SSS Annual Report 2009

Is Our Your strength ability2009A N N U A L R E P O RT

Is Our strength SSS: Source of Strength and Stability2009A N N U A L R E P O RT 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.

Contents1 Highlights of operations2 statement of Mission and VisionMessages3 Message of the President of the Republic of the Philippines4 Message of the Chairman7 Message of the President and Ceo2009 In Review11 • Nurturing Relationships with Stakeholders • Forging Partnerships for Better Service • Expressing Corporate Social Responsibility • Celebrating Special Events • Developing SSS Employeesspecial Articles19 • Anti-Red Tape Act • E-Centers • SLERP-An SSS Response to Catastrophe • Mobile SSS Centers: A Tangible Response • SSS Cebu Guitar-Shaped Building • The National Social Welfare and Protection Program • SSS Corporate Social Responsibility Programs • The Philippines Welcome Social Security Experts for Regional Forum for Asia and the Pacific • The SSS Rationalization Plan and 2009 Staffing • The New Performance Evaluation SystemSSS In 2010 and Beyond26 Catapulting SSS into the Next DecadeFinancial28 statement of Management’s Responsibility for the Financial Statements29 state Auditor’s Report on the Financial Statements30 Statement of Financial Position31 statement of Comprehensive Income32 statement of Changes in Reserves33 Statement of Cash Flows34 Notes to Financial Statements44 Internal Audit Report45 Historical DataManagement48 Social Security Commission50 sss senior Management54 SSC and SSS Management Directory

HIGHLIGHTS o F o P E R AT I o N S (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 17.6soCial 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 19.1emPloYees’ 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 1

STATEMENT oF MIssIon The mission of the SSS is spelled out in Section 2 of the Social Security Law (Republic Act No. 1161), as amended by the Social Security Act of 1997 (Republic Act No. 8282): “It is the policy of the State to establish, develop, promote and perfect a sound and viable 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.” STATEMENT oF VIsIon The SSS aims to develop and promote a viable, universal and equitable social protection scheme through world-class service. VIABLE means that it is financially sustainable, non-distortionary, and requires no government subsidy. Current and future generations of workers and retirees are also assured of meaningful benefits in return for their contributions. UNIVERSAL means that protection shall be provided to all residents of the Philippines, citizens and non- citizens alike, regardless of race, creed, gender, age, geographic location and 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.2

MESSAGE oF THE PRESIDENT oF THE REPuBLIC oF THE PHILIPPINESCongratulations to the Social Security System (SSS) for asuccessful 2009, which was marked by your enhanced financialstability, increasing membership, operational expansion, andimproved services.Indeed, for the past 52 years, the SSS has been the source of socialsecurity, strength and stability for workers and employers alike.Through its various investment programs, the SSS is a valuable allyof government in ensuring the vibrancy and stability of our economy.The year 2009 was marked by a series of natural calamities thatseverely tested the resiliency of the Filipino people. Fortunately, theSSS was one of the institutions that Filipinos can rely on. Throughyour steady benefits and reliable loan programs, you have assuredyour members and their families of assistance in their times of need.As the agency charged with managing and delivering importantsocial protection programs, the SSS contributes in promoting the well-being, health and quality of life of the Filipino people. The SSS is indeeda reliable partner in the search for a meaningful and sustainablestandard 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 tooto the Social Security Commission, headed by Chairman ThelmoY. Cunanan, to Secretary Romulo L. Neri, SSS President and ChiefExecutive Officer, and to the good men and women of SSS. Ten-Point agenda to “Beat the Odds”Mabuhay ang SSS! in Six Years under the Arroyo Administration B - Balanced budget E - Education for all A - Automated electionsGLORIA MACAPAGAL-ARROYO T - Transport and digital infrastructure to connect the country T - Terminate the MILF and NPA conflicts H - Heal the wounds of EDSA E - Electricity and water for all Barangays O - Opportunities for 10 million jobs D - Decongest Metro Manila DS - Develop Clark and Subic 3

