Is Our

strength2009ANNUAL REPORT

YourYour

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Is Our

strength2009ANNUAL REPORT

SSS: Source of Strength and Stability

Social security must be dynamic, pro-active and sincerely socially committed. By sustaining its good standing and credibility, SSS is a beacon on the road to achieving a healthy working population able to participate fully and with dignity in their society while enjoying the fruits of their labor.

Contents

1 Highlights of operations2 statement of Mission and Vision

Messages3 Message of the President of the Republic of the Philippines4 Message of the Chairman7 Message of the President and Ceo

2009 In Review11 • NurturingRelationshipswithStakeholders • ForgingPartnershipsforBetterService • ExpressingCorporateSocialResponsibility • CelebratingSpecialEvents • DevelopingSSSEmployees

special Articles19 • Anti-RedTapeAct • E-Centers • SLERP-AnSSSResponsetoCatastrophe • MobileSSSCenters:ATangibleResponse • SSSCebuGuitar-ShapedBuilding • TheNationalSocialWelfareandProtectionProgram • SSSCorporateSocialResponsibilityPrograms • ThePhilippinesWelcomeSocialSecurityExperts

forRegionalForumforAsiaandthePacific • TheSSSRationalizationPlanand2009Staffing • TheNewPerformanceEvaluationSystem

SSSIn2010andBeyond26 CatapultingSSSintotheNextDecade

Financial28 statement of Management’s ResponsibilityfortheFinancialStatements29 state Auditor’s Report on the FinancialStatements30 StatementofFinancialPosition31 statement of Comprehensive Income32 statement of Changes in Reserves33 StatementofCashFlows34 NotestoFinancialStatements44 Internal Audit Report45 HistoricalData Management48 SocialSecurityCommission50 sss senior Management54 SSCandSSSManagementDirectory

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HIGHLIGHTSoF oPERAT IoNS(Amounts in Million Pesos)

Consolidated

For the Year increase/(decrease) 2009 2008 amount %a. ReVenUes & eXPenditURes

Revenues 95,336.51 97,968.32 (2,631.81) (2.7) Contributions 72,350.89 68,879.27 3,471.62 5.0 Investment and Other Income, net 22,985.62 29,089.05 (6,103.43) (21.0)

Expenditures 79,124.55 74,662.99 4,461.56 6.0 Benefit Payments 72,049.96 67,917.36 4,132.60 6.1 Operating Expenses 7,074.59 6,745.63 328.96 4.9

Net Revenue/(Loss) 16,211.96 23,305.33 (7,093.37) (30.4) B. assets & ReseRVes Assets 272,610.65 233,122.19 39,488.46 16.9 Investments 248,641.45 211,355.23 37,286.22 17.6 SSS Properties 3,413.69 2,876.32 537.37 18.7 Others 20,555.52 18,890.64 1,664.87 8.8 Liabilities 7,280.83 7,519.25 (238.41) (3.2) Reserves 265,329.82 225,602.94 39,726.87 17.6

soCial seCURitY sYstem

For the Year increase/(decrease) 2009 2008 amount %a. ReVenUes & eXPenditURes

Revenues 93,155.25 95,516.59 (2,361.34) (2.5) Contributions 71,166.95 67,668.19 3,498.76 5.2 Investment and Other Income, net 21,988.30 27,848.40 (5,860.10) (21.0)

Expenditures 77,931.69 73,456.69 4,475.00 6.1 Benefit Payments 70,963.92 66,820.34 4,143.59 6.2 Operating Expenses 6,967.77 6,636.35 331.42 5.0

Net Revenue/(Loss) 15,223.56 22,059.90 (6,836.34) (31.0)

B. assets & ReseRVes Assets 247,891.34 209,535.85 38,355.49 18.3 Investments 228,919.53 192,663.20 36,256.33 18.8 SSS Properties 3,413.69 2,876.32 537.37 18.7 Others 15,558.12 13,996.33 1,561.79 11.2 Liabilities 7,389.38 7,627.99 (238.61) (3.1) Reserves 240,501.96 201,907.86 38,594.10 19.1

emPloYees’ ComPensation and state insURanCe FUnd

For the Year increase/(decrease) 2009 2008 amount %a. ReVenUes & eXPenditURes

Revenues 2,181.26 2,451.73 (270.47) (11.0) Contributions 1,183.94 1,211.08 (27.14) (2.2) Investment and Other Income, net 997.31 1,240.65 (243.33) (19.6)

Expenditures 1,192.86 1,206.30 (13.44) (1.1) Benefit Payments 1,086.03 1,097.02 (10.99) (1.0) Operating Expenses 106.83 109.28 (2.45) (2.2)

Net Revenue/(Loss) 988.40 1,245.43 (257.03) (20.6)

B. assets & ReseRVes Assets 24,827.91 23,695.13 1,132.79 4.8 Investments 19,721.92 18,692.03 1,029.89 5.5 Others 5,106.00 5,003.10 102.90 2.1 Liabilities 0.05 0.04 0.01 28.4 Reserves 24,827.86 23,695.09 1,132.78 4.8

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STATEMENToF MIssIonThe 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 tax-exempt

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.”

STATEMENToF VIsIonThe 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 socio-economic status.

Attention will be given specially the disadvantaged and overseas Filipino workers (OFWs).

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.

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Ten-Point agenda to “Beat the Odds” in Six Years under the Arroyo Administration

B - Balanced budgetE - Education for allA - Automated electionsT - Transport and digital infrastructure to connect the country

T - Terminate the MILF and NPA conflictsH - Heal the wounds of EDSAE - Electricity and water for all Barangays

O - Opportunities for 10 million jobsD - Decongest Metro ManilaDS - Develop Clark and Subic

Congratulations to the Social Security System (SSS) for a successful 2009, which was marked by your enhanced financial stability, increasing membership, operational expansion, and improved services.

Indeed, for the past 52 years, the SSS has been the source of social security, strength and stability for workers and employers alike. Through its various investment programs, the SSS is a valuable ally of government in ensuring the vibrancy and stability of our economy.

The year 2009 was marked by a series of natural calamities that severely tested the resiliency of the Filipino people. Fortunately, the SSS was one of the institutions that Filipinos can rely on. Through your steady benefits and reliable loan programs, you have assured your members and their families of assistance in their times of need.

As the agency charged with managing and delivering important social protection programs, the SSS contributes in promoting the well-being, health and quality of life of the Filipino people. The SSS is indeed a reliable partner in the search for a meaningful and sustainable standard of living of its 28 million members and beneficiaries.

Once again, congratulations to the SSS for another year of relevance, resiliency, and steadfastness in public service. Congratulations too to the Social Security Commission, headed by Chairman Thelmo Y. Cunanan, to Secretary Romulo L. Neri, SSS President and Chief Executive Officer, and to the good men and women of SSS.

Mabuhay ang SSS!

GLORIA MACAPAGAL-ARROYO

oFTHEPRESIDENToFTHEREPuBLICoFTHEPHILIPPINES

MESSAGE

ResURGenCe aFteR tHe delUGe

The Financial Crisis exacted a heavy toll on industries and institutions across the globe resulting to massive displacement of workers and to the swelling of the ranks of the unemployed. With firms, institutions and countries bearing the full brunt of the crisis, SSS undertook innovative measures to cope with the challenges posed by a weakened economy while continuing to be a reliable provider of social security to its members. The Crisis itself highlighted importance of strengthening social security institutions in order to act as a viable safety net for our members while spurring economic recovery through our investment activities.

The Social Security Commission is extremely satisfied in taking a significant role in formulating relevant policy decisions that supported management initiatives towards improving collections, ensuring healthy returns on investments, providing higher benefit pay-outs and bolstering mechanisms and processes that uplifted the level of service to our more than 28 million members worldwide. Some of these programs include the deployment of teller workstations in 150 branches, expansion of payment channels to benefit overseas Filipino workers, enhancement of existing collection systems, amnesty programs for home and short-term loans, and the full-scale implementation of Anti-Red Tape Act.

In behalf of the Institution, we are thankful to our members, to our industry partners, to our stakeholders, to our fellow government institutions and to Her Excellency, President Gloria Macapagal-Arroyo, for giving us the support that have allowed us to perform well beyond expectations. And as we enter a new decade, the Commission together with the management and employees shall strive to steer the Institution to new heights, surpassing our goals and making a lasting difference in the lives of those we serve – our members. strengthening linkages with our stakeholders; making decisive actions

In 2009, SSS was faced with a scenario where the gains of the past years were threatened to be eroded by a contagion that has subdued financial powerhouses and corporate giants across the globe. With its ripple effects sweeping across national borders, public institutions such as the SSS became at risk due to the nature of its operations. More than ever, SSS had to work hand-in-hand with its stakeholders to maintain its financial standing while raising the level of service to its members.

MESSAGEoF TH E C HA I RMAN

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For its part, the Commission will continue to craft a policy framework that engenders responsive and meaningful programs that capitalize on the synergies we have with our stakeholders and industry partners while mitigating the effects of the crisis and aiding our members even during calamities and disasters. The Commission is working closely with management and with policy-makers for an amnesty program that would allow delinquent companies to settle their obligations without penalties. This would benefit largely small and medium-scale enterprises and micro-enterprises, which comprise more than 99 percent of total establishments in the country and generate 70 percent of total employment across the land. The policy would not only provide us with cashflows, it would also reinstate the SSS privileges and benefits of these affected employees.

Moreover, the Commission is intent on laying the policy foundation that would facilitate the seamless and cost-effective implementation of key Information Technology projects in the pipeline such as the Automated Records Management System and the Unified Multi-Purpose Identification System of which, SSS is the lead agency.

As always, the Commission shall strive to remain a paragon of transparency especially in overseeing SSS policy-making processes and ensuring that proper mechanisms are in place to avert possible abuses. While the Commission recognizes the independence of management in running the day-to-day affairs of the Institution, it shall exercise its authority to review the cogency of these decisions through the various sub-committees on Information Technology, Budget, Audit and Change Management.

Utmost care and prudence would constantly be upheld in dealing with sensitive cases and issues that are conveyed to the Commission in the exercise of its quasi-judicial powers. We shall continue to prioritize the resolution of cases on the collection of unremitted contributions and expedite the review and approval of proposals for installment payment and dacion-en-pago, provided that these are thoroughly examined, bearing in mind the welfare and interests of SSS.

We have also secured the formal endorsement from the Department of Finance for the draft of the proposed amendments to the SSS Charter. We are set to put in motion the next phase of the project which is to obtain the certification

“the role of sss in realizingthefullvision of social assistance is crucial in strengthening social welfare program as the countryanditscitizenscopewithnew social, economic and environmental challenges.”

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as Priority Bill from the President and the formal transmittal to Congress leading to the requisite legislative deliberations. The Commission is well aware of the paramount importance to modify certain provisions of the Charter in order to make the Institution more relevant to the changing times. Bolstering institutional capacity and maintaining institutional neutrality

Crisis spawns problems. But it also presents opportunities which public institutions can capitalize on. In 2009, the SSS took the initial steps to streamline the organization with the implementation of the first phase of the Rationalization Plan. At least 1,131 service bureau (SB) personnel have been absorbed as regular employees of the System. Their entry into the organization fills in the manpower gaps that have hampered the operating capabilities of strategic units specifically the branch offices. Along with this, we provided various forms of assistance to SBs ranging from economic relief to skills upgrading and training to improve their chances of passing the requisite government examinations.

In 2010, the Commission, together with management, shall address the pressing need to fill in the leadership void created by the retirement or promotion of some middle and senior management officials. The filling-up of these positions is reflective of our desire to insulate SSS from political interventions and to maintain the stability of SSS in the face of an expected change in the political leadership in 2010 with the conduct of the national elections. We assure our members that the Commission will remain steadfast in upholding the highest standards of professionalism while maintaining our commitment to the ideals espoused by the SS Charter. Institutional integrity shall be our primordial concern.

Rising from the deluge

Last year, the nation became mute witness to the devastation brought about by Typhoons, Ondoy and Pepeng. Over three million people were affected and millions of pesos worth of properties and farm outputs, were destroyed.

In response, the Commission and SSS Management approved the Salary Loan Early Renewal Program where a total of P4.7 billion were released to some 257,755 affected members. SSS

also set up mobile centers in badly hit areas in Metro Manila including parts of Rizal. The mobile centers provided basic services such as receiving of benefit applications and offering responses to inquiries on the status of loans and benefit claims. More than 18,000 transactions were processed by SSS during the entire campaign.

Despite the pall of gloom cast by the twin typhoons, SSS was able to find a reason to celebrate with the opening of the SSS Cebu Branch. The inauguration of the three-storey structure not only represents our tangible manifestation of constantly enhancing our services to our members. It also served as a ray of hope as we and the rest of the country begin to rebuild from the wreckage left behind by Ondoy and Pepeng.

Though much has been done, much still needs to be accomplished. Innovation remains an imperative in a vastly changing economic landscape. Rest assured, the Commission and SSS Management shall work together in steering the Institution to new heights as we begin another chapter in the Institution’s meaningful history in this new decade.

Maraming Salamat at Mabuhay ang SSS!!!

tHelmo Y. CUnananSSC Chairman

ResilienCY amidst tHe CRisis

i. Withstanding the Crisis 2009 would be best remembered as the year when SSS was able to endure ill-effects of the Financial Crisis as well as weather two devastating typhoons that almost put the country’s economy in peril. Despite the grave challenges, SSS was able to exceed its operational targets including modest increases in contribution collections and notable gains in investments.

The Institution likewise opened its new building in the heart of Cebu, which now stands as a proud landmark in the area and a fitting testament to SSS’ commitment to elevate the quality of service to our members in the Queen City of the South.

SSS continues to be upbeat about the prospects for the coming year as the world economy gradually emerges from the slump. The Institution shall use the lessons from the crisis to fortify its financial standing and improve its operations. SSS shall carry on with its mandate and institutional objectives despite the looming change in political leadership. It would remain actively involved in the policy-making arena, lending its insights, knowledge and expertise while bolstering linkages with other state agencies in advancing reforms in social welfare and protection.

ii. operational Highlights

stable collections despite weak economic activity

SSS contribution collections last year reached P72.3 billion, up by five percent from the P68.9 billion collected in 2008. Collections continued to outpace benefit payments for the fifth year in a row with the surplus reaching P300 million. The higher collections were attained despite the lingering effects of the Global Financial Crisis which forced companies to downscale operations amidst falling demand. Collections were boosted

by the expansion of both bank and non-bank payment facilities that targeted voluntary and self-employed individuals specially the overseas Filipino workers. Some of these programs include the deployment of 150 automated teller work stations in 92 branches and the increase in the number of collecting agents such as Bayad Center and Worldwide Delivery Services.

MESSAGEoF TH E PR ES I DENT & C Eo

20062007

20082009

80

60

40

20

0

CoNTRIBuTIoNS

52,5

43.6

0

61,8

29.0

8

68,8

79.2

7

72,3

50.8

9

8

SSS supplemented these additional payment facilities with strong collection efforts typified by aggressive legal action against erring employers. Last year, SSS filed cases against 1,133 employers for failure to remit the contributions of their employees. In addition, the Institution sued close to 200 employers for refusing to present company records and for neglecting to register their businesses with SSS.

Benefit payments increase slightly as coverage widens

SSS benefit disbursements reached P72.05 billion reflecting a 6.1 percent increase from the P67.9 billion released in 2008. The bulk of the releases went to retirement and death which accounted for nearly 85 percent of total disbursements. At the same time, SSS stepped up its coverage efforts with the inking of two agreements that would widen the coverage of overseas workers and beef up procedures on employer registration. In May, SSS

signed a social security accord with the Panama Maritime Authority (PMA) that would provide voluntary social security coverage to Filipino employees of the Panamanian agency. The institution also entered into an agreement with the Philippine Health Insurance Corporation (Philhealth) to harmonize the two agencies’ employer registration procedures under the new Single Employer Registration Process (SERP). Under SERP, employers registering with SSS using the new Business Registration Form are automatically registered with Philhealth.

Optimizing returns on investments amidst a bearish environment

Last year, SSS managed to post respectable returns on its core investments capped by a block sale of Meralco shares worth P5.67 billion,which netted the SSS’ profits amounting to P 1.53 billion from this transaction alone. Well-timed placements both in the equities and government securities market allowed SSS to maximize profits, even as the overall financial market remained subdued. Earnings from investments and other income reached P22.98 billion easily surpassing the P16.9 billion target for 2009. SSS likewise registered considerable gains from corporate notes and bonds, which grew to over P1 billion from P393.8 million in 2008.

SSS generated cash flows from the fifth extension of the amnesty program for short-term member loans, as well as stock investment and privatization fund loans. As of October 2009, SSS already collected P2.5 billion from about 749,888 accounts.

The Institution likewise instituted the needed mechanisms for the full-scale implementation of Republic Act 9507 or the Socialized and Low-Cost Housing Loan Restructuring and Condonation Act. As of end-December, SSS has collected more than P55 million from the program benefitting around 2,240 members who have applied for amnesty, with 586 paying in full while 1,654 opting to pay in instalment. While the benefits of such programs have greatly improved the institution’s liquidity and bottomline, the social benefits of increased home ownership ratios and liberalizing access to affordable home loans far outweighs the financial returns.

Finding symmetry between judicious spending and enhancing service delivery

In 2009, SSS continued its policy of prudent yet strategic spending by concentrating on key items and programs that improved service delivery and enhanced operating efficiency. One of last year’s highlights was the inauguration of SSS Cebu Branch, building which now stands not just a landmark in the province because of its unique architectural design but also as an endearing testament to the Institution’s commitment to upgrade the level of service to two million SSS members and over 85,000 employers in the Central Visayas Region.

In addition, SSS calibrated its service delivery systems to comply with Republic Act 9485 or the Anti-Red Tape Act of 2007 (ARTA), which has been implemented in nine pilot branches namely, San Pablo, Calamba, Diliman, Pasay-Roxas, Pasay-Taft, Bacolod, Bago, Cagayan de Oro and Iligan. These branches were the first to conform with the requirements of the new law by posting SSS’ version of the Citizen’s Charter. The Charter contains the Institution’s processing time commitments for 23 most utilized frontline services. We expect that by early 2010, all SSS branches would be equipped and prepared to comply fully with the stringent requirements of the ARTA.

