Santiago, Isabela Branch
PAULINA YG. SANTOS*
Solano Branch
NANCY M. UMOSO
Laoag Branch
ABELARDO C. YOGYOG
Bontoc Branch
JOSELITO A. VIVIT
Corporate Legal Department
ALFREDO S. VILLASANTA
General Services Division
*Officer-in-Charge
2010 AN N UAL REPORT
55
FELICITAS A. DEMANDANTE
Sagay Branch
REYNALDO V. ESPINOSA
Roxas Branch
ANTONIO V. SORIANO
Bian Branch
SOCORRO B. FERRER
Kabankalan Branch
JANE T. GARGOLES
Victorias Branch
JAIME S. CASUMPANG
Basilan Branch
BICOL DIVISION
VICTOR M. NICOR
Bago City Branch
RUDY M. LACANDALO
Ipil Branch
GODOFREDO M. MARTINEZ
Dipolog Branch
EMILIA B. SOLINAP
San Carlos Branch
FERDAUSI A. SALASA
Jolo Branch
IRENEO T. VILLAFLOR
Dumaguete Branch
MARITES A. DALOPE
Sta. Maria Branch
NILO D. ALMOSERA
Masbate Branch
PABLITA A. DAVID
Meycauayan Branch
DIVINA T. AVILA
Virac Branch
CORITA M. GADUANG
Pampanga Branch
ELIZABETH R. GARCIA
Balanga Branch
ANTONIO A. CASIMIRO
Tabaco Branch
ROLANDO C. MENDOZA
Baler Branch
BEATRIZ C. GUMABAO
Goa Branch
EDWIN M. ALO
Cagayan de Oro Branch
SONIA A. DOMINGO
SSS POEA Office
CLARIBEL L. REBUENO
Naga Branch
PERKINS B. CALIXTRO
Camiguin Branch
ELENITA S. SAMBLERO
Legaspi Branch
LAURA M. MARIANO
Angeles Branch
VIRGILIO A. SANTIAGO
Daet Branch
ANTONIO G. FABIA
Valencia Branch
PRISCO S. SORSONA
Iriga Branch
MONALISA C. NARDO
Camiling Branch
CEASAR P. SALUDO
Dagupan Branch
MARILOU M. SANTOS*
Iba Branch
GUILLERMO S. TARUC
Tarlac Branch
GEMMA C. CABERTE
Ormoc Branch
LILIBETH A. CAJUCOM
Tacloban Branch
NICETA M. CARRETAS
Cabalogan Branch
JESREL H. ANCHETA
Boac Branch
ERIC A. CORONADO
Toledo Branch
GREGORIO P. ASENDIDO
Calapan Branch
MARIO V. CORRO
Cebu Branch
MAGDALENA H. DINCILLO*
Mandaue Branch
CORAZON L. BALAGBIS
Batangas Branch
RODRIGO B. GREGANA
Maasin Branch
VICTORINA G. CARLOS
Tagaytay Branch
ALBERTO L. MONTALBO
Lapu-Lapu Branch
VIRGINIA S. CRUZ
Bacoor Branch
BENJAMIN A. POMBO
Calbayog Branch
JOSEPHINE S. HIPOLITO
Sta. Cruz Branch
MARINO B. TALICTIC
Tagbilaran Branch
NELSON P. IBARRA
Calamba Branch
VICTORIA A. LIWANAG
Lucena Branch
ROBERTO D. MARCELO
San Jose, Occidental Mindoro Branch
ROBERTO S. PAGAYUNAN
Lipa Branch
EXEQUIEL O. PANGANIBAN
EPZA Branch
*Officer-in-Charge
56
TITO A. NAVA
Carmona Branch
ELVIRA B. BANICO
Iloilo Branch
LILANI B. BENEDIAN
Bais Branch
RAUL A. CASIANO
Bacolod Branch
ISAAC P. CIOCON, JR.
Kalibo, Aklan Branch
CHERYL V. JARIOL
Iligan Branch
OSWALDO B. MONTENEGRO
Tandag Branch
MARILYN O. TAMAYO
Gingoog Branch
SOUTHERN MINDANAO DIVISION
JOSE S. CATOTO, JR.
General Santos City Branch
JOVE L. COLASITO
Davao Branch
RIZALITO ALBERTO C. DE LEON
Toril Branch
SERAFIN G. HINGCO
Kidapawan Branch
EDGAR P. JUANICH
Digos Branch
SUKARNO D. PENDALIDAY
Cotabato City Branch
MARIVIC G. RUTOR
Brunei Representative Office
ROBERTO V. ROLDAN
Hong Kong Representative Office
JOSEFINA A. MADURO
Singapore Representative Office
FRENELIE ANN L. ONG
Taipei, Taiwan Representative Office
MIDDLE EAST
WILMA M. ORTIZ
Abu Dhabi, UAE Representative Office
ABDAWIYA K. NAVARRO
Al-khobar, KSA Representative Office
BENNETTE A. CUETO
Doha, Qatar Representative Office
HARRY A. RACHO
Jeddah, KSA Representative Office
FRANCISCO U. UY
Kuwait Representative Office
DANILO Q. CALAPE
Riyadh, KSA Representative Office
EUROPE
ALFREDO JOSE I. RECIO, JR.
London, United Kingdom Representative
Office
THELMA V. VENTURANZA
Milan, Italy Representative Office
Chairperson:
FRANCISCO B. BACOL
Rome, Italy Representative Office
Vice Chairperson:
VP Marissu G. Bugante
JULIOUS J. WALES
Bislig Branch
Consultant:
Secretariat:
ROSELANE B. PLAZA
Mati Branch
SUZETTE H. PURIFICACION
Tacurong Branch
REDENTOR S. VIOLA
Koronadal Branch