MESSAGE oF TH E C HAI RMANResURGenCe aFteR tHe delUGeThe Financial Crisis exacted a heavy toll on industries andinstitutions across the globe resulting to massive displacementof workers and to the swelling of the ranks of the unemployed.With firms, institutions and countries bearing the full brunt ofthe crisis, SSS undertook innovative measures to cope with thechallenges posed by a weakened economy while continuingto be a reliable provider of social security to its members. TheCrisis itself highlighted importance of strengthening socialsecurity institutions in order to act as a viable safety net forour members while spurring economic recovery through ourinvestment activities.The Social Security Commission is extremely satisfied in takinga significant role in formulating relevant policy decisionsthat supported management initiatives towards improvingcollections, ensuring healthy returns on investments, providinghigher benefit pay-outs and bolstering mechanisms andprocesses that uplifted the level of service to our more than28 million members worldwide. Some of these programsinclude the deployment of teller workstations in 150 branches,expansion of payment channels to benefit overseas Filipinoworkers, enhancement of existing collection systems, amnestyprograms for home and short-term loans, and the full-scaleimplementation 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 fellowgovernment institutions and to Her Excellency, President GloriaMacapagal-Arroyo, for giving us the support that have allowedus to perform well beyond expectations. And as we enter a newdecade, the Commission together with the management andemployees shall strive to steer the Institution to new heights,surpassing our goals and making a lasting difference in thelives of those we serve – our members.strengthening linkages with our stakeholders;making decisive actionsIn 2009, SSS was faced with a scenario where the gains of thepast years were threatened to be eroded by a contagion that hassubdued financial powerhouses and corporate giants across theglobe. With its ripple effects sweeping across national borders,public institutions such as the SSS became at risk due to thenature of its operations. More than ever, SSS had to work hand-in-hand with its stakeholders to maintain its financial standingwhile raising the level of service to its members.

For its part, the Commission will continue to craft a policyframework that engenders responsive and meaningfulprograms that capitalize on the synergies we have with ourstakeholders and industry partners while mitigating the “ the role of sss ineffects of the crisis and aiding our members even duringcalamities and disasters. The Commission is working closelywith management and with policy-makers for an amnesty realizing the full program that would allow delinquent companies to settle theirobligations without penalties. This would benefit largely small vision of socialand medium-scale enterprises and micro-enterprises, whichcomprise more than 99 percent of total establishments in the assistance is crucialcountry and generate 70 percent of total employment acrossthe land. The policy would not only provide us with cashflows, in strengtheningit would also reinstate the SSS privileges and benefits of theseaffected employees. social welfareMoreover, the Commission is intent on laying the policy program as thefoundation that would facilitate the seamless and cost-effectiveimplementation of key Information Technology projects in thepipeline such as the Automated Records Management System country and its and the Unified Multi-Purpose Identification System of which,SSS is the lead agency. citizens cope with As always, the Commission shall strive to remain a paragon new social, economicof transparency especially in overseeing SSS policy-makingprocesses and ensuring that proper mechanisms are in place and environmentalto avert possible abuses. While the Commission recognizesthe independence of management in running the day-to- challenges.”day affairs of the Institution, it shall exercise its authority toreview the cogency of these decisions through the varioussub-committees on Information Technology, Budget, Audit andChange Management.Utmost care and prudence would constantly be upheld indealing with sensitive cases and issues that are conveyed tothe Commission in the exercise of its quasi-judicial powers.We shall continue to prioritize the resolution of cases on thecollection of unremitted contributions and expedite the reviewand approval of proposals for installment payment and dacion-en-pago, provided that these are thoroughly examined, bearingin mind the welfare and interests of SSS.We have also secured the formal endorsement from theDepartment of Finance for the draft of the proposedamendments to the SSS Charter. We are set to put in motionthe next phase of the project which is to obtain the certification 5