At the core of this service enhancement is the upgrade of major Information Technology systems of the Institution. Last year, SSS completed the activation of the Business Recovery Center (BRC) – SSS’ primary back-up facility that protects SSS’ data from any possible threat and disaster. More importantly, the reactivation of the BRC has shored up the online capability of SSS, allowing more users and members to access the SSS database. It successfully undertook the migration of vital membership and contribution payment systems from IBM to Sun System and decommissioned its outdated mainframe which has resulted into monthly savings of P5.3 million. In addition, SSS has installed Voice Over Internet Protocol in 134 branches nationwide and expanded lines for the Interactive Voice Response Service, which would enable the Institution to cut back on telecommunication expenses while providing uninterrupted service to members over the phone.

2006

80

60

40

20

0

20072008

2009

BENEFITS

52,1

22.0

1

60,7

46.5

9

67,9

17.3

6

72,0

49.9

6

9

Supplementing all these is the acquisition of workstations that would boost the productivity and efficiency of our branch personnel.

Topping the critical IT projects was the awarding of the contract to produce the Unified Multi-Purpose ID (UMID) System Compliant ID cards to All Cards Corporation – a consortium of the top IT corporations in the country. The signing of the contract paves the way for the fast-tracking of Social Security ID card production while expediting the information interfacing of the various state agencies such as the SSS, Government Service Insurance System, Philhealth, Home Development Mutual Fund, National Statistics Office and the Philippine Postal Corporation. The UMID, which is envisioned to enhance the integrity of state-issued ID cards and cut costs in maintaining redundant ID and membership systems, is projected to be the main tool in facilitating IT-enabled transactions ranging from cash disbursement to general access card to health care services and to public railway transport.

Infusing new blood into the Institution; Making HR policies relevant and responsive

After nearly four years of intense and gruelling series of consultations and dialogues, SSS finally obtained the approval from the Department of Budget and Management and the Social Security Commission to implement the first phase of the Rationalization Plan (RatPlan). This has resulted into the absorption as regular employees of some 1,131 qualified Service Bureau (SB) personnel. The “regularization” of these SBs is part of SSS’ long-term plan to ensure institutional stability by infusing new blood in the system and bolstering the manpower requirements of its strategic units to meet new operational goals. Moreover, the Institution is also in the process of facilitating the promotion of eligible personnel, appoint Officers-in-Charge of various branches and fill-up the vacancies left by some middle and upper management officials who availed of the Early Retirement Program under the RatPlan.

SSS likewise sustained its programs for continuing higher education by sending qualified employees on both local and international study grants. This typifies the Institution’s desire to hone and prepare future managers, which would be harnessed from among the ranks. SSS is proud to have the most number of candidates in the InWENT scholarship in Germany, where the participants would be exposed to global trends and practices in the field of social security, management, leadership, investments and strategy formulation.

SSS also offered livelihood training and skills enhancement programs to its employees which they can use in setting up small businesses and to prepare them for a productive life when

they retire from the System. Some of these training programs were undertaken together with the Alert and Concerned Employees for a Better SSS, demonstrating a strong partnership between management and the union for looking after the welfare of employees. Corollary to this, SSS organized sports tournaments and after-office unwinding activities to ensure healthy and balanced work life while preserving harmony and camaraderie in the work place.

However, the most critical of all human resources-related programs is the refinement of policies on the hiring, promotion, placement as well as performance appraisal of employees and officials, which are anchored mainly on the new Performance Evaluation System (PES). SSS has completed a dry run of the PES in vital units and branches such as Makati 1, San Pablo, Bacolod, Cagayan de Oro and Management Services Group. With the operationalization of the RatPlan, there is a need to strengthen institutional dynamics on personnel administration in order to engender a culture of professionalism and service excellence and to prepare our employees for the challenges posed by ARTA. SSS strongly believes that rewards and incentives should be tied closely with actual performance. The system-wide implementation of the PES would ensure that employees’ performances are in line with corporate objectives of the SSS.

Responding to the call of the times

The SSS as a public institution was at the forefront of rendering humanitarian and socio-civic work especially during the aftermath of the twin typhoons “Ondoy” and “Pepeng”, whose heavy rains swelled rivers and waterways that inundated homes, claimed lives and destroyed properties including crops and public infrastructure worth approximately P21.3 billion . Within days of the deluge, the Institution donated P100 million for disaster response and relief operations and set-up mobile offices in badly hit areas in the National Capital Region. These mobile centers offered basic services to affected members such as receiving of loan and benefit applications and provided counselling and information on SSS membership. In October alone, SSS attended to more than 18,700 transactions with 1,054 applications received for processing, 5,800 forms issued while assisting some 11,793 walk-in inquiries and requests for membership verification.

At the same time, SSS instituted a Salary Loans Early Renewal Program (SLERP), which liberalized guidelines on salary loan renewal allowing affected members to renew their loans to help defray expenses for home repair and construction. As of end-December, SSS released almost P4.7 billion in loans that benefitted some 257,755 members in provinces and cities affected by the calamities. As an adjunct program, the

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Institution also reduced the interest rate of its loan window for home repair and improvement from 13 to nine percent, in order to provide indirect financial relief to members whose homes were destroyed by the storms.

Likewise, SSS turned over P1.2 million in cash donations to various charitable institutions during the onset of the Christmas season. The amount, which represented the pooled voluntary contributions of the employees, is considered the largest ever collected in the history of the SSS.

The Institution remained a paragon on institutional integrity as it shared first placed with the Supreme Court in the list of government agencies polled by the Social Weather Station (SWS) in terms of sincerity in fighting corruption. SSS garnered a net sincerity rating of +46 percent in the survey, which involved interviews with 550 business managers in Metro Manila, Cavite, Laguna, Batangas, Metro Cebu, Metro Davao and Cagayan de Oro-Iligan. This is the fourth time since 2006 that SSS has placed in the top three agencies of the SWS survey. Moreover, SSS continued to set the standard for energy conservation and ecological and solid waste management as it garnered a five-star energy conservation rating of 94 percent from the Department of Energy while being cited as a “Garbology Master” by the Department of Environment and Natural Resources. iii. Priming for transition and broadening the institution’s role in the advancement of social welfare and protection

Making social security as a core agenda in national development

Last year, the SSS intensified its involvement in the policy-making arena by shepherding two initiatives that highlighted the role of pension funds in facilitating economic recovery while broadening the ambit of social protection to the poor and to the most vulnerable sectors of society. SSS, together with its partner agencies in the National Social Welfare and Protection Program Cluster of the Cabinet, such as the Department of Social Welfare and Development (DSWD) and the National Economic Development Authority (NEDA) including the Development Academy of the Philippines completed a study on strengthening the social welfare and protection programs of the government. The study, which was submitted to President Gloria Macapagal-Arroyo during a symbolic turnover at Malacañang on July, would hopefully serve as the blueprint for future policies directed at enhancing the scope and coverage as well as the administration and fiscal soundness of the various social welfare and protection programs of the country.

Moreover, SSS provided inputs to Executive Order 867, which mandates agencies involved in the delivery of social service to adopt the DSWD’s National Household Targeting System for Poverty Reduction (NHTS-PR) – a data bank and information management system that identifies poor families and where they live. Among the important facets of the EO is the fusion of the NHTS-PR and the UMID to strengthen implementation and monitoring of social welfare programs leading to the reduction of leakages. Corollary to this, SSS has been included as a permanent member of the Sub-Committee on Social Protection under the Cabinet-level Social Development Committee of NEDA. The Sub-Committee is tasked to develop a comprehensive 5-Year Social Protection Plan built around key programs such as skills training, social housing, micro-credit, emergency employment, training scholarships and access to affordable electricity.

Balancing priorities, ensuring smooth transition and continuity of programs

SSS is bracing itself for a transition in political power with the conduct of the National Elections in May 2010. Notwithstanding the change in leadership, SSS is determined to continue with its priority programs that are anchored on the Five Enabling Forces namely: product, process, people/organizational culture, communications and physical facilities. Institutional stability shall become the primary focus of SSS in the months leading to the elections. So far, SSS has already accomplished a number of programs that have resulted into improved management of assets, enhanced fiscal standing and greater efficiency in processing and dispensing of claims and benefits. But more needs to be done in order to prime the Institution for challenges brought about by the rapidly changing socio-economic landscape.

As always, SSS shall remain a pillar of financial strength amidst the crisis and a reliable partner to its stakeholders and members.

Maraming salamat at Mabuhay ang SSS.

RomUlo l. neRiPresident and Chief Executive Officer

sss’ membership has

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employer-members

nationwide.Growth

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2009I N R E V I E W

sourceOur

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NuRTuRINGRELATIoNSHIPSWITHSTAkEHoLDERS

• Member’sDayprogram

• OFWFamilyDay

• SSSunveiledmarkerofnewCebuBuilding.SocialSecuritySystem (SSS) officials applaud after unveiling the marker of the new SSS building along Osmeña Boulevard in Cebu City on 17 November. The unveiling was part of the inauguration and blessing ceremonies of the three-storey SSS Cebu City branch (inset), which sits on the 6,000 square-meter lot where the old SSS Cebu Regional Office stood for three decades until the 1990’s. SSS opened the doors of the guitar-shaped building to members on December 8, in time for the Feast of the Immaculate Conception. Photo shows Cebu City Mayor and guest-of-honor Tomas Osmeña (3rd from right), SSS President and Chief Executive Officer Romulo Neri (2nd from left), Social Security Commission (SSC) Chairman Thelmo Cunanan (2nd from right) and SSC Commissioners Fe Tibayan-Palileo (left) and Victorino Balais (right).

2009I N R EV I EW

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• Kapihan sa SSS in Cebu. Social Security System (SSS)President and Chief Executive Officer Romulo Neri (top photo, 3rd from left) responded to questions from the media (bottom photo) during the “Kapihan sa SSS” atthe new SSS Cebu City branch on 17 November. It was SSS’firstKapihanintheVisayasregion.OtherKapihanswere at San Pablo City in Laguna, Laoag City in Ilocos NorteandDavaoCity.TheKapihanallowsthelocalmediato get updates on SSS operations. Joining Neri in the panel were (top photo, from left) the agency’s Senior Vice President for Investments Edgar Solilapsi, Vice President (VP) for Members Assistance Center Program and Officer-in-Charge for Benefits Mario Sibucao, Executive Vice President and Chief Actuary Horacio Templo, VP for Visayas and Mindanao Eddie Jara, VP for Coverage and Collection Judy Frances See and Assistant Vice President for Central Visayas Cluster Helen Solito.

• GroundbreakingceremoniesforthenewSSSofficeinLaoagCity. The Social Security System (SSS) held groundbreaking ceremonies for its new office building in Laoag City in Ilocos Norte on October 8. Local officials joined SSS executives during the lowering of the time capsule at the 2,164 square meter lot in Barangay Buttong. The agency presently occupies the two-storey, 320-square meter RT Bueno Building in Laoag City. SSS Laoag covers a total of 557 barangays from 23 municipalities, including the cities of Laoag and Batac. Photo shows (from left) Commissioner Victorino Balais of the Social Security Commission, Laoag City Mayor Roger Fariñas, SSS Executive Vice President and Chief Actuary Horacio Templo, Vice Mayor Eduardo Domingo and SSS Laoag Branch Head Benjamin Lopez.

• BlessingofthenewSSSTaguigbranch.TheSocialSecuritySystem (SSS) Taguig branch moved to a bigger office (inset) to accommodate more members and employers in one of the fastest-growing business hubs in the country. SSS has more than 3,200 registered companies in Taguig City, which accounts for over 66,100 employees from industries such as commerce, trade, services, manufacturing, agriculture, fishery and livestock. Commissioner Victorino Balais (2nd from right) of the Social Security Commission and SSS Officer-in-Charge for National Capital Region (NCR) Alberto Alburo (2nd from left) cut the ribbon during the blessing of the new SSS Taguig branch at the FTI Compound in Western Bicutan on 30 October. Also present were (front row, from left) SSS Assistant Vice President for NCR South Cluster Consolacion Cancio, SSS Taguig Branch Head Salve Vizconde and SSS Assistant Vice President for NCR Central Cluster Naciancino Monreal.

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• ISSA-RSSFMeeting.

• RP Portugal open talks on social security.The Philippinesand Portugal drafted a bilateral social security agreement during a meeting on 28 to 30, October. General Directorate for Social Security (GDSS) Vice General Director of Social Security Manuel Pinto (front row, 3rd from left) led the Portuguese delegation that met with Social Security System (SSS) officials at the SSS corporate headquarters in Quezon City. Photo shows Pinto and Commissioner Jose Sonny Matula (front row, 3rd from right), head of the Philippine delegation and labor representative to the Social Security Commission, during the signing of the minutes of the meeting. Also present were (front row, from left) GDSS Expert Eurico Rodrigues, GDSS Division Chief on International Relations Maria de Sousa, SSS Vice President for International Affairs and Branch Expansion and Chief Negotiator Judy Frances See, Government Service Insurance System (GSIS) Vice President for Membership Arni Mercado and representatives from the Foreign Affairs and Labor and Employment departments, SSS, GSIS and the Philippine Health Insurance Corporation.

FoRGINGPARTNERSHIPSFoRBETTERSERVICE

• The Philippines welcomed social security experts forRegional Forum for Asia and the Pacific. The Philippines hosted the gathering of social security policy-makers, administrators, researchers and representatives of regional and international organizations for the “Regional Social Security Forum for Asia and the Pacific,” on 21 to 23, October 2009 at the Dusit Thani Manila Hotel in Makati City. Sponsored by the International Social Security Association (ISSA) and organized by the Philippine Social Security Association (PHILSSA), the Regional Social Security Forum for Asia and the Pacific focused on the role of social security amidst the current milieu of globalization, internal and external migration, growth of informal economies, changes in family structures, and the impact of the global financial crisis. The Opening Ceremonies was graced by the Philippines’ second highest official, Vice President Noli de Castro, who is also known as the “Housing Czar” being the chairman of the Home Development Mutual Fund (HDMF). Delegates were welcomed by PHILSSA Chairman Winston F. Garcia, who is the president and general manager of the Government Service Insurance System (GSIS), and by ISSA President Corazon S. de la Paz-Bernardo, also the former president of SSS.

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• UMID Project underway. The Unified Multi-PurposeIdentification (UMID) Project took more concrete form in 2009, starting with the signing of a Memorandum of Agreement with the National Statistic Office (NSO) for the design, development and installation of an automated fingerprint identification system (AFIS). SSS President Romulo Neri and NSO Administrator Carmelita Ericta signed a MOU on 16 March 2009 at the National Economic Development Authority (NEDA) office in Pasig City, with NEDA Secretary Ralph Recto and other SSS officers as witnesses.

• The shift to UMID IDs also upgrades the present SSSID system, which has been using the same card technology since it was introduced over a decade ago. Photo shows SSS President and Chief Executive Officer (CEO) Romulo Neri (4th from left) and All Card General Manager Roy Ebora (4th from right) shake hands after the signing ceremony at the SSS corporate headquarters in Diliman, Quezon City on 14 December. Also present were (from left) Special Assistant to SSS President and CEO Antonio Echavarria Jr; SSS Officer-in-Charge of the General Accounting Department Anastacia Mañalac; All Card President Allieta Cue; Stradcom Chairman and CEO Cezar Quiambao; Teco Deputy Executive Vincent Hsien; and Stradcom Director Jorge Yulo.

• 51st anniversary of SSS Hypertension clinic withPhilhealth President and CEO Dr. Rey Aquino. Social Security System (SSS) President and CEO Romulo Neri (center) presents a plaque of appreciation to Philippine Health Insurance Corporation (PhilHealth) President and Chief Executive Officer Dr. Rey Aquino (2nd from left), who was guest-of-honor at the 5th anniversary celebration of the SSS hypertension clinic on 28 October at the agency’s main office in Quezon City. Aquino warned employees of increasing prevalence of lifestyle diseases such as hypertension, which is the 7th most common cause of confinement of PhilHealth members. “Unfortunately, people only appreciate good health when they or their family members get sick,” he said. About 17% of SSS employees in the National Capital Region suffer from hypertension. Also present were (from left) SSS Health Care Department Officer-in-Charge Dr. Victoria Poquiz, SSS Assistant Vice President (AVP) for Human Resource Jesse Caberoy and SSS AVP for Medical Operations Vicente Curimao, Jr.

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ExPRESSINGCoRPoRATESoCIALRESPoNSIBILITy

• FeedingProgram-SistersofthePoorofSt.CatherineofSiena• DistributionofreliefgoodstovictimsofTyphoonOndoyinTaguig,MetroManila• HumanitarianmissioninBani,Pangasinan

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CELEBRATINGSPECIALEVENTS

• OpeningofSSS52ndanniversarylobbydisplay• BalikatngBayanAwards• Flagraisingceremonies

DEVELoPINGSSSEMPLoyEES

• SSSKabalikatngBayanVolunteerCorpsoathtakingceremony• BestSSSemployeesawardedduringtheemployees’program• HealingmasswithFr.FernandoSuarez• PhilSSAligsahansportseventattheGSIS• SiningLayagalleryexhibitwithNapoleonAbueva

Our

2009SPECIALARTICLES

Amulti-skilled,

forward-looking

and generalist sss

WoRkFoRCEis

constantlymotivated

to be prompt, accurate

and courteous.

strength

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oPENINGDooRSTo BuS I N ESS oPPoRTu N I T I E S

anti-Red tape act

Republic Act 9485: Anti-Red Tape Act 2007 in the Social Security System.

Republic Act 9485 or the Anti-Red Tape Act of 2007 is a policy measure meant to inform and simplify forms and procedures for the public. The law primarily aims to promote transparency in critical frontline services of the government. In fact, SSS is one of the first state agencies to streamline its systems under its Commitment of Service (COS) which was implemented in 2001.

