THE NEWS of a proposed P250-billion wealth fund being “pushed by allies of President Marcos” came as a surprise. The proposal is embodied via House Bill 6398 filed early last week by Speaker Martin Romualdez and co-authored by Rep. Sandro Marcos – cousin and son, respectively, of the President.
The first concern is that it is reported that the Government Service Insurance System (GSIS) and the Social Security System (SSS) will be required to invest in the fund.
Hang on!
Both GSIS and SSS are covered by long-standing Republic Acts (RA) which provide ground rules for how these pension contributions are to be invested. Republic Act 8291 apples to GSIS – the pension scheme for Government employees. The larger, SSS, the pension scheme available to all Filipinos, is covered by RA 8282.
These Acts provide effective safety nets so that available funds cannot be used to invest in speculative schemes which would be deemed to be high risk. This results in very many SSS members making entirely voluntary contributions.
SSS now has around 40 million members.
SSS has existential challenges. The main one being that increased longevity of SSS members means that the average length of time that they are drawing their pension is being steadily extended.
Will Maharlika accept the challenge of extended pension payouts without demur or will the proposed wealth fund try to change the rules?
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The proposed fund is a fast-moving story so that by the time this article is published there is a significant possibility that some key aspects will have changed.
For example, what is the attitude of BBM to the possible fund? Leadership should be clearly associated with the leader. It would not be satisfactory if BBM is waiting to see what the opinion of the populace is. That would make him a follower and not a leader. This is not why 31 million people, in free and fair elections, voted for him.
For example, BBM is in favor of a mandatory Reserve Officers Training Corps (ROTC). He has said so and therefore his leadership position is clear. The issue entered into the national conversation on this basis which, of course, in a democracy it should do.
Since BBM’s name is associated with Maharlika, he should be clear as to what is his position.
I am against the pension schemes (SSS and GSIS) being compulsorily part of Maharlika unless watertight assurances are given as to the safety of the pension funds.
Congress in due time will debate House Bill 6398 which deals with the wealth fund issue. There will, I hope, be a vigorous debate.
We need more clarity.
Meanwhile, I salute the opposition of Bangko Sentral ng Pilipinas to the scheme.
It seems to be half-baked.
BBM should provide clear leadership on the issue./PN