as Priority Bill from the President and the formal transmittal to also set up mobile centers in badly hit areas in Metro Manila Congress leading to the requisite legislative deliberations. The including parts of Rizal. The mobile centers provided basic Commission is well aware of the paramount importance to services such as receiving of benefit applications and offering modify certain provisions of the Charter in order to make the responses to inquiries on the status of loans and benefit Institution more relevant to the changing times. claims. More than 18,000 transactions were processed by SSS during the entire campaign. Bolstering institutional capacity and maintaining institutional neutrality 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 Crisis spawns problems. But it also presents opportunities Cebu Branch. The inauguration of the three-storey structure which public institutions can capitalize on. In 2009, the SSS not only represents our tangible manifestation of constantly took the initial steps to streamline the organization with the enhancing our services to our members. It also served as a ray implementation of the first phase of the Rationalization Plan. At of hope as we and the rest of the country begin to rebuild from least 1,131 service bureau (SB) personnel have been absorbed the wreckage left behind by Ondoy and Pepeng. as regular employees of the System. Their entry into the organization fills in the manpower gaps that have hampered Though much has been done, much still needs to be the operating capabilities of strategic units specifically the accomplished. Innovation remains an imperative in a vastly branch offices. Along with this, we provided various forms changing economic landscape. Rest assured, the Commission of assistance to SBs ranging from economic relief to skills and SSS Management shall work together in steering the upgrading and training to improve their chances of passing the Institution to new heights as we begin another chapter in the requisite government examinations. Institution’s meaningful history in this new decade. In 2010, the Commission, together with management, Maraming Salamat at Mabuhay ang SSS!!! 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 tHelmo Y. CUnanan that the Commission will remain steadfast in upholding SSC Chairman 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. SSS6

MESSAGE oF TH E PR ESI DENT & C Eo 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 CoN SSS contribution collections last TRIB uTIo year reached P72.3 billion, up by N S80 five percent from the P68.9 billion60 collected in 2008. Collections continued to outpace benefit 52,543.6040 61,829.08 payments for the fifth year in a 68,879.2720 72,350.89 row with the surplus reaching 0 P300 million. The higher collections 200 6 were attained despite the lingering 200 7 200 effects of the Global Financial 8 200 Crisis which forced companies to 9 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.

SSS supplemented these additional payment facilities with The Institution likewise instituted the needed mechanisms strong collection efforts typified by aggressive legal action for the full-scale implementation of Republic Act 9507 or the against erring employers. Last year, SSS filed cases against Socialized and Low-Cost Housing Loan Restructuring and 1,133 employers for failure to remit the contributions of Condonation Act. As of end-December, SSS has collected more their employees. In addition, the Institution sued close to 200 than P55 million from the program benefitting around 2,240 employers for refusing to present company records and for members who have applied for amnesty, with 586 paying in neglecting to register their businesses with SSS. full while 1,654 opting to pay in instalment. While the benefits of such programs have greatly improved the institution’s Benefit payments increase slightly as coverage widens liquidity and bottomline, the social benefits of increased home ownership ratios and liberalizing access to affordable home BEN EFIT SSS benefit disbursements reached loans far outweighs the financial returns. S P72.05 billion reflecting a 6.1 percent 80 increase from the P67.9 billion Finding symmetry between judicious spending and enhancing 60 released in 2008. The bulk of the service delivery releases went to retirement and 52,122.01 40 60,746.59 death which accounted for nearly In 2009, SSS continued its policy of prudent yet strategic 67,917.36 20 72,049.96 85 percent of total disbursements. spending by concentrating on key items and programs that 0 At the same time, SSS stepped up improved service delivery and enhanced operating efficiency. 200 6 200 its coverage efforts with the inking One of last year’s highlights was the inauguration of SSS Cebu 7 of two agreements that would Branch, building which now stands not just a landmark in the 200 8 200 9 widen the coverage of overseas province because of its unique architectural design but also as workers and beef up procedures on an endearing testament to the Institution’s commitment to employer registration. In May, SSS upgrade the level of service to two million SSS members and signed a social security accord with the Panama Maritime over 85,000 employers in the Central Visayas Region. Authority (PMA) that would provide voluntary social security coverage to Filipino employees of the Panamanian agency. The In addition, SSS calibrated its service delivery systems to comply institution also entered into an agreement with the Philippine with Republic Act 9485 or the Anti-Red Tape Act of 2007 (ARTA), Health Insurance Corporation (Philhealth) to harmonize which has been implemented in nine pilot branches namely, the two agencies’ employer registration procedures under San Pablo, Calamba, Diliman, Pasay-Roxas, Pasay-Taft, Bacolod, the new Single Employer Registration Process (SERP). Under Bago, Cagayan de Oro and Iligan. These branches were the first SERP, employers registering with SSS using the new Business to conform with the requirements of the new law by posting Registration Form are automatically registered with Philhealth. SSS’ version of the Citizen’s Charter. The Charter contains the Institution’s processing time commitments for 23 most Optimizing returns on investments amidst a utilized frontline services. We expect that by early 2010, all SSS bearish environment branches would be equipped and prepared to comply fully with the stringent requirements of the ARTA. Last year, SSS managed to post respectable returns on its core investments capped by a block sale of Meralco shares worth At the core of this service enhancement is the upgrade of major P5.67 billion,which netted the SSS’ profits amounting to P 1.53 Information Technology systems of the Institution. Last year, SSS billion from this transaction alone. Well-timed placements completed the activation of the Business Recovery Center (BRC) both in the equities and government securities market allowed – SSS’ primary back-up facility that protects SSS’ data from any SSS to maximize profits, even as the overall financial market possible threat and disaster. More importantly, the reactivation of remained subdued. Earnings from investments and other the BRC has shored up the online capability of SSS, allowing more income reached P22.98 billion easily surpassing the P16.9 users and members to access the SSS database. It successfully billion target for 2009. SSS likewise registered considerable undertook the migration of vital membership and contribution gains from corporate notes and bonds, which grew to over P1 payment systems from IBM to Sun System and decommissioned billion from P393.8 million in 2008. its outdated mainframe which has resulted into monthly savings of P5.3 million. In addition, SSS has installed Voice Over Internet SSS generated cash flows from the fifth extension of the Protocol in 134 branches nationwide and expanded lines for amnesty program for short-term member loans, as well as stock the Interactive Voice Response Service, which would enable the investment and privatization fund loans. As of October 2009, Institution to cut back on telecommunication expenses while SSS already collected P2.5 billion from about 749,888 accounts. providing uninterrupted service to members over the phone.8