ARTA was officially implemented nationwide during the last quarter of 2009. All SSS branches and cluster offices have posted the mission, vision of the institution as well as the enhanced COS details in their respective offices. Corollary to this, SSS created public assistance lanes and have put up special posters warning the public against transacting with “fixers”.

The System has also completed a draft of its Citizen’s Charter, which is in compliance with the provisions of ARTA. The Charter presents the step-by-step procedures of high volume services in order to guide the public in their transactions with the System and to provide them with relevant information such as the individuals responsible for each service step and the reasonable expectations for a satisfactorily completed service.

The institution is confident that member satisfaction would continue to improve as more ARTA provisions are implemented during the next few months.

e-Centers SSS is quick to take advantage of advances in technology as it enables the agency to improve efficiency and boost productivity. The institution has in fact maximized the use of telephones, mobile phones, and the internet to allow its members to inquire and receive information wherever they are. These new Technologies have permitted frontline personnel to concentrate on critical services such as evaluating of loans & benefit applications, insuance of SSS number among others.

During the past year, SSS has allowed members to access their membership records online through the My-SSS portal in the SSS website. The website also provides general news and information to any one who would browse the site. Members can also access their records through SSS-connect by dialing 917-7777 on any Globe or PLDT landlines.

Moreover, members can use any of the 19 self-service information terminals nationwide to verify contributions and status of loan payments. These Info Terminals never get tired, and thus are able to serve members and the public unceasingly and in the same manner.

For the past two years, SSS has already reaped the benefits of the automated Brand Queue Management System (BQMS) –an IT-based capacity management system that regulates and monitors customer flow through the issuance of queue tickets to transacting members. The adoption of the BQMS on selected branch offices has reduced the number of complaints registered by the branches that are directly related to queuing. The queuing system is a simple electronic system and yet it has enabled members to wait more patiently for their turn which has eased member concerns as it allowed them to go on breaks, and free from the anxiety of losing their place in the queue.

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During the month of October, SSS branches in Marikina, Cainta, Antipolo and Pasig fielded mobile centers to the various areas under their respective jurisdictions. Marikina went to five (5) main areas namely: Bgy. Tanong; Bgy. Concepcion 1; Tanong Bgy. Hall Tanong basketball Court; Concepcion Uno; Nangka, Montalban, Rizal. The branch had a total of 3,991 transactions wherein 169 applications were received, 1,730 forms were issued to the members and 1,248 were on inquires.

The Taguig mobile office, on the other hand, recorded the highest transaction count of 6,007. The mobile branch visited these areas: Taguig Municipal Hall: Palingon, Tipas Bgy. Hall; Bgy. Hall, Bagumbayan, Taguig; Bgy. Lower Bicutan, Taguig; BF Homes, Parañaque; Bgy. Moonwalk, Paranaque. SSS Taguig reported that it received 316 applications, issued forms to 1,835 members, responded to 2,306 general inquiries and advised 1,550 members on the status of their loans and number of contributions.

For the month of October, there were 18,779 total transactions for the five mobile offices with 1,054 forms received for processing and 5,800 forms issued to members. About 6,489 were provided with information on general inquiries while 5,304 were apprised on their loans and contributions.

sleRP –an sss Response to Catastrophe

Last year, typhoons Ondoy and Pepeng inundated parts of Metro Manila and nearby provinces, leaving in its wake, countless deaths and untold destruction. One of the responses of SSS to alleviate the plight of members was to make funds available for members in affected areas through the Salary Loans Early Renewal Program (SLERP). The program amended the existing Salary Loan Program by relaxing the rules on loan renewal, allowing members to renew their loans even if they have an existing balance.

As of end- December, SSS processed a total 95,000 loan applications and disbursed P1.3 billion in loans to members who were severely affected by the calamities. The program ended on 31 December 2009.

mobile sss Centers: a tangible Response

The damages to roads, communities, including SSS offices, were extensive, which prevented members from transacting with SSS. In response, SSS branches in badly affected areas brought SSS services to these members through the mobile SSS Centers.

Mobile Centers are like mini-branches that offer basic services to the members. Members can inquire, check status of their loan and benefit applications and file their claims through these “mini-branches”. These centers are staffed by two to five SSS personnel who are equipped with laptops with wireless fidelity (Wi-Fi) capability.

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sss Cebu Guitar-shaped building brings music to worker’s ears

People claiming benefits and seeking to enjoy their privileges as members of the Social Security System (SSS) can look forward to convenient and more comfortable facilities in a new building that combines the soft curves of the guitar with the first three letters of the institution’s name.

The three-storey glass and aluminum-clod building situated along Osmeña Boulevard could accommodate big crowds. It is painted mango yellow, a reference to a local export product and the building exudes a golden hue during the day which signifies the SSS golden anniversary in 2007.

The new building stands on the site of the old SSS regional office building, a former Cebu landmark that was torn down in the 1990’s because of structural damage caused by a powerful earthquake. It will be the headquarters of the SSS Central Visayas Cluster, which supervises 15 branches in the provinces of Cebu, Samar, Bohol and Leyte.

SSS Cebu started as a field representative office at the Labucay Building in 1958, a few months after the pension fund was established on 1 September 1957. It has been occupying the

three-storey Suarez Building at the corner of Gorordo Avenue and Escario Street since 1997.

The building’s guitar design, which is clearly discernible from an aerial view, is a tribute to Cebuanos and the musical instrument that is one of the most popular products made in the province. The love for music and a strong religious background are known Cebuano traits that may characterize Cebu’s economic development and the guitar, together with other export products such as furniture and fashion accessories are major drivers of the local economy.

Local officials in Cebu led by its Mayor Tomas Osmeña and Vice Mayor Michael Rama commended the SSS for acknowledging local values and showing it in tangible terms such as a guitar–shaped building in recognition of the Cebuano indomitable spirit.

Executive Vice President for Branch Operations Horacio T. Templo said that SSS is “indispensable” in progressive cities, adding: “You cannot have a progressive city without businesses, and when there are businesses, SSS will not be far behind. Productivity of the people will always result if they are taken care of by their management, and SSS is a watchdog in that connection.”

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Social Protection Plan which are consistent with national development objectives and would harmonize existing social protection and anti-poverty programs.

SSS’ inclusion in the Committee accentuates the integral role of pension funds in alleviating the plight of the poor as well as those who are more susceptible to the risks brought about by economic shocks, disasters and calamities. As the world gradually recovers from the economic crisis, SSS will again play pivotal role as a source of safety net for the poor and the vulnerable and as a catalyst for the mobilization of resources to create employment and to promote industries, through its investment activities that could raise the country’s productive capacity.

sss Corporate social Responsibility Programs

Beyond its mandate of service to its members, the SSS has always been aware of its corporate social responsibility (CSR) towards the greater public and its role as an instrument of humanitarian, environmental, and social work. Starting from simple financial donations to socio-civic and charitable institutions every Christmas, the SSS has since expanded its CSR to social welfare programs that address the basic needs of Filipinos, especially the poor and vulnerable, activities that protect the environment and preserve natural resources, and initiatives that encourage volunteerism among individual SSS employees and employee organizations.

On a local level, the SSS was the lead agency in creating the Government Responsible for East Avenue Task Force (GREAT) in 2001, which aimed to ensure cleanliness, peace and order along the stretch of East Avenue, Quezon City, where the SSS Main Office, and other government agencies, are located. Being a responsible corporate citizen in Quezon City, the SSS has also institutionalized the practice of proper waste management and waste segregation, as well as water resource and energy conservation. In relation to this, the Department of Energy, the Department of Environment and Natural Resources, the Quezon City government and other institutions have consistently cited and awarded SSS “for walking the talk” in protecting the environment as part of its corporate social responsibility.

The SSS is also one of the first government institutions to heed the call of Republic Act 9418, “Volunteer Act of 2007”, which mandates national government agencies, among other institutions, to establish volunteer programs to promote and encourage volunteerism in government programs, as well as enjoin government employees to render volunteer service in social, economic and humanitarian development undertakings in the community.

taking social security in the Heart of national development:the national social Welfare and Protection Program

Last year, the SSS played an integral role in formulating an integrated, well-funded and focused national social welfare and protection and anti-poverty program that aims to mitigate the impact of the Global Financial crisis on the poor and the most vulnerable sectors of society.

SSS worked closely with the Department of Social Welfare and Development (DSWD) and the National Economic Development Authority (NEDA) and other partner agencies under the auspices of the National Social Welfare and Protection Program (NSWPP) Cluster of the Cabinet. The NSWPP was created by virtue of Executive Order 232 and 232-A. It is considered as the government’s centerpiece Action Plan to rationalize the overlapping social protection programs of the government and to come up with concrete actions on how to enhance coverage of the efficient programs and how to complement it with existing anti-poverty projects and policies of the country.

The study, which was undertaken by the Development Academy of the Philippines and funded by the United Nations Development Program, sought to examine the efficacy and efficiency of existing social welfare and protection programs in the country and to recommend which programs are to be scaled-up, retained, streamlined, abolished and harmonized. It involved validation workshops, actual agency visits and in-depth consultations with key stakeholders including Non-Governmental Organizations. SSS hosted the main validation exercise on 20 May at the Ramon Magsaysay Hall, which was participated in by close to 50 representatives from 16 government agencies.

The project culminated in a symbolic turnover of the copy of the study by SSS President and CEO Secretary Romulo L. Neri and DSWD Secretary Esperanza Cabral to President Gloria Macapagal-Arroyo in Malacañang on 7 July coinciding with the closing ceremonies of the Strategic Social Security Forum organized by the National Security Council. The turnover was witnessed by all senior members of Cabinet, highlighting the importance and magnitude of the Cluster’s work. The study is envisioned to be the blueprint of future policy actions on the provision of social safety nets, promotion of labor market interventions, granting of social welfare assistance and relevant social insurance schemes. On October, SSS was included as a permanent member of the Sub-Committee on Social Protection under the Cabinet-level Social Development Committee of NEDA. Among the tasks of the Sub-Committee is to develop a comprehensive 5-year

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Employee organizations abound in the SSS, catering to varied interests, whether in sports, arts and culture, hobbies, or religious faiths. Aside from their respective areas of interest, these employee organizations also have their own social responsibility programs which are funded and implemented through their members’ volunteer efforts. Thus, employee organizations such as the SSS Amateur Golfers Association, the SSSWriters’ Guild, the Knights of Rizal-SSS Chapter, theSSS Riders Club, the SSS Dance Troupe, the SSS Chorale Society, the SSS Provident Fund, and the ACCESS Union have their own socio-civic programs.

The spirit of volunteerism is alive and well in the various SSS employee organizations. In times of natural disasters, SSS employees are always ready and willing to share their time, resources and efforts to aid needy victims. In 2007, the SSS, through its Public Affairs and Special Events Division, formalized the creation of an employee-volunteer organization: the SSS Kabalikat ng Bayan Volunteer Corps composed of both regular and contractual employees in SSS. This Volunteer Corps provides the needed manpower in implementing humanitarian and community development works that are funded through donations.

The Volunteer Corps, encourages SSS employees to volunteer their time, resources, and energies in worthwhile socio-civic programs that will benefit greater communities, while ensuring the SSS-funded projects reach their intended beneficiaries and are completed as envisioned. Among the socio-civic programs that the SSS Kabalikat Volunteer Corps has undertaken arehumanitarian and medical missions at Payatas, Quezon City, Bani, Pangasinan, Numancia, Aklan, and Cabatuan, Iloilo.

In 2009, as part of its CSR activities, the SSS has started the funding of feeding programs for undernourished children in selected schools. SSS President and Chief Executive Officer Romulo L. Neri noted that the SSS is responding to the social and economic needs of the times, and to the order of President Gloria Macapagal-Arroyo to push stronger the Accelerated Hunger Mitigation Program, which is a strategy under the Medium-Term Philippine Development program for 2004 to 2010. Through the SSS-sponsored feeding programs, SSS hopes to significantly bring down the rate of undernourished Filipino children, who will be future workforce and SSS members.

The SSS Supplementary Feeding Program (SFP) was approved by the Social Security Commission (SSC) under SSC Resolution No. 686-s.2008. Under the Resolution, each of the seven SS Commissioners will be allotted P500,000 to be used for the SFP in the schools of their choice. The SFP would run for six months,

during which elementary students aged 6 to 12 years old would be given supplementary feeding, to be conducted inside the premises of the selected beneficiary school and facilitated by the school’s personnel.

The SSS shall provide the funds to the selected school for the purchase of foodstuff and related commodities deemed necessary for the feeding program. The selected school, on the other hand, shall be accountable to SSS for the utilization of the funds and shall submit to SSS monthly monitoring of the students’ nutrition status and reports on the program’s accomplishments.

To date, the SSS has signed several Memoranda of Understanding (MOU) with the beneficiary schools selected by SS Commissioners, including President Neri who also sits as Vice Chairman of the SSC.

As chosen by Commissioner Donald Dee and President Neri, the SSS partnered with the Department of Education (DepEd) Division of Negros Occidental and the 303rd Infantry Brigade, 3rd Infantry Division of the Philippine Army, for the program called “Gatas para sa Maayong Lawas.” In the said program, SSS would provide milk bars to supplement the DepEd’s ongoing feeding program in 31 public schools in Negros Occidental and Oriental provinces, that benefits around 11,134 children. The MOU between the parties was signed on September 11, 2009.

On 5 October 2009, the SSS, through Commissioner Sergio Ortiz-Luis, Jr., then signed the MOU with Alay Buhay Community Development Foundation and the Rotary Clubs of QC- Southwest, QC-Southeast, South Triangle, and Metro San Francisco Del Monte, for the SFP in six public elementary schools for over 373 children. At the same date, as directed by Commissioner Fe Tibayan-Palileo, Camp Claudio Elementary School, Tambo Elementary School – Main, and Tambo Elementary School – Unit 1, all in Parañaque, were the chosen beneficiaries of the SFP, which would benefit some 300 students of the three schools.

More recently, the SSS partnered with San Francisco West Central Elementary School and Moto Elementary Schools, which were chosen by Commissioner Jose Sony Matula, for the implementation of the SFP in the Agusan del Sur-based schools. Their MOU was signed on 26 October 2009.

The SSS Supplementary Feeding Programs are being implemented and monitored by the Corporate Communications Department, under Vice President Marissu G. Bugante of the Public Affairs and Special Events Division.

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the Philippines Welcomes social security experts for Regional Forum for asia and the Pacific

The Philippines hosted the gathering of social security policy-makers, administrators, researchers and representatives of regional and international organizations for the “Regional Social Security Forum for Asia and the Pacific,” on 21 to 23 October 2009 at the Dusit Thani Manila in Makati City.

Sponsored by the International Social Security Association (ISSA) and organized by the Philippine Social Security Association (PHILSSA), the Regional Social Security Forum for Asia and the Pacific focused on the role of social security amidst the current milieu of globalization, internal and external migration, growth of informal economies, changes in family structures, and the impact of the global financial crisis.

The Opening Ceremonies was graced by the Philippines’ second highest official, Vice President Noli de Castro, who is also known as the “Housing Czar” being the chairman of the Housing Development and Coordinating Council and the Home Development Mutual Fund (HDMF). Delegates were welcomed by PHILSSA Chairman Winston F. Garcia, who is the president and general manager of the Government Service Insurance System (GSIS), and by ISSA President Corazon S. de la Paz-Bernardo, and former SSS Head.

According to Forum Coordinator and Social Security System (SSS) Vice President May Catherine Ciriaco, four main themes were tackled in the three-day event: social security developments and trends in the Asia and Pacific; governance and social security reform processes; the imperatives of healthcare coverage; and pension coverage and demographic aging.

ISSA Secretary General Hans-Horst Konkolewsky of Genevadelivered the keynote address on social security developments and trends in Asia and the Pacific, while Ms. Yvonne Sin, head of

investmentconsultingofWatsonWyatt-HongKong,gavethekeynote address on governance and the social security reform process. The topic on the imperatives of healthcare services washandledbyProfessorSoonmanKwonoftheSeoulNationalUniversityofSouthKorea,whileProfessorChristianAspalterofthe Beijing Normal University of China delivered the keynote address on pension coverage and demographic ageing.

The Forum ended with a high-level Social Security Summit and showcased the recent advances in social security that were achieved through new ideas, innovations, and effective strategies. The ISSA Good Practice Awards for Asia and the Pacific were also handed out to outstanding organizations for their exemplary practices in the administration of social security. The winning good practices will be featured at the World Social Security Forum in Cape Town, South Africa in 2010.

Over 200 delegates from Asia and Pacific countries attended the Fourm. Aside from technical sessions, there were also fellowship events, cocktails, and guided tours of Makati City hotspots for the foreign participants.

The member institutions of PHILSSA, who hosted the Forum, include the SSS, GSIS, HDMF, Employees’ Compensation Commission, Philippine Health Insurance Corporation, Armed Forces of the Philippines-Retirement and Separation Benefits System, and the Philippine Charity Sweepstakes Office.

the sss Rationalization Plan and 2009 staffing

The approval of the SSS Rationalization Plan (RatPlan) by the Department of Budget and Management (DBM) on 18 May 2009 marked the conclusion of more than four (4) years of rationalization efforts spearheaded by the SSS Change Management Team. The SSS has embarked on a strategic review of its organization to refocus its resources on core functions, improve quality and efficiency of services and improve organizational performance in line with the mandate of Executive Order No. 366.

In preparation for the Plan’s implementation, the Social Security Commission (SSC) created a Committee on the Rationalization Plan to review the DBM-approved Plan in the light of organizational and environmental changes that have happened since the time the Plan was crafted in 2005 until its approval in 2009. The Committee was headed by Department of Labor and Employment Undersecretary Lourdes M. Trasmonte with Commissioners Fe Tibayan-Palileo, Donald G. Dee, Sergio R. Ortiz-Luis and Jose Sonny G. Matula as members.

