Setting benchmarks at the SSS (1)

published 28 July 2008

Corazon dela Paz-Bernardo would not suffer being called “unpatriotic,” even if former Finance Secretary Jose Isidro Camacho, who was given the task of persuading her to be president and chief executive officer of the Social Security System in 2001, told her so in jest.

Now, at the beginning of her last week on the job, dela Paz-Bernardo goes with mixed feelings.

“I am sad,” admits the SSS chief in an interview last week at her agency's Makati building. “I have learned to love this office and its people, and they have shown me much appreciation.” She refers to a recent trip to Cebu where employees paid tribute to her and thanked her for her role in shoring up the agency's image to its members. “In a way I wish I can see to it that our reforms are continued.”

“At the same time, I am relieved. I will be free of the stress that comes from being accountable to millions.”

That dela Paz-Bernardo takes her accountability seriously has pushed her to work so hard in her first full-time stint in government. Her typical day when she's not traveling: Meetings, phone calls, paper work. She brings home more of the latter and works until midnight. In the last seven years, this frenetic lifestyle has worsened her scoliosis -- it is now deemed degenerative. She has also gone through a colon surgery. Actually, she came to the interview in a wheelchair, only standing up as she entered the conference room. She still has problems with her digestive system. So now she bows out with the perfect excuse.

And on Friday, former National Economic and Development Authority director general and acting Commission on Higher Education chairman Romulo Neri will take the reins of the SSS from Dela Paz-Bernardo. The transition fueled much speculation, but the outgoing president herself exhorted SSS employees, members and the general public to give Neri a chance.

He sent her a text message thanking her for her “kind words in the media.” She replied that he deserved it and reminded him that the agency's members needed nothing less. If not, “kawawa naman sila.” Neri texted back: “Yes. I will do my best.”

But really, Neri should be thanking dela Paz-Bernardo for more than her words. In the last seven years, she has worked painstakingly to make the SSS a financially viable institution and redeemed its image before the public. This mean feat now gives Neri a benchmark against which to measure his intentions, his diligence, his resolve, his results, his loyalties.

And maybe even his patriotism as well.


**

Dela Paz Bernardo initially thought one year would be a reasonable time to stay at the SSS. She figured that period was long enough to introduce a change or two. She thought herself a fast learner, even though her expertise lay elsewhere, having spent decades of her illustrious career at Price Waterhouse, an international audit firm.

But she was overwhelmed when she beheld for the first time the problems at the agency. When she came in, the employees were on strike. The agency was well in excess of the administrative costs allowed it by the SSS Charter itself. Benefit payments far exceeded collections. The actuarial life of the reserve fund was only good until 2015. Who knew what would happen beyond that? Worst of all, the SSS was perceived to be the epitome of all that was wrong in a bureaucratic agency, where lines were long and the processing of claims even longer. Clearly, its members were unhappy.

She broke the ice between herself and the employees by introducing herself this way. “Taga Pateros po ako. Galing po ako sa public school. Nagtatagalog po ako.” She listened to employees' presentations on their analyses of the problems and what could be done to address them.

Dela paz-Bernardo was amazed. Her predecessor as well as the employees themselves had plenty of good ideas. They knew their troubles and what caused them. They had all the solutions spelled out, too. Their main problem was implementation. These ideas needed to go beyond the drawing board to really make a difference. They already knew the what; the how was now the question.

Immediately, she created a task force to implement cost-cutting measures – drastic ones. Employees did not really have much choice as the perks they had gotten used to were stopped. Dela Paz Bernardo commends the SSS employees for this great deal of sacrifice.

And the people had to work longer hours, too, not to mention harder. They made a covenant of service in which they committed to act on members' claims in a shorter time. On the other hand, they also worked doubly hard to collect the payments. The SSS reached out to the people, improving its branch network, installing tellering functions in its offices and hooking up with malls, banks and bayad centers to make remitting contributions less of a hassle. All these to cater more effectively to the 26.7 million individual- and 781,763 employer-members.

Several years into the job, Dela Paz-Bernardo was able to increase contributions from employers. She made the rounds of business groups explaining the SSS’ dire need. She must have argued convincingly, as she was able to secure employers’ support. Ultimately, in 2005, collections surpassed benefit payments. The surplus amounted to P1.21 billion; in the following year, collections again exceeded payments by P421 million. The 2006 surplus would have been much higher if not for the 10 percent across-the-board pension increase adopted by the agency, much to the delight of its pensioners. Likewise, the actuarial life of the reserve fund has been extended by 21 years, to 2036.

**

So what should be at the top of Mr. Neri’s agenda?

First, he should not be complacent with the SSS’ early gains, dela Paz-Bernardo says. The financial viability of the agency must b improved even further. There will be more members coming in, and consequently, more who will require its services. Investments have to be prudent. The actuarial life has to be perpetuating.
Second, information technology facilities must be improved. Third, records have to made digital for easier storage and access. These are ways to make life easier both for the members and the employees.

Fourth, relate well to the public. Assure them that their hard-earned contributions are secure and would be available when it is their turn to use them. The SSS has to be relevant to people. Its services have to have value for them. Otherwise, it has no reason for being.

**

(More on Dela Paz-Bernardo’s international work and her reflections on her stint at the SSS in this space next week)