Supplementing all these is the acquisition of workstations they retire from the System. Some of these training programsthat would boost the productivity and efficiency of our were undertaken together with the Alert and Concernedbranch personnel. Employees for a Better SSS, demonstrating a strong partnership between management and the union for looking after theTopping the critical IT projects was the awarding of the contract welfare of employees. Corollary to this, SSS organized sportsto produce the Unified Multi-Purpose ID (UMID) System tournaments and after-office unwinding activities to ensureCompliant ID cards to All Cards Corporation – a consortium healthy and balanced work life while preserving harmony andof the top IT corporations in the country. The signing of the camaraderie in the work place.contract paves the way for the fast-tracking of Social Security IDcard production while expediting the information interfacing of However, the most critical of all human resources-relatedthe various state agencies such as the SSS, Government Service programs is the refinement of policies on the hiring, promotion,Insurance System, Philhealth, Home Development Mutual Fund, placement as well as performance appraisal of employees andNational Statistics Office and the Philippine Postal Corporation. officials, which are anchored mainly on the new PerformanceThe UMID, which is envisioned to enhance the integrity of Evaluation System (PES). SSS has completed a dry run of the PESstate-issued ID cards and cut costs in maintaining redundant in vital units and branches such as Makati 1, San Pablo, Bacolod,ID and membership systems, is projected to be the main Cagayan de Oro and Management Services Group. With thetool in facilitating IT-enabled transactions ranging from cash operationalization of the RatPlan, there is a need to strengthendisbursement to general access card to health care services and institutional dynamics on personnel administration in order toto public railway transport. engender a culture of professionalism and service excellence and to prepare our employees for the challenges posed byInfusing new blood into the Institution; Making HR policies ARTA. SSS strongly believes that rewards and incentives shouldrelevant and responsive be tied closely with actual performance. The system-wide implementation of the PES would ensure that employees’After nearly four years of intense and gruelling series of performances are in line with corporate objectives of the SSS.consultations and dialogues, SSS finally obtained the approvalfrom the Department of Budget and Management and the Responding to the call of the timesSocial Security Commission to implement the first phase ofthe Rationalization Plan (RatPlan). This has resulted into the The SSS as a public institution was at the forefront of renderingabsorption as regular employees of some 1,131 qualified humanitarian and socio-civic work especially during theService Bureau (SB) personnel. The “regularization” of these SBs aftermath of the twin typhoons “Ondoy” and “Pepeng”, whoseis part of SSS’ long-term plan to ensure institutional stability by heavy rains swelled rivers and waterways that inundatedinfusing new blood in the system and bolstering the manpower homes, claimed lives and destroyed properties including cropsrequirements of its strategic units to meet new operational goals. and public infrastructure worth approximately P21.3 billion .Moreover, the Institution is also in the process of facilitating thepromotion of eligible personnel, appoint Officers-in-Charge of Within days of the deluge, the Institution donated P100 millionvarious branches and fill-up the vacancies left by some middle for disaster response and relief operations and set-up mobileand upper management officials who availed of the Early offices in badly hit areas in the National Capital Region. TheseRetirement Program under the RatPlan. mobile centers offered basic services to affected members such as receiving of loan and benefit applications and providedSSS likewise sustained its programs for continuing higher counselling and information on SSS membership. In Octobereducation by sending qualified employees on both local alone, SSS attended to more than 18,700 transactions withand international study grants. This typifies the Institution’s 1,054 applications received for processing, 5,800 forms issueddesire to hone and prepare future managers, which would be while assisting some 11,793 walk-in inquiries and requests forharnessed from among the ranks. SSS is proud to have the most membership verification.number of candidates in the InWENT scholarship in Germany,where the participants would be exposed to global trends and At the same time, SSS instituted a Salary Loans Early Renewalpractices in the field of social security, management, leadership, Program (SLERP), which liberalized guidelines on salary loaninvestments and strategy formulation. renewal allowing affected members to renew their loans to help defray expenses for home repair and construction. AsSSS also offered livelihood training and skills enhancement of end-December, SSS released almost P4.7 billion in loansprograms to its employees which they can use in setting up that benefitted some 257,755 members in provinces andsmall businesses and to prepare them for a productive life when cities affected by the calamities. As an adjunct program, the 9