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The direction pursued by the SSC Committee on the Rationalization Plan was to implement the Plan by phases. The first phase included the processing of applications for voluntary retirement, absorption of qualified and deserving service bureau contractuals, and promotion of qualified and deserving Officers-in-Charge to executive positions.

As recommended by the SSC Committee on the Rationalization Plan, the SSC, pursuant to Resolution No. 508, s. 2009, approved the payment of benefits of 230 officials and employees who opted for voluntary retirement under the Plan effective at the close of office hours of 15 July 2009.

The SSC then approved and confirmed the authority of the Human Resource Management Division, thru AVP Jesse J. Caberoy, to process the regularization/absorption of qualified and deserving service bureau contractuals pursuant to Resolution No. 509, s. 2009. The SSC Resolution paved the way for the announcement of 1,282 vacancies, which was done in four batches. From these announced vacancies, a total of 1,199 positions were filled wherein a total of 1,131 service bureau contractuals were absorbed while 68 regular employees were promoted and approved for lateral transfer with their position titles amended.

The 2009 staffing was primarily anchored to the Plan in which the Rationalized Plantilla of Personnel, which consisted of 7,652 positions, would be gradually filled over a period of ten years. The projected increase in the workforce is aligned with the expected increase in membership and contributions collection for the next decade.

The end of 2009 marked the beginning of initiatives to proceed with the execution of the remaining phases of the Plan, which involves the promotion of qualified and deserving OICs as well as rank-and-file employees, reassignment and re-training of affected employees, conduct of job leveling study

and the staffing and compensation review. These initiatives are all geared towards the identified corporate strategic directions which were developed in response to current and future business challenges and embodied in the Plan with the ultimate vision of an efficient and effective SSS organization.

* The SSS Organizational Structure which was recommended by the SSC

Committee on the Rationalization Plan was approved and confirmed by

the SSC on 25 March 2010 in Resolution No. 229, s. 2010

the new Performance evaluation system

In line with the Civil Service Commission’s approval of the new SSS Performance Evaluation System (PES) on 1 August 2008, the last quarter of 2008 and the first quarter of 2009 was devoted to the conduct of the System-wide orientation and briefing on the new SSS-PES to all SSS executives and supervisors and 50% of the rank and file employees. The first quarter of 2009 also kicked off the development of the automated system for the PES implementation.

In preparation for the targeted implementation of the new SSS-PES by the year 2010, Office Order No. 2009-022 on the Approved PES Guidelines on the Implementation of the New Performance Evaluation System and Additional PES Policies was issued on 18 March 2009.

A pilot dry run of the new PES was conducted from April to June 2009 for the following selected departments: Quality Management Department, Management Information Systems Department, and branches of Makati 1, San Pablo, Bacolod and Cagayan de Oro.

To prepare for the System-wide dry run of the new PES, orientation sessions were conducted from August to October 2009. Taking off from the results of the pilot dry run of the new PES for selected departments and branches, enhancements were recommended and approved pursuant to Office Order No. 2009-115 dated 16 November 2009 on the Additional Guidelines for the System-wide PES Dry Run.

SSS likewise conducted orientation sessions from August to October 2009 to prepare employees for the System-wide dry run of the new PES. Enhancements to the PES were then recommended and approved pursuant to Office Order No. 2009-115 dated 16 November 2009. These enhancements were based on the results of a four-month dry run.

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CataPUltinG sss into tHe neXt deCade: sss in 2010 and BeYond

2009 was marred by highly destructive natural calamities that compounded job losses and company closures as the country teetered on the brink of recession. However, as the year came to a close, glimmers of hope flashed in the horizon: a healthy banking system, resilient remittances from overseas workers and a sturdy services sector that enabled the economy to post a modest growth of 0.9 percent.

Last year’s turbulent economic environment compelled institutions such as the SSS to calibrate their strategies and devote their energies as well as resources to bolstering organizational capabilities while optimizing available opportunities in the market.

In 2010, SSS shall undertake its mission with a renewed sense of purpose notwithstanding the new set of challenges it has to face – one that deals with preserving institutional integrity and maintaining stability in the face of a looming change in political leadership. The conduct of the National Elections in May signals not only a change of leaders but also a change in overall thrusts, plans and priorities – changes that have far-reaching consequences on public organizations such as the SSS.

Taking into account this challenge, SSS programs remain firmly anchored on The Five Enabling Forces namely Product, Process, People/Organizational Culture, Communications and Physical Facilities. However for the coming year, SSS would operationalize these initiatives with greater prudence and discretion – pouring resources only in mission-critical areas to ensure greater success and participation from our stakeholders. seizing opportunities; changing the paradigm on customer service

The economic crisis that hit the country was worsened by the series of calamities and threatened stable institutions such as the SSS. This prompted SSS to explore alternative means to boost collection and secure cashflows despite the slowdown in economic activity.

In this regard, SSS would be working for the passage of a new law allowing erring employers to settle their delinquencies without penalties. The policy is meant to reinstate the rights and privileges lost by the employees as members of the SSS. This policy initiative is borne out of a realization that to endure the economic crisis, government and business institutions should find a sensible solution to problems spawned by the crisis. While we consider the condonation program as a focal point of our collection strategy for the coming year, we shall not abandon time-tested tactics that rely on the passion and astuteness of our Accounts Officers and Legal Officers.

Along with this, SSS would zealously pursue collection of salary loan delinquencies to generate liquidity that can finance more member borrowers. SSS would likewise continue to leverage on its existing partnerships with key institutions and third-party collecting agents to broaden the scope of so-called special sectors such as public transport drivers, cooperatives and overseas workers while beefing up its payment mechanisms through the implementation of Phase V of the Tellering Program.

SSS shall also formulate a clear-cut approach to reactivate members, whose membership has remained dormant over the years. We shall draw inspiration from the marketing strategies of firms and companies, which flesh out insights from available customer data to come up with targeted campaigns to increase revenues and regularity of payment. With the changing socio-economic environment, it is imperative for SSS to take a paradigm shift with regards to its coverage and collection campaigns by treating our members as customers whose tastes and preferences change according to their specific needs or wants. SSS should no longer rely on the power of Law to draw in new members but rather look at our programs as products that compete for a share in the expenditures of prospective members.

Cashing in on a revitalized economy

As the world economy gradually emerges from a long slump, SSS is poised to take full advantage of a reinvigorated domestic market by accelerating the sale of non-performing assets, including properties received as payment for delinquencies. SSS remains open to joint development of prime parcels of land with renowned developers to increase the value of these properties. The Institution shall also continue to diversify its portfolio through venturing into non-traditional investment instruments such as index or mutual funds and buying shares of promising and efficiently managed small and medium-sized firms. SSS is cognizant of the inherent responsibility that its investments should not only generate ample financial returns but also create greater economic and social value through employment and livelihood especially for the marginalized.

One of the significant lessons from the crisis is the need to hedge against systemic risks in order to mitigate the impact of sudden market fluctuations that could have far-ranging implications to SSS’ financial standing. At the crux of this concern is investing on meticulous research that has foresight and that takes into account not just the fundamentals of a given investment project but also risk-return factors and possible pay-offs. Unraveling complexities in service delivery through it

Last year, SSS augmented existing service delivery systems to enhance the degree of satisfaction of our transacting members. At the core of these mechanism is the more extensive use of Information Technology for both sensitive frontline operations

sss2010 AN D B EyoN D

27

and crucial backroom activities. This year, the institution is set to reap the gains from these timely investments with the full implementation of the Unified Multi-Purpose Identification System (UMID), the enhanced user interface of the SSS Web and the deployment of Self-Service Information Terminals to key branches nationwide. Plans are well underway for the establishment of a dedicated Call Center to provide 24 X 7 service to our members.

These IT-backed service management system is seen as a boon to SSS’ efforts to re-channel precious resources specially at the branch level to core services such as benefits and loans applications screening and processing. Moreover, the mobilization of IT resources serves to reduce the probability of error and lessen human intervention leading to a more seamless, predictable and cost-effective means of processing. The overhaul of the IT framework comes at an opportune time as the institution begins the system-wide implementation of the Anti-Red Tape Act, which specifies standards by which members can gauge the quality of service rendered by state agencies with frontline services. The main intent of the law is to promote transparency in government processes and transactions, which are often criticized for ambiguity. At our end, SSS has completed the draft of its Citizen’s Charter which contains the step-by-step procedures and detailed timelines for services classified as “high volume.” The promulgation of the Charter is expected to buttress the institutionalized Covenant of Service (CoS), which simplified procedures and streamlined processes for key SSS transactions since its inception in 2001. Revamping the organization: Changing from within

Last year, SSS began its long-delayed reorganization with the execution of the initial phase of the Rationalization Plan, which saw the absorption of more than 1,100 service bureau contractuals. In the coming year, we would forge ahead with the absorption of more qualified SBs including the promotion of deserving regular employees, whose careers have remained static since the institution had implemented cost-cutting measures in 2001.

SSS is likewise determined to fill in the void created by the retirement of senior and middle management officials under the RatPlan. The immediate replacement of these officials would ensure continuity in strategic aspects of SSS operations while maintaining a clear line of accountability. This effort, which would be complemented by the Performance Evaluation System (PES) and the Merit Selection Plan, form an integrative policy covering personnel selection and deployment, performance evaluation and manpower training and development. SSS shall veer away from the piecemeal approaches to organizational reform and would instead be guided by a more holistic scheme to bring about real change in work life

More than filling the gaps in the organization, SSS shall push for a comprehensive review of the human resources complement of the institution. More than reviewing the adequacy of manpower of each unit or office, the focus of the assessment would be on the relevance of the duties performed by each employee in light of the advances in technology and the shift in service delivery strategies. The RatPlan would merely serve as a springboard for more radical changes in the organization. These modifications would hinge on the Staffing and Levelling Plans, which would hopefully culminate in the conduct of a system-wide compensation and benefits review.

Admittedly, the reorganization itself would encounter some obstacles during the course of its implementation. However, management is determined to implement these Plans to the letter for the welfare of the employees and for good of the institution as a whole. The financial crisis has underscored the need to strengthen the organization from within to make it more relevant to the call of the times.

managing transition and dealing with change

2010 not only signals a change in political leadership, it also indicates a change in the priorities and overall thrust of the institution. The institution should be able to take specific actions on emerging economic patterns and find new sources of growth in the midst of a widening clamor for increased benefits among our members.

SSS shall remain open to tapping unconventional markets for its investments provided that it falls within our criteria. The institution shall persevere with efforts to strengthen social protection coverage of workers in the most vulnerable sectors of society – seafarers and those in high-risk industries such as mining and quarrying -- while balancing it with the need to maintain equity and financial health. SSS shall also play a larger role in the policy arena through the crafting of relevant national policies directed at promoting social welfare and protection as these should be included in the country’s development agenda.

However, we shall not allow contingencies to dictate the course of our actions. Prudence and discretion shall remain the primordial guiding factors in carrying out policies and programs. We are still primarily a custodian of the members’ Fund with a fiduciary responsibility to our stakeholders.

Institutional integrity shall be bolstered and mechanisms for transparency shall be strengthened. This is why we shall continue advancing the needed modifications in our Charter, lest our programs would fall into obsolescence and erode institutional memory.

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The Management of the Social Security System is responsible for all information and representations contained in the consolidated

financial statements as of 31 December 2009 and 2008. The financial statements have been prepared in conformity with the

accounting principles generally accepted in the Philippines, and reflect amounts that are based on the best estimates and informed

judgement of Management with an appropriate consideration to materiality.

In this regard, management maintains a system of accounting and reporting which provides for the necessary internal controls to

ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition, and

liabilities are recognized.

The Social Security Commission reviews the consolidated financial statements before such statements are approved and submitted

to the President of the Philippines and to the Congress of the Philippines.

tHelmo Y. CUnanan RomUlo l. neRi elViRa G. alCantaRa-ResaReChairman, SS Commission President and CEO Officer-in-Charge Controllership Division

STATEMENT oF MANAGEMENT ’ S R E SPoNS I B I L I T y FoR

THEFINANCIALSTATEMENTS

SOCIAL SECURITY SYSTEM

29

the social security CommissionSocial Security SystemEast Avenue, Quezon City

We have audited the accompanying financial statements of the Social Security System (SSS), which comprise the statement of financial position as at December 31, 2009, and the statement of comprehensive income, statement of changes in reserves and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

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. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

opinion

In our opinion, the financial statements present fairly, in all material respects the financial position of the Social Security System as at December 31, 2009, and of its financial performance and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards.

emphasis of matter

We draw attention to Notes 3.1 (d.3) and 9 to the financial statements, which disclosed, among others, that the SSS does not provide an allowance for impairment loss on delinquent member loan accounts since they are backed/secured by members’ equity and benefits. As stated in Note 3.1, all outstanding obligations of members at the time of their application for final claim are being deducted from their claim proceeds. Had Management opted to provide an allowance for impairment, SSS would have reduced its income by P4.86 billion; representing 25 per cent of delinquent salary, educational, calamity, separated and emergency loan accounts, using the latest available aging of accounts.

Commission on aUdit

lUZ loReto - tolentinoDirector IVCluster A - FinancialCorporate Government Sector

7 May 2010

STATE Au D I ToR ’ S R E PoRT oN

THEFINANCIALSTATEMENTS

30

STATEMENT oF

FINANCIALPoSITIoNDECEMBER31,2009(In Philippine Peso)

notes 2009 2008

assets Current assets Cash and cash equivalents 4 8,995,402,491 6,874,110,536 Held-to-maturity investments 5 13,293,628,605 45,054,604,483 Held for trading financial assets 6 979,839,420 1,340,056,328 Receivables 7 5,334,882,298 5,546,601,810 Other current assets 8 117,762,834 109,136,631 28,721,515,648 58,924,509,788 non-current assets Non-current financial assets 9 223,472,303,766 154,160,153,724 Investment property 10 10,895,675,521 10,800,414,790 Property and equipment 11 3,413,685,287 2,876,316,627 Intangible assets 12 164,934,237 344,648,464 Non-current assets held for sale 13 5,404,768,660 5,442,125,162 Other non-current assets 14 537,767,300 574,022,005 243,889,134,771 174,197,680,772 total assets 272,610,650,419 233,122,190,560 liaBilities Current liabilities Accounts payable and accrued expenses 15 3,248,103,762 2,771,931,896 Funds held in trust 16 623,290,176 522,263,303 Deferred income 17 93,384,621 61,201,822 Other current liabilities 18 1,947,038,162 2,515,621,255 5,911,816,721 5,871,018,276 accrued retirement benefits 19 1,359,174,889 1,634,415,796 Rent payable 20 9,840,971 13,811,542 7,280,832,581 7,519,245,614 ReseRVes 21 265,329,817,838 225,602,944,946

total liaBilities and ReseRVes 272,610,650,419 233,122,190,560

The notes on pages 7 to 31 form part of these financial statements

31

notes 2009 2008 ReVenUes Members’ contribution 72,350,893,036 68,879,273,075 Investment and other income 22 22,985,618,802 29,089,046,778

95,336,511,838 97,968,319,853 eXPenses Benefit payments Retirement 35,126,490,608 32,679,728,053 Death 25,962,639,582 24,676,874,967 Maternity 3,589,163,852 3,274,003,551 Disability 3,253,748,170 3,286,724,247 Funeral grant 2,377,398,534 2,253,246,907 Sickness 1,703,782,723 1,705,535,321 Medical services 36,651,721 41,133,193 Rehabilitation services 82,815 116,025 72,049,958,005 67,917,362,264 operating expenses Personal services 23 4,730,723,529 4,605,567,109 Maintenance and other operating expenses 24 2,343,867,852 2,140,059,343 7,074,591,381 6,745,626,452 79,124,549,386 74,662,988,716 net ReVenUes 16,211,962,452 23,305,331,137

otHeR ComPReHensiVe inCome/(loss) Available-for-sale financial assets Reclassification adjustments (3,869,835,841) (14,300,275,929) Unrealized gain/(loss) 27,199,674,473 (26,316,228,197) Revaluation increase - land 277,700,739 - Land acquired through donation - 6,300,000 Settlement of claims for disallowed payments (11,313,834) (418,475) 23,596,225,537 (40,610,622,601) total ComPReHensiVe inCome/(loss) FoR tHe YeaR 39,808,187,989 (17,305,291,464)

The notes on pages 7 to 31 form part of these financial statements.

FoRTHEyEARENDEDDECEMBER31,2009(In Philippine Peso)

STATEMENT oF

CoMPReHensIVe InCoMe

32

STATEMENT oF

CHANGESINRESERVES

Unrealized gains on Property available-sale for valuation Contingent donated notes Reserve fund financial assets reserve surplus property total reserves

Balance, 1 January 2009 221,327,786,968 3,017,588,582 1,227,822,935 18,354,481 11,391,980 225,602,944,946 Corporate operating budget of Employees’ Compensation Commission and Occupational Safety and Health Center (81,315,097) - - - - (81,315,097) Total comprehensive income/(loss) for the year 16,211,962,452 23,329,838,632 277,700,739 (11,313,834) - 39,808,187,989 BalanCe, 31 deCemBeR 2009 21 237,458,434,323 26,347,427,214 1,505,523,674 7,040,647 11,391,980 265,329,817,838 BalanCe, 31 deCemBeR 2008 21 221,327,786,968 3,017,588,582 1,227,822,935 18,354,481 11,391,980 225,602,944,946 The notes on pages 7 to 31 form part of these financial statements.

