SOCIAL SECURITY SYSTEM2010 annual report Kabalikat sa Tuwid na Landas 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 SOCIAL SECURITY SYSTEM 2 0 1 0 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 Management’s Responsibility for the Financial Statements 27 State Auditor’s Report on the Financial Statements 28 29 30 31 32 45 46 Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Reserves Statement of Cash Flows Notes to Financial Statements Internal Auditor’s Report Historical Data 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 About the Cover Kabalikat sa Tuwid na Landas sa Pagbangon ng Pilipinas Kabalikat sa Tuwid na Landas sa Pagbangon ng Pilipinas For 53 years, the Filipino has in the Social Security System of the Philippines or the SSS an ally, a partner and a friend. Through its valuable aid and assistance programs, the institution has become a key player in the government’s program of nation building. Our cover features an SSS member and his family, the recipient of SSS benefits, programs and services. He is a symbol of the care and protection that SSS aims to provide its network of members nationwide. A bright tomorrow for the SSS member is promised as depicted by a backdrop of a modern, progressive cityscape; a long straight road symbolizes the nurturing support of SSS which is in line with the new administration’s “Tuwid na Landas”. 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 My warmest greetings to the Social Security System on the publication of your 2010 Annual Report. I commend the SSS in your more than 50 years as a key partner of government, fulfilling our collective mission to improve the lives of our people. Through the protection that you provide your members and your programs supporting their respective enterprises, your institution has proved crucial not only to the public welfare but also to our common goal of revitalizing the economy. It is my fervent hope that you will carry on in your thrust to empowering our citizenry and making them vital participants, as we set out to rebuild our country in this daylight of hope. We have the momentum to sustain this movement for national transformation, to report our government and society and to restore our country’s place in the community of nations. Let us stay united as one people in realizing our dream of a stable, progressive 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. TUWID NA LANDAS AGENDA: BENIGNO S. AQUINO III 1. Transform the organization and its employees; 2. Simplify/Innovate to reduce corruption and improve efficiency; and, 3. Optimize resources. 2 2010 AN N UAL REPORT 3 We also commit to follow international standards and the AntiRed Tape Act in rendering service to our constituents through continuing improvements of our work processes founded on good governance. convenient. The board committees composed of Audit.A. the Social Security Commission laid down policies to put in effect the laws passed by Congress. More than just strengthening the fund’s financial condition through optimum compliance.21 Billion in 2009 to Php22.Responding to a Sublime Advocacy Message of the Chairman T he year 2010 was a promising one. Also in 2010. A government financial institution immersed with the working man’s vision of perpetual social protection.A. The SSS is energetic. reliable and meaningful social protection services to our current and future members and their beneficiaries is emphasized. the Commission is determined to adhere to the principle of promoting social justice in the country. So it was with great honor that I accepted the challenge. realizing investment earnings thru prudent investment mechanisms of the SSS and advancing economic and social development. OFW Coverage. together with laudable performance of the SSS allowed the net revenue of the fund to soar from Php16. I thank the Management and all the hardworking officers and employees for their remarkable work and steadfast commitment to the SSS. The Social Security System is an ideal template for one to renew his enthusiasm and entrepreneurial spirit. R. after spending nearly four decades of my professional life using whatever management and leadership skills I honed in the private sector while steering the course of the biggest food company in the country. The OFW Caravan will also send several hard-working commissioners. The historic change in national leadership in 2010. JUAN B. while benefitting from the condonation of accumulated penalties and loan restructuring schemes. professional and has achieved and still much capable of attaining greater heights that can make a real difference in our country. together with SSS officials and staff. On behalf of my fellow Commissioners. We witnessed a turning point in our national history that heeded the call for genuine change in society filled with hope. public accountability and transparency. The new Commissioners of the Social Security Commission. The SSS workforce expresses its support and adherence to the Quality Policy of the SSS. Investment Oversight. and Coverage and Collection strengthens communication lines with management and amplify the thrust of this Commission as an enabler of worthy plans and programs. to conduct drives in key countries with high concentrations of overseas Filipino workers to bring in other coverable employed members to the fold. government agency partners and special sectors all over the country. No. 9507 or the Socialized and Low-Cost Housing Restructuring and Condonation Program. A commitment to strike a balance between our corporate goals and institutional responsibilities is magnified through the policies that the present Commission formulates and passes. I am confident that we can sustain this positive growth as we all work together towards a bigger. dedicated officers and employees who had toiled throughout the decades for the benefit of its current members and their beneficiaries and future generations. together with the highly-capable President and Chief Executive Officer look forward to further improve the health of the fund. Further initiatives are likewise underway to encourage nonpaying members to return to the fold through intensive coverage drives directed at local government units. in line with the mandate of the Citizen’s Charter where a commitment to provide prompt. 2010 AN N UAL REPORT 5 . 9903 or the Social Security Condonation Law of 2009 and R. better and more professional SSS for our members. No. inspired by the commitment and efforts of its competent and 4 The implementation of the Member Loan Penalty Condonation Program for Employers restored employees’ access to benefits and privileges that SSS provides for its members while allowing member-employers to update and remain compliant. Information Technology.83 Billion in 2010. SANTOS The SSC will continue to initiate policy reforms to remove needless obstacles that are counter-productive to the concept of universal coverage. These two laws were designed to encourage employers and member-borrowers to update their records with SSS. but imminent future. that is. Aquino III’s “matuwid na daan” which opened a lot of challenges and opportunities that signaled that 2010 was the propitious time to intensify work in the SSS and to regain its focus. We improved our operations through enhancing our service capabilities through delineation 6 of functions in some areas of the organization and through the use of the latest computer technology. 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. Worst. education. among others. The SSS employees felt the heavy load. when I accepted the position as President and CEO of the SSS. and. I made the whole workforce cognizant of the fact that the road towards these may be a long and arduous one. debilitating accidents may occur. charter amendments pursuit. there is seldom enough money left over to prepare for the unpredictable. So while I recognize what my predecessor did. for the reward of an enduring SSS is well worth it. yet their stories share a common theme. SSS as Bastion of Civic Responsibility Workers all over the country have different stories to tell. 2010 saw our commitment to pursue our mandate with dedication and zeal. My resolve to serve was bolstered by a magic key that helped me to steer SSS to the direction where it should go. Contribution Collections In 2010. reinvigorating its sense of mission and reaffirming its mandate of social protection. organization re-engineering. continuous improvement of our work processes following international standards in service delivery to qualify for ISO certification from international certifying body. adherence to the SSS Quality Policy in line with the mandate of the Citizen’s Charter. This is – that every hardearned peso is needed in the present time. 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. This was President Benigno S. I knew what I was getting into. Another source was the completion of the agreement 2010 AN N UAL REPORT 7 . too. I knew that if there is any place where one’s mettle for service is truly tested. 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. But the future will come. We moved to fortify SSS financial standing by enhancing our financial viability through reinforced investment portfolios. That is the harsh reality of life and it will not always be rosy and bright when it arrives. that we will assist them in every way we can so that they can fully avail themselves of the benefits and privileges due them. theirs and their loved ones’ security for a better future. We were ever forward-looking and started putting in place social protection strategies specifically in the following requisite action areas: social security coverage expansion. I would like SSS to be always ready to attend to our members in times like these – making sure that benefits and privileges are not only adequate to the basic minimum level but also given expeditiously and without unnecessary effort on the part of the claimant. social security fund is probably the least expensive yet most feature-rich insurance package a worker will ever find and can rely on to tide him over until times become normal. And we moved to create a more humane and responsive social security for all generations to come for all Filipinos in all parts of the world. it is in government service where the challenges are often multifold and where time and resources are always not enough to get the job done. Breadwinners may fall ill. cannot be put off for tomorrow.REDEFINING THE DYNAMICS OF SOCIAL SECURITY Message of the President and CEO Magic Key that Opens Countless Doors In 2010. I would like the whole SSS workforce to make our members feel that SSS is their stronghold. shelter. more often than not. Essentials such as food. and. and the youthful intensity and vigor with which we work today will someday give way to old age. their bastion of hope. if possible. bringing SSS to its prime position in the field of social security which was indeed no mean feat. This strategy brought in over a billion pesos that exceeded the target of 900 million pesos. more meaningful benefits. In the midst of all these. I knew that leading a public institution that is as challenging and as complex as the SSS with over 28 million membership is not going to be easy. we started work. Yet we agreed that we will not hesitate to take that road. Despite the immensity in breadth and scope of the work. I would like SSS employees to be in the position to assure all our valued members that we will walk with them through economically trying times. clothing. collection of contributions continued to rise to a recordhigh of over 79 billion pesos as compared with over 72 billion pesos in 2009. investments optimization. I knew that I have to chart a roadmap that will serve as our guidepost in refreshing the institution. We also enhanced our benefits and privileges to our members through growth in our earnings and resources. Based on what we have experienced. Surge in Investments Income SSS optimized its investments and managed to post a moderate of over 27 billion pesos worth of investment income which was 34 per cent higher than the targeted 20 billion pesos for 2010. On a lighter side. The UMID. It was also in this year that various training programs were implemented to enhance the technical skills of the whole workforce. While we work hard to improve the management of our assets. trust. In the corporate world. a privilege and an honor. the SSS personnel. our pensioners. It has also started exploring prospective foreign investments for diversification. we encouraged our employees to indulge in various athletic. SSS showed a lower actual operating expenditure recorded at 7. highly successful people are not so much those who are experienced in terms of years of tenure as much as those who are effective.” Nurturing Competence and Professionalism in the Organization Exhortation The transformations that are unfolding in the country serve as a constant reminder of the need to keep the skills and competence of our employees abreast with the evolving social security needs of our constituents. JR. progress happens by fits and starts.65 billion for 2010. Maternity and Employees Compensation (SMEC) payments through the banks. These card readers are compliant with the specifications of the Unified Multi-Purpose ID (UMID) system. Challenges are enormous. the expanse of its conquests or the wealth inside its coffer. zigzagging upward with many reverses. A wise man says: “The one who finishes the race is not the strongest of all but the one who never gave up. harmonize. We commit to continue to rejuvenate the SSS by infusing innovative and productive strategies that would secure the health of our funds while we make our operations respond to the call of the government towards transformation. SSS has deployed and installed 290 ID card readers in different branches to facilitate faster transactions and eliminate fraudulent claims. has been envisioned as the government’s springboard in infusing the benefits of ICT to improve public service. In the same breath. I and the rest of the SSS workforce have been made aware that we have much to be grateful for. Database Clean-up as a result of erroneous contingency date. 8 As countries in the world achieve higher levels of economic development. DE QUIROS. I would like to exhort everyone in the SSS that we be guided by this adage. It also provided a yardstick within which to measure the performance of our frontline services. 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. for we look at this as a rewarding endeavor. As SSS enters 2011. Speed is critical. which aims to streamline. a common commitment. This was through the implementation of the Staffing Plan by promoting and absorbing deserving employees as well as upgrading and reclassifying executive positions. The new server allows the enhancement of online capabilities while ensuring data integrity through stricter server security. focus is key. employee static and pension database. It is notable. The bulk of the releases went to retirement and death claims which accounted for nearly 85 per cent of total disbursements for the year. SSS. The SSS has also begun efforts to implement a trading system for equities and other tradable investments. confidence and inspiration. most important thing is to be unified by a common purpose. And they are not so much those who are brilliant as much as those who are balanced. We are confident we shall be able to build a groundswell of support for our efforts. These measures were through the following programs: Enhanced Annual Confirmation of Pensioners. mismatched records in claims information. and that we still have much to strive for. The new Performance Evaluation System (PES) was also designed in order to enhance institutional productivity. Revisions in the New Disability Program. their social security systems also advance in parallel. 2010 was the year when efforts to reinvigorate the human resource machinery happened. foster teamwork and develop unifying spirit and just have fun. and unify existing ID systems in the government. 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. it braces itself to face more challenges even while we thank our valued members and their beneficiaries. Parallel to this. conduct of meetings with the banks for the Electronic Data Interchange (EDI). The marked increase in contribution collection was complemented by expanding the network of e-payment facilities that ensures steady inflow of collection. that the ratio of the social benefits through increased ownership and liberalizing access to home loans far outweighs financial profits. The greatness of a nation lies in the moral fiber of its number one resource – its people. or even earn the status of being the economic backbone in the field of social security. This was followed by the development of a PES customized for the executives. 