pnoy's veto message

8/20/2019 PNoy's Veto Message

http://slidepdf.com/reader/full/pnoys-veto-message 1/4

(fice

of tl)e

S^vz ihent

tje jpijilippinesi

iJlalacaitang

12 Janua ry 2016

H O N .

F E L I C I A N O R. B E L M O N T E ,

J R .

Speaker

H o u s e

of

Representat ives ,

Batasan Hi l ls , Quezon City

Dear Speaker Belmonte:

We respectful ly t ransmit herewith

the

Veto Messag e

of His

Excel lency,

Pres ident Benigno

S.

Aqu ino I I I,

on

enrolled Ho use Bil l

No.

5842 ent i t led:

A N

ACT MANDATING A TWO

T H O U S A N D P E S O {P2,000)

A C R O S S - T H E - B O A R D I N C R E A S E IN T H E M O N T HL Y P E N S I O N

WITH C O R R E S P O N D I N G A D J U S T M E N T

OF THE MINIMUM

M O N T H L Y P E N S I O N U N D E R T H E S O C I A L

S E C U R I T Y S Y S T E M ,

A M E N D I N G FOR THE P U R P O S E S E C T I O N 12 OF R E P U B L I C

A C T

NO. 1661 AS

A M E N D E D , O T H E R W I S E KNOWN

AS THE

S O C I A L

S E C U R I T Y

A C T O F 1 99 7,

p u rsu an t

to the

provisions

of

Art ic le V I , Sect ion

27 1) of

the 1987 Co nst i tut ion.

Best regards.

Copy Furnished:

Hon. Franklin

M

Drilon

Senate President

Senate of tine Philippin es

Pasay City

Very truly yours.

P A Q U I T O

N / O C H O A , J R .

E x e c u t i ^ S e c r e t a r y

Undersecretary

Bernardino E.

Sayo

Presidential Legislative Liaison Office House

of

R epresentatives)



M A L A C A N A N PA LA CE

MANILA

1 2 anua r y 2 1 6

T H E H O N O R A B L E S P E A K E R

and M embers of the Hou se of Rep resentatives

Quezon City

Ladies and Gentlemen:

Pursuant to Section 27 (1), Article VI of the Constitution, I am returning herewith the

enrolled bill H.B. 584 2, entitled:

A N A C T M ND TING A TWO THOUS AND

P E S O

(P2,000) A C R O S S -

T H E - B O A R D

I N C R E A S E

IN THE MONTHLY PENSION

WITH

C O R R E S P O N D I N G A D J U S T M E N T O F T H E MINIMUM MONTHLY

P E N S I O N U N D E R T H E S O C I A L S E C U R I T Y S Y S T E M , AMENDING

FO R T H E

P U R P O S E S E C T I O N

12 OF

R E P U B L I C

ACT NO. 1661, AS

A M E N D E D ,

O T H E R W I S E KNOWN A S T H E S O C I A L S E C U R I T Y A C T

O F 1997,

without my signature.

While we recognize the objective of the bill to promote the well-being of the country s

private sector retirees, we cannot support the bill in its present form because of its dire

financial consequences.

A Two Thousand Peso (P2,000) across-the-board pension increase with a

corresponding adjustment of the minimum monthly pension will result in substantial negative

income for the Social Security System. More specifically, the proposed pension increase of

F2,000.00 per retiree, multiplied by the present number of more than two (2) million

pensioners, will result in a total payout of P56.0 billion annually. Compared against annual

investment income of P30 billion - P40 billion, such total payment for pensioners will yield a

deficit of P16 billion - P26 billion annu ally.

Given this situation, the Social Security System will be constrained to draw from and

use its Investment Reserve Fund (IRF) to support the pension increase. Consequently, the

IRF will diminish over the years, eventually reaching zero by the year 2029. The stability of

the entire benefit system, whose present membership comprises about 31 million

individuals, will be seriously compromised in favor of two (2) million pensioners and their

dependents.

In view of these considerations, I am constrained to veto the abovementioned

enrolled

bill.