FoRTHEyEARENDEDDECEMBER31,2009(In Philippine Peso)

33

notes 2009 2008 CasH FloWs FRom oPeRatinG aCtiVities Members’ contribution 72,350,893,036 68,879,273,075 Investment and other income 22 14,689,520,657 12,849,378,667 Payments to members and beneficiaries (72,061,527,723) (67,899,749,398)Payments for operations (6,531,397,668) (6,300,622,928) Operating income before changes in operating assets and liabilities 8,447,488,302 7,528,279,416 (Increase)/decrease in operating assets Held-for-trading financial assets 717,013,283 (877,118,056)Receivables 7 992,815,389 (1,061,427,824)Other operating assets (26,484,820) 204,571,435 Increase/(decrease) in operating liabilities Funds held in trust 101,026,873 47,762,844 Other current liabilities (568,583,093) 2,280,775,775 Net cash generated from operating activities 9,663,275,934 8,122,843,590 CasH FloWs FRom inVestinG aCtiVities Loan releases and other investment purchases, net (7,018,112,473) (9,432,889,052)Acquisition of property and equipment, net 11 (408,964,165) (489,032,703)Acquisition of intangible assets, net 12 (33,592,244) (101,032,327) Net cash used in investing activities (7,460,668,882) (10,022,954,082) CasH FloWs FRom FinanCinG aCtiVities Corporate operating budget of Employees’ Compensation Commission and Occupational Safety and Health Center (81,315,097) (108,420,130) net inCRease (deCRease) FRom CasH and CasH eQUiValents 2,121,291,955 (2,008,530,622) CasH and CasH eQUiValents at BeGinninG oF YeaR 4 6,874,110,536 8,882,641,158 CasH and CasH eQUiValents at end oF YeaR 4 8,995,402,491 6,874,110,536

The notes on pages 7 to 31 form part of these financial statements.

STATEMENT oF

CASHFLoWSFoRTHEyEARENDEDDECEMBER31,2009

(In Philippine Peso)

34

1. REPoRTINGENTITy

The Social Security System (SSS) administers social security protection to workers in the private sector. Social security provides replacement income for workers in times of death, disability, sickness, maternity and old age. On 1 September 1957, the Social Security Act of 1954 was implemented. Thereafter, the coverage and benefits given by SSS have been expanded and enhanced through the enactment of various laws. On 1 May 1997, Republic Act (RA) No. 8282, otherwise known as the “Social Security Act of 1997”, was enacted to further strengthen the SSS. Under this Act, the government accepts general responsibility for the solvency of the SSS and guarantees that prescribed benefits shall not be diminished. Section 16 of RA 8282 exempts the SSS and all its benefit payments from all kinds of taxes, fees or charges, customs or import duty.

The SSS is a financial institution in the Philippines. Its principal office is in East Avenue, Quezon City.

The financial statements include the accounts of Employees’ Compensation and State Insurance Fund, which is being administered by the SSS, as provided for by Presidential Decree No. 626, as amended. All inter-fund accounts have been eliminated.

The financial statements are authorized for issue by the Social Security Commission on May 5, 2010 under its Resolution No. 356-s.2010.

2. BASISoFPREPARATIoN

2.1 Statement of compliance

The financial statements of the SSS are prepared in accordance with Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS), where practicable.

2.2 Basis of measurement

The financial statements are prepared on 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 property accounts are measured at fair valueland under property and equipment are measured at revalued

amount

2.3 Use of estimates and judgments

The preparation of the financial statements in conformity with PFRS/PAS requires Management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

Estimates and underlying assumptions are reviewed on an on-going basis. The effect of a change in an accounting estimate is recognized prospectively by including it in profit or loss in the period of the change, if the change affects that period only or the period of the change and future periods, if the change affects both.

2.4 Change in accounting policies

Starting as of 1 January 2009, the SSS has adopted the following amendments to existing PAS/PFRS:

a. Revised PAS 1, Presentation of Financial Statements. The revised standard prohibits the presentation of items of income and expenses (i.e. non reserve fund changes in reserves) in the statement of changes in reserves, requiring non reserve fund changes in reserves to be presented separately from reserve fund changes in reserves in a statement of comprehensive income.

As a result, the SSS presents in the statement of changes in reserves all reserve fund-related movements, whereas all non reserve fund-related changes are presented in the statement of comprehensive income.

Comparative information has been re-presented so that it also is in conformity with the revised standard. The change in accounting policy only impacts presentation aspects.

b. PAS 40, Investment Property. The standard revises the scope such that property under construction or development for future use as an investment property is classified as investment property. Adoption of this amendment does not have material impact on the financial statements.

3. SIGNIFICANTACCouNTINGPoLICIES

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1 Financial assets

a. Date of recognition. The SSS initially recognizes loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognized initially on the trade date at which the SSS becomes a party to the contractual provisions of the instrument.

b. Initial recognition. The SSS initially recognizes a financial asset at fair value. Transaction costs are included in the initial measurement, except for financial assets measured at fair value through profit or loss.

c. Determination of fair value. The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices. When current bid prices are not available, 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.

For investments where there is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm’s-length market transactions, reference to the current market value of another instrument, which is substantially the same, discounted cash flow analysis and option pricing models.

d. Classification. The SSS has the following non-derivative financial assets: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets.

d.1 Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss consist of held-for-trading financial assets. Held-for-trading financial assets are financial assets acquired or held for the purpose of selling in the short term or for which there is a recent pattern of short-term profit taking.

Upon initial recognition, attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value and changes therein are recognized in profit or loss.

d.2 Held-to-maturity financial assets

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. They are

n ot e s to

FINANCIALSTATEMENTS(All amounts in Philippine peso unless otherwise stated)

35

recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity investments are measured at amortized cost using the effective interest method, less any impairment in value.

Gains and losses are recognized in profit or loss when the held-to-maturity financial assets are derecognized or impaired, as well as through the amortization process.

d.3 Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at cost or amortized cost less impairment in value.

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, or equivalent value. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default or delinquency in payments are considered indicators that such loans and receivables are impaired.

The SSS does not provide an allowance for impairment loss on delinquent member loan accounts since they are backed/secured by members’ equity and benefits. All outstanding obligations of members at the time of their application for final claim are being deducted from their claim proceeds.

The SSS’ cash and cash equivalents, member and business loans and other receivables are included in this category.

d.4 Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the other categories. Subsequent to initial recognition, available-for-sale financial assets are carried at fair value in the statement of financial position. 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. When an available-for-sale financial asset is derecognized, the cumulative gains or losses are transferred to profit or loss and presented as a reclassification adjustment within the statement of comprehensive income. Dividends on available-for-sale equity instruments are recognized in profit or loss when the right to receive payments is established.

If an available-for-sale financial asset is impaired, an amount comprising the difference between its cost (net of any principal payment and amortization) and its current fair value, less any impairment loss previously recognized in profit or loss, is transferred from reserves to profit or loss and presented as a reclassification adjustment within the statement of comprehensive income. Reversals in respect of equity instruments classified as available-for-sale are not recognized in profit or loss.

e. 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, but has transferred control of the asset.

3.2 Cash equivalents

Cash equivalents comprise short-term, 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.

3.3 Supplies and materials

Supplies and materials are valued at cost using the weighted average method.

3.4 Investment property

Investment property account consists of property held to earn rentals and/or for capital appreciation.

An investment property is initially measured at cost, including transaction costs. Such cost should not include start-up costs, abnormal waste, or initial operating losses incurred before the investment property achieves the planned level of occupancy. After initial recognition, it is measured at fair value with any change therein recognized in profit or loss.

Transfers to or from investment property are made when there is a change in use, evidenced by:

commencement of owner-occupationend of owner-occupation commencement of an operating lease to another party

3.5 Property and equipment

Property and equipment, except land, are stated at cost less accumulated depreciation, amortization and any impairment in value. Land is carried at revalued amount. 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, in which case it is recognized as income. On the other hand, 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.

Cost includes all costs necessary to bring the asset to working condition for its intended use. This would include not only its original purchase price but also costs of site preparation, delivery and handling, installation, related professional fees for architects and engineers, and the estimated cost of dismantling and removing the asset and restoring the site.

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, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property and equipment are recognized in profit or loss as incurred.

Depreciation is calculated over the depreciable amount less its residual value. It is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property and equipment.

The estimated useful lives of property and equipment are as follows:

Assets LifeBuilding/building improvements 10-30 yearsFurniture and equipment/ Computer hardware 5-10 yearsLand improvements 10 yearsTransportation equipment 7 yearsLeasehold improvements 10-30 years (or the term of the lease whichever is shorter)

36

Building and building improvements have residual value equivalent to ten percent of the acquisition/appraised value while other items of property and equipment except land have one peso as their residual value.

Construction in progress (CIP) represents building, building and leasehold improvements under construction and is stated at cost. CIP is not depreciated until such time as the relevant assets are completed and put into operational use.

3.6 Intangible assets

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Computer software licenses with finite lives are amortized on a straight-line basis over their estimated useful lives, 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.

3.7 Non-current assets held for sale

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. This condition is regarded as met when the sale is highly probable and the asset is available for immediate sale in its present condition.

Assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Any excess of carrying amount over fair value less costs to sell is an impairment loss. No depreciation is recognized for these assets while classified as held for sale.

Non-current assets held for sale include real and other properties acquired (ROPA) in settlement of contribution and member and housing loan delinquencies through foreclosure or dation in payment. They are initially booked at the carrying amount of the contribution/loan delinquency plus transaction costs incurred upon acquisition. When the booked amount of ROPA exceeds the appraised value of the acquired property, an allowance for impairment loss equivalent to the excess of the amount booked over the appraised value is set up.

3.8 Impairment of non-financial assets

The carrying amount of non-financial assets, 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. If any such indication exists, then the asset’s recoverable amount is estimated. Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use.

Impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable 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. Depreciation and amortization charge for future periods is adjusted.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 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, net of depreciation or amortization, if no impairment loss had been recognized in prior years.

3.9 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. The following specific recognition criteria must also be met before revenue is recognized:

a. Member’s contribution. Revenue is recognized upon collection.

b. Interest income. Revenue is recognized as the interest accrues, taking into account the effective yield on the asset.

c. Dividend income. Dividend income is recognized at the time the right to receive the payment is established.

d. Rental income. Rental income is recognized on a straight-line basis over the lease term.

3.10 Expense recognition

Expenses are recognized in the statement of comprehensive income upon utilization of the service or at the date they are incurred.

3.11 Operating Leases

The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at the inception date of whether the fulfillment of the arrangement is dependent on the use of a specific asset or the arrangement conveys a right to use the asset.

a. 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. Operating lease payments are recognized as expense on a straight-line basis over the lease term.

b. 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. Lease income from operating leases is recognized as income on a straight-line basis over the lease term.

4. CASHANDCASHEQuIVALENTS 2009 2008

Cash on hand and in banks 3,313,776,021 574,973,044Time and special savings deposits 5,681,626,470 6,299,137,492

8,995,402,491 6,874,110,536

Cash in banks earn interest at the respective bank deposit rates. Time and special savings deposits are made for varying periods of up to 90 days depending on the immediate cash requirements of SSS and earn interest at the prevailing time and special savings deposit rates.

In consideration of the banks’ making their deposit pick up facility available to the SSS, the latter agreed to maintain an average daily balance of P1 million in a non-drawing interest bearing current account/savings account (CASA) with each of the banks’ servicing branches. As of 31 December 2009, P92 million is being maintained in several banks for such purpose.

5. HELD-To-MATuRITyINVESTMENTS

2009 2008Short-term money placements 11,270,800,000 12,111,258,391Treasury bills 2,022,828,605 32,943,346,092 13,293,628,605 45,054,604,483

Short-term money placements are short-term investments with original maturities of more than 90 days.

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6. HELD-FoR-TRADINGFINANCIALASSETS

The cost of held-for-trading financial assets as at 31 December 2009 and 2008 are P1,037.17 million and P1,754.19 million, respectively.

7. RECEIVABLES

2009 2008 Collecting banks/ agents/bayad center 2,435,277,439 3,745,233,147 Interest receivable 2,218,145,921 1,624,255,456 Other receivables 681,458,938 177,113,207 5,334,882,298 5,546,601,810

8. otHeR CURRent Assets

2009 2008 Supplies and materials inventory 107,185,948 97,411,879 Prepaid expenses 5,563,231 5,272,026 Advances - officials and employees 3,937,188 5,009,493 Revolving fund 1,076,467 1,133,614 Receivable - International Social Security Association - 309,619 117,762,834 109,136,631

9. NoN-CuRRENTFINANCIALASSETS

2009 2008 Available-for-sale financial assets 69,294,782,362 40,583,567,622 Held-to-maturity investments Notes and bonds 82,289,672,152 47,815,052,677 Accumulated impairment loss (884,701,706) (1,059,701,706) 81,404,970,446 46,755,350,971 Loans and receivable Members loans 44,407,118,536 40,630,131,602 Loan to National Home Mortgage Finance Corporation 14,990,587,912 17,110,340,170 Loan to Home Development Mutual Fund 3,316,217,919 3,892,951,470

Housing loans 4,661,268,782 4,615,224,268 Commercial and industrial loans 888,778,261 750,395,390 Program MADE 17,219,220 17,970,859 Loan to other government agencies 122,198,032 133,012,310 Sales contract receivable 5,224,529,406 523,581,507 73,627,918,068 67,673,607,576 Accumulated impairment loss (855,367,110) (852,372,445) 72,772,550,958 66,821,235,131 223,472,303,766 154,160,153,724

The carrying amount of available-for-sale financial assets is as follows: 2009 2008 Marketable securities Cost 42,462,256,771 37,056,663,073 Unrealized gain 26,347,427,214 3,017,588,582 68,809,683,985 40,074,251,655 Ordinary and preference shares Cost 1,208,710,857 1,208,710,587 Accumulated impairment loss (723,612,480) (699,394,890) 485,098,377 509,315,967 69,294,782,362 40,583,567,622

The current portion of held-to-maturity investments as at 31 December 2009 and 2008 are P8.20 Billion and P4.10 Billion, respectively.

Member loans were not provided with allowance for impairment loss because they are backed/secured by members’ equity. In order to ensure prompt collection of outstanding loans, SSS now takes a more active stance and aims to collect P19 billion in the next three years mainly from active delinquent members who are covered employees. The basic strategies will be to improve collection through a combination of (a) policy changes, followed with strict enforcement, (b) procedural enhancement and (c) utilization of appropriate information technology solutions that would enable the SSS to track, monitor and promptly collect from member-borrowers.

Using the latest aging of accounts (i.e. 30 September 2009), the SSS would have posted P4.86 billion loss, representing 25% of P19.43 billion delinquent (three years and above) salary, educational, calamity, separated and emergency loan accounts, had it opted to provide an allowance for impairment.

10. INVESTMENTPRoPERTy

Land Building Developmentcost TotalFair value, 1 January 2009 7,869,877,895 2,921,119,274 9,417,621 10,800,414,790Additions - - 179,052 179,052Disposals (91,085,700) (6,964,160) - (98,049,860)Cancellation of contracts - 6,755,020 - 6,755,020Fair value gain/(loss) 330,527,795 (144,151,276) - 186,376,519Fair value, 31 December 2009 8,109,319,990 2,776,758,858 9,596,673 10,895,675,521Fair value, 31 December 2008 7,869,877,895 2,921,119,274 9,417,621 10,800,414,790

The costs of investment property as at 31 December 2009 and 2008 are P7.73 billion and P7.81 billion, respectively.

The Investment Property account balance as at 31 December 2008 is restated due to the reclassification of Property and Equipment-Building to Investment Property-Development Cost to conform with the latest pronouncement of PAS 40, as shown below:

Total Investment Property – December 31, 2008 – restated 10,800,414,790Total Investment Property – December 31, 2008 10,790,997,169Restatement – Development Cost 9,417,621

The fair value of investment property is determined based on valuations performed by independent appraisers.

The following amounts are recognized in the statement of comprehensive income:

2009 2008 Rental income 394,624,497 397,673,910Penalty on rentals 1,556,391 5,826,946Fair value gains 186,376,519 842,781,139Realized gain 5,438,485 10,844,700Direct operating expenses (89,686,173) (82,802,821) 498,309,719 1,174,323,874

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11. PRoPERTyANDEQuIPMENT

Furniture&equipment, Land,buildings,andland/ transportation building/leasehold equipment,computer Constructionin improvements hardware&others progress Total

Gross carrying amount: 1 January 2009 2,855,003,955 3,468,220,494 52,787,613 6,376,012,062 Additions/transfers 142,045,072 293,461,201 (29,003,312) 406,502,961 Retirement/disposals/adjustments - (26,267,867) (944,242) (27,212,109)Appraisal increase 277,700,740 - - 277,700,740Recovery of impairment loss 38,849,375 - - 38,849,37531 December 2009 3,313,599,142 3,735,413,828 22,840,059 7,071,853,029 Accumulated depreciation/amortization: 1 January 2009 571,213,444 2,849,529,716 - 3,420,743,160 Charge for the period 47,526,534 159,306,976 - 206,833,510Retirement/disposals/adjustments - (26,132,678) (26,132,678)31 December 2009 618,739,978 2,982,704,014 - 3,601,443,992 Accumulated impairment loss: 1 January 2009 78,952,275 - - 78,952,275 Recovery of impairment loss (22,228,525) - - (22,228,525) 31 December 2009 56,723,750 - - 56,723,750 Net book value, 31 December 2009 2,638,135,414 752,709,814 22,840,059 3,413,685,287Net book value, 31 December 2008 2,204,838,236 618,690,778 52,787,613 2,876,316,627

Land, buildings and building improvements were last revalued in December 2009 by independent valuers. Valuations were made on the basis of market value. Any revaluation surplus was credited to Property Valuation Reserves.

If land, buildings and building improvements were stated on the historical cost basis, the carrying amount would be as follows:

2009 2008 Cost 1,694,222,606 1,566,483,313Accumulated depreciation (508,769,669) (473,456,840) 1,185,452,937 1,093,026,473

Lease rentals amounting to P13.09 million and P12.75 million for the year ended 31 December 2009 and 2008, respectively were included in the statement of comprehensive income.