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. balanced people who know how to adapt to this dynamics. and His Excellency President Benigno S. still the EMILIO S. level and quality of benefits and services provided. I exhort everyone in SSS to feel a winner – never giving up. post remarkable growths in all areas of operations. SSS has also engaged in developing programs that aimed to improve the management of member loans. enhance fiscal standing and efficiency in our work processes. however. They are not so much those who are determined as much as those who are The greatness of a nation does not only depend on the advancement of its technologies. This is why in a complex organization such as the SSS. extending the scope. Microfilming of our members’ records has also been started to enhance functionality and accessibility. disciplined.Message of the President and CEO between SSS and Portugal that provided voluntary social security coverage to Filipinos residing in that country. Twelve of its application systems from BSS to M9000 servers have already been migrated and completed. 2010 AN N UAL REPORT 9 . Our effort in upgrading our Information and Communication Technology (ICT) system was notably a huge success. cultural and arts appreciation activities to renew camaraderie. Improved Service Delivery vis-a-vis Lean Spending In line with the government’s campaign for enhanced public service and observance of judicious spending measures. In line with this was the beginning of the efforts to inculcate in the consciousness of every SSS employee the essence of the Quality Policy and the significance of the continual improvement of the work processes and orienting them in installing the Quality Management System (QMS) in our operations as a requirement towards ISO certification by an international certifying body. Aquino III for their unrelenting support. we need effective. has participated in various technical working meetings and seminars to ascertain the smooth transition of the SS ID to the UMID system. Expansion of Sickness. our partner banks and other business partners. SSS lives with this principle as it started implementing RA 9485 or the Anti-Red Tape Act (ARTA) where the step-by-step processes of its operations as well as the ideal processing time are laid out.11 billion pesos compared with the projected figure of 8. as member of the core group. the Social Security Commission. Bulk of the income was contributed by SSS investments in government securities and equities that amounted to over 22 billion or 82 per cent of the total investment income. adapt to the ambivalent socio-economic landscape of the country. therefore. The full-scale implementation of RA 9507 or the Socialized and Low-cost Housing Loan Restructuring and Condonation Act has likewise greatly improved SSS’ liquidity. We have started closing our Direct Housing Loan Program while establishing the guidelines for the implementation of the Member Loan Penalty Condonation Program for Employers. 10 2010 AN N UAL REPORT 11 . with veteran banker and insurance executive Emilio S. Changing of the Guards The year 2010 was marked by a change of government leadership of the country. some of which were sponsored by SSS as an institution. For the SSS employees. The head may have changed. which conducted humanitarian missions in various cities throughout the year. after the May 2010 elections. their passion for volunteer work found fruition in the SSS Kabalikat ng Bayan Volunteer Corps. With President Benigno S. Jr. the entire nation rallied support for his call for reforms and to follow “ang matuwid na landas” (the straight road). appointed as SSS President and Chief Executive Officer by President Aquino. de Quiros. it is a serious and continuing commitment by both the management and workforce to exercise good corporate citizenship by helping the lesser privileged through community work and public service.2010 IN REVIEW PROPELLING NATIONAL GROWTH THROUGH EFFICIENT SERVICES Expressing Corporate Social Responsibility Corporate Social Responsibility is not just a passing trend or once-a-year event in SSS. Aquino III at the helm. A change of leadership of the SSS also ensued in 2010. but the mandate of SSS remains the same: provide meaningful protection to members and their families against the hazards of life. SSS continued developing and enhancing its electronic and Internet-based-services in order to serve members faster and easier. 2010 AN N UAL REPORT 13 .2010 IN REVIEW Nurturing Relationships with Stakeholders Forging Partnerships for Better Service The SSS cannot perform its mandate of service alone. extend its coverage. In 2010. policies and programs. business and economic experts during various conferences to share ideas. SSS would not have lasted all these years. SSS still requires partnerships with other agencies and institutions so that social security benefits and services meet the members’ needs in a timely and accurate manner. Despite the breadth of its reach. without these stakeholders. individual members (whether based inside or outside the country). knowhow and experiences in order to improve services. The SSS management also met with other social security. 12 Employers. After all. enhance its services. and pensioners: these are among the important stakeholders that SSS must always keep in mind as it continues to improve its programs. or strengthen its fund life. as well as the absorption of longserving service bureau personnel into the regular workforce. 14 2010 AN N UAL REPORT 15 . the SSS Rationalization program was fully implemented. as well as looking after their well-being. this celebration highlighted SSS’ continued commitment in promoting the welfare of all Filipino workers and their families.2010 IN REVIEW Celebrating SSS’ 53 years Developing SSS Employees The SSS celebrated its 53rd Anniversary on 01 September 2010. Anchored on the theme “SSS: Kabalikat sa Tuwid na Landas sa Pagbabangon ng Pilipinas”. In 2010. alongside the government’s efforts to eliminate poverty and improve the quality of life of every Filipino through good governance. the realignment of positions and job levels. Going hand-in-hand with strengthening SSS as an institution is developing the skills and knowledge of its employees. which saw the reorganization of key units in the main office and branches. by adopting the Common Reference Number (CRN) into their own system and by following other legal pertinent requirements. After painstaking efforts to upgrade the system that uses biometric technology and fingerprint matching to determine a person’s identity.” This idea was initiated by the Executive Department of the National Government and the effort was reinforced through the issuance of an Executive Order (EO) No. 9903.335. with total obligation of P3. (6) Date and place of birth. so far. Licenses issued by the Land Transportation Office (LTO). while 8. In 2008. the employer shall pay the SSS damages in accordance with the provision of the Social Security Act. Through the years. as follows: (1) The data to be recorded and stored. Philippine Health Insurance Corporation (PHIC). A written authorization of the Owner of the identification card shall be required for access and disclosure of data as well as for any correction or revision of relevant data. that mandated all government agencies and government-owned and controlled corporations to streamline and harmonize their ID system.452. (2) In no case shall the collection or compilation of other data in violation of a person’s right to privacy be allowed or tolerated. (8) Names of parents.423. and (5) facilitate access to. Excluded from the count of availees are those “who. The social security card has gained integrity as a reliable ID card. Government Service Insurance System (GSIS). the last day of the six-month availment period.345. (3) Stringent systems of access control to data in the identification system shall be instituted. the unique number generated and assigned by the central verification system to an individual upon successful enrollment into CRN Registry. (2) Home Address. and (5) The identification card to be issued shall be protected by advanced security features and cryptographic technology. issued the rules and regulations for the effective implementation of the said Act. which shall be used only for purposes of establishing the identity of a person.2005 was issued identifying the social security Identification system as the core of the UMID and directing the SSS to lead in its implementation. 16 Although the availment period for the Condonation Program has already ended.2010 dated 10 February 2010. an amendment to EO 420-s. 29 dated 16 January 2002). (3) facilitate private businesses and promote the wider use of the unified ID card. The guidelines for the Program were published in the SSS website and intranet. and National Home Mortgage Finance Corporation (NHMFC). who transacts business with them.118. and (3) The UMID Card. IMPLEMENTATION OF THE CONDONATION LAW ON PENALTY ON CONTRIBUTIONS Republic Act No. 420 s. It took effect on 01 February 2010. (2) The CRN Registry. CRN is needed for cross-verification to ensure integrity and reliability of identification. if they so desire. The campaign consisted of print replacements.591 (65%) employers with total obligation of P710. similar to the machine-readable travel documents by the International Civil Aviation Organization. banks. are excluded in the system. The penalties of employers who belong to this group are condoned by operation of law. posters. however.” was signed into law by former President Gloria Macapagal-Arroyo on 07 January 2010. This can be presented by the individual as proof of his identity. The UMID is not a national ID nor is it compulsory to all Filipino citizens.077 and condoned penalty of P3. or under such conditions as the participating agency issuing the identification card may prescribe. Of those who availed.1%) was paid in cash. the secured medium which contains the CRN. No.916. (4) Picture. (a) remit said contributions. UMID aims to: (1) reduce costs and thereby lessen the financial burden on both the government and the public brought about by the use of multiple ID cards and the maintenance of redundant databases containing the same or related information. business establishments. Under the said condonation law. factoring in the availability of new technologies that observe international standards.2005. Initially. The data to be collected and recorded by the UMID participating-agencies are the following: (1) Name. the courts and other government agencies. Professional Regulation Commission (PRC). and (13) Taxpayer Identification Number. and ID issued in conformity with treaties and international law. within six (6) months from its effectivity. (2) ensure greater convenience for those transacting business with the government and those availing of government’s services. The SSS endeavored to upgrade its system. the CRN is permanent. must. The success of the program was brought about by the conduct of a massive information campaign–both at national and local levels. shall be limited to those specified in the EO. This UMID card has three core components: (1) The CRN. before the effectivity of the Act. (10) Weight. 2011-002 (Revised Guidelines in the Installment Payment Scheme for Employers pursuant to Res. (4) Data collected and stored for this purpose shall be kept and treated as strictly confidential. and radio/TV interviews. or Circular No. (3) Sex.SPECIAL ARTICLE SPECIAL EVENTS. the Social Security Commission (SSC).545. (5) Signature. had been generated and issued through this system until April 2010 when card production was stopped due to facility breakdown. press releases. (11) Two index fingers and two thumbmarks. Once assigned.451 (35%) employers availed of an installment scheme where the current obligation of P500. the National Economic Development Authority (NEDA) took the lead in conceptualizing the machinery of UMID up to the preparation of the initial draft of the implementing Rules and Regulations (IRR). quality and effective government service. however.935. and delivery of. These agencies. (9) Height. the SSS acquired a fingerprint biometric-based system for the social security card. including the passportissuing office use this for identification of its holder.010.043 employers availed of the Program. may join the UMID. THE UMID: ITS MANDATE SSS as lead agency: From SS card to UMID The UMID stands for “Unified Multi-Purpose Identification. an over-all system design came to the fore with the concurrence of UMID participating-agencies. a total of 24. It will be issued only for the constituents of the participating agencies – Social Security System (SSS). have settled all contributions but with accrued penalties” or those whose obligation consists of penalty only.281 (20%) paid in cash. otherwise known as the “Social Security Condonation Act of 2009.2010 dated 08 December 2010). 6-P (Amended Dacion en Pago pursuant to Res. The UMID system includes minimum safeguards. which contains the records of individuals enrolled and assigned with CRN. banners and streamers. like passports and seaman’s ID. 15. brochures and flyers. (12) Any prominent distinguishing features.073 (66%) to be paid on installment basis. No. 110 s. 976-s. Pursuant to the law.723 (14. a delinquent employer may still avail of other payment modes either under SSC Circular No. (4) enhance the integrity and reliability of governmentissued ID cards. (7) Marital status. under its Resolution No. This is because in 1998. 2010 AN N UAL REPORT 17 . Over 11 million social security cards. and the remaining obligation of P2. Should the settlement of contributions through full payment or installment result in additional benefits for contingencies that have occurred prior to the date of settlement or shall occur within the installment period. SPECIAL PROJECTS. The implementing rules provided measures that ensure the protection of the rights of SSS members. or (b) submit proposal to pay the same in installment within a period not exceeding fortyeight (48) months. any employer who is delinquent on his payment or has not remitted all contributions due and payable to the SSS. As of 02 August 2010. priority shall be given to those who have no social security card yet. but mandatory in the UMID. (438 employees and family members). the former is the probability of acceptance given that the claim of identification is true. In the case of the SSS card production system it has a Card Management System (CMS) that maintains ID card applications and a Key Management System (KMS) which grants the authority to load application in the card.01% false accept rate. The custodian of the registry is the National Statistics Office (NSO). and photo souvenir. Rizal on 20 November 2010. The UMID targets: 70 enrollments per eight-hour day.000 enrollments per hour 24/7. 2010 AN N UAL REPORT 19 .5 million person-records in the old SSS AFIS were already migrated in the CVS. The social security card is basically teslin. and videoke-singing. The 11. The dimension of both cards complies with the ISO standards. The IT Management and the Program Management Groups. while the latter is a contactless card. All outputs by the enrollment stations are inputs to a central verification system (CVS). Major activities included installing a photo booth. The “True Accept rate” is the percentage of times the AFIS correctly verifies a true claim of identity. his full name and his signature. The task is to move from the social security card. the core of the System to UMID card. is scalable up to 25 million person-records within five years. The CVS has a matching speed of 1. As a matter of strategic procedure. raffle draw. The data that appear on the front side of both card the Republic of the Philippines. The group had 570 attendees. 