Institution also reduced the interest rate of its loan window for Moreover, SSS provided inputs to Executive Order 867, which home repair and improvement from 13 to nine percent, in mandates agencies involved in the delivery of social service to order to provide indirect financial relief to members whose adopt the DSWD’s National Household Targeting System for homes were destroyed by the storms. Poverty Reduction (NHTS-PR) – a data bank and information management system that identifies poor families and where Likewise, SSS turned over P1.2 million in cash donations they live. Among the important facets of the EO is the fusion to various charitable institutions during the onset of the of the NHTS-PR and the UMID to strengthen implementation Christmas season. The amount, which represented the pooled and monitoring of social welfare programs leading to the voluntary contributions of the employees, is considered the reduction of leakages. Corollary to this, SSS has been included largest ever collected in the history of the SSS. as a permanent member of the Sub-Committee on Social Protection under the Cabinet-level Social Development The Institution remained a paragon on institutional integrity Committee of NEDA. The Sub-Committee is tasked to develop as it shared first placed with the Supreme Court in the list of a comprehensive 5-Year Social Protection Plan built around key government agencies polled by the Social Weather Station programs such as skills training, social housing, micro-credit, (SWS) in terms of sincerity in fighting corruption. SSS garnered emergency employment, training scholarships and access to a net sincerity rating of +46 percent in the survey, which affordable electricity. involved interviews with 550 business managers in Metro Manila, Cavite, Laguna, Batangas, Metro Cebu, Metro Davao Balancing priorities, ensuring smooth transition and continuity and Cagayan de Oro-Iligan. This is the fourth time since 2006 of programs that SSS has placed in the top three agencies of the SWS survey. Moreover, SSS continued to set the standard for energy SSS is bracing itself for a transition in political power with the conservation and ecological and solid waste management conduct of the National Elections in May 2010. Notwithstanding as it garnered a five-star energy conservation rating of 94 the change in leadership, SSS is determined to continue with percent from the Department of Energy while being cited as its priority programs that are anchored on the Five Enabling a “Garbology Master” by the Department of Environment and Forces namely: product, process, people/organizational culture, Natural Resources. communications and physical facilities. Institutional stability shall become the primary focus of SSS in the months leading iii. Priming for transition and broadening the institution’s role to the elections. So far, SSS has already accomplished a number in the advancement of social welfare and protection of programs that have resulted into improved management of assets, enhanced fiscal standing and greater efficiency in Making social security as a core agenda in national processing and dispensing of claims and benefits. But more development needs to be done in order to prime the Institution for challenges brought about by the rapidly changing socio-economic Last year, the SSS intensified its involvement in the policy- landscape. making arena by shepherding two initiatives that highlighted the role of pension funds in facilitating economic recovery As always, SSS shall remain a pillar of financial strength amidst while broadening the ambit of social protection to the poor and the crisis and a reliable partner to its stakeholders and members. to the most vulnerable sectors of society. SSS, together with its partner agencies in the National Social Welfare and Protection Maraming salamat at Mabuhay ang SSS. 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 RomUlo l. neRi Gloria Macapagal-Arroyo during a symbolic turnover at President and Chief Executive Officer 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.10