The Investment Property acquisition cost for 2008 was restated to 7.808 billion for the reclassification of PE-Building as shown below:

Total IP Acquisition Cost – December 31, 2008 – restated 7,808,245,507Total IP Acquisition Cost – December 31, 2008 7,798,827,886Restatement – Development Cost (Acquisition) 9,417,621

12. INTANGIBLEASSETS

Licenses Software TotalCost:1 January 2009 286,591,368 109,594,362 396,185,730 Additions/transfers 4,429,600 29,162,644 33,592,24431 December 2009 291,020,968 138,757,006 429,777,974 Accumulated amortization 1 January 2009 16,688,766 34,848,500 51,537,266Amortization charge for the period 12,614,618 4,550,430 17,165,04831 December 2009 29,303,384 39,398,930 68,702,314Accumulated impairment loss1 January 2009 - - -Impairment loss 151,195,023 44,946,400 196,141,42331 December 2009 151,195,023 44,946,400 196,141,423Net book value, 31 December 2009 110,522,561 54,411,676 164,934,237Net book value, 31 December 2008 269,902,602 74,745,862 344,648,464 Cost and accumulated amortization as at 1 January 2009 was adjusted by P2.82 million and P4.50 million, respectively due to reclassification.

The carrying amount of intangible assets with indefinite lives as at 31 December 2009 amounted to P42.37 million.

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13. NoN-CuRRENTASSETSHELDFoRSALE

Acquiredassets/ Land Building registered Total

Carrying amount, 1 January 2009 4,913,271,115 158,262,102 378,575,955 5,450,109,172Accumulated impairment loss (2,116,394) (3,101,000) (2,766,616) (7,984,010)Net carrying amount, 1 January 2009 4,911,154,721 155,161,102 375,809,339 5,442,125,162Additions/adjustments 8,661,066 4,025,505 60,588,896 73,275,467Disposals (10,007,602) - (85,686,566) (95,694,168)Impairment (loss)/recovery (3,240,400) (12,072,429) 375,028 (14,937,801)Carrying amount, 31 December 2009 4,906,567,785 147,114,178 351,086,697 5,404,768,660Carrying amount, 31 December 2008 4,911,154,721 155,161,102 375,809,339 5,442,125,162

14. oTHERNoN-CuRRENTASSETS

2009 2008 Interest receivable 12,744,155,258 12,876,578,663Accumulated impairment loss (12,740,230,932) (12,870,303,585) 3,924,326 6,275,078Advances-fire/MRI/foreclosure proceedings 179,145,923 184,911,686Accumulated impairment loss (953,811) (874,728) 178,192,112 184,036,958Others 871,800,363 909,184,470Accumulated impairment loss (516,149,501) (525,474,501) 355,650,862 383,709,969 537,767,300 574,022,005

15. ACCouNTSPAyABLEANDACCRuEDExPENSES

2009 2008Accounts payable 1,986,268,116 1,740,345,430Accrued expenses 1,261,835,646 1,031,586,466 3,248,103,762 2,711,931,896

16. FuNDSHELDINTRuST

This account includes among others bidders’ deposits, withholding taxes and retention withheld from suppliers and creditors to answer for defective deliveries or services, contributions to GSIS, PHIC, HDMF and SSS Provident Fund and equity of Flexi-fund members.

Breakdown as follows:

2009 2008Flexi-fund 228,026,818 187,260,481Officials and employees 131,980,533 114,752,446Borrowers and other payors 113,877,011 99,899,315Due to other government units 86,757,756 65,783,730Suppliers and creditors 35,643,494 37,690,912Dividend - stock investment loan program 15,501,904 15,501,904Legal education fund 10,005,556 -Educational loan fund - DECS 1,497,104 1,374,515 623,290,176 522,263,303

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.a.2 of RA 8282. The Social Security Commission, in its Resolution No. 288 dated 18 April 2001, approved the establishment of this supplementary benefits program.

The Legal Education Fund (LEF) is a special endowment fund under the control of the Legal Education Board (LEB), which was created under RA 7662. It is being administered by the SSS, which invests the same with due and prudent regard to its solvency, safety and liquidity.

17. DEFFEREDINCoME

This account represents advance rental payments from tenants of SSS property.

18. oTHERCuRRENTLIABILITES

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.

Breakdown as follows:

2009 2008

Member loans (ML) collection 898,748,166 1,618,962,347Undistributed collection 377,824,043 690,746,724OFW collections 273,012,229 134,633,708Real estate loans collection 270,324,207 -Sales contract receivable 81,741,630 63,749,103ML collection deducted from benefit payments 41,705,930 -Rental receivable 2,809,290 258,886Express padala 841,504 7,183,619Employees’ housing loan program 31,163 86,868 1,947,038,162 2,515,621,255

19. ACCRuEDRETIREMENTBENEFITS

19.1 Retirement benefits

Retirement benefits are available to qualified employees under any one of RA 1616, RA 660 and RA 8291.

19.2 Terminal leave benefits

This represents the cash value of the accumulated vacation and sick leave credits of employees, 50 percent of which can be monetized once a year and the balance payable upon resignation/retirement.

19.3 Retirement incentive award

Employees with at least 20 years of creditable service are entitled to P2,000 for every year of service upon retirement.

The accrued retirement benefits of employees at 31 December 2009 and 2008 are as follows:

2009 2008

Retirement benefits/gratuity 677,779,595 683,113,108Terminal leave pay 593,323,045 859,128,178Retirement incentive award 88,072,249 92,174,510 1,359,174,889 1,634,415,796

20. RENTPAyABLE

This account represents future rent payments for lease contracts entered by the SSS for its various branches.

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21. ReseRVes

21.1 Investment reserve fund (IRF)

All revenues of the SSS that are not needed to meet the current administrative and operational expenses are accumulated in the reserve fund. Such portion of the reserve fund as are not needed to meet the current benefit obligations is known as the Investment Reserve Fund (IRF) which the Social Security Commission (SSC) manages and invests with the skill, care, prudence and diligence necessary under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters would exercise in the conduct of an enterprise of a like character and with similar aims, subject to prescribed ceilings under section 26 of RA 8282 (the Act). No portion of the IRF or income thereof shall accrue to the general fund of the National Government or to any of its agencies or instrumentalities, including government-owned or controlled corporations, except as may be allowed under the Act. The Act also provides that no portion of the IRF shall be invested for any purpose or in any instrument, institution or industry over and above the prescribed cumulative ceilings as follows: 40% in private securities, 35% in housing, 30% in real estate related industries, 10% in short and medium-term member loans, 30% in government financial institutions and corporations, 30% in infrastructure projects, 15% in any particular industry and 7.5% in foreign-currency denominated investments.

In its Resolution No. 402 s. 2007, the SSC, adopted the use of acquisition cost of shares of stock as the basis for computing the 30% limit in equity investments, based on the opinion dated 25 June 2007 of the Legal and Adjudication Sector of COA.

21.2 Actuarial valuation of the reserve fund of the SSS

The Social Security Act of 1997 requires the Actuary of the System to submit a valuation report every four years, or more frequently as may be necessary, to determine the actuarial soundness of the reserve fund of the SSS and to recommend measures on how to improve its viability.

The reserve fund is affected by (a) changes in demographic factors (such as increased life expectancy, ageing of population, declining fertility level and delay in retirement) and (b) the economic conditions of the country. Taking into account the uncertainty of future events, economic assumptions on interest rates, inflation rates and salary wage increases, among others, are projected.

In the 1999 Actuarial Valuation, the Social Security Fund (SSF) was projected to last until 2015. Since then, parametric measures (e.g. increases in the contribution rate from 8.4% to 9.4% in March 2003 and to 10.4% in January 2007, increase in the maximum salary base for contributions from P12,000 to P15,000 and the redefinition of Credited Years of Service) and operational developments (e.g. Tellering System, more accounts officers, cost saving measures, improved investment portfolio and management, etc.) were implemented to strengthen the SSF.

The System’s concerted efforts have resulted in improved actuarial soundness. Results of the 2003 Actuarial Valuation indicate an extension on the life of the fund by sixteen years, from 2015 to 2031.

The increase in contribution rate to 10.40%, effective January 2007, has extended further the SSF life to 2036, taking already into account the grant of 10% across-the-board increases in pension effective September 2006 and September 2007.

In 2009, the Actuarial Department has submitted to the Chief Actuary the initial results of the 2007 Valuation, based on membership data as of 31 December 2006. The 2007 actuarial valuation however, is still in progress, as the results have to be reviewed and verified, and the final report to be submitted to the Social Security Commission.

The following table presents the initial results of the 2007 actuarial valuation, compared to the previous 2003 valuation results. There are two columns under the 2003 valuation: (1) the original results as published in the 2003 actuarial valuation report; 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.

Actuarial ValuationComparisonofKeyProjectionResults2007 Valuation versus 2003 Valuation

Under the Baseline Scenario

keyProjection

Results

2003 Valuation 2007 Valuation

(Initial Results)original* Updated**

No Across-the-BoardIncrease inPensions

Year Fund Will Last

2031 2036 2039

Year Net Revenue Becomes Negative

2022 2026 2030

22. INVESTMENTANDoTHERINCoME

2009 2008Investment Income Income from current investments Held to maturity investments Interest income 1,897,400,081 2,353,469,423Held-for-trading financial assets Dividend income 19,836,699 3,166,949Fair value gain/(loss) 356,796,375 (437,236,649)Realized gain – net 899,084,322 113,500,571Investment expense (57,424,537) - 1,218,292,859 (320,569,129) 3,115,692,940 2,032,900,294Income from non-current investments Available-for-sale financial assets Dividend income (net of investment expense) 2,916,145,314 2,561,796,788Realized gain – net 6,231,014,237 14,288,650,985Interest income from escrow deposit - BDO - 135,225,916Impairment loss (24,217,590) - 9,122,941,961 16,985,673,689Held to maturity investments Interest income (net of investment expense) 5,553,030,161 3,886,243,868Impairment loss - (384,687,671) 5,553,030,161 3,501,556,197 Loans and receivable Interest and penalty - net 3,584,393,094 3,897,938,850Impairment loss (4,081,582) (409,096) 3,580,311,512 3,897,529,754Investment property 498,309,719 1,174,323,874 21,870,286,293 27,591,983,808other income Interest income from cash in bank and cash equivalents 448,511,170 476,353,907Reversal of impairment loss/revaluation decrease 377,533,793 15,670,042Realized gain from non-current assets held for sale (net of related expense) 126,178,944 167,570,091Impairment loss-non current assets held for sale (17,150,920) (1,850,023)Others 180,259,522 839,318,952 1,115,332,509 1,497,062,970 22,985,618,802 29,089,046,778

* As published in the 2003 actuarial valuation report** Updated results after the increase in contribution rate to 10.40% in January 2007 and the 10% across-the-board pension increases in 2006 and 2007

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23. PERSoNALSERVICES

2009 2008Salaries and wages 2,042,390,245 1,957,051,863Mandatory contributions 985,359,489 845,027,493Incentive award 743,792,358 708,372,030Bonus and rice grant 465,204,453 450,282,867Allowances 226,048,594 202,688,796Retirement and terminal leave pay 128,261,500 313,257,700Other personal services 139,666,890 128,886,360 4,730,723,529 4,605,567,109

Provident fund (part of mandatory contributions) is a defined contribution plan made by both the SSS and its officers and employees. The affairs and business of the fund are directed, managed and administered by a Board of Trustees. Upon retirement, death or resignation, the employee or his heirs will receive from the fund payments equivalent to his contributions, his proportionate share of the SSS’ contributions and investment earnings thereon. However, effective 28 January 2005, 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.

24. MAINTENANCEANDoTHERoPERATINGExPENSES

2009 2008Maintenance and repairs 526,237,730 545,139,151Other operating expenses 494,713,981 357,785,136Service bureau expenses 378,396,095 360,423,942Light and water, communication expense 278,822,879 294,909,392Depreciation/amortization expense 223,998,558 172,824,811Impairment loss-intangible assets 196,141,423 -Office space rentals 124,087,159 113,487,084Supplies and materials 121,470,027 117,391,123Impairment loss-property and equipment/other assets - 178,098,704 2,343,867,852 2,140,059,343

25. oPERATINGLEASECoMMITMENTS

25.1 SSS as lessee

The SSS leases offices for its various branches under cancellable operating lease agreements. The leases have varying terms, escalation clauses and renewal rights.

25.2 SSS as lessor

The SSS leases out portion of its office space to various tenants under cancellable operating lease agreements. The leases have varying terms, escalation clauses and renewal rights.

26. FINANCIALRISkMANAGEMENT

The SSC and SSS management are active in the evaluation, scrutiny and credit approval process on all investments being undertaken by the SSS. The SSC has adopted adequate policies on investment procedures, risk assessment and measurement and risk monitoring by strict observance on the statutory limit provided under RA 8282 and compliance to the investment guidelines. Internal controls are also in place and comprehensive audit is being done by Internal Audit Services.

The main risk arising from the SSS’ financial instruments are interest rate risk, credit risk, liquidity risk and market price risk. The SSC and SSS management review and agree on the policies for managing these risks as summarized below.

26.1 Interest rate risk

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates.

The SSS strictly adheres to the provisions of Section 26 of RA 8282 which states that the funds invested in various corporate notes/bonds, loan exposures and other financial instruments shall earn an annual income not less than the average rates of treasury bills or any acceptable market yield indicator. Currently, the SSS has achieved a mix of financial investments with interest rates that are within acceptable level. Significant investments in said instruments have fixed interest rates while repricing rates of investments in corporate notes/bonds that carry floating interest rates are always based on acceptable yield (i.e. prevailing 3 months Philippine Dealing System Transaction-Fixing Rate plus a spread of not less than 0.50%).

26.2 Credit risk

Credit risk is the risk of suffering financial loss should any of the SSS’ counterparties fail to fulfill its contractual obligations to the SSS. This includes risk of non-payment by issuers and borrowers, failed settlement of transactions and default on outstanding contracts.

The SSS implements structured and standardized evaluation guidelines, credit ratings and approval processes. Investments undergo technical evaluation to determine their viability/acceptability. Due diligence process (i.e. credit analysis, evaluation of the financial performance of the issuer/borrower to determine financial capability to pay obligations when due, etc.) and information from third party (e.g. CIBI Information, Inc., banks and other institutions) are used to determine if counterparties are credit-worthy.

With respect to stockbrokers, the SSS has adopted the following mitigating measures:

a. Minimum requirements for stockbroker evaluation

a.1 Stockbroker is a Member of Good Standing of the Exchange as defined under Rule 3(g) of the Securities Regulation Code.

a.2 The stockbroker shall have a minimum capitalization of fifteen million pesos

a.3 The stockbroker shall be profitable for three of the last five years of operation. However, stockbrokers not able to meet the profitability requirement may be qualified provided that capitalization is at least thirty million pesos for those with losses.

a.4 The stockbroker shall have a positive track record of service to other institutional clients.

b. Stockbroker transactions, allocations and limits

b.1 Total daily transactions, excluding block transactions, per stockbroker shall not exceed 50% of stockbroker capitalization/stockholder’s equity, whichever is lower.

b.2 Total transactions, excluding negotiated block transactions, for each of the accredited stockbrokers, during the accreditation period, shall not exceed 15% of total SSS transactions.

b.3 Transactions, excluding negotiated block transactions, with the SSS by the stockbroker, within the year of accreditation, shall not exceed 40% of its total market transactions. This ensures that the stockbroker does not rely heavily on SSS for its business.

To avoid significant concentrations of exposures to specific industries or group of issuers and borrowers, SSS investments are regularly monitored so that in no time shall they exceed the prescribed cumulative ceilings specified in Section 26 of RA 8282.

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The following table shows the aging analysis of some financial assets:

2009 neither past due Past due but not impaired (Age in months) nor impaired 3-12 13-36 37-48 49-60 over60 Expired Impaired Total (In Millions)

Held for trading financial assets 980 - - - - - - - 980Available-for-sale financial assets 69,021 - - - - - - 997 70,018Held-to-maturity investments 79,948 - - - - - - 2,342 82,290Loans and receivable National Home Mortgage Finance Corporation 14,855 - - - - - - 136 14,991Home Development Mutual Fund 3,316 - - - - - - - 3,316Commercial and industrial loans 808 1 - - - - - 80 889Program MADE - - - - - - - 17 17Other government agencies 122 - - - - - - - 122Sales contract receivable 292 162 90 17 13 17 9 - 600 169,342 163 90 17 13 17 9 3,572 173,223

2008 neither past due Past due but not impaired (Age in months) nor impaired 3-12 13-36 37-48 49-60 over60 Expired Impaired Total (In Millions)Held for trading financial assets 1,340 - - - - - - - 1,340Available-for-sale financial assets 42,744 - - - - - - 995 43,739Held-to-maturity investments 45,123 - - - - - - 2,692 47,815Loans and receivable National Home Mortgage Finance Corporation 16,974 - - - - - - 136 17,110Home Development Mutual Fund 3,893 - - - - - - - 3,893Commercial and industrial loans 664 1 - - - - - 85 750Program MADE - - - - - - - 18 18Other government agencies 133 - - - - - - - 133Sales contract receivable 259 98 60 18 5 13 15 - 468 111,130 99 60 18 5 13 15 3,926 115,266

26.3 Liquidity risk

Liquidity risk arises from the possibility that the SSS may encounter difficulties in raising funds to meet its payment obligations (i.e. payment of benefits, working capital requirements and planned capital expenditures) when they fall due. The SSS manages this risk through daily monitoring of cash flows in consideration of future payment due dates and daily collection amounts. The SSS also maintains sufficient portfolio of highly marketable assets that can easily be liquidated as protection against unforeseen interruption to cash flow.

26.4 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). It manages this risk by monitoring the changes in the market price of the investments.

27. EVENTAFTERTHEREPoRTINGPERIoD

In the 3 February 2010 meeting of the SSS Investments Group with some members of the Legal Education Board (LEB) led by its Chairman, Justice Hilarion L. Aquino and the representatives of the Commission on Higher Education led by Atty. Carmelita Y. Sison it was agreed upon that the SSS shall return the P10 million to CHEd since it represents the remaining funds in the books of CHEd for purposes of LEB’s operational requirements. The SSS has no legal authority to hold the said amount since it does not form part of the Legal Education Fund (LEF).

28. otHeR MAtteRs

28.1 Commitments

Amount authorized but not yet disbursed for capital expenditures as of 31 December 2009 is approximately P1.51 billion.