18 Upon successful enrollment. The corresponding ID number issued by the participating agencies and the CRN shall form part of the stored ID data in the CRN Registry. Quezon City on 26 November 2010. respectively. while the latter refers to the probability that the claim is false. The CVS employs a civilian automated two-fingerprint identification system (AFIS).510. (275 employees and family members).891 regular employees. Both cards are with a guaranteed life of five years. The address of the member is not printed on the social security card. For practical reasons. “False accept rate” is the percentage of times the AFIS produces a negative claim of identity. In statistics. The former is 2D-barcode-based. The printing of birthdate is optional in the social security card. The accuracy requirement of the AFIS is 99. while the UMID shows the CRN. (322 employees and family members). parlor games and entertainment/videoke-singing. the compliance with such standards shall undergo a test by a conformance laboratory and a Certification process. while it is in the UMID card. raffle draw. the face and ghost image of the member. one-format card for all. while UMID is Polyethylene Terephthalate Glycol/Poly Vinyl Chloride (PETG/PVC). The Social Security Commission and President’s Group conducted theirs at the MAC building. Main Office Bldg. On the other hand.. The group had a total of 534 attendees. The capacity of CVS with Blade System as primary server. The use of the UMID card may be in the form of visual inspection. and (4) the Administration Group and Investments Sector. (3) the Controllership Group and Branch Operation (Corporate Offices). conducted their Family Day at the SSS Canteen. For its part. videoke challenge raffle draw and swimming. (458 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. the SSS deployed 131 enrollment stations in 95 SSS branches which have an individual capacity of 70 captures per day on an eight-hour basis. basically for ATM-type of transactions. Quezon City on 20 November 2010. the agreed upon CRNformat adopts the algorithm in the social security number. This is another initiative by the National Government. fun games. Service Bureau and Job Order personnel who attended the SSS Family Day. Major activities included bingo sosyal. The group had a total of 465 attendees. The card chip operating system can run applications which are developed by third-parties. Over-all the number of attendees including family members were 1. The Administration Group and Investments Sector conducted their family day at Club Manila East Resort and Hotel at Taytay. This was divided into four (4) groups. All participating agencies can establish its own card factory. The CRN and the enrollment data shall be sent to the card production system. or a contactless card reader. The social security card shows the social security number of the member. The SSS Family Day is an annual System-wide activity that encourages camaraderie and the strengthening of the relationship and familiarity among SSS employees and their families. The 2010 SSS Family Day for the Main Office was concluded in four (4) separate events. cheering contest.SPECIAL ARTICLE The UMID System: Its Targets 2010 SSS FAMILY DAY All participating agencies are allowed to undertake enrollment or data capture subject to the set of enrollment standards developed by the National Technical Working Group for record formats of demographic and biometric data. a one-to-one AFIS verification through an ATM machine. Diliman. and 12 million UMID cards in five years. namely (1) the Social Security Commission and President’s Group. Major activities included parlor games and water sports. The 2010 SSS Family Day mirrored such an interaction and the SSS compound became a venue for what we considered as a momentous and joyful event the memory of which we shall always treasure. to the one-look. Prior to deployment of enrollment stations. 25 million enrollees in five years. team activities. Major activities included film showing. (2) IT Management Group and the Program Management Group. The group had a total of 339 attendees. There is a magnetic stripe on the back side of both cards. The KMS has the capability to implement Public Key Infrastructure (PKI) solutions.5% true accept rate and 0. There were a total of 1. the applicant shall be issued with CRN. Publications from the World Bank. the two facilities serve as more than a repository of documents.089 positions were filled through the promotion and lateral transfer of 853 regular employees. or in special cases. as part of a corporation. An assistance plan was implemented by the Management to further support the SBs preparation to complete their qualification requirements. magazines. On 01 September 2010. Likewise. This will ensure the continuous improvement of individual and organizational performance and will serve as basis for performance-based personnel actions (promotions. Museums can be chartered as independent. the new Performance Evaluation System for both Executives and Rank & File employees will be ready for implementation before the end of 2011. The goal of a museum is to ensure that upon leaving. 2010 AN N UAL REPORT 21 . each visitor knows something that they did not know when they entered. a trip to a museum can be enjoyed by all and can be both a pleasurable and educational experience.131 SBs and the promotion of 68 rank and file employees. Meanwhile. The SSS Museum is a special kind of museum in that it holds original documents. labor. the International Social Security Association. whether through showcasing collections of cultural products such as pieces of art. preserve. Meanwhile. the International Labour Organization. Museums generally collect. 2010 STAFFING AND OTHER HUMAN RESOURCE MANAGEMENT DIRECTIONS The implementation of the Staffing Plan which started in 2009 paved the way for another milestone in the implementation of the SSS approved Rationalization Plan. One of the roll-out activities was to gradually fill-in the vacant positions created as a result of the restructuring and the movements and separation of employees. as part of its 53rd Anniversary celebration. they consist of institutional records. Located at the basement of the SSS Main Office in Diliman. scholarships) and incentives and rewards. and law. The initial phase of the staffing plan focused on the absorption of qualified and deserving Service Bureau personnel as directed by the Social Security Commission through SSC Resolution No. printings. the SSS Library. 9:00 am to 6:00pm. manuscripts and photographs – in short. 2009 which led to the regularization of 1. s. business and economics. such as poverty. and other international institutions are likewise available. In reality. was moved to the basement in a more spacious area beside the SSS Museum in response to the growing number of users interested in social security. operational and personnel records. The SSS Museum is open to visitors from Tuesdays to Fridays. 509. social sciences. telling the story of something important. use and house artifacts for the benefit of society. paintings or memorabilia. photographs and other memorabilia that show a vivid picture of the SSS and the development of social security in the Philippines. or raising awareness of a societal concern. absorption of 206 SB personnel and direct-hiring of 30 external applicants for technical and specialized positions as well as promotion of qualified and deserving Officers-in-Charge (OICs) to 117 executive positions. such as an historical event. This assistance included the conduct of review sessions for CSC Examination and Qualifying 20 and Specialized Examinations. the SSS inaugurated its twin facilities for the public: the new SSS Museum and the expanded SSS Library. documentation of collections. 9:00 am to 5:00pm. training & development. Human Resource Management (HRM) Division’s priorities focus on the review and enhancement of job functions and qualification requirements of plantilla positions and in the formulation of intensified approaches to training and development programs. journals. both the SSS Museum and Library have no entrance or user fees. the SSS Library is open from Tuesdays to Fridays. At a minimum. however.SPECIAL ARTICLE The SSS Museum and SSS Library: More than repositories of artifacts and documents Visiting a museum is often stereotyped as an activity confined to those going on a school trip or for members of the middle or upper classes. the implementation of the Human Resource Information System (HRIS) will address critical human resource and organizational requirements and ensure maximized productivity of the SSS workforce. over a period of ten years. and Saturdays. formerly housed at the 12th floor of the Main Building. Along with these. The documentary materials held in museums constitute a vast resource. In 2010. They are the institutional memory bank of the SSS. This is pursuant to the call of the Management to streamline and automate processes towards enhanced governance and operational efficiency that would redound to meeting members’ expectation and satisfaction. and other reference materials on social security. the historical memory of an institution and its activities. 9:00am to 12 pm. a total of 1. non-profit organizations. The primary role of a museum is to be a source of education. As a way to cater to the information needs of the public. scheduling for CSC Professional eligibility examination and counseling for their college academic course completion. The SSS Library contains an expansive collection of books. This is crucial to the goal of SSS in providing faster and more accurate delivery of services by reducing human intervention in its procedures. the SSS shall continue to empower its members by providing easier access to information on their social security through the expansion of various self-service facilities. and (6) Pursue charter amendments. International Affairs and Online Support Services. gradually. the SSS plans to instigate the automation of office procedures through the implementation of the Automated Records Management System. In addition. In this regard. With the magnitude of transactions within the institution. the SSS will further its earnest commitment in providing meaningful benefits to its members by developing policies and programs that would reaffirm the role of SSS as a reliable partner in times of distress. These policies will revolve within the bounds of better administration of benefits and more efficient delivery of service. the SSS aims to increase the participation of both parties in securing a viable social security protection. the SSS shall pursue on forging a memorandum of agreement with the Department of Labor and Employment and the Philippine Overseas Employment Administration on the attempt of mandatorily covering both newly hired and rehired OFWs. Building on the foundations of transformational change. 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.SPECIAL ARTICLE SSS in 2011 and Beyond HEEDING THE CALL FOR TRANSFORMATIONAL CHANGE Truly. SSS shall pursue on increasing the existing monthly salary credit to PHP 20. Moreover. (4) Improve service delivery. For its part. the SSS is ardent on upgrading its trading system complemented with state-of-theart facilities that will further bolster its equities income. 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 shall embark on efforts to re-engineer the business processes of the system as well as deploy the appropriate ICT resources needed in the frontline and backroom services. 22 Driven by the insurance principle that gave expression to the solidarity of workers and employers. the SSS shall introduce new policies that would ascertain our prompt response to the growing call for transformational change in the country through better public service. the SSS shall continue to forge partnerships with various government and non-government institutions for the coverage of special sectors as well as continue accrediting cooperatives and associations as collecting agents to boost collections. This endeavor is envisioned to be a means of promoting individual savings as a catalyst of growth. (3) Optimize investments. and the new guidelines on the Funeral Benefit of members. the SSS shall develop a voluntary provident fund program for the retirement of local workers benchmarked from the success of retirement programs of various agencies as well as the existing provident fund program of the OFW members of SSS. SSS plans to serve the growing number of overseas Filipino workers (OFW) by opening more foreign branches in countries mostly flanked by our migrant workers. This year. the Philippines became a realm of reform as the new administration has made transformation as the cornerstone of its agenda. a complex system of information and communication technology (ICT) is vital to improving the efficiencies and maintaining the integrity of the institution. Also. the SSS shall embark on heightened efforts of stimulating members to actively pay their contributions and regain their entitlement to the package of benefits under the social security program through the expansion of payment schemes and self-service terminals. 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. the SSS is determined to implement the new Disability Program. Moreover. the arising transformational trend immediately crawled its way through the labyrinths of the government as the different institutions and agencies of the state like the SSS embraced the refreshing direction. As we strive to develop and maintain the trust of our members. As soon as the first automated elections concluded the historic endeavor. This year will also mark the full implementation of the Anti-Red Tape Act that will ensure fast delivery of SSS services to its members while expanding the Branch Queue Management System which aims to manage the queuing system of the SSS as transacting stakeholders crowd our offices. Make SSS Benefits More Meaningful The advent of a revitalizing change promulgated by the new administration inspired state agencies and institutions like the SSS in incorporating the newfound advocacy in performing their respective mandates. As such. In 2011.6 percent that will be equally shared between the covered employee and employer will also be pursued to rev up the financial viability of the fund and keep it at par with its international counterparts. Improve Service Delivery The SSS is cognizant of its duty to provide its members with more value to their social security. In 2011. which. the role of SSS in raising the level of coverage to social security in the country is vital. Also. (5) Re-engineer the organization. This year. the enhanced Annual Confirmation of Pensioners. the SSS plans to increase its collection efforts on erring employers through the implementation of the revised installment payment and dacion-en-pago guidelines. The government’s 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. the SSS will also review the manning levels of existing foreign branches to increase the efficiency of each of these branches. Inspired by the efficiency of today’s technology. Furthermore. the SSS is poised to revitalize its idea of service delivery by concentrating its efforts on six action areas identified by the renewed management: (1) Expand Social Security Coverage. achieve its vision of universal coverage to social security in the country. The SSS shall revive its database clean-up project 2010 AN N UAL REPORT 23 . Expand Social Security Coverage As the country’s premier social security provider. 2010 was the year of transformation as the nation faced a decisive point to ameliorate the helm of the country. This year. the SSS witnessed a major change in its leadership as it welcomed a new set of stewards who are expected to steer the fund to greater heights. are the departments catering to all the transactional needs of OFW members. In particular. Every attempt to keep SSS closer to the members must be astute to. The welfare of our sea-based members will also be prioritized through the development and implementation of the revised policy requiring their mandatory coverage to SSS. an increase in the contribution rate by 0.000. SSS also intends to delineate the functions of its Foreign Operations. With this. the SSS is geared to continue pursuing its mission of promoting the country’s development through the provision of meaningful social protection and sound investment decisions. (2) Make SSS benefits more meaningful. Moreover. The arising trend on labor migration in the Philippines is also highlighted in the planned priorities of SSS in 2011. In this regard. it is imperative that the SSS upholds utmost integrity of its database. in the meantime. This endeavor will allow the SSS to balance its bureaucratic commitment and its institutional responsibilities. To boost its efforts in upholding the integrity of its database. Indeed. the SSS shall review the functions as well as the layout of its branches to determine the standards in improving service delivery to its members. Inspired by the ergonomic design of private banks. SOCIAL SECURITY SYSTEM 24 . Along with the synchronized efforts of extending access and ensuring the viability of social security.Re-engineer the Organization Last year marked the changing of the guards of the country’s premiere social security provider. we will actively participate in public hearings and dialogues concerning our charter’s amendments. the charter that dictates our very purpose must also be receptive to the changing times. This inter-agency cooperation is also in time with the plans of SSS to fully implement the Unified Multi-Purpose Identification System in its transactions. Pursue Charter Amendments which aims to correct inaccurate member information which is crucial in determining the level of benefits that a member can be entitled with. improving service delivery through the employment of the proper ICT makes the SSS one step closer to achieving its mandate of universal coverage to social security in the country. These programs are the working manifestations that the SSS is ardent in responding to the rousing call for transformational change within the country’s bureaucracy. the SSS is dedicated to help its members maximize each hard-earned peso to secure a stable future for him and his beneficiaries. With this. As a result. 