2009 IN REVIEWsource Oursss’ membership hasgrown to a MILLIoN employer-members nationwide. Growth has been rapid inrecent years, indicating both the success ofsss initiatives and thechanging profile of Philippine business.

2009 IN REVIEW NuRTuRING RELATIoNSHIPS • OFW Family Day WITH STAkEHoLDERS • Member’s Day program • SSS unveiled marker of new Cebu Building. Social Security System (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).12

• Groundbreaking ceremonies for the new SSS office in Laoag City. 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.• 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” at the new SSS Cebu City branch on 17 November. It was SSS’ first Kapihan in the Visayas region. Other Kapihans were at San Pablo City in Laguna, Laoag City in Ilocos Norte and Davao City. The Kapihan allows the local media to 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 • Blessing of the new SSS Taguig branch. The Social Security Judy Frances See and Assistant Vice President for Central System (SSS) Taguig branch moved to a bigger office (inset) Visayas Cluster Helen Solito. 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. 13

2009 IN REVIEW FoRGING PARTNERSHIPS • ISSA-RSSF Meeting. FoR BETTER SERVICE • The Philippines welcomed 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 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 • RP Portugal open talks on social security. The Philippines Pacific focused on the role of social security amidst the and Portugal drafted a bilateral social security agreement current milieu of globalization, internal and external during a meeting on 28 to 30, October. General Directorate migration, growth of informal economies, changes in for Social Security (GDSS) Vice General Director of Social family structures, and the impact of the global financial Security Manuel Pinto (front row, 3rd from left) led the crisis. The Opening Ceremonies was graced by the Portuguese delegation that met with Social Security Philippines’ second highest official, Vice President Noli System (SSS) officials at the SSS corporate headquarters de Castro, who is also known as the “Housing Czar” in Quezon City. Photo shows Pinto and Commissioner being the chairman of the Home Development Mutual Jose Sonny Matula (front row, 3rd from right), head of the Fund (HDMF). Delegates were welcomed by PHILSSA Philippine delegation and labor representative to the Social Chairman Winston F. Garcia, who is the president and Security Commission, during the signing of the minutes general manager of the Government Service Insurance of the meeting. Also present were (front row, from left) System (GSIS), and by ISSA President Corazon S. de la Paz- GDSS Expert Eurico Rodrigues, GDSS Division Chief on Bernardo, also the former president of SSS. 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.14

• UMID Project underway. The Unified Multi-Purpose Identification (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. • 51st anniversary of SSS Hypertension clinic with Philhealth 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• The shift to UMID IDs also upgrades the present SSS Care Department Officer-in-Charge Dr. Victoria Poquiz, ID system, which has been using the same card SSS Assistant Vice President (AVP) for Human Resource technology since it was introduced over a decade ago. Jesse Caberoy and SSS AVP for Medical Operations Photo shows SSS President and Chief Executive Officer Vicente Curimao, Jr. (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. 15

2009 IN REVIEW ExPRESSING CoRPoRATE SoCIAL RESPoNSIBILITy • Feeding Program - Sisters of the Poor of St. Catherine of Siena • Distribution of relief goods to victims of Typhoon Ondoy in Taguig, Metro Manila • Humanitarian mission in Bani, Pangasinan16

CELEBRATING SPECIAL EVENTS• Opening of SSS 52nd anniversary lobby display• Balikat ng Bayan Awards• Flag raising ceremoniesDEVELoPING SSS EMPLoyEES• SSS Kabalikat ng Bayan Volunteer Corps oath taking ceremony• Best SSS employees awarded during the employees’ program• Healing mass with Fr. Fernando Suarez • PhilSSAligsahan sports event at the GSIS• Sining Laya gallery exhibit with Napoleon Abueva 17