28.2 Memorandum of Understanding with National Statistics Office (NSO)

On 9 September 2009, the SSS signed a Memorandum of Understanding with NSO. This in line with Executive Order No. 700 dated 16 January 2008 which mandates the SSS President and CEO to take over the work of the National Economic Development Authority (NEDA) Director-General to implement the streamlining and harmonization of the ID systems of all Government-Owned and Controlled Corporations (GOCC) towards a unified multi-purpose ID (UMID) system. The parties, in pursuance to the objectives of the UMID, shall build jointly, in favor of the NSO, a central verification and enrollment system (CVES) for the UMID. All direct and indirect costs of CVES shall be charged against the funds provided by the NSO.

28.3 Agreement with the Joint Venture composed of the ALLCARD PLASTICS PHILIPPINES, INC., the STRADCOM CORPORATION and the TECO ELECTRIC AND MACHINERY CO., LTD

On 14 December 2009, the SSS signed an Agreement with the Joint Venture composed of the ALLCARD PLASTICS PHILIPPINES, INC., the STRADCOM CORPORATION and the TECO ELECTRIC AND MACHINERY CO., LTD. The agreement covers/involves the (a) production, supply and delivery of SSS UMID contactless smartcards and plastic card jackets (b) supply, delivery, installation, customization, operation and maintenance of a card management system (CMS) and a key management system (KMS) (c) supply, delivery and maintenance oftwo 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 completionofCMSandKMS.

43

2009 is another fulfilling year for the Internal Audit Service (IAS) as we bore witness to the continuing effort of management,

particularly in the area of risk management, control and governance processes that resulted in the substantial reduction of system

and operational errors. Management has a reason to celebrate this victory, however, it should continue to be vigilant and take

appropriate action to address the deficiencies that have already been pointed out by IAS.

Following are the significant observations:

1. The Annual Confirmation of Pensioners (ACOP), a program designed to determine pensioners’ benefit entitlement, was successful

in terms of compliance and savings to the tune of more or less P6 million in monthly disbursements. However, management

must take immediate action against pensioners who have failed to comply with the requirements of the program despite notice.

IAS also strongly believes that the gains of the program should be sustained through the implementation of the Enhanced

Confirmation of Pensioners (ECOP) in 2010.

2.ClientsurveyresultsinAlabang,Kalookan,Makati1,Manila,Pasig,LaUnion,Bacoor,Malolos,Dagupan,Iloilo,Tacloban,Butuan

and General Santos validated previous years’ high approval ratings on SSS delivery of service given by the members-respondents

in surveys conducted by IAS in selected SSS Branch Offices. This only affirms that efforts geared toward improving quality service

are appreciated by members. With the completion of the Citizen’s Charter, in compliance with the Anti-Red Tape Act, SSS has

shifted its commitment level from satisfying to delighting the members; but, this commitment requires a competent, committed

and well-trained workforce, a working PC-based Queue and Management System and self-service terminals.

3. The perennial problems related to unreconciled real estate loan account records which haunted the SSS for years may finally

be resolved with the development of the Real Estate Loan (REL) System. Even as the completion of this automated system may

take some time, management should be lauded for its resolve in putting into place measures designed to simplify records

maintenance and administration.

In 2010, IAS will implement an Audit Program aligned with the Five I’s of the Neri Administration, as follows: Interface with Members;

Integrity of Systems and Information; Investment Management; Interpersonal and Technical Skills; and Information Technology.

Included in the program are the audit of payment facilities (e.g. Bayad Center, I-Remit, SM payment, etc.); Internal Quality Audit for

ISO Certification for SSS Registration Process; audit of initial benefit payment through the Mag-impok Program; and audit of the

implementation of the Accounts Monitoring System, among others. With the demonstrated willingness of Management to pursue

efforts in improving governance, we at IAS will do our best to match this dynamism with the implementation of audit projects

which will impact on the attainment of corporate objectives.

ANToNETTEL.FERNANDEZ

Assistant Vice President

I NTER NAL

AuDIToR’SREPoRT

44

FoRTHEyEAR* ASoFDECEMBER31 ASoFDECEMBER31yEAR W E W E P W/P E/P1959 24,719 1,211 401,769 10,956 632 636 171969 243,857 5,063 2,329,315 88,064 1,996 1,167 441979 612,712 11,909 7,381,193 221,000 2,328 3,171 951989 704,665 30,358 11,775,459 327,354 3,456 3,407 951999 1,152,049 25,894 21,325,966 573,314 4,041 5,277 1422000 1,304,866 26,868 22,630,832 600,182 3,996 5,663 1502001 901,834 33,124 23,532,666 633,306 3,942 5,970 1612002 775,367 34,733 24,308,033 668,039 3,896 6,239 1712003 743,201 34,535 25,051,234 702,574 4,058 6,173 1732004 615,152 32,236 25,666,386 734,810 4,043 6,348 1822005 561,250 23,161 26,227,636 757,971 4,169 6,291 182 2006 511,646 23,792 26,739,282 781,763 4,135 6,467 1892007 501,938 21,572 27,241,220 803,335 4,145 6,572 1942008 518,348 27,020 27,759,568 830,355 4,182 6,638 1992009 458,364 20,036 28,217,932 850,391 5,900 4,783 144

* net of terminationWorker (W), Employer (E), SSS Personnel (P)

Assets ReseRVes InVestMentsyear AMT %INC/(DEC) AMT %INC/(DEC) AMT %INC/(DEC)1959 68.2 - 67.6 - 66.2 - 1969 963.2 1,313.3 953.7 1,310.3 919.7 1,288.9 1979 7,258.2 653.6 7,142.6 648.9 7,098.2 671.8 1989 48,200.9 564.1 47,693.6 567.7 46,944.2 561.4 1999 176,875.1 267.0 165,820.6 247.7 168,336.8 258.6 2000 181,741.0 2.8 170,408.7 2.8 166,183.1 (1.3) 2001 163,113.6 (10.2) 161,234.3 (5.4) 151,015.0 (9.1) 2002 162,606.4 (0.3) 159,547.7 (1.0) 149,211.0 (1.2) 2003 170,875.3 5.1 168,137.3 5.4 155,939.7 4.5 2004 179,084.1 4.8 176,386.1 4.9 160,500.4 2.9 2005 199,713.2 11.5 196,287.5 11.3 181,775.4 13.3 2006 228,444.5 14.4 224,995.9 14.6 205,225.5 12.9 2007 247,737.2 8.4 243,016.7 8.0 225,565.3 9.9 2008 233,122.2 (5.9) 225,602.9 (7.2) 211,355.2 (6.3)2009 272,610.7 16.9 265,329.8 17.6 248,641.4 17.6

CoNSoLIDATEDGRoWTHoFASSETS,RESERVES&INVESTMENTS(Amounts in Million Pesos)

Investmentand operatingExpensesyear Contributions otherIncome Benefits &others NetRevenue1957 - 1959 72.5 4.0 2.8 6.1 67.7 1960 - 1969 959.9 232.3 187.9 118.3 886.0 1970 - 1979 5,599.3 2,677.9 1,584.0 504.4 6,188.8 1980 - 1989 25,114.6 32,879.0 15,791.1 1,852.7 40,349.9 1990 - 1999 158,632.2 139,020.1 158,355.9 17,177.0 122,119.4 2000 30,320.5 12,341.1 33,889.2 4,202.1 4,570.4 2001 31,371.8 14,238.9 39,015.0 4,447.4 2,148.2 2002 34,187.7 11,705.0 40,871.6 4,591.5 429.6 2003 39,420.4 12,763.1 42,806.4 4,776.6* 4,600.5 2004 43,935.8 8,853.3 44,882.5 5,327.3* 2,579.3 2005 47,483.4 12,316.3 46,269.8 5,638.4* 7,891.4 2006 52,543.6 12,107.9 52,122.0 6,379.9* 6,149.6 2007 61,829.1 17,870.0 60,746.6 6,819.3* 12,133.2 2008 68,879.3 29,089.0 67,917.4 6,745.6* 23,305.32009 72,350.9 22,985.6 72,050.0 7,074.6* 16,212.0

* Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC

CoNSoLIDATEDPRoGRESSoFoPERATIoNS(Amounts in Million Pesos)

HISToRICALDATA

SSSCoVERAGEANDPERSoNNELFoRCE

45

Assets ReseRVes InVestMentsyear AMT %INC/(DEC) AMT %INC/(DEC) AMT %INC/(DEC)1959 68.2 - 67.6 - 66.2 - 1969 963.2 1,312.3 953.7 1,310.8 919.7 1,289.31979 6,750.7 600.9 6,641.6 596.4 6,608.6 618.6 1989 42,974.2 536.6 42,466.9 539.4 41,781.2 532.21999 159,688.2 271.6 148,633.8 250.0 151,801.8 263.3 2000 163,325.7 2.3 152,002.7 2.3 149,226.1 (1.7)2001 144,823.8 (11.3) 141,957.2 (6.6) 134,521.0 (9.9)2002 143,098.5 (1.2) 139,660.0 (1.6) 130,967.2 (2.6)2003 150,618.9 5.3 147,730.9 5.8 138,909.2 6.12004 158,007.4 4.9 155,159.4 5.0 143,304.7 3.2 2005 177,719.6 12.5 174,144.2 12.2 166,535.0 16.22006 205,878.6 15.8 202,316.0 16.2 187,759.5 12.72007 224,928.6 9.3 220,097.1 8.8 211,167.9 12.5 2008 209,535.8 (6.8) 201,907.9 (8.3) 192,663.2 (8.8)2009 247,891.3 18.3 240,502.0 19.1 228,919.5 18.8

SSSGRoWTHoFASSETS,RESERVES&INVESTMENTS(Amounts in Million Pesos)

Investmentand operatingExpensesyear Contributions otherIncome Benefits &others NetRevenue1957 - 1959 72.5 4.0 2.8 6.1 67.7 1960 - 1969 959.9 232.3 187.9 118.3 886.0 1970 - 1979 5,122.3 2,573.0 1,511.8 495.6 5,687.9 1980 - 1989 23,081.0 29,353.0 15,058.7 1,751.6 35,623.7 1990 - 1999 154,417.9 123,034.2 152,474.4 16,091.3 108,886.4 2000 29,885.5 10,217.3 32,735.1 4,014.9 3,351.2 2001 30,912.0 12,390.1 37,813.5 4,211.5 1,277.0 2002 33,702.1 9,901.2 39,566.3 4,340.5 (303.5)2003 38,634.7 11,694.6 41,622.9 4,644.8 4,061.6 2004 43,083.6 7,530.1 43,743.3 5,192.0 1,678.4 2005 46,714.9 10,872.9 45,180.8 5,505.9 6,781.4 2006 51,633.4 10,953.0 51,051.6 6,249.1 5,285.8 2007 60,769.5 17,117.8 59,665.4 6,697.9 11,524.0 2008 67,668.2 27,848.4 66,820.3 6,636.3 22,059.92009 71,166.9 21,988.3 70,963.9 6,967.8 15,223.6

SSSPRoGRESSoFoPERATIoNS(Amounts in Million Pesos)

Assets ReseRVes InVestMentsyear AMT %INC/(DEC) AMT %INC/(DEC) AMT %INC/(DEC)1979 507.5 - 501.0 - 489.6 -1989 5,226.7 929.8 5,226.7 943.2 5,163.0 954.6 1999 17,186.9 228.8 17,186.8 228.8 16,535.0 220.3 2000 18,415.3 7.1 18,406.0 7.1 16,956.9 2.6 2001 19,303.0 4.8 19,277.1 4.7 16,494.0 (2.7)2002 19,508.0 1.1 19,887.7 3.2 18,243.8 10.6 2003 20,406.4 4.6 20,406.4 2.6 17,030.5 (6.7)2004 21,226.7 4.0 21,226.7 4.0 17,195.7 1.0 2005 22,143.3 4.3 22,143.3 4.3 15,240.4 (11.4)2006 22,679.9 2.4 22,679.9 2.4 17,466.1 14.6 2007 22,919.6 1.1 22,919.6 1.1 14,397.4 (17.6)2008 23,695.1 3.4 23,695.1 3.4 18,692.0 29.82009 24,827.9 4.8 24,827.9 4.8 19,721.9 5.5

EMPLoyEES’CoMPENSATIoNANDSTATEINSuRANCEFuNDGRoWTHoFASSETS,RESERVES&INVESTMENTS(Amounts in Million Pesos)

Investmentand operatingExpensesyear Contributions otherIncome Benefits &others NetRevenue1975 - 1979 477.0 104.9 72.2 8.8 500.9 1980 - 1989 2,033.6 3,526.0 732.3 100.8 4,726.5 1990 - 1999 4,214.3 15,985.9 5,881.6 1,085.7 13,233.0 2000 435.0 2,123.9 1,154.1 185.7 1,219.2 2001 459.8 1,848.8 1,201.5 235.8 871.2 2002 485.6 1,803.8 1,305.3 251.0 733.0 2003 785.7 1,068.5 1,183.5 131.8* 538.9 2004 852.2 1,323.2 1,139.2 135.3* 900.9 2005 887.1 1,444.4 1,089.0 132.5* 1,110.0 2006 910.2 1,154.9 1,070.4 130.8* 863.9 2007 1,059.6 752.2 1,081.2 121.4* 609.2 2008 1,211.1 1,240.6 1,097.0 109.3* 1,245.4 2009 1,183.9 997.3 1,086.0 106.8* 988.4

* Excludes SS-EC Share in the Corporate Operating Budget of ECC and OSHC

EMPLoyEES’CoMPENSATIoNANDSTATEINSuRANCEFuNDPRoGRESSoFoPERATIoNS(Amounts in Million Pesos)

So C IA L S ECu R I Ty

CoMMIssIon

Seated from Left to Right:

Chairman Thelmo Y. Cunanan

Vice Chairman Romulo L. Neri

Standing from Left to Right:

Commissioner Victorino F. Balais

Commissioner Fe Tibayan-Palileo

Commissioner Jose Sonny G. Matula

Commissioner Sergio R. Ortiz-Luis, Jr.

Commissioner Marianito D. Roque

Commissioner Marianita O. Mendoza

Commissioner Donald G. Dee

So C IA L S ECu R I Ty

CoMMIssIon

oFFICEoFTHEPRESIDENTANDCEo/oFFICESDIRECTLyuNDERPRESIDENTANDCEoStandingfromLefttoRight:AVPAntonetteL.Fernandez,AVPJoelP.Palacios,CEo-IVJuanitaL.Reyes,VPMayCatherineC.Ciriaco,President&CEoRomuloL.Neri,VPMarissuG.Bugante,SpecialAssistanttothePresidentandCEoAntonioN.Echevarria,Jr.,CEo-VLourdesC.Reyes,oICElviraG.Alcantara-Resare

48

s e n I o R

MANAGEMENT

PRESIDENTANDCEoANDINFoRMATIoNTECHNoLoGyMANAGEMENTGRouP(ITMG)SeatedfromLefttoRight: VPNicholasC.Balbuena,SVPMiguelE.Roca,Jr.StandingfromLefttoRight:President&CEoRomuloL.Neri,SpecialAssistanttothePresidentandCEoAntonioN.Echevarria,Jr.NotinPhoto: VPAntonioG.Maralit,AVPGwenMarieJudyD.Samontina,oICVanReneM.orpilla

CoRPoRATESERVICESSECToRANDoFFICEoFTHESECRETARyToTHECoMMISSIoNSeatedfromLefttoRight:AVPMilagrosM.Pagayatan,SVPAmadorM.Monteiro,oICMarissaL.TizonStandingfromLefttoRight:oICJoselitoA.Vivit,AVPJesseJ.Caberoy,VPAlfredoS.Villasanta,oICNestorR.Sacayan,AVPSantiagoDionisioR.Agdeppa,AVPDaisyS.Real,AVPRenatoM.Custodio

s e n I o R

MANAGEMENT

BRANCHoPERATIoNSSECToRNATIoNALCAPITALREGIoNGRouP/LuZoNGRouP/INTERNATIoNALAFFAIRSANDBRANCHExPANSIoNDIVISIoNStandingfromLefttoRightFirstRow:AVPJosieG.Magana,oIC-ClusterHeadVilmaP.Agapito,AVPAidaV.delosSantos,EVP&ChiefActuaryHoracioT.Templo,VPJudyFrancesA.See,AVPNaciancinoL.MonrealStandingfromLefttoRightSecondRow:AVPConsolacionM.Cancio,AVPAlbertoC.Alburo,VPJoseB.Bautista,oIC-ClusterHeadNiloD.DespuigNotinPhoto: AVPLuisV.olais

INVESTMENTSGRouPSeatedfromLefttoRight:AVPMa.LuzC.Generoso,AVP&DeputyChiefActuaryRizaldyT.CapulongStandingfromLefttoRight:SpecialAssistanttotheExecutiveofficerInvestmentandFinanceSectorEmmanuelA.Trinidad,AVPMarianoPabloS.Tolentino,AVPLiliaS.Marquez,SVPEdgarB.Solilapsi,VPGamelinZ.oczon

BRANCHoPERATIoNSSECToRPRoGRAMMANAGEMENTGRouPSANDoTHERoFFICESuNDERExECuTIVEVICEPRESIDENT&CHIEFACTuARyStandingfromLefttoRightFirstRow:AVPAgnesE.SanJose,VPMarioR.Sibucao,EVP&ChiefActuaryHoracioT.Templo,VPJudyFrancesA.See,oICElpidioS.DeChavez,oICVictoriau.Poquiz,AVPAntonioS.Argabioso,AVP&DeputyChiefActuaryRizaldyT.CapulongStandingfromLefttoRightSecondRow:SpecialAssistanttotheExecutiveofficerBranchoperationSectorReynaldoC.oriel,oICLeticiaB.ongStandingfromLefttoRightThirdRow:AVPVicenteA.Curimao,oICMarilouM.Betic