2010 FINANCIAL STATEMENTS Conclusion: Responding to the Eminent Call Over the years. The charter itself must institutionalize the ability of SSS to respond and innovate as changes occur in the context of social security in the Philippines. This only proves that the ICT structure is considered the backbone of efficient SSS operations. SSS shall establish links with the databases of other government agencies which will also serve as a ground for cooperation in achieving overall improvement of public service. the SSS shall undertake measures to pursue its charter amendments to keep it abreast with the growing social security demands of the country. the SSS is set to implement an appropriate organizational structure responsive to times as well as establish an organization-wide performance evaluation system benchmarked on the best practices of other agencies and organizations. The highest policy making body and the chief executive post of the SSS was rejuvenated with highly-experienced individuals chosen for their sheer competence and fervor to lead the fund towards greater success. With the advent of transformational reforms. the call for a system-wide reinvigoration was accentuated to respond to the changes in the bureaucratic and corporate environment. To ensure the incessant progress. the coverage of our efforts have extended from simple social security coverage to promoting the social security in the country through impeccable and professional delivery of service and more meaningful benefits to our members. We will be attentive to these needs as we finalize our recommendations on the charter amendments. As we continue to scout for ways to advance the social security protection in the country. SSS has remained consistent with its efforts of enhancing the insurance fund of its hardworking members. In this regard. P3. and the statement of comprehensive income.41 million and the CIB–Working Fund account of P643. • Discrepancy of P528. Regular Real Estate Loans (REL). representing collections already remitted to SSS but not yet posted to members’ accounts. the financial statements present fairly. 7 and 8 of the audit report. 2010 and 2009. JR. Quezon City SOCIAL SECURITY SYSTEM We have audited the accompanying financial statements of Social Security System. Management’s 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. AGATEP State Auditor V Supervising Auditor 26 August 26. except for the effects of the matter described in the Bases for Qualified Opinion paragraph.018 billion remained not recorded or posted to the ledgers. P3. in all material respects. and its financial performance and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards.586 billion were distributed based on estimate and without corresponding posting to members’ accounts.502 billion. The Management of Social Security System is responsible for all information and representations contained in the consolidated financial statements as of December 31. Auditor’s Reponsibility Our responsibility is to express an opinion on these financial statements based on our audit. whether due to fraud or error. SS Commission President and CEO ELVIRA G. COMMISSION ON AUDIT DELIA D. and • Unaccounted Migration Cash in Bank (MIG-CIB) affecting the CIB-Euro/Dollar/Peso Savings/Current Account in the amount of negative P626. Diliman.044 billion.018 billion and a negative balance of P5. statement of changes in reserves and statement of cash flows for the year then ended. 5. assets are safeguarded against unauthorized use or disposition.834 million. The procedures selected depend on the auditor’s judgment. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management.292 billion. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. resulting in the distribution of repayments to both accounts totaling P165. among others: • Collections from members of P5. Opinion In our opinion. 2. Housing Loan and Receivable-Real and Other Property Acquired (ROPA). and a summary of significant accounting policies and other explanatory information.194 billion from 88 banks. as well as evaluating the overall presentation of the financial statements. Cash Collecting Officer (CCO) and the Cash in Bank (CIB) accounts with balances of P43. P5. As reported in Observation Nos. Receivable . 2010. • A temporary subsidiary ledger account of P3. In making those risk assessments.Collecting Bank-Regular. The Social Security Commission reviews the consolidated financial statements before such statements are approved and submitted Bases for Qualified Opinion to the President of the Philippines and to the Congress of the Philippines. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. SANTOS EMILIO S. of which P3. respectively.Member Loans (ML).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 the Financial Statements the Financial Statements The Social Security Commission Social Security System East Avenue. and deposit not closed to clearing account.793 billion that were not yet deducted from their loan accounts. The financial statements have been prepared in conformity with the accounting principles generally accepted in the Philippines.714 million variance between the general ledger and aging schedule. including the assessment of the risks of material misstatement of the financial statements. which comprise the statement of financial position as at December 31. and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement.255 billion. 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. ALCANTARA-RESARE Officer-in-Charge Controllership Division • REL repayments of P2.479 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. We conducted our audit in accordance with International Standards on Auditing. 2010. and liabilities are recognized.224 million. and reflect amounts that are based on the best estimates and informed judgement of Management with an appropriate consideration to materiality. delayed validation of OFW collections. In this regard. and the P926.041 million. but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Chairman. management maintains a system of accounting and reporting which provides for the necessary internal controls to ensure that transactions are properly authorized and recorded. 4. P683. cannot be ascertained due to. JUAN B. whether due to fraud or error. the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. DE QUIROS. 6.706 million and P11. some already closed or merged with other banks. and the REL regular account were not disabled in the REL System when these were restructured and new accounts were created. the accuracy of the Receivable . the financial position of the Social Security System as at December 31. 2011 2010 AN N UAL REPORT 27 . 199.162 5.841) Gain on fair value adjustment 7.134.528.176 93.448 Operating Expenses Personal services 23 5.381.369.591.816.835.280 RESERVES 20 289.947. 28 2010 AN N UAL REPORT 29 .300 243.769.958.650.064 Non Current Liabilities Accrued retirement benefits 18 1.582.596.336.265 27.665.995.237 5.397.280.058.618.808.660 537.675.860 7.300 Investment and other income 21 27.768.013 Held-to-maturity investments 4 7.771.496.120.318.524.277 79.568.889.709 16.490. 2010 (In Philippine Peso) Notes 2010 ASSETS Current Assets Cash and cash equivalents 3 7.911.313.287 164.739 Settlement of claims for disallowed payments - (11.591.186.745.135.536 LIABILITIES Current Liabilities Accounts payable and accrued expenses 14 3.945.419 3.366.393.648.700.511.343.581 265.340.384.734 Property and equipment 10 3. 2010 (In Philippine Peso) FOR THE YEAR ENDED DECEMBER 31.288.126.767.777.634.776 Non-current assets held for sale 12 5.839.628.868 Funds held in trust 15 778.464 25.126.226.420 5.745 39.419 Notes 2010 Revenues Members’ contribution 79.986 Expenditures Benefit Payments 22 Retirement 38.187.398.782.410.771 272.610.842.802 95.395.607.748.674.852 3.675.307.893.015.962.163.847.691 Total Assets 297.147 Sickness 1.723.452 Other Comprehensive Income/(loss) Available-for-sale financial assets Reclassification adjustments (6.170 2.330.721.157.090 Held-for-trading financial assets 5 3.565.101.832.635 Rehabilitation services 115.293.238.262.404.087 Funeral grant 2.639 Maintenance and other operating expenses 24 1.995.894.074.591.730.768.211.829 Net Revenues 2009 72.895.303.FINANCIAL STATEMENTS 2010 Statement of Statement of Financial Position Comprehensive Income DECEMBER 31.838 35.555.764.402.577 Medical services 35.937.174.834) 1.103.610.340.248.298 117.962.985.051.869.840.036 23.721 1.536 2009 8.210.845 Non-Current Assets Non-current Financial assets 8 250.762.174.831.875 1.350.607 Other current assets 7 88.384.656.195.038.703.515.971 1.762 623.650.889 9.651.860.377.290.852 7.589.779.671 Receivables 6 6.639.344.934.593.685.408.229) (3.832 Deferred income 16 83.129.834 28.867.608 25.203 Other current liabilities 17 3.582 3.216 Total Liabilities 8.002.land - 277.657 Maternity 3.686 107.005 4.766 10.861.413.203.049.381 84.908.341 Rent payable 19 9.378.095.815 72.114.225.759.529 2.472.621 1.359.690.749.723 36.999.838 272.549.960 Intangible assets 11 208.754.882.890.985 77.033.721 82.497.623 272.271.329.491 13.605 979.989 See accompanying notes to financial statements.394.488.473 Revaluation increase .253.362.028 Death 27.537 Total Comprehensive Income for the Year 23.785 Other non-current assets 13 559.386 22.036 22.813 Investment property 9 12.272.161 7.256 Total Liabilities and Reserves 297.334.102.190 7.332 Disability 3.832.648 223.534 1.817. See accompanying notes to financial statements.124.521 3. 093) 9.227) (47.391.934 (11.505.882) (125.347.583. net Acquisition of property and equipment.164.434.097) (1.656.095.980 265. 30 2010 AN N UAL REPORT 31 . 31 DECEMBER 2010 20 260.874.647 11.980 265.043.283 992.427.668.862.272.674 7.099.FINANCIAL STATEMENTS 2010 Statement of Statement of Changes in Reserves Cash Flows FOR THE YEAR ENDED DECEMBER 31.389 (26.938.012.347.353.820) 154.647 11.995. 1 January 2010 237.484.860.040.154.491 6.531.018.705 27.298.522.036 - - .893 8.723) (6.110.256 BALANCE.663.214 1.964.427.809) (991.536 7.745 BALANCE.033.275.861.668) 10. 2010 (In Philippine peso) FOR THE YEAR ENDED DECEMBER 31.873 (568.394) (7.838 Corporate operating budget of Employees’ Compensation Commission and Occupational Safety and Health Center (125.592.058.974.036 14.980 289.721.334.674 7.817.315.656 1.657 (72.845.478) 2.616) (7.302 (835.447.955 8.890.523.434.033) (7.350.061.244) (11.458.329.055.300 16.026.523.647 11.460.402. 23.291.013 8.956.815.243 9.040.147.512) (458.603.329. 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.523.327) (81.999 101.134) (158.402.013.488.646.327) Total comprehensive income for the year 22.675.112.817.527.491 See accompanying notes to financial statements.040.378.646.327) - - - - (125. 2010 (In Philippine peso) Notes Reserve fund Gain/(loss) on fair value adjustment of available for-sale financial assets Property valuation Contingent Donated reserve surplus property Total reserves Balance.406.391.979.165) (33.995.102.616.909.984) 717.397.391. net 10 Acquisition of intangible assets.709 1.505.646.832.473) (408. 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 79.674 7.121.119.689.135.893.520.278.714 (77.323 26.505) 72.838 See accompanying notes to financial statements. 31 DECEMBER 2009 20 237.323 26.186.250 1.622.505.458.746.214 1. However. as provided for by Presidential Decree No. A loan or receivable is deemed impaired when it is considered that it will probably not be possible to recover all the amounts due according to the contractual terms. The SSS provides an allowance for impairment loss for 5 years and above delinquent member loan accounts. uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the affected asset or liability in the future Judgments. Statement of Cash Flows (effective from 1 January 2010) The accompanying financial statements were approved and authorized for issue by the Social Security Commission on 25 May 2011 under its Resolution No. the coverage and benefits given by SSS have been expanded and enhanced through the enactment of various laws. the Social Security Act of 1954 was implemented. d. including expectations of future events that are believed to be reasonable under the circumstances. All inter-fund accounts have been eliminated. except for financial assets measured at fair value through profit or loss.2 New standards. PFRS 9 introduces new requirements for the classification and measurement of financial assets and financial liabilities and for derecognition. Quezon City. For all other equity investments. estimates and assumptions that affect the application of accounting 32 b. or held for the purpose of selling in the short term or for which there is a recent pattern of short-term profit taking. Significant financial difficulties of the debtor. Held-fortrading financial assets are financial assets acquired 2010 AN N UAL REPORT 33 . which is being administered by the SSS.1 PFRS 9 Financial Instruments Issued in November 2009 and amended in October 2010. estimates and assumptions are continually evaluated and are based on historical experience and other factors. was enacted to further strengthen the SSS. Effective subsequent to 2010 that are relevant to SSS but not adopted early b. There shall be no recycling of fair value gains and losses to profit or loss. 591-s. where applicable b. Basis of measurement The financial statements have been prepared on the historical cost basis except for the following items: • • • • financial assets at fair value through profit or loss are measured at fair value marketable securities classified as available-for-sale are measured at fair value investment properties are measured at fair value land under property and equipment are measured at revalued amount c. d. The amendment clarifies that when a lease includes both land and building elements.2 PAS 17 (Amendment). to recognize unrealized and realized fair value gains and losses through other comprehensive income rather than profit or loss. Specifically. an entity assesses the classification of each element as finance or operating lease separately in accordance with the general guidance on lease classification set out in PAS 17. It adopts the Bangko Sentral ng Pilipinas (BSP) Circulars 210 Series of 1999 and 313 Series of 2001 in identifying and monitoring problem loans and risk assets and setting up of allowance for probable losses. heldto-maturity financial assets. sickness. PFRS 9 requires all recognized financial assets that are within the scope of PAS 39 Financial Instruments: Recognition and Measurement to be subsequently measured at amortized cost or fair value. BSP outlines the following rates for the setting up of allowance for probable losses: The SSS initially recognizes a financial asset at fair value. Among those improvements. 2. The SSS is a financial institution in the Philippines. These policies have been consistently applied to all the years presented. customs or import duty. Subsequent to initial recognition held-to-maturity investments are measured at amortized cost using the effective interest method. less any impairment in value. earlier application is permitted.1 Basis of preparation a.3 Loans and receivables b. as well as through the amortization process. the price of the most recent transaction provides evidence of the current fair value as long as there has not been a significant change in economic circumstances since the time of the transaction. maternity and old age. Determination of fair value 2. attributable transaction costs are recognized in profit or loss as incurred. Leases (effective 1 January 2010) Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. the government accepts general responsibility for the solvency of the SSS and guarantees that prescribed benefits shall not be diminished. Classification The SSS has the following non-derivative financial assets: financial assets at fair value through profit or loss.3 Financial assets a.2 Held-to-maturity financial assets 2. which is substantially the same.FINANCIAL STATEMENTS 2010 Notes to Financial Statements (All amounts in Philippine peso unless otherwise stated) 1. Estimates and judgments The preparation of the financial statements in confirmity with PFRS/PAS requires management to make judgements. d. Upon initial recognition. Such assets are carried at cost or amortized cost less impairment in value. For investments where there is no active market. All other financial assets are recognized initially on the trade date at which the SSS becomes a party to the contractual provisions of the instrument. Republic Act (RA) No. Its principal office is in East Avenue. revenue and expenses. The amendment clarifies that only an expenditure that results in a recognized asset can be classified as a cash flow from investing activities. Initial recognition a. debt investments that are held within a business model whose objective is to collect the contractual cash flows and that have contractual cash flows from solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods.2011. Transaction costs are included in the initial measurement. disability. Section 16 of RA 8282 exempts the SSS and all its benefit payments from all kinds of taxes. an irrevocable election can be made at initial recognition. REPORTING ENTITY The Social Security System (SSS) administers social security protection to workers in the private sector. When current bid prices are not available. otherwise known as the “Social Security Act of 1997”. unless otherwise stated. as amended.1. Philippine Accounting Standards (PAS) and Philippine Interpretations issued by the Financial Reporting Standards Council (FRSC). On 1 September 1957. This election may be made on an instrument-by-instrument basis.1 PAS 7 (Amendment). liabilities. All other debt investments and equity investments are measured at their fair values at the end of subsequent accounting periods. policies and the reported amounts of assets. Social security provides replacement income for workers in times of death.1. Statement of compliance The financial statements of the SSS have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). discounted cash flow analysis and option pricing models. a. Thereafter. loans and receivables and available-for-sale financial assets. Such techniques include using recent arm’s-length market transactions. Financial assets at fair value through profit or loss are measured at fair value and changes therein are recognized in profit or loss. 626. Date of recognition The SSS initially recognizes loans and receivables and deposits on the date that they are originated. On 1 May 1997. Effective in 2010 that are relevant to SSS The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices. Dividends are to be presented in profit or loss as long as they represent a return on investment. Under this Act.1 Financial assets at fair value through profit or loss Classification Unclassified Loans especially mentioned Substandard Secured Unsecured Doubtful Loss Allowances 0% 5% 10% 25% 50% 100% Financial assets at fair value through profit or loss consist of held-for-trading financial assets. the SSS classified only recognized assets as cash flow from investing activities. While adoption of PFRS 9 is mandatory from 1 January 2013. a. The financial statements include the accounts of Employees’ Compensation and State Insurance Fund. Presently. Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturity for which there is the positive intention and ability to hold to maturity. or equivalent value. 8282. Equity instruments that are held for trading will be measured at fair value through profit or loss. only the following amendments were identified to be relevant but not expected to have material effects on the financial statements: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies that have been used in the preparation of these financial statements are summarized below. They are recognized initially at fair value plus any directly attributable transaction costs. Gains and losses are recognized in profit or loss when the held-to-maturity financial assets are derecognized or impaired. fair value is determined using valuation techniques. fees or charges. c. The SSS is currently assessing the implications and impact of PFRS 9 and it is not practicable to provide reasonable estimate of the effect until a detailed review has been completed. reference to the current market value of another instrument.1 2009 Annual Improvements to PFRS The Financial Reporting Standards Council (FRSC) has adopted the Improvements to PFRS 2009. d. interpretations and amendments to published standards a. probability that the debtor will enter bankruptcy and default or delinquency in payments are considered indicators that such loans and receivables are impaired. 8 Intangible assets 2. available-for-sale financial assets are carried at fair value in the statement of financial position. Impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount. Dividends on available-forsale equity instruments are recognized in profit or loss when the right to receive payments is established. After initial recognition. CIP is not depreciated until such time as the relevant assets are completed and put into operational use. Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. Non-current assets held for sale include real and other properties acquired (ROPA) in settlement of contribution and member/housing/other loan delinquencies through foreclosure or dation in payment. all outstanding obligations of members at the time of their application for final claim are being deducted from their claim proceeds). Depreciation is calculated over the depreciable amount less its residual value. Dividend income Dividend income is recognized at the time the right to receive the payment is established. amortization and any impairment in value. net of depreciation or amortization. delivery and handling. Reversals in respect of equity instruments classified as available-for-sale are not recognized in profit or loss. 2. This would include not only its original purchase price but also costs of site preparation.4 Cash equivalents Cash equivalents comprise short-term. 2010 AN N UAL REPORT 35 . SSS as lessee Leases which do not transfer to the SSS substantially all the risks and benefits of ownership of the asset are classified as operating leases. or contains a lease is based on the substance of the arrangement at inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. It is recognized in profit or loss on a straightline basis over the estimated useful lives of each part of an item of property and equipment. This condition is regarded as met when the sale is highly probable and the asset is available for immediate sale in its present condition. then the asset’s recoverable amount is estimated. Subsequent to initial recognition. Such cost should not include start-up costs. Operating lease payments are recognized as expense on a straight-line basis over the lease term. Depreciation and amortization charge for future periods is adjusted. and its cost can be measured reliably. Interest income Revenue is recognized as the interest accrues. Cost includes all costs necessary to bring the asset to working condition for its intended use.e. Available-for-sale financial assets are non-derivative financial assets that are designated as availablefor-sale and that are not classified in any of the other categories. They are initially booked at the carrying amount of the contribution/loan delinquency plus transaction costs incurred upon acquisition. but has transferred control of the asset. They are secured/backed by members’ equity and benefits (i. Changes in the fair value of such assets are recognized in other comprehensive income and presented within reserves in the unrealized gain or loss on available-for-sale financial assets portion. an allowance for impairment loss equivalent to the excess of the amount booked over the appraised value is set up.13 Operating Leases years years years years (or the term of lease whichever is shorter) An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 2. The costs of the day-to-day servicing of property and equipment are recognized in profit or loss as incurred. The carrying amount of the replaced part is derecognized. Assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. and the estimated cost of dismantling and removing the asset and restoring the site. in which case it is recognized as income. Property and equipment. Life years 2. The estimated useful lives of property and equipment are as follows: Assets Building /building improvements 10-30 Furniture and equipment /computer hardware 5-10 Land improvements 10 Transportation equipment 7 Leasehold improvements 10-30 2. Any excess of carrying amount over fair value less costs to sell is an impairment loss. including transaction costs. Increase in value as a result of revaluation is credited to reserves under property valuation reserve unless it represents the reversal of a revaluation decrease of the same asset previously recognized as an expense. evidenced by: Construction in progress (CIP) represents building and building/leasehold improvements under construction and is stated at cost. Lease income from operating leases is recognized as income on a straight-line basis over the lease term. Land is carried at revalued amount. The carrying amount of the asset is reduced through the use of an allowance account and the amount of loss is recognized in profit or loss unless it relates to a revalued asset where the value changes are recognized in other comprehensive income/ loss and presented within reserves in the property valuation reserve portion. If any such indication exists.10 Impairment of non-financial assets 2. the cumulative gains or losses are transferred to profit or loss and presented as a reclassification adjustment within the statement of comprehensive income. are stated at cost less accumulated depreciation. 2. No depreciation is recognized for these assets while classified as held for sale. less any impairment loss previously recognized in profit or loss. c.4 Available-for-sale financial assets An investment property is initially measured at cost. On the other hand. if no impairment loss had been recognized in prior years. abnormal waste.11 Revenue recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the SSS and the amount of revenue can be reliably measured.9 Non-current assets held for sale The carrying amount of non-financial assets. it is measured at fair value with any change therein recognized in profit or loss. or initial operating losses incurred before the investment property achieves the planned level of occupancy. If an available-for-sale financial asset is impaired.FINANCIAL STATEMENTS 2010 Member loan accounts that are subjected to impairment fall under substandard which is defined as loans or portions thereof which appear to involve a substantial and unreasonable degree of risk to the institution because of unfavorable record or unsatisfactory characteristics.7 Property and equipment e. highly liquid investments that are readily convertible to known amounts of cash with original maturities of 90 days or less and are subject to an insignificant risk of change in value. installation.12 Expense recognition Expenses are recognized in the statement of comprehensive income upon utilization of the service or at the date they are incurred. 34 Investment property account consists of property held to earn rentals and/or for capital appreciation. Building and building improvements have residual value equivalent to 10% of the acquisition/appraised value while other items of property and equipment except land have one peso as their residual value. The determination of whether an arrangement is.5 Supplies and materials Supplies and materials are valued at cost using the weighted average method. a. When the booked amount of ROPA exceeds the appraised value of the acquired property. is transferred from reserves to profit or loss and presented as a reclassification adjustment within the statement of comprehensive income. 2. 2. Computer software/licenses with finite lives are amortized on a straight-line basis over their estimated useful lives. Non-current assets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined. Acquired computer software/licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. except land. b. Derecognition of financial assets Financial assets are derecognized when the rights to receive cash flows from the asset have expired or have been transferred and the SSS either has transferred substantially all risks and rewards of ownership or has neither transferred nor retained substantially all the risks and rewards of ownership. related professional fees for architects and engineers. The cost of replacing a part of an item of property and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the SSS. When an available-for-sale financial asset is derecognized. an amount comprising the difference between its cost (net of any principal payment and amortization) and its current fair value.6 Investment property Transfers to or from investment property are made when there is achange in use. taking into account the effective yield on the asset. while those with indefinite useful lives or those used perpetually or for as long as there are computers compatible with them are carried at cost and tested annually for impairment. b. Member’s contribution Revenue is recognized upon collection. SSS as lessor Leases where the SSS does not transfer to the lessee substantially all the risk and benefits of ownership of the asset are classified as operating leases. 2. The following specific recognition criteria must also be met before revenue is recognized: a. a decrease arising as a result of a revaluation is recognized as an expense to the extent that it exceeds any amount previously credited to property valuation reserve relating to the same asset. Rental income Rental income is recognized on a straight-line basis over the lease term. • commencement of owner-occupation • end of owner-occupation • commencement of an operating lease to another party d. d. other than investment property and non-current assets held for sale is assessed to determine whether there is any indication of impairment or an impairment previously recognized may no longer exist or may have decreased. 288.013 5.813 223.51 million and P1. CASH AND CASH EQUIVALENTS Cash on hand and in banks Time and special savings deposits 8.076.689 73.588.392 6.224.126.607 2.820 458. 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.499.037.770 7.990 .820 12.931 63.785.723.135.470 8. PROPERTY AND EQUIPMENT The carrying amount of available-for-sale financial assets is as follows: 2010 Marketable securities Cost 49.759) .778.491 Cash in banks earn interest at the respective bank deposit rates. 31 December 2010 Fair value.114 5.701.102.531.408. Using the BSP guidelines in identifying and monitoring problem loans and risk assets and setting up of allowance for probable losses. 31 December 2010 Net book value.17 million.289.759 206.673 Total 10. RECEIVABLES Collecting banks/agents/ bayad center Interest receivable Other receivables 2010 2009 3.303.022.309.905.219.871 4.070.068 Accumulated impairment loss (2.438.391 1.858 9.251) (347.828 22.723.316.010) 6. HELD-FOR-TRADING FINANCIAL ASSETS The cost of held-for-trading financial assets as at 31 December 2010 and 2009 are P1.641 4.298 2010 2009 Available-for-sale financial assets 77. impairment provision amounting to P1.516. 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. transportation equipment.523.750 - The current portion of held-to-maturity government notes and bonds as at 31 December 2010 and 2009 are P3.039 122.188 1.000) 927.458.929.521 The costs of investment property as at 31 December 2010 and 2009 stood at P7.165 6.772.948 5.663 6.098.809.250 76.669 11.581 3.155.938 5.690 .762. buildings and building improvements were last revalued in December 2009 by independent valuers.719 Furniture and equipment.116.613.960 3.378.FINANCIAL STATEMENTS 2010 3.076.656.173) 10.372.676.800.626.840.706) 104.782 Loan to Home Development Mutual Fund 2.596.347.693.796) (855. INVESTMENT PROPERTY 2009 42.638.919 Commercial and industrial loans 681.779.739.723. As of 31 December 2010.411 2009 186.776.109. (44.439 2.215 5.262.774 (347.675.243 2009 3.668.362 Gross carrying amount 01 January 2010 3.990 Building Development cost 2.945.268.723.914 82.337.708) .551.694.857 (723.883.305 1.519 394.256.368 3.220 17.059 Additions .214 68.556.20 billion.362 Held-to-maturity investments Notes and bonds 105.826.709.734 10.685.059 7.520.912 Sales contract receivable 5.780) 1. 4.605 Short-term money placements are short-term investments with original maturities of more than 90 days.375.892. 6.109.210 8. Buildings and computer land/building/leasehold hardware and improvements others Construction in progress Total (70.335 Ordinary and preference shares Cost 1. The fair value of investment property is determined based on valuations performed by independent appraisers.585.086.090 13.840.828.254.840.563.294.293 46.032 Program MADE 17.708) 3.834 Fair value.484. Valuations were made on the basis of market value.318.396) (89.272 951.627.637.883.110) 68.286 2.750.882.712 7.086.610 .406.895. Net book value.685.676.218.605 7.758.185.469 . HELD-TO-MATURITY INVESTMENTS 2010 2009 Short-term money placements 6.208 81.075. Charge for the period 50.094 2.75 billion was recognized in 2010 for 5 years and above delinquent member loan accounts.397. Accumulated impairment loss 01 January 2010 56.710.446 Loans and receivables Member loans 43.825.858 9. Retirement/disposals/cancellation .838 2.109.076.564.396.601.109.234.782.782.018.999.348 22. respectively.261 Loan to other government agencies 110.443.319.814 46.706) (884.052 498.978 2.337.536 Loan to National Home Mortgage Finance Corporation 14.600.710.529.847.587.079.132. (140.780) .029 167.413.472.348 Accumulated depreciation/amortization 01 January 2010 618.937.916) Retirement/disposals/cancellation (197.126.599.000.893 72. 31 December 2010 3. 