T H E P R E S I D E N T O F T H E P HILIPPINES



Sffice of tl)e JPres itrent

iHalacairans

12

J a n u a r y

2016

HON. FRANKLIN

M.

DRILON

Senate President

Senate of the Philippines

GSIS Building, Financial Center

Roxas Boulevard, Pasay City

Dear Senate President Drilon:

We respectfully transmit herewith the Veto Message of His Excellency,

President Benigno

S.

Aquino III,

on

enrolled House Bill

No.

5842 entitled:

AN

A CT

MANDATING

A TWO

THOUSAND P E S O (P2,000)

A C R O S S - T H E - B O A R D I N C R E A S E IN THE MONTHLY PENSION

WITH CORRE SPON DING ADJUSTMENT OF TH E MINIMUM

MONTHLY PENSION UNDER THE

S O C I A L

S E C U R I T Y S Y S T E M

AMENDING

FO R THE P U R P O S E

S E C T I O N

12 OF

R E P U B L I C

A C T

NO. 1661, A S AMENDED, O T H E R W I S E KNOWN AS THE

S O C I A L

S E C U R I T Y ACT OF 1997,

pursuant

to the

provisions

of

Article VI , Section

27 1) of

the 1987 Constitution.

Best regards.

Very truly yours,

PAQUITOW. OCHOA, JR.

E x e ^ v e

Secretary

Copy Furnished:

H o n . F e l i c i a n o R. Belmonte, Jr.

S p e a k e r

House of Representatives

Undersecretary

Antonio Gallardo

Presidential

Legislative Liaison Office Senate)



M A L A C A N A N PA LA CE

MANILA

12 anua r y 2 1 6

T H E H O N O R A B L E S E N A T E P R E S I D E N T

and M embers of the Sen ate

Senate of the Philippines

Pasay City

Ladies and G entlemen:

Pursuant to Section 27 (1), Article VI of the Constitution, I am returning herewith

the enrolled bill H.B. 5842, entitled:

A N A C T

M ND TING

A T W O T H O U S A N D

P E S O

(P2,000)

A C R O S S - T H E - B O A R D I N C R E A S E IN T H E M O N T H L Y P E N S I O N

WITH C O R R E S P O N D I N G

A D J U S T M E N T O F T H E

MINIMUM

M O N T H L Y P E N S I O N U N D E R T H E S O C I A L

S E C U R I T Y

S Y S T E M ,

A M E N D I N G F O R T H E P U R P O S E S E C T I O N 1 2 O F

R E P U B L I C

A C T

N O . 16 61 , A S A M E N D E D ,

O T H E R W I S E

KNOWN A S T H E

S O C I A L

S E C U R I T Y

A C T O F 1 9 9 7,

without my signature.

While we recognize the objective of the bill to promote the well-being of the country s

private sector retirees, we cannot support the bill in its present form because of its dire

financial consequences.

A Two Thousand Peso (P2,000) across-the-board pension increase with a

corresponding adjustment of the minimum monthly pension will result in substantial negative

income for the Social Security System. More specifically, the proposed pension increase of

P2,000.00 per retiree, multiplied by the present number of more than two (2) million

pensioners, will result in a total payout of P56.0 billion annually. Compared against annual

investment income of P30 billion - P40 billion, such total payment for pensioners will yield a

deficit of P16 billion - P26 billion annually.

Given this situation, the Social Security System will be constrained to draw from and

use its Investment Reserve Fund (IRF) to support the pension increase. Consequently, the

IRF will diminish over the years, eventually reaching zero by the year 2029. The stability of

the entire benefit system, whose present membership comprises about 31 million

individuals, will be seriously compromised in favor of two (2) million pensioners and their

dependents.

In view of these considerations, I am constrained to veto the abovementioned

enrolled

bill.

Copy Furnished:

Hon. Feliciano R . Belmo nte, Jr.

Speaker

House of Representatives

T H E P R E S I D E N T

O F

T H E PH ILIPPINES

pnoy's veto message

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