BRANCHoPERATIoNSSECToRVISAyAS/MINDANAoGRouPSStandingfromLefttoRight:AVPRodrigoB.Filoteo,oIC-ClusterHeadManolitoC.Tagalog,AVPHelenC.Solito,AVPEmmanuelR.Palma,AVPJosefinao.Fornilos,VPEddieA.Jara,EVP&ChiefActuaryHoracioT.Templo

nCR soUtH ClUsteR

HELEN L. ABOLENCIASan Juan Receiving Center

MA. RITA S. AGUJA*Makati 3 Receiving Center

TERESITA L. ARAOSPasay Roxas Blvd. Processing Center

LETICIA G. BARBERSAlabang Processing Center

RHODORA G. BONITA*Pasay Taft Receiving Center

CHRISTINE GRACE B. FRANCISCO*Paranaque Receiving Center

MA. LOURDES T. FLORESMakati 2 Receiving Center

FE MARIE FERNANDEZ-GERALDO*Taguig Receiving Center

JOHNSY L. MANGUNDAYAOMakati 1 Processing Center

MARCIANA A. MARQUEZMandaluyong Receiving Center

AMALIA N. TOLENTINO*Las Piñas Receiving Center

lUZon noRtH ClUsteR

JOSEPHINE C. ABRILLa Union Processing Center

ESTRELLA R. ARAGONCauayan Receiving Center

PORFIRIO M. BALATICOTuguegarao Receiving Center

JANET D. CANILLAS*Vigan Receiving Center

MACARIO U. CATIPON, JR.*Solano Receiving Center

BENEDICTA B. GARCIA*Bangued Receiving Center

BENJAMIN R. LOPEZBaguio Processing Center

ROMEO E. REYESSantiago Receiving Center

NANCY M. UMOSOLaoag Receiving Center

ABELARDO C. YOGYOGBontoc Receiving Center

lUZon CentRal ClUsteR

VILMA P. AGAPITO*Cluster Head Luzon Central

JOSE ALVIN M. ALTREUrdaneta Receiving Center

SIMPLICIA M. BANIAGOMalolos Processing Center

JULIUS CESAR Y. BASBAS*Baler Receiving Center

NORMITA M. CRUZ*Mariveles (BEPZ) Receiving Center

MARITES A. DALOPE*Sta. Maria Receiving Center

PABLITA A. DAVID*Meycauayan Receiving Center

CORITA M. GADUANGSan Fernando Receiving Center

ELIZABETH R. GARCIABalanga Receiving Center

MA. MAXIMA C. MACARAEGOlongapo Receiving Center

ALBINA LEAH C. MANAHAN*Baliuag Receiving Center

LAURA M. MARIANOAngeles Receiving Center

* Officer-In-Charge (OIC)

soCial seCURitY Commission

THELMO Y. CUNANANChairman

ROMULO L. NERIVice-Chairman

VICTORINO F. BALAISDONALD G. DEEJOSE SONNY G. MATULAMARIANITA O. MENDOZASERGIO R. ORTIZ-LUIS, JR.FE TIBAYAN-PALILEOMARIANITO D. ROQUEMembers

sss manaGement

PRESIDENT and CEO

ROMULO L. NERIPresident and Chief Executive Officer

eXeCUtiVe ViCe PResident &eQUiValent RanK

HORACIO T. TEMPLOChief Actuary and Executive Vice President for Branch Operations Sector

ANTONIO N. ECHEVARRIA, JR.Special Assistant to the President and CEO

senioR ViCe PResident

AMADOR M. MONTEIROLegal and Collection Group

MIGUEL E. ROCA, JR.Information Technology Management Group

EDGAR B. SOLILAPSIInvestments Group

ViCe PResident

NICHOLAS C. BALBUENAComputer Operations Division

JOSE B. BAUTISTALuzon Group

MARISSU G. BUGANTEPublic Affairs and Special Events Division

MAY CATHERINE C. CIRIACOManagement Services Division and Concurrent Head of Corporate Policyand Planning Office

EDDIE A. JARAVisayas and Mindanao Group

ANTONIO G. MARALITPlanning and Research Division

GAMELIN Z. OCZONTreasury Division

JUDY FRANCES A. SEECoverage and Collection Program Division and Concurrent Head of International Affairs and Branch Expansion Division

MARIO R. SIBUCAOMember Assistance Center ProgramManagement Department and Concurrent Head of Benefits Program Division

ALFREDO S. VILLASANTAOffice and General Services Division

assistant ViCe PResident, eQUiValent RanK & ClUsteR Head

SANTIAGO DIONISIO R. AGDEPPACluster Legal Support Unit

ALBERTO C. ALBUROOfficer-In-Charge, National Capital Region (NCR) Group

ANTONIO S. ARGABIOSOContributions Collection ProgramManagement Department

JESSE J. CABEROYHuman Resource Management Division

CONSOLACION M. CANCIONCR South Cluster

RIZALDY T. CAPULONGSecurities Trading and ManagementDepartment and Concurrent DeputyChief Actuary

VICENTE A. CURIMAO, JR.Medical Operations Department andOfficer-In-Charge, Medical Program Division

RENATO M. CUSTODIOCommission Legal Staff I

AIDA V. DELOS SANTOSLuzon South Cluster

ANTONETTE L. FERNANDEZInternal Audit Service Division

RODRIGO B. FILOTEOWestern Mindanao Cluster

JOSEFINA O. FORNILOSNorthern Mindanao Cluster

MA. LUZ C. GENEROSOLoans Program Management Division

JOSIE G. MAGANANCR North Cluster

LILIA S. MARQUEZInstitutional Loans Department

NACIANCINO L. MONREALNCR Central

LUIS V. OLAISLuzon North Cluster

REYNALDO C. ORIELSpecial Assistant to the Executive Officer,Branch Operations Sector

MILAGROS M. PAGAYATANCommission Legal Staff II and ActingCommission Secretary/Clerk of the Commission

JOEL P. PALACIOSMedia Affairs Department

EMMANUEL R. PALMASouthern Mindanao Cluster

DAISY S. REALCompetency and PerformanceManagement Department

JUANITA L. REYESCorporate Executive Officer IVOffice of the President and CEO

LOURDES C. REYESCorporate Executive Officer VOffice of the President and CEO

GWEN MARIE JUDY D. SAMONTINATechnical Support Division

AGNES E. SAN JOSERetirement, Death and Funeral ProgramManagement

HELEN C. SOLITOCentral Visayas Cluster

MARIANO PABLO S. TOLENTINOAsset Management Department

EMMANUEL A. TRINIDADSpecial Assistant to the Executive OfficerInvestments and Finance Sector

dePaRtment Head/oFFiCeR-in-CHaRGe

LEO CALIXTO C. ABAYON*Network and Communications Department

ELVIRA G. ALCANTARA-RESAREOfficer-In-Charge of Controllership Division

ROBERTO B. BAUTISTAInternational Affairs Department

AUREA G. BAYOffice of the EVP for Branch Operations Sector

MARILOU M. BETICReal Estate Loans Accounting Department and Officer-In-Charge of Operations Accounting Division

FELIPE R. CABANEROBranch Computer Operations Department

HIDELZA B. CASTILLORecords and Information Management Center

ELEONORA Y. CINCOQuality Management Department

GLORIA Y. CUISIALocal Branch Expansion Department

CELSO C. CUNANANData Center Operations Department

MARIE ADA ANGELIQUE T. DE SILVAMember Loans Program ManagementDepartment

EUGENIA D. DELA CRUZMember Relations Department

NORMITA M. DOCTORSMEC and Disability ProgramManagement Department

JOCELYN M. EVANGELISTAOperations and Financial Audit Department

ROGELIO A. FUNTELARMember Assistance Center ProgramManagement Department

MA. VIANNEY O. GO*Investments Accounting Department

SONIA P. GUINTO*Corporate Communications Department

FERNANDO P. GUTIERREZ*System Software Administration Department

EVELYN S. MALAZARTECashiering Department

RENATO N. MALTOTechnology Research Department andConcurrent Officer-In-Charge, Information Systems Security Office

ANASTASIA V. MANALACGeneral Accounting Department

ROSALINA C. MANANSALAContributions Accounting Department and OAD-CDPU

NORA M. MERCADOMembership Program Management Department

LETICIA B. ONG*Medical Program Department

VAN RENE M. ORPILLAApplications Development andMaintenance I and Officer-In-Chargeof Applications System Division

ALAN GENE O. PADILLAApplications Development andMaintenance III

VENUS D. PASCUALBranch Accounting Department

VICTORIA U. POQUIZ*Health Care Department

DAMIANA M. QUEZONApplications Development and Maintenance II

HYDEE R. RAQUID*Information Systems Audit Department

MA. SALOME E. ROMANO*Planning and Standards Department

NESTOR R. SACAYAN*Engineering and Maintenance Department

JOSE ANTONIO L. SALAZARID Card Center

ELIZABETH L. SAVELLANO*Commission Secretariat Department

CARMEN O. SORIANOOperations Research Department

SYLVETTE C. SYBICOForeign Branch Expansion andMonitoring Department

MARISSA L. TIZONHuman Resource AdministrationDepartment and Concurrent Officer-In-Charge, Relationship Management Department

ARNOLD A. TOLENTINOManagement Information Service Department

IKEA.TUBIO*Anti Fraud Department

GUILLERMO M. URBANO, JR.*Real Estate Department

MARIVIC S. VILLARAMADatabase Administration Department

ANITA A. VILLENAOffice Services Department

AGNES P. VIVIT*Budget Department

JOSELITO A. VIVIT*Legal Department

BRanCH Head/oFFiCeR-in-CHaRGe

nCR CentRal ClUsteR

ARTHUR O. ABARYNovaliches Receiving Center

JOCELYN Q. GARCIA*San Francisco del Monte Receiving Center

JOSEFINA EDITA F. MATA*Commonwealth Receiving Center

ELIZABETH C. REYESDiliman, Quezon City Processing Center

LORELEI B. SOLIDUMCubao Processing Center

nCR noRtH ClUsteR

CYNTHIA O. BARCELONPasig Processing Center

AVELINA M. BAUTISTA*Valenzuela Receiving Center

ELLEN BUSTAMANTE*Pateros Receiving Center

VIRGINIA F. CALASAHAN*Pasig 2 Receiving Center

MILAGROS N. CASUGAKalookanProcessingCenter

ZARA M. DIZON*Recto Recieving Center

BERLITA F. FABREROAntipolo Receiving Center

EVELYNA P. GONZALOMarikina Processing Center

ADELINA A. LIQUEMalabon Receiving Center

MA. LUZ N. BARROS-MAGSINOManila Processing Center

PRISCILA F. MARALIT*Cainta Receiving Center

FELIZARDO B. MINOR, JR.*San Mateo Receiving Center

TERESITA V. SOLIMAN*Welcome Receiving Center

OSCAR S. VILLAROMAN, JR.*Binondo Receiving Center

SSC&SSS

MANAGEMENTDIRECToRy

52

NARCISO M. MARTINEZ, JR.*Alaminos Receiving Center

MONALIZA C. NARDOCamiling Receiving Center

CEASAR P. SALUDODagupan Processing Center

MARILOU M. SANTOS *Iba Receiving Center

GUILLERMO S. TARUCCabanatuan Receiving Center

GERARDA N. TERRIBLETarlac Processing Center

lUZon soUtH ClUsteR

JESREL H. ANCHETA*Boac (Marinduque) Receiving Center

GREGORIO P. ASENDIDOCalapan Receiving Center

SANTISIMA ROSARIO C. BAAC*Puerto Pricesa (Palawan) Receiving Center

CORAZON L. BALAGBISBatangas Receiving Center

VICTORINA G. CARLOS*Tagaytay Receiving Center

VIRGINIA S. CRUZBacoor Processing Center

IMELDA G. FAMILARAN*Romblon Receiving Center

JOSEPHINE S. HIPOLITO*Sta. Cruz Receiving Center

NELSON P. IBARRACalamba Receiving Center

VICTORIA A. LIWANAGLipa Receiving Center

ROBERTO D. MARCELO*San Jose (Occ. Mindoro) Receiving Center

TITO A. NAVACarmona Receiving Center

ROBERTO S. PAGAYUNAN*Lucena Receiving Center

EXEQUIEL O. PANGANIBAN*Rosario (EPZA) Receiving Center

MARINA PAULINA G. PANTE*Infanta Receiving Center

ANTONIO V. SORIANOBiñan Receiving Center

WENCESLAO G. VIRTUCIO, JR.San Pablo Processing Center

lUZon BiCol ClUsteR

NILO D. ALMOSERA*Masbate Receiving Center

DIVINA T. AVILAVirac (Catanduanes) Receiving Center

ALBERTO R. BONAFE, JR. *Sorsogon Receiving Center

ANTONIO A. CASIMIRO*Tabaco Receiving Center

ELIZABETH A. DE GUZMAN*Goa (Camarines Sur) Receiving Center

NILO D. DESPUIG*Cluster Head Luzon Bicol

CLARIBEL L. REBUENONaga Processing Center

ELENITA SAMBLEROLegaspi Receiving Center

VIRGILIO A. SANTIAGO*Daet (Camarines Norte) Receiving Center

PRISCO S. SORSONA*Iriga Receiving Center

CentRal VisaYas ClUsteR

GEMMA C. CABERTE*Ormoc Receiving Center

LILIBETH A. CAJUCOM. M.D.*Tacloban Processing Center

NICETA M. CARRETAS*Catbalogan Receiving Center

ERIC A. CORONADO*Toledo Receiving Center

MARIO V. CORRO*Cebu Processing Center

JOAQUIN B. DESCARTIN*Bogo Receiving Center

RODRIGO B. GREGANA*Maasin Receiving Center

ALBERTO L. MONTALBO*Lapu-lapu Receiving Center

REMIGIO B. MONTEMAYOR*Mandaue Receiving Center

BENJAMIN A. POMBOCalbayog Receiving Center

MARINO B. TALICTIC*Tagbilaran Receiving Center

WesteRn VisaYas ClUsteR

ELVIRA B. BANICOIloilo Processing Center

LILANI B. BENEDIAN*Bais Receiving Center

RAUL A. CASIANOBacolod Processing Center

ISAAC P. CIOCON, JR.Kalibo(Aklan)ReceivingCenter

FELICITAS A. DEMANDANTE*SagayReceiving Center

REYNALDO V. ESPINOSA*Roxas (Capiz) Receiving Center

JANE T. GARGOLES*Victorias Receiving Center

MELITA S. MEDINA*Bago City Receiving

VICTOR M. NICOR*KabankalanReceivingCenter

ESTEBAN L. PANES*Antique Receiving Center

EMELIA B. SOLINAP*San Carlos Receiving Center

MANOLITO C. TAGALOG*Cluster Head Western Visayas

IRENEO T. VILLAFLOR*Dumaguete Receiving Center

soUtHeRn mindanao ClUsteR

JOSE S. CATOTO, JR.General Santos Processing Center

JOVE L. COLASITODavao Processing Center

RIZALITO ALBERTO C. DE LEON*Toril (Davao II) Receiving Center

SERAFIN G. HINGCO*KidapawanReceivingCenter

EDGAR P. JUANICHDigos Receiving Center

SUKARNOD.PENDALIDAYCotabato Receiving Center

ROSELANE B. PLAZA*Mati (Davao Oriental) Receiving Center

SUZETTE H. PURIFICACION*Tacurong Receiving Center

JULIOUS J. WALES, M.D.*Bislig Receiving Center

VALERIANO P. WENCESLAO, JR.Tagum Receiving Center

REDENTOR S. VIOLA*KoronadalReceivingCenter

noRtHeRn mindanao ClUsteR

EDWIN M. ALO*Cagayan de Oro Processing Center

PERKINSB.CALIXTO*Camiguin Receiving Center

BENIGNO J. DAGANI, JR.*Surigao City Receiving Center

ANTONIO G. FABIA*Valencia Receiving Center

ANNA PEARL J. FUENTESOzamis Receiving Center

JOSE ROEL J. HERBIETO*Oroquiete Receiving Center

MA. RAINE L. JAMEROButuan Processing Center

CHERYL V. JARIOL*Iligan Receiving Center

INESIA S. MARQUEZ*San Francisco

OSWALDO B. MONTENEGRO*Tandag Receiving Center

MARILYN O. TAMAYO*Gingoog Receiving Center

WesteRn mindanao ClUsteR

JAMESB.BUCKLY*Basilan Receiving Center

ELIZABETH G. CABATINGANZamboanga Processing Center

JAIME S. CASUMPANG*Dipolog Receiving Center

RUDY M. LACANDALO*Ipil Receiving Center

GODOFREDO M. MARTINEZPagadian Receiving

FERDAUSI A. SALASA *Jolo (Sulu) Receiving Center

sss FoReiGn RePResentatiVe oFFiCes

FoReiGn BRanCH eXPansionmonitoRinG dePaRtment & Poea

SONIA S. DOMINGO*SSS POEA OFFICE

asia & PaCiFiC

MARIVIC G. RUTORBrunei Representative Office

ROBERTO V. ROLDANHongkong Representative Office

JOSEFINA A. MADUROSingapore Representative Office

FRENELIE ANN L. ONGTaipei, Taiwan Representative Office

middle east

WILMA M. ORTIZAbu Dahbi, UAE Representative Office

ABDAWIYAK.NAVARROAl--‐khobar,KSARepresentativeOffice

BENNETTE A. CUETODoha, Qatar Representative Office

BENGIE P. HERMOSOJeddah,KSARepresentativeOffice

FRANCISCO U. UYKuwaitRepresentativeOffice

DANILO Q. CALAPERiyadh,KSARepresentativeOffice

eURoPe

ALFREDO JOSE I. RECIO, JR.London,UnitedKingdomRepresentativeOffice

THELMA V. VENTURANZAMilan, Italy Representative Office

FRANCISCO B. BACOLRome, Italy Representative Office

Usa

MANUEL B. LLANESSan Francisco, California Representative Office

SSSBuilding,EastAvenue,DilimanQuezonCity,Philippines

Tel.Nos.920-6401/920-6446E-mail:member_relations@sss.gov.ph

www.sss.gov.ph