01 January 2010 Additions Cancellation of contract Disposals Fair value gain Fair value. P94 million is being maintained in several banks for such purpose.975.174.985 1.118.139.661.992 256.217.518 752.677.612. The following amounts are recognized in the statement of comprehensive income: Gain on fair value adjustment Rental income Gain on sale/disposal Penalty on rentals Direct operating expenses 2010 1.414.896.997.528.145. (341.766 Supplies and materials inventory Prepaid expenses Advances-officials and employees Revolving fund 36 2010 77.771 26. 2010 AN N UAL REPORT 37 .943.737 2.174 88.220 70.735.970.319.367.825.003.292.106.73 billion.377 69.467 117.872.021 5.085 Unrealized gain 27.355.943 2.145.512 56. NON-CURRENT FINANCIAL ASSETS 2010 1.990.750 - 31 December 2010 56.313.098.701.402.407.222. OTHER CURRENT ASSETS 9.129. (3.208.511.712 69.726.231 3.155.704. respectively.071.202.377 77.550.232.927 44.982. respectively.222 3.673 38.683.334.414 680. 31 December 2009 2.293.208.681.205 Transfers 3.152 Accumulated impairment loss (809. In consideration of the banks’ making their deposit pick up facility available to the SSS.749.287 Land.675.000 Treasury bills 1.142 3.313.607.628.958 250.414.427.750 3.306.591.464 2009 107.61 billion and P8.480) 485.853.750 56.624.294.473.510 .995.867. 31 December 2010 668.776.376.683.739. 5.918.200 8.014 .421 2.599.672.404.510 (184.198.921 681.483.776. 31 December 2009 Land 8.102.223.498 89. .473.891. 140.686.596.268.224 26.758.612.775 . 3.228 (341.485 1.317.372.620.58 billion and P7.480) 485.497 5.270.501 888.694. 445.895.392.366.170.452.406 Housing loans 4.277.521 38.435.462.566.535.429 168. Land.857 Accumulated impairment loss (723.778 14.219.022.413.696 9. 020.630 2.649 81. the SSS returned the P10 million fund to the Commission on Higher Education (CHEd) through its Chairman Emmanuel Y.496 (80.556 2010 AN N UAL REPORT 39 .896) .896) 121.314 36. On 8 March 2010.229 81.748.392.522.115.697 Total 5.012.474 196.853 Accumulated amortization 01 January 2010 29.757.026.09 million for the year ended 31 December 2010 and 2009. 31 December 2009 110. It is being administered by the SSS.527 208.464 Carrying amount. payment of which shall be sourced from the residuals of the cash flows of the remaining accounts upon full payment of low.607 353.096.930 273. The Flexi-fund represents equities of members under the voluntary supplementary benefits program of the SSS for Overseas Filipino Workers and authorized under Section 4.290.155.501) 393.996) .102.057.398.729.195. withholding taxes and retention withheld from suppliers and creditors to answer for defective deliveries or services.893.501.879.596.768.968 138. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Acquired assets/ Land Building registered Carrying amount.020.471 (22. 31 December 2010 5.66 million.239.301.129 143.091.127 44. INTANGIBLE ASSETS Licenses Software Cost 01 January 2010 291.178 351.215 13. respectively. The Social Security Commission (SSC).767.384 39.893.771.237 The non-current interest receivable from loan to NHMFC represents portion of the total restructured loan amount that SSS and NHMFC have allocated to unpaid interest and penalty as of cut-off date.391.222.812.834 (953.705.811) 164.2 of the RA 8282.051.043.522.427.410.324.407) 5.104 778. buildings and building improvements were stated on the historical cost basis.660. PHIC.002.588.916 (67.768.384.161 2009 898.048 (516.818 131.986) (55.596.011 .582.171 The Department of Finance is still evaluating HGC’s request to issue bonds to settle its guaranty obligations with the SSS.911. 31 December 2010 86.513.429) (2.669) 1.986.086.496 Disposals (9.558) (3.777.637.162 10.300 Non-current interest receivable includes those originated from Home Guaranty Corporation (HGC) guaranteed corporate notes and loan to National Home Mortgage Finance Corporation (NHMFC) amounting to P120.921.185.800.149.478. 31 March 2002.635.020.114.258 (12. drafting recommendation and approval of the project implementation and information campaign plans.533 113. 53.248.838 OFW collections 265.824.452. 31 December 2010 76.192 349.023 909.663.291.743.924.946. moderate and high delinquency outstanding obligations. OTHER NON-CURRENT ASSETS 2009 1.381.862 537.650.623 179. NON-CURRENT ASSETS HELD FOR SALE 16.207 377. in its Resolution No.784 Undistributed collection 428.914) 1.166 270.44 million and P12.567.279.588) Net carrying amount.798.660 434.238.524.005. respectively were included in the statement of comprehensive income.103.261.053 3. 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 LEB’s operational requirements and does not form part of the LEF. which invests the same with due and prudent regard to its solvency.857 105.676 The carrying amount of intangible assets with indefinite lives as at 31 December 2010 amounted to P36.023 44.739 48.442 3.135.934.112 871.974 85.086.955) (12.694.707.501) 355.083.547 559. HGC also offered.654 3.363 (516.290 31.057 99. subject to SSS evaluation.672.149.411. 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.145.303.287. 31 December 2009 4.980.384) (97.741.930 Amortization charge for the period 22.923 (953. Angeles.420 .423 (74.429.470 130.58 billion. 288 dated 18 April 2001. Breakdown as follows: Flexi-fund Officials and employees Borrowers and other payors Unified multi-purpose ID fund Due to other government units Supplies and creditors Dividend .497.129 (548.904 1.840) Impairment (loss)/recovery 174. The Legal Education Fund (LEF) is a special endowment fund under the control of the Legal Education Board (LEB).776 164.356.937 Lease rentals amounting to P12.400 Net book value. Total Interest receivable Accumulated impairment loss Advances-fire/MRI/ foreclosure proceedings Accumulated impairment loss Others Accumulated impairment loss 165.114.145 Employees’ housing loan program 117.141. including all expenses to be incurred related to the formulation. approved the establishment of this supplementary benefits program.285 Accumulated impairment loss (5.744.697 Additional/adjustments 381.908. This account includes among others collections credited to the accounts pending receipt of collecting agencies’ documents and actual distribution of collections and payments whose nature are not indicated by payors.a.996) 435.702.176 . FUNDS HELD IN TRUST 38 2010 2. which will be used to pay all direct and indirect costs of the central verification and enrollment system for the UMID as well as all costs necessary and incidental thereto.DECS 2010 269.756 35.404.482 (271.160. the carrying amount would be as follows: Cost Accumulated depreciation 2010 1.194.192.808 Net book value. Breakdown as follows: 2010 Member loan (ML) collection 1.145.672.135. 12.579 162.008 12.868 This account includes among others bidders’ deposits.946.846 15.504 1.511. The Unified Multi-purpose ID (UMID) fund represents amount provided by the National Statistics Office (NSO).230.646 3.426 1.247. contributions to GSIS.043 41. OTHER CURRENT LIABILITIES 15.785 147.384.056 ML collection deducted from benefits payments 330.889) Carrying amount.835.715 31 December 2010 52.006 Additions 4.380.606 (508.968 122.645 Accumulated impairment loss 01 January 2010 151.811) 5.038.971.576.326 429.831 2009 228.906. HDMF and SSS Provident Fund and equity of Flexi-fund members. This account represents advance rental payments from tenants of SSS property.057 Rental receivable 855.400 Retirement/disposals/cancellation (74.623 Sales contract receivable 61.809. DEFERRED INCOME 14.729. 2010 2009 12. 86.450.794) (15.076 94.63 million and P13. which was created under RA 7662.912.932) 1.904 1.832 623. 01 January 2010 4.116 1.777 Real estate loan collection 534.569.877.769.762 17.FINANCIAL STATEMENTS 2010 If land. 31 December 2010 214. 68.694. safety and liquidity.708.173.785 5.621 220.404.660 Accounts payable Accrued expenses 2009 1.643.567.494 Legal education fund 15.159.757.263.785 147.897.811) 178.178 351.stock investment loan program Educational loan fund .281.572.501.740.093.227 Express padala 96. 11.831.988.526 52. to settle all outstanding guaranteed obligations through assignment and conveyance of its acquired assets in various locations.070.906.560.268. In the said meeting.847 Retirement/disposals/cancellation (80.909 120.694.163 841.561 54.924.690.947. 01 January 2010 4.142 13. 093 119. 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.311.884.528 128.969.292.095 124.798 12. 35% in housing. Employees with at least 20 years of creditable service are entitled to P2. care. ageing of population. effective 28 January 2005.719 27.922 1.825.906. 18.027 36.341 1.000 for every year of service upon retirement.977.000 to P15.779.659 378.009) (3.343. RESERVES 20.659. Results of the 2003 Actuarial Valuation indicate an extension on the life of the fund by sixteen years.847.115.salary loan 111.061 42. improved investment portfolio and management.745.303.647.646 Gain on sale/disposal - 166 Investment expense (604.635.293 Other income Interest income from cash in bank and cash equivalents 389.726) (4.415 Investment expense (303.509 117.639 2009 2.489 743.139.077 5.4% in January 2007. RA 660 and RA 8291. 23.871. 24.436.150.666. increase in the maximum salary base for contributions from P12. 18.060 21.g.837 899.271. PERSONAL SERVICES Salaries and wages Madatory contributions Incentive award Bonus and rice grant Allowances Other personal services Terminal leave pay 2010 2. The affairs and business of the fund are directed. Actuarial Valuation Comparison of Key Projection Results 2007 Valuation versus 2003 Valuation Under the Baseline Scenario 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 21. sickness. However.191.792.178.323. In the 1999 Actuarial Valuation.424.710.843.069) (57.515.170 Director’s fee 23.689 2. Since then.309.977.633.985.g.332. managed and administered by a Board of Trustees.756.142 Non-current assets held for sale Rental income 35.249 1.699 Gain on fair value adjustment 1.216 37.746.286.523 5.359 3.442 356. There are two columns under the 2003 Valuation: (1) the original results as published in the 2003 Actuarial Valuation Report.793 Service fee .527. maternity.626 1.897.060) (602.941. based on the opinion dated 25 June 2007 of the Legal and Adjudication Sector of COA.359.161 Loans and receivable Interest income 2. are projected.871.080 510. to determine the actuarial soundness of the reserve fund of the SSS and to recommend measures on how to improve its viability. taking already into account the grant of 10% across-the-board increases in pension effective September 2006 and September 2007.066.662 377.836. except as may be allowed under the SS Law Act.378 2009 415. and (2) the updated results that take into consideration the across-the-board pension increases in 2006 and 2007 and the contribution rate increase at the start of 2007.473.809 - 196. 20. etc.135 Related expense (5.217.423 1.207.941 1.066.052 498.359.923. more accounts officers. old age.162) (566.630 448. 2007.695 227.171.293 138.084. Taking into account the uncertainty of future events.852 677.098 106.595.366.961 Held-to-maturity investments Interest income 7.590) 13.047.4%.414.335 157.712 19.479.010 143.865 593.032.511.521 134.323) 7.014.761.261.001. 30% in infrastructure projects.916.055 11.867. The Act also provides that no portion of the IRF shall be invested for any purpose or in any instrument.141.300 Others-net (236.301.237 Investment expense (1. 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.501. RENT PAYABLE This account represents future rent payments for lease contracts entered by the SSS for its various branches.802 This account represents payments to members and their beneficiaries in the event of disability.4% to 9.553.) were implemented to strengthen the SSF. including government-owned or controlled corporations. The following table presents the results of the 2007 Actuarial Valuation.396.4% in January 2007 and the 10% across-the-board pension increases in 2006 and 2007 2010 AN N UAL REPORT 41 .2 Terminal leave benefits 20.322 Investments expense (24.3 Retirement incentive award In its Resolution No.858.890 128.622 6.346 749. Tellering System. 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. has extended further the SSF life to 2036.484 22.580. from 2015 to 2031.723.582) 1. 30% in government financial institutions and corporations.089.048. the SSC. declining fertility level and delay in retirement) and (b) the economic conditions of the country.533.384.796.454. death or resignation.235. increases in the contribution rate from 8.529 Provident fund (part of mandatory contributions) is a defined contribution plan made by both the SSS and its officers and employees.400. the employee or his heirs will receive from the fund payments equivalent to his contributions.847. 19.796.672 Penalty on overdue amortization 608 3. The increase in contribution rate to 10. economic assumptions on interest rates. The System’s concerted efforts have resulted in improved actuarial soundness.557 24. Upon retirement. subject to prescribed ceilings under Section 26 of the SS Law (the Act).988. 10% in short and medium-term member loans.940 Income from non-current investments Available-for-sale financial assets Dividend income 3.456 713. INVESTMENT AND OTHER INCOME 22.694.624 88.087.429. his proportionate share of the SSS’ contributions and investment earnings thereon. adopted the use of acquisition cost of shares of stock as the basis for computing the 30% limit in equity investments.053.686 22. ACCRUED RETIREMENT BENEFITS 18.174.842.870.1 Retirement benefits Retirement benefits are available to qualified employees under any one of RA 1616. compared to the previous 2003 Valuation results.330) (17.859 2.280 121. inflation rates and salary wage increases.850) Impairment loss - (24.479.000. The reserve fund is affected by (a) changes in demographic factors (such as increased life expectancy. and the redefinition of Credited Years of Service (CYS) and operational developments (e.668.085 223. cost saving measures.704.FINANCIAL STATEMENTS 2010 18.033 352.241 275.1 Investment reserve fund (IRF) 40 All revenues of the SSS that are not needed to meet the current administrative and operational expenses are accumulated in the reserve fund.592.509 Total investment and other income 27. retired and separated members have the option to retain part or all of his total equity in the fund for a maximum period of five years.730. 30% in real estate related investments.885.595 Terminal leave pay 621. parametric measures (e.599 164.825. death and other contingencies resulting in loss of income or financial burden.045 Retirement incentive award 89.563.274 506. MAINTENANCE AND OTHER OPERATING EXPENSES Other operating expenses Depreciation /amortization expense Maintenance and repairs building/leased offices Light and water Maintenance and repairs furniture and equipment Service bureau expenses Office space rentals Communication expenses Supplies and materials COA audit services Maintenance and repairs transportation equipment Special Project Impairment loss - operating assets 2010 338. institution or industry over and above the prescribed cumulative ceilings as follows: 40% in private securities.692.768.218.866 178.145.180 127.739.263 9.264.634. 402 s.514.998.210) 33.5% in foreign-currency denominated investments.659.190 2.566 Penalty on overdue amortization 807. among others.042.908.358 465.159 135.863 3.500 4.601.4% in March 2003 and to 10.568. the Social Security Fund (SSF) was projected to last until 2015.126 24.537) 1.245 985.470.793. BENEFIT PAYMENTS 2010 2009 Investment income Income from current investments Held-to-maturity investments Interest income 452.000.671.115.700 5.920) Reversal of impairment loss/revaluation decrease 108.615 292.231.618.088.523 Gain on sale/disposal 86.544.845.314 Gain on sale/disposal 10.753.151.894.491 2.914.595.2 Actuarial valuation of the reserve fund of the SSS This represents the cash value of the accumulated vacation and sick leave credits of employees.852 * As published in the 2003 Actuarial Valuation Report ** Updated results after the increase in contribution rate to 10.173.332.714) Impairment loss (1.390.081.566.858 1.072.558 280.889 The Social Security Act of 1997 requires the Actuary of the System to submit a valuation report every four (4) years.512 Investment property 1.535.030. The accrued retirement benefits of employees at 31 December 2010 and 2009 are as follows: 2010 2009 Retirement benefits/gratuity 673.337.453 226.594 139.122. effective January 2007.379.204. or more frequently as may be necessary.375 Gain on sale/disposal 459.665. 50% of which can be monetized once a year and the balance payable upon resignation/ retirement.935.887) Impairment loss (1.553.404.241.081 Held-for-trading financial assets Dividend income 25.359. 15% in any particular industry and 7. 50%). The SSC has adopted adequate policies on investment procedures. shall not exceed 40% of its total market transactions. the SSS has achieved a mix of financial investments with interest rates that are within acceptable level. CIBI Information.739 - - - - 2.991 Home Development Mutual Fund 3.316 - - - - - - - 3.331 168 91 19 17 26 9 1.349 - - - - - - 810 Government notes and bonds 92.855 - - - - - - 136 14. The leases have varying terms.3 Transactions.535 Employee housing loan program 421 4 1 - - 2 - 2 430 215.535 - - - - - - - 4.739 Commercial and industrial loans 602 - - - 2 8 4 65 681 Program MADE 17 17 Other government agencies 110 - - - - - - - 110 Sales contract receivable Investment property 87 4 1 - - - - - 92 Non-current assets held for sale 285 140 117 30 17 35 11 - 635 Available-for-sale financial assets 4. 