2009 SPECIAL ARTICLESstrength OurA multi-skilled, forward-looking and generalist sssWoRkFoRCE is constantly motivated to be prompt, accurateand courteous.

oPENING DooRS To B u S I N E S S o P P o RTu N I T I E Santi-Red tape act e-CentersRepublic Act 9485: Anti-Red Tape Act 2007 in the Social SSS is quick to take advantage of advances in technologySecurity System. 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 unceasinglyRepublic Act 9485 or the Anti-Red Tape Act of 2007 is a and in the same manner.policy measure meant to inform and simplify forms andprocedures for the public. The law primarily aims to promote For the past two years, SSS has already reaped the benefits oftransparency in critical frontline services of the government. the automated Brand Queue Management System (BQMS) –In fact, SSS is one of the first state agencies to streamline its an IT-based capacity management system that regulates andsystems under its Commitment of Service (COS) which was monitors customer flow through the issuance of queue ticketsimplemented in 2001. to transacting members. The adoption of the BQMS on selected branch offices has reduced the number of complaints registeredARTA was officially implemented nationwide during the last by the branches that are directly related to queuing. The queuingquarter of 2009. All SSS branches and cluster offices have posted system is a simple electronic system and yet it has enabledthe mission, vision of the institution as well as the enhanced members to wait more patiently for their turn which has easedCOS details in their respective offices. Corollary to this, SSS member concerns as it allowed them to go on breaks, and freecreated public assistance lanes and have put up special posters from the anxiety of losing their place in the queue.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 Charterpresents the step-by-step procedures of high volume services inorder to guide the public in their transactions with the Systemand to provide them with relevant information such as theindividuals responsible for each service step and the reasonableexpectations for a satisfactorily completed service.The institution is confident that member satisfaction wouldcontinue to improve as more ARTA provisions are implementedduring the next few months. 19

2009 SPEC IAL ARTIC LE 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. 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; mobile sss Centers: a tangible Response Bgy. Hall, Bagumbayan, Taguig; Bgy. Lower Bicutan, Taguig; BF Homes, Parañaque; Bgy. Moonwalk, Paranaque. SSS Taguig The damages to roads, communities, including SSS offices, were reported that it received 316 applications, issued forms to extensive, which prevented members from transacting with 1,835 members, responded to 2,306 general inquiries and SSS. In response, SSS branches in badly affected areas brought advised 1,550 members on the status of their loans and SSS services to these members through the mobile SSS Centers. number of contributions. Mobile Centers are like mini-branches that offer basic services For the month of October, there were 18,779 total transactions to the members. Members can inquire, check status of their for the five mobile offices with 1,054 forms received for loan and benefit applications and file their claims through processing and 5,800 forms issued to members. About 6,489 these “mini-branches”. These centers are staffed by two to five were provided with information on general inquiries while SSS personnel who are equipped with laptops with wireless 5,304 were apprised on their loans and contributions. fidelity (Wi-Fi) capability.20

sss Cebu Guitar-shaped building brings music to worker’s ears three-storey Suarez Building at the corner of Gorordo Avenue and Escario Street since 1997.People claiming benefits and seeking to enjoy their privileges asmembers of the Social Security System (SSS) can look forward The building’s guitar design, which is clearly discernible from anto convenient and more comfortable facilities in a new building aerial view, is a tribute to Cebuanos and the musical instrumentthat combines the soft curves of the guitar with the first three that is one of the most popular products made in the province.letters of the institution’s name. The love for music and a strong religious background are known Cebuano traits that may characterize Cebu’s economicThe three-storey glass and aluminum-clod building situated development and the guitar, together with other exportalong Osmeña Boulevard could accommodate big crowds. It products such as furniture and fashion accessories are majoris painted mango yellow, a reference to a local export product drivers of the local economy.and the building exudes a golden hue during the day whichsignifies the SSS golden anniversary in 2007. Local officials in Cebu led by its Mayor Tomas Osmeña and Vice Mayor Michael Rama commended the SSS forThe new building stands on the site of the old SSS regional acknowledging local values and showing it in tangibleoffice building, a former Cebu landmark that was torn down in terms such as a guitar–shaped building in recognition of thethe 1990’s because of structural damage caused by a powerful Cebuano indomitable spirit.earthquake. It will be the headquarters of the SSS CentralVisayas Cluster, which supervises 15 branches in the provinces Executive Vice President for Branch Operations Horacioof Cebu, Samar, Bohol and Leyte. T. Templo said that SSS is “indispensable” in progressive cities, adding: “You cannot have a progressive city withoutSSS Cebu started as a field representative office at the Labucay businesses, and when there are businesses, SSS will not be farBuilding in 1958, a few months after the pension fund was behind. Productivity of the people will always result if they areestablished on 1 September 1957. It has been occupying the taken care of by their management, and SSS is a watchdog in that connection.” 21

