pnoy's veto message
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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)
8/20/2019 PNoy's Veto Message
http://slidepdf.com/reader/full/pnoys-veto-message 2/4
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
8/20/2019 PNoy's Veto Message
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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)
8/20/2019 PNoy's Veto Message
http://slidepdf.com/reader/full/pnoys-veto-message 4/4
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
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