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 3.1 Interest rate risk The SSS implements structured and standardized evaluation guidelines.415 - - - - - - 723 78. This ensures that the stockbroker does not rely heavily on SSS for its business.550 68. b. Internal controls are also in place and comprehensive audit is being done by Internal Audit Services. 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.018 Held-to-maturity investments Short-term money placements 11. excluding negotiated block transactions. FINANCIAL RISK MANAGEMENT The SSC and SSS management are active in the evaluation. credit ratings and approval processes. stockbrokers not able to meet the profitability requirement may be qualified provided that capitalization is at least thirty million pesos for those with losses.518 Loans and receivable National Home Mortgage Finance Corporation 13.) and information from third party (e.331 - - - - - - - 3. credit risk.174 1.224 13.271 2.2 Credit risk 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.003 Home Development Mutual Fund 2. 25. To avoid significant concentrations of exposures to specific industries or group of issuers and borrowers.786 2009 Restated 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 980 - - - - - - - 980 Available-for-sale financial assets 69. for each of the accredited stockbrokers. However. scrutiny and credit approval process on all investments being undertaken by the SSS. escalation clauses and renewal rights.2 Total transactions.535 Employee housing loan program 345 1 - - - - - 7 353 189. 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 has adopted the following mitigating measures: a. during the accreditation period. failed settlement of transactions and default on outstanding contracts.665 - - - - - - 885 Government notes and bonds 68. The SSC and SSS management review and agree on the policies for managing these risks as summarized below. 26. Stockbroker transactions. a.535 - - - - - - - 4. Investments undergo technical evaluation to determine their viability/acceptability.833 191. 26. credit analysis.224 - - - - - - - Corporate notes and bonds 12. a. banks and other institutions) are used to determine if counterparties are credit-worthy.2 The stockbroker shall have a minimum capitalization of fifteen million pesos.867 - - - - 136 14. etc. b. Inc. evaluation of the financial performance of the issuer/borrower to determine financial capability to pay obligations when due. 26.4 The stockbroker shall have a positive track record of service to other institutional clients. b.331 Available-for-sale financial assets 77. With respect to stockbrokers.159 92.518 - - - - - - - 6.g.657 148 119 30 19 45 15 1. prevailing 3 months Philippine Dealing System Transaction-Fixing Rate plus a spread of not less than 0. excluding negotiated block transactions. allocations and limits b. SSS investments are regularly monitored so that in no time shall they exceed the prescribed cumulative ceilings specified in Section 26 of the RA 8282..740 - - - - - - - 11. OPERATING LEASE COMMITMENTS 25. liquidity risk and market price risk. excluding block transactions. 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. Currently. a.138 Held-to-maturity investments Short-term money placements 6. Minimum requirements for stockbroker evaluation a. The leases have varying terms.3 The stockbroker shall be profitable for three of the last five years of operation. with the SSS by the stockbroker. 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. shall not exceed 15% of total SSS transactions.023 13.494 2010 AN N UAL REPORT 43 . This includes risk of non-payment by issuers and borrowers. within the year of accreditation.295 - - - - - - 723 70.271 - - - - - - - Treasury bills 2.1 SSS as lessee The SSS leases offices for its various branches under cancellable operating lease agreements. whichever is lower.316 Commercial and industrial loans 808 1 - 2 4 9 - 65 889 Program MADE - - - - - - - 17 17 Other government agencies 122 - - - - - - - 122 Sales contract receivable Investment property 84 4 1 - - - - - 89 Non-current assets held for sale 292 162 90 17 13 17 9 - 600 Available-for-sale financial assets 4. The main risk arising from the SSS’ financial instruments are interest rate risk. 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. escalation clauses and renewal rights.023 - - - - - - - Corporate notes and bonds 12.2 SSS as lessor The SSS leases out portion of its office space to various tenants under cancellable operating lease agreements.174 - - - - - - - Treasury bills 1. Due diligence process (i.e.740 Loans and receivable National Home Mortgage Finance Corporation 14.e.753 217.1 Total daily transactions. 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.1 Stockbroker is a Member of Good Standing of the Exchange as defined under Rule 3(g) of the Securities Regulation Code. per stockbroker shall not exceed 50% of stockbroker capitalization/ stockholder’s equity.FINANCIAL STATEMENTS 2010 25. 27.68 Value added tax 83. Income taxes withheld on compensation 583.1 Commitments Amount authorized but not yet disbursed for capital expenditures as of 31 December 2010 is approximately P734. 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. delivery and maintenance of two hundred ninety (290) contactless smartcard readers/writers (d) set-up of training facility and the conduct of personnel training and (e) all other items that can be reasonably inferred as being required for the completion of CMS and KMS. The agreement with a total contract price of P1. personnel and other resources so as to adequately service the enrollment capture/update needs of SSS ID cards applicants and holders. delivery and installation of the central verification system (CVS) with a total contract price of P279. installation. supply and delivery of SSS UMID contactless smartcards and plastic card jackets (b) supply. value added taxes withheld are remitted on or before the 10th day of the following month.. 4) In 2011. PhilPost shall provide SSS with a biometric data services facility that will capture biometric or demographic data to be used by the SSS in the issuance of UMID-compliant ID cards to its members. This shall include SSS members and applicants whose biometric data have not yet been previously captured and/or whose data need to be updated. Based on the completed and submitted audit reports for 2010. 290 units contactless card readers were delivered and paid for in the amount of P2.3 Liquidity risk covers/involves the (a) production.88 728. the SSS signed an Agreement with the Joint Venture composed of the ALLCARD PLASTICS PHILIPPINES.97 million to be delivered within 90 days from signing of the agreement.13 was remitted in 2011. As of December 2010. the parties shall build jointly. Audit covered transactions in 2004 and 2005. An Advice of Complete Installation for SSS CVS Project was provided by LAMCO last 24 August 2010. The SSS manages this risk through daily monitoring of cash flows in consideration of future payment due dates and daily collection amounts. Relative thereto. 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. Of the total taxes withheld by SSS. c. Auditor’s Report Income taxes withheld on compensation and expanded withholding tax are remitted on or before the 15th day of the following month except those withheld for the month of December which should be remitted on or before the 20th day of January of the following year. Card production As of September 2010. P670.10 b.69 billion The SSS signed a Memorandum of Agreement (MOA) with Philippine Postal Corporation (PhilPost) on 12 May 2010 for the outsourcing of the data capture and enrollment component of the UMID project with an estimated cost of P1. Liquidity risk arises from the possibility that the SSS may encounter difficulties in raising funds to meet its payment obligations (i. The agreement covers the supply. the local card production facility that should have been set-up is still not compliant with the following requirements: (1) submission of permit to operate generator set and other mechanical equipment and (2) dedicated 24/7 data communication line between the facility and SSS CMS. customer satisfaction is what drives IAS to perform beyond limits and play a crucial role in the attainment of corporate goals. IAS will perform its role with even more enthusiasm.664. signature and demographic data are compliant with the requirements.e. As of December 2010.53 million. specifications. 26.285. However. The MOA shall be effective for a period of 5 years unless extended in writing by mutual agreement of SSS and PhilPost. 27. the SSS signed an Agreement with winning bidder A LAMCO-EUROLINK JOINT VENTURE (LAMCO) on 6 May 2010.3 Tax compliance The amount of taxes withheld (net of adjustments) for the year 2010 amounted to as follows: 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. This gave SSS thirty (30) calendar days within which to conduct Inspection and Acceptance Testing. INC. it requires a standard layout with all the necessary facilities to prevent incidents resulting in the loss of funds.32 million. However. The security and safety of the funds and personnel are paramount considerations in the decision to open a tellering branch. vital requirements should not be compromised for the sake of convenience. FERNANDEZ Assistant Vice President 2010 AN N UAL REPORT 45 . The SSS also maintains sufficient portfolio of highly marketable assets that can easily be liquidated as protection against unforeseen interruption to cash flow. while the balance of P57. 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. Set-up and delivery of various deliverables shall be made within 90 days from signing of the agreement. operation and maintenance of a card management system (CMS) and a key management system (KMS) (c) supply. LTD on 14 December 2009. IAS will channel its energy back to the basics. in favor of the NSO.2 Unified Multi-purpose ID (UMID) a. Central verification system In line with Executive Order No. working capital requirements and planned capital expenditures) when they fall due.317.97 was remitted to the Bureau of Internal Revenue (BIR) in 2010. 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..319. OTHER MATTERS 27. On the other hand. 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. However. After all. 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. 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. The positive outcome of this project is that both management and NHMFC committed to institutionalize mechanism for the periodic reconciliation of records.26 billion through Negotiated Procurement.978. PhilPost has set-up for testing purposes a data capture workstation in Diliman Branch.4 Market price risk 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). Clear policy guidelines and comprehensive operating procedures are also a prerequisite.852. customization. the SSS signed a Memorandum of Understanding (MOU) with National Statistics Office (NSO) on 9 September 2009. PhilPost shall likewise deploy such data capture workstations.644.620. the STRADCOM CORPORATION and the TECO ELECTRIC AND MACHINERY CO. Hence. 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. Under the agreement. delivery. In pursuance to the objectives of the UMID.603. payment of benefits. however. Implementation shall commence upon execution of the MOU and shall end upon the complete turnover of the system from the SSS to the NSO. the technology has yet to be fully utilized by the intended users due to perceived hitches.430. but also runs parallel to the legal mandate of ensuring prudent management of SSS investments. is not an easy task as members have different standards in terms of service delivery.264. It manages this risk by monitoring the changes in the market price of the investments.54 Expanded withholding tax 60. terms and conditions provided for in the Terms of Reference found in the Agreement. This is to ensure that the output with respect to the fingerprint. 44 After an open and competitive bidding. ANTONETTE L. Data capture 27. Convinced that the new management will not give any stone unturned as far as improving corporate governance and operating systems are concerned. Determining client satisfaction.Internal 26.621. 3) The Accounts Monitoring System (AMS) is an automated system design to facilitate management of employers contributions delinquency. a central verification and enrollment system (CVES) for the UMID. 163.417.5 20.6 5.0 17.2 14.9 52.1 1.304.7 2.9 1.267.0 15.8 1980 .6 * 7.6 29.644.4 * 109.7 46.9 (8.6 17.775.381.350.8 * 135.572 2008 518.733 2003 743.081.1 2001 459.016.217.183.0 863.086.2 1980 .887.942 3.7 3.0 2.152 32.8 11.1 267.967.0 60.781.935.953.591.971 781.114.9 997.3 224.139.5 4.7) 21.315.758 P** 632 1.9 77.6) 130.1 6.3) 265.9 232.572 194 6.133.202.051.0 15.0 131.7 1990 .573.408.1 9.4 (17.9 2.258.211 1969 243.3 9.4 6.3 70.6 2000 435.0 16.084.085.810 757.6 15.879.8 17.6 21.0 12.870.9 5.9 CONSOLIDATED PROGRESS OF OPERATIONS (Amounts in Million Pesos) Year Contributions 1957 .5 13.5 1.886.606.122.174.183.124 2002 775.226.5 4.9 831.7 2003 39.9 123.7 886.2 252.848.1 4.957.5 2002 485.1 4.3 181.9 9.7 4.6 2007 60.8 24.406.0 7.6 1.919.4 22.226. Employer (E).2) 211.9 176.2 EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND GROWTH OF ASSETS.3 44.1 (1.4 5.226.2 48.4 6.1 118.0 163.5 * 130.2 2008 1.6 4.200.177.8 211.0 11.7 2.713.8 47.277.1 37.3 16.8 18.467 189 6.3 1990 .6 159.502.7 (1.233.909 1989 704.2) (0.6 17.4 10.875.305.750.1 155.535.1979 5.250 23.633.379.896 4.3 158.591.0 4.241.3 6.894 2000 1.9 5.4 (5.3) 5.305.737.386.114.5 26.823.0 489.1 1.285.1 228.8 1.335 830.6 248.0 40.059.0 273.9) 139.459 21.314 600.668.847.2 187.6 EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND PROGRESS OF OPERATIONS (Amounts in Million Pesos) Investment and Year Contributions Other Income Benefits 1975 .8 100.8 (6.238.143 AS OF DECEMBER 31 W/P E/P 636 17 1.907.277 142 5.9 5.7 600.3 4.781.530.1 118.407 95 5.444.3 271.1999 154.0 538.763.033 25.3 * 5.159.8 263.020.4 988.1959 72.145 4.225.186.431.857 5.182 633.9 5.328 3.1 14.143.2 561.1 Operating Expenses & Others 6.364 20.049 25.6 596.917.236 2005 561.466.9 160.0 143.312.3 2.7 3.2 5.8 2006 51.135 4.3 15.8 26.4 2008 67.4 24.034.348 27.191 29.014.8 * 100.089.239 171 6.9 196.063 1979 612.431.956.8 5.9 2004 43.4 17.226.871.9 7.5 4.211.4 * Net Revenue 67.623.4 6.201.9 * 6.1969 959.663 150 5.3 653.2 148.0 (9.6 618.3 152.889.4 4.721.187.8 2005 47.694.0 (303.0 9.9 539.0 22.4 155.0 2009 1.775.547.9 2.2 1.212.4 41.119.2 671.148.3 * 106.7 235.1989 2.535 2004 615.8 17.2 18.741.7 8.059.4 SSS Progress of Operations (Amounts in Million Pesos) Investment and Year Contributions Other Income Benefits 1957 .0 104.9 45.6 * 7.310.901.919.679. RESERVES & INVESTMENTS (Amounts in Million Pesos) Year 1959 1969 1979 1989 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AMT 68.9 2.505.2 1.4 4.4 3.878.702.2 152.015.579.0 16.966 22.3 7.8 16.1 3.6 1.9 (7.6 22.4 2007 1.5 1.8 251.8 138.5 RESERVES INVESTMENTS AMT % INC / (DEC) AMT % INC / (DEC) 501.2 23.4 165.763 803.3 ASSETS % INC / (DEC) 67.6 9.8 7.600.776.5 2.113.610.565.2 1.0 (9.5 14.988.820.070.9 225.3 144.358 1999 1.985.5 9.340.7 17.8) 240.0 2.8 19.8 2002 34.963.6 648.666.9 228.0 32.269.4 13.7) 19.9 4.272.1 16.6 72.6 1990 .4 76.303.2 166.2 1.058.6 205.852.9 900.336.1 43.9 4.746.064 221.9 1.665.9 21.316.692.1 181.4 * 6.8 6.1999 4.3 179.8 232.282 27.0 27.3 15.9 4.291 182 6.9 15.759.223.033.0 1.6 567.9 2010 77.574 734.123 AS OF DECEMBER 31 E 10.570.829.325.4 8.6 16.9 2.679.137.355.2 9.2 174.1 33.8 258.0 1.4 5.6 9.8 262.036 2010 548.3 6.188.5 10.3 495.0 29.635.630.4 18.866 26.1) 159.287.083.0 954. 