2009 SPEC IAL ARTIC LE taking social security in the Heart of national development: Social Protection Plan which are consistent with national the national social Welfare and Protection Program development objectives and would harmonize existing social protection and anti-poverty programs. Last year, the SSS played an integral role in formulating an integrated, well-funded and focused national social welfare SSS’ inclusion in the Committee accentuates the integral role and protection and anti-poverty program that aims to mitigate of pension funds in alleviating the plight of the poor as well as the impact of the Global Financial crisis on the poor and the those who are more susceptible to the risks brought about by most vulnerable sectors of society. economic shocks, disasters and calamities. As the world gradually recovers from the economic crisis, SSS will again play pivotal role SSS worked closely with the Department of Social Welfare and as a source of safety net for the poor and the vulnerable and as a Development (DSWD) and the National Economic Development catalyst for the mobilization of resources to create employment Authority (NEDA) and other partner agencies under the and to promote industries, through its investment activities that auspices of the National Social Welfare and Protection Program could raise the country’s productive capacity. (NSWPP) Cluster of the Cabinet. The NSWPP was created by virtue of Executive Order 232 and 232-A. It is considered as sss Corporate social Responsibility Programs the government’s centerpiece Action Plan to rationalize the overlapping social protection programs of the government and Beyond its mandate of service to its members, the SSS has to come up with concrete actions on how to enhance coverage always been aware of its corporate social responsibility (CSR) of the efficient programs and how to complement it with towards the greater public and its role as an instrument existing anti-poverty projects and policies of the country. of humanitarian, environmental, and social work. Starting from simple financial donations to socio-civic and charitable The study, which was undertaken by the Development institutions every Christmas, the SSS has since expanded its Academy of the Philippines and funded by the United Nations CSR to social welfare programs that address the basic needs Development Program, sought to examine the efficacy and of Filipinos, especially the poor and vulnerable, activities that efficiency of existing social welfare and protection programs protect the environment and preserve natural resources, and in the country and to recommend which programs are to be initiatives that encourage volunteerism among individual SSS scaled-up, retained, streamlined, abolished and harmonized. employees and employee organizations. It involved validation workshops, actual agency visits and in- depth consultations with key stakeholders including Non- On a local level, the SSS was the lead agency in creating the Governmental Organizations. SSS hosted the main validation Government Responsible for East Avenue Task Force (GREAT) exercise on 20 May at the Ramon Magsaysay Hall, which in 2001, which aimed to ensure cleanliness, peace and order was participated in by close to 50 representatives from 16 along the stretch of East Avenue, Quezon City, where the SSS government agencies. Main Office, and other government agencies, are located. Being a responsible corporate citizen in Quezon City, the SSS has also The project culminated in a symbolic turnover of the copy of institutionalized the practice of proper waste management the study by SSS President and CEO Secretary Romulo L. Neri and waste segregation, as well as water resource and energy and DSWD Secretary Esperanza Cabral to President Gloria conservation. In relation to this, the Department of Energy, the Macapagal-Arroyo in Malacañang on 7 July coinciding with Department of Environment and Natural Resources, the Quezon the closing ceremonies of the Strategic Social Security Forum City government and other institutions have consistently organized by the National Security Council. The turnover was cited and awarded SSS “for walking the talk” in protecting the witnessed by all senior members of Cabinet, highlighting the environment as part of its corporate social responsibility. importance and magnitude of the Cluster’s work. The study is envisioned to be the blueprint of future policy actions on The SSS is also one of the first government institutions to the provision of social safety nets, promotion of labor market heed the call of Republic Act 9418, “Volunteer Act of 2007”, interventions, granting of social welfare assistance and relevant which mandates