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) 507.875.313.8 166.5 12.3 1.1 14.0 19.2 (6.693.7 1.123.739.167.3) 192.4 1.9) 16.7 1.3 2003 38.1979 477.932 28.288.149.2 963.0 5.759.183.1989 23.6 19.4 4.226.8 1.9 6.909.974.277.602.5 2002 33.8 (10.9 35.086.234 25.161 2006 511.456 4.7 168.956 88.367 W 401.193 11.9 12.2 871.660.180.1979 5.885.0 2010 1.265.535.8 1960 .500.8 224.719 1.827.0 (1.0 4.0 * Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC Operating Expenses & Others 8.687.9 1.2 953.526.2 532.891.5 201.3 7.853.608.532.0 2010 AN N UAL REPORT 47 .5 205.8) 247.5 247.367 34.1969 959.8 59.3 209.041 3.030.4 2.3 187.0 151.2 39.7 943.2 1.6 752.089.195.9 10.6 1.329.705.8 (11.098.0 220.144.967.622.0 22.641.633.3 * 6.9 39.355 850.791.1959 72.0 22.1 23.8 * 121.912.186.4 1.730.8 40.6 20.848.4 2000 29.3 919.447.5 12.3 4.8 1.016.051.2 12.7 886.0 67.638 199 5.000 327.3 149.7) 141.2 271.483.444.289.7 4.406.3 * 132.234.6 1.3 46.1989 25.636.386 26.6 564.8 228.351.806.8 12.2 733.678.9 1.4 (11.0 (1.1 8.329.110.4 RESERVES INVESTMENTS AMT % INC / (DEC) AMT % INC / (DEC) 67.7 1.6 42.2 228.7 1.524.792 2007 501.666 24.5 17.227.494.0) 149.905 5.766.3 2009 71.938 21.5 11.390.7 2.219.827.3 1980 .8 19.1 4.2 (8.6 7.143.1 2008 68.3 6.2 Year 1959 1969 1979 1989 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ASSETS AMT % INC / (DEC) 68.6 21.142.3 2005 46.9 72.7 1.695.211.8 919.6) 23.201 34.2 2000 30.5 18.466.3 18.663.879.1 4.995.6 12.6 * 5.192.039 702.882.1 Net Revenue 67.985.599.0 (2.107.058 4.0 732.7 1. RESERVES & INVESTMENTS (Amounts in Million Pesos) SSS Coverage and PersonNel FORCE FOR THE YEAR* YEAR W E 1959 24.0 1.0 27.1 42.665 30.6 163.3 5.9 122.6 1.415.6 247.1 139.420.9 12.834 33.182 4.957.015.9 7.243.2 953.618.4 66.695.1 20.7 108.6 12.7 297.397.050.341.1 158.5 (6.0 4.304.634.5 2004 852.9 609.371.584.122.2 7.820.832.638.3 187.9 2010 79.4 2006 52.081.801.5 176.8 11.8 6.9 243.919.323.4) 22.068.3 504.3 22.891.0 2.245.154.2 536.3 * Net Revenue 500.007.249.593 171 * net of termination ** regular SSS employees only Worker (W).9 177.4) 151.8 250.9 6.4 170.868 2001 901.636 26.646 23.2 429.769.214.166.632.0 29.169 4.074.308.3 2009 72.095.0 22.3 4.1 3.117.4 8.098.9 14.714.306 668.327.7 185. SSS Personnel (P) CONSOLIDATED GROWTH OF ASSETS.753 173 5.002.543.152.521.735.406.819.743.2 272.240.4 17.5 12.0 6.020 2009 458.1 2001 30.6 66.535.2 1.8 10.2 2005 887.2 202.871.4 4.6 289.641.7 929.712 11.167 44 3.6 170.566.2 (2.348 182 6.5 2001 31.3 2003 785.1 199.508.097.769 2.173 173 6.6 162.745.7 16.7 11.511.881.4 2004 43.061.6 10.2 233.5 1960 .6) 134.928.3 18.4 22.9 1970 .2) 168.349.2 27.688.6 12.0 2.803.353.320.7 4.5 5.1 19.220 27.6 41.088.996 2.211.154.6 1.939.2) 150.6) 147.3) 143.0 17.2 * Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC 46 Operating Expenses & Others 6.0 2006 910.1999 158.9 Investment and Other Income Benefits 4.4 2.8 1.Historical Data SSS GROWTH OF ASSETS.3 32.9 4.2 963.697.5 (1.944.2 (6.726.630.9 42.832 23.677.663.240.6 1.3) 161.171 95 3.355.970 161 6.315 7.310.325.0 51.4 2.217.0 5.6 2007 61.316.3 (5.5) 4.391 879.751.2 6.354 573.2 RESERVES INVESTMENTS AMT % INC/ (DEC) AMT % INC / (DEC) 66.6 3.0 225.7 220.122.474.2 1.813.719.5 4.091.097.043 4.014.996 3.1 (1.568 28.9 1970 .872.4 961. Malonzo 48 2010 AN N UAL REPORT 49 . Com. Bienvenido E. Jr. Edralin. De Quiros. Santos. Com. Diana Pardo-Aguilar. Daniel L. Mendoza. Antonino. Chairman Juan B.. Secretary of Labor and Com. Com. Marianita O. President and CEO and Vice Chairman Emilio S.SOCIAL SECURITY COMMISSION From Left to Right: Com. Rosalinda Dimapilis-Baldoz. Com. Com. Ibarra A. Laguesma. Eliza Bettina R. Alcantara-Resare. Jr. Maralit. Balbuena. Bugante. Castillo. Capulong. Special Assistant to the President and CEO Edmund P. Real. Special Assistant to the President and CEO Maria Lourdes N. Malto. CEO V Juanita L. and SVP Amador M. AVP Santiago Dionisio R. Samontina. Roca. Reyes. Lee. Mendoza. SVP Miguel E. VP Jesse J. Department Manager 3 Joselito A. VP Alfredo S. AVP Antonette L. Villasanta.50 OFFICES UNDER PRESIDENT AND CEO corporate serviceS sector From Left to Right: (top photo) President and CEO Emilio S. and VP May Catherine C. From Left to Right: (bottom photo) AVP Joel P. AVP Johnsy L. Caberoy. AVP Renato N.. AVP Daisy S. VP Antonio G. Fernandez. Palacios. Monteiro From Left to Right: (top photo) VP Nicholas C. VP Rizaldy T. AVP Elvira G. de Quiros. Ciriaco From Left to Right: (bottom photo) VP Gwen Marie Judy D. Vivit. Mangundayao 2010 AN N UAL REPORT 51 . Jr. VP Marissu G. Agdeppa. AVP Hidelza B. . Cancio. Ong. Solilapsi. Jr. See. AVP Vicente A. AVP Ma. AVP Leticia B. Chairman Juan B.SSC CHAIRMAN. de Quiros. Oriel 2010 AN N UAL REPORT 53 . Luz C. Vice Chairman Emilio S. Tolentino. Jr. President and CEO Emilio S. Alburo. AVP Josie G. Trinidad. AVP Consolacion M. Capulong. VP Rizaldy T. SSS PRESIDENT & CEO AND SECRETARY TO THE COMMISSION From Left to Right: AVP Renato M. Oczon BRANCH OPERATIONS SECTOR . AVP Mariano Pablo S.. De Quiros. Argabioso. VP Agnes E. Sibucao. Custodio. Santos. VP Gamelin Z. VP Milagros M. Special Assistant to the Executive Officer BOS Reynaldo C. VP Naciancino L. Curimao. San Jose 52 INVESTMENTS SECTOR From Left to Right: OIC Emmanuel A. Magana. EVP and Chief Actuary Horacio T. SVP Judy Frances A. VP Antonio S. AVP Lilia S.NATIONAL CAPITAL REGION OPERATIONS GROUP AND OFFICES UNDER EVP BOS From Left to Right: AVP Alberto C. Monreal. Marquez. Pagayatan PRESIDENT & CEO AND PROGRAM MANAGEMENT GROUP From Left to Right: VP Mario R. Generoso. Templo. EVP Edgar B. OLAIS Luzon North Division LETICIA B. REYES Diliman Branch LORELEI B. TOLENTINO Asset Management Department EMMANUEL A. BALATICO Tuguegarao Branch JANET D. AGUJA Makati Ayala Branch CELSO C. CRISOSTOMO Planning and Standards Department ANTONETTE L. ORIEL Office of the EVP for Branch Operation Sector JOEL P. FILOTEO Western Mindanao Division EDDIE A. TIZON Human Resource Services Department MARIA RITA S. BARCELON Pasig Shaw Branch AVELINA M. Cluster Head Nilo D. JR. MERCADO Self-Employed and Voluntary Member Program Management Department VAN RENE M. CABEROY Human Resource Management Division RIZALDY T. EDRALIN ELIZA BETTINA R. Vice-Chairman DIANA PARDO-AGUILAR DANIEL L. DE CHAVEZ Branch Support Services Department IKE A. DOCTOR Sickness. LAGRADA Budget Department BRANCH HEAD/OFFICER-IN-CHARGE NATIONAL CAPITAL REGION (NCR) OPERATIONS GROUP NCR CENTRAL DIVISION SONIA P. BUGANTE Public Affairs and Special Events Division JESSE J.III VENUS D. AVP Aida V. AVP Luis V. LUZ N. JR. ROCA. SANTOS* Solano Branch NANCY M. BAUTISTA International Affairs Department CECILIA S. ALBURO NCR Central Division ELVIRA G. DESPUIG Bicol Division ROSA T. JR. SOLITO Central Visayas Division MANOLITO C. Olais DEPARTMENT HEAD AND OFFICER-INCHARGE FELIPE R. BONITA Pasay-Taft Branch MA. SVP Eddie A. REYES Office of the President and CEO HELEN C. PASCUAL Branch Accounting Department FAUSTINO P.LUZON OPERATIONS GROUP ASSISTANT VICE PRESIDENT. PALACIOS Media Affairs Department EMMANUEL R. VIVIT Corporate Legal Department ALFREDO S. BAUTISTA Luzon Operations Group From Left to Right: AVP Emmanuel R. CAPULONG Capital Market Division/Actuarial Department and concurrent Deputy Chief Actuary MAY CATHERINE C. EVANGELISTA Branch Operations Audit Department ROGELIO A. MARQUEZ Corporate Bonds and Loans Department LUIS V. ARGABIOSO Coverage and Collection Program Management Division NICHOLAS C. MARALIT Cainta Branch FELIZARDO B. FERNANDEZ Internal Audit Services Division GLORIA Y. ANTONINO BIENVENIDO E. LIQUE Malabon Branch MA. ABRIL La Union Branch ESTRELLA R. BAUTISTA Valenzuela Branch VIRGINIA F. CANILLAS Vigan Branch BENEDICTA B. DELOS SANTOS Luzon South Division ELEONORA Y. MARQUEZ Mandaluyong Branch AMALIA N. LIMCAUCO Binondo Branch ROBERTO B. VILLASANTA General Services Division *Officer-in-Charge 2010 AN N UAL REPORT 55 . SAMONTINA Technical Support Division 54 VILMA P. Information Technology Management Group JUDY FRANCES A. AGDEPPA Operations Legal Department ALBERTO C. JR. BETIC Investments Accounting Department NESTOR R. AGAPITO Luzon Central Division EMILIO S. San Mateo Branch JOSE ANTONIO L. CUSTODIO Commission Legal Department . URBANO. CALASAHAN Pasig Palatiw Branch MILAGROS N. MARALIT Planning and Research Division MARIA LOURDES N. SOLILAPSI Investments Sector BRANCH OPERATIONS SECTOR . CIRIACO Management Services and Planning Division ANTONIO G. Templo. CASTILLO Application Systems Division SENIOR VICE PRESIDENT BRANCH OPERATIONS SECTOR – VISAYAS AND MINDANAO OPERATIONS GROUP HYDEE R. CANDELARIA* Equities Department EXECUTIVE VICE PRESIDENT AIDA V. MALTO Records and Information Management Department JOHNSY L. ARAOS Pasay-Roxas Boulevard Branch JOSEFINA O. NICOLAS* Marikina Branch CARMEN O. PAGAYATAN Office of the Commission Secretary GWEN MARIE JUDY D. TAGALOG Western Visayas Division MARIANO PABLO S. Delos Santos. ALCANTARA-RESARE Financial and Budget Division CONSOLACION M. ORPILLA Applications Development and Maintenance Department . ABOLENCIA San Juan Branch MARISSA L. YOGYOG Bontoc Branch JOSELITO A. Filoteo. REYES Santiago. GARCIA Bangued Branch BENJAMIN R. GUINTO* Corporate Communications Department ARTHUR O. JR. MINOR. UMOSO Laoag Branch ABELARDO C. LEE Office of the President and CEO JOSIE G. MANGUNDAYAO Operations Accounting Division LILIA S. PICONES* Technology Research Department VICTORIA A. Jara. MANANSALA Collection Data Processing and Reconciliation Department JOCELYN Q. Solito. EVP and Chief Actuary Horacio T. TUBIO Fraud Investigation Department MA. VILLENA Office Services Department EDMUND D. ARAGON Cauayan Branch PORFIRIO M. CINCO Quality Management Department NILO D. SALAZAR ID Card Production Department FERNANDO O. ELLA General Accounting Department JOCELYN M. AVP Manolito C. MONTEIRO Chief Legal Counsel MIGUEL E. SACAYAN Engineering and Maintenance Department SANTIAGO DIONISIO R. Palma. SANTOS Chairman EMILIO S. RAQUID Support Services Audit Department PRESIDENT and CEO HORACIO T. TOLENTINO Management Information Services Department TERESITA L. DIZON Legarda Branch BERLITA F. MENDOZA Office of the President and CEO NACIANCINO L. MALONZO ROSALINDA D. BAY Office of the EVP for Branch Operations Sector MA. DE QUIROS. LAGUESMA MARIANITA O. CABAÑERO Computer Resource Management Department EDGAR B. FLORES Makati JP Rizal Branch CRISTINE GRACE B. CANCIO NCR South Division RENATO M. MENDOZA IBARRA A. DIVISION HEAD AND EQUIVALENT RANK AGNES E. TEMPLO Branch Operations Sector From Left to Right: EVP and Chief Actuary Horacio T. Tagalog AMELIA A. CASUGA Kalookan Branch ZARA M. TOLENTINO Las Piñas Branch LUZON OPERATIONS GROUP LUZON NORTH DIVISION JOSEPHINE C. FUNTELAR Front-End IT Support Department JEAN V. SIBUCAO Service Delivery Program Management Department ADELINA A. GARCIA San Francisco Del Monte Branch MARY ANN R. Agapito. GORDOVEZ* San Juan Branch MARCIANA A. MANDAP Commission Secretariat Department NORA M. LOURDES T. FORNILOS Northern Mindanao Division ELPIDIO S. DE SILVA Member Loans Program Management Department JOY A. AVP Josefina O. DE QUIROS.II JOSEFINA EDITA F. BARBERS Alabang Branch RHODORA G. BALBUENA Computer Operations Division MARISSU G. AVP Helen C. Isabela Branch PAULINA YG. MONREAL NCR Operations Group GAMELIN Z. OCZON Treasury Division MILAGROS M. SYBICO Foreign Branch Expansion and Monitoring Department SONIA C. SAN JOSE Benefits Program Management Division MARIO R. Despuig. VILLACORTA Overseas Filipino Workers Program Management Department EUGENIA D.SSC & SSS Management Directory SOCIAL SECURITY COMMISSION JUAN B. SVP Jose B. MATA Commonwealth Branch ELIZABETH C. LUZ C. MAGANA NCR North Division RENATO N. FABRERO Antipolo Branch LETICIA G. Bautista. REAL Human Resource Staffing and Development Department JUANITA L. SALOME E. ONG Medical Program Management Department REYNALDO C. DELA CRUZ Member Relations Department MARIVIC S. BARROS-MAGSINO Manila YMCA Branch PRISCILA F. Maternity and Disability Program Management Department ANITA A. PADILLA Applications Development and Maintenance Department . Cluster Head Vilma P. SEE Program Management Group VICE PRESIDENT & EQUIVALENT RANK ANTONIO S. QUEZON Applications Development and Maintenance Department . SORIANO Management Support Services Department NCR SOUTH DIVISION SYLVETTE C. SOLIDUM Cubao Branch NCR NORTH DIVISION CYNTHIA O. ABARY Novaliches Branch ROSALINA C. GENEROSO Housing Department MARIE ADA ANGELIQUE T. CUISIA Branch Evaluation Department RODRIGO B. Fornilos. PALMA Southern Mindanao Division DAISY S. ABRERA Makati-Gil Puyat Branch HELEN L. VILLARAMA Enterprise Systems Support Department NORMITA M. CUNANAN Data Center Operations Department ARNOLD A.* Investments Research and Support Department LUZVIMINDA J. FRANCISCO Parañaque Branch FE MARIE F. POQUIZ Health Care Department DAMIANA A. BALDOZ Members SSS MANAGEMENT LEO CALIXTO C. ROA* Contributions Accounting Department AUREA G. GERALDO Taguig Branch LIBERTY A. Templo.I REGINALD G.I ALAN GENE O. JARA Visayas and Mindanao Operations Group AMADOR M. LOPEZ Baguio Branch ROMEO E. GUILLERMO Welcome Branch HIDELZA B. ABAYON Network and Communications Department GUILLERMO M. TRINIDAD* Cash Department BELINDA B. AVP Rodrigo B. ROMANO Information Systems Security Department MARILOU M. President and Chief Executive Officer JOSE B. CAJUCOM Tacloban Branch LUZON SOUTH DIVISION NICETA M. LACANDALO Ipil Branch ESTEBAN L. SORSONA Iriga Branch ANNA PEARL J. GARCIA Balanga Branch ANTONIO A. DE LEON Toril Branch SERAFIN G. RUTOR Brunei Representative Office ROBERTO V. PLAZA Mati Branch SUZETTE H. BACOL Rome. CRUZ Mariveles-BEPZ Branch FELICITAS A. ALMOSERA Masbate Branch PABLITA A. GREGANA Maasin Branch VICTORINA G. LIWANAG Lucena Branch ROBERTO D. FUENTES Ozamis Branch MONALISA C. BENEDIAN Bais Branch RAUL A. Maria Lourdes N. BALAGBIS Batangas Branch RODRIGO B. SANTIAGO Daet Branch ANTONIO G. JR. KSA Representative Office BENNETTE A. SANTOS* Iba Branch NORMITA M. SANTOS* Iba Branch GUILLERMO S. JR. JR. JAMERO Butuan Branch MARILOU M. JR. MARTINEZ Dipolog Branch EMILIA B. ORTIZ Abu Dhabi. WALES Bislig Branch Members: SVP Jose B. Zandro Carlos P. PURIFICACION Tacurong Branch REDENTOR S. General Santos City Branch JOVE L. Taiwan Representative Office MIDDLE EAST WILMA M. Virgilio M. CATOTO. San Jose. JARIOL Iligan Branch OSWALDO B. Marissa L. Cruz Branch MARINO B. CARRETAS Cabalogan Branch JESREL H. WENCESLAO. Guia O. CABATINGAN Zamboanga Branch NORTHERN MINDANAO DIVISION FOREIGN BRANCH EXPANSION MONITORING DEPARTMENT & POEA BEATRIZ C. Sison Mr. BANICO Iloilo Branch LILANI B. Maria Branch NILO D. ESPINOSA Roxas Branch ANTONIO V. RAINE L. Burgos Mr. DEMANDANTE Sagay Branch MARINA PAULINA G. Italy Representative Office Chairperson: VP May Catherine C. KSA Representative Office EUROPE ALFREDO JOSE I. SOLINAP San Carlos Branch FERDAUSI A. PANES. Mendoza Secretariat: Ms. GUMABAO Goa Branch EDWIN M. NARDO Camiling Branch VISAYAS AND MINDANAO OPERATIONS GROUP JOSE ROEL J. MADURO Singapore Representative Office FRENELIE ANN L. ASENDIDO Calapan Branch MARIO V. ANCHETA Boac Branch ERIC A. ALO Cagayan de Oro Branch SONIA A. NAVARRO Al-khobar. JR. UAE Representative Office ABDAWIYA K. CASIMIRO Tabaco Branch ROLANDO C. VILLAFLOR Dumaguete Branch SSS FOREIGN REPRESENTATIVE OFFICES MARITES A.LUZON CENTRAL DIVISION JOSE ALVIN M. SALUDO Dagupan Branch CENTRAL VISAYAS DIVISION MA. Bautista VP Antonio S. Ongchangco Ms. MANAHAN Baliuag Branch ELENITA S. NAVA Carmona Branch ELVIRA B. Occidental Mindoro Branch ROBERTO S. Antique Branch GODOFREDO M. JR. United Kingdom Representative Office 2010 ANNUAL REPORT COMMITTEE THELMA V. HERBIETO Oroquieta Branch CEASAR P. DINCILLO* Mandaue Branch CORAZON L. San Pablo Branch JANE T. UY Kuwait Representative Office DANILO Q. SORIANO Biñan Branch SOCORRO B. JR. KSA Representative Office FRANCISCO U. DAGANI. CARLOS Tagaytay Branch ALBERTO L. CUETO Doha. SALASA Jolo Branch IRENEO T. Sorsogon Branch ELIZABETH R. Alaminos Branch PRISCO S. MACARAEG Olongapo Branch CLARIBEL L. MARIANO Angeles Branch VIRGILIO A. VIRTUCIO. CORRO Cebu Branch SANTISIMA ROSARIO C. HIPOLITO Sta. ALTRE Urdaneta Branch SIMPLICIA M. Surigao Branch LAURA M. AVILA Virac Branch CORITA M. POMBO Calbayog Branch JOSEPHINE S. IBARRA Calamba Branch WESTERN VISAYAS DIVISION VICTORIA A. Grace B. FERRER Kabankalan Branch WENCESLAO G. CIOCON. JR. Kalibo. CASUMPANG Basilan Branch BICOL DIVISION VICTOR M. Taala II ROSELANE B. Oribello Mr. Argabioso VP Rizaldy T. SAMBLERO Legaspi Branch BENIGNO J. BONAFE. GADUANG Pampanga Branch ALBERTO R. CRUZ Bacoor Branch BENJAMIN A. DAVID Meycauayan Branch DIVINA T. Ciriaco FRANCISCO B. P. MONTENEGRO Tandag Branch MARILYN O. TALICTIC Tagbilaran Branch NELSON P. Joselito A. VENTURANZA Milan. GARGOLES Victorias Branch JAIME S. Gilby G. REBUENO Naga Branch PERKINS B. MENDOZA Baler Branch WESTERN MINDANAO DIVISION JAMES B. Vivit Ms. FABIA Valencia Branch NARCISO M. RECIO. Generoso AVP Elvira G. CASIANO Bacolod Branch ISAAC P. London. VIOLA Koronadal Branch . CORONADO Toledo Branch GREGORIO P. CALAPE Riyadh. PANGANIBAN EPZA Branch *Officer-in-Charge 56 TITO A. COLASITO Davao Branch RIZALITO ALBERTO C. TAMAYO Gingoog Branch SOUTHERN MINDANAO DIVISION JOSE S. ONG Taipei. DALOPE Sta. HINGCO Kidapawan Branch EDGAR P. ROLDAN Hong Kong Representative Office JOSEFINA A. Luz C. PANTE Infanta Branch REYNALDO V. PAGAYUNAN Lipa Branch EXEQUIEL O. Macapagal Ms. BAAC Puerto Princesa. PENDALIDAY Cotabato City Branch MARIVIC G. JR. Tizon VALERIANO P. Qatar Representative Office HARRY A. CABERTE Ormoc Branch LILIBETH A. Italy Representative Office Vice Chairperson: VP Marissu G. DOMINGO SSS POEA Office MARIA MAXIMA C. Ireneo Ma. Capulong AVP Ma. Palawan Branch MAGDALENA H. BANIAGO Malolos Branch MARILOU M. Alcantara-Resare Atty. MARTINEZ. Tagum Branch Consultant: Ms. TARUC Tarlac Branch GEMMA C. RACHO Jeddah. CALIXTRO Camiguin Branch ASIA & PACIFIC ALBINA LEAH C. JUANICH Digos Branch SUKARNO D. BUCKLY Pagadian Branch ELIZABETH G. Bugante JULIOUS J. MARCELO San Jose. Aklan Branch CHERYL V. NICOR Bago City Branch RUDY M. MONTALBO Lapu-Lapu Branch VIRGINIA S. Philippines Tel.ph www. Nos. East Avenue.SSS Building.gov.ph .sss. 920-6401 / 920-6446 E-mail:
[email protected]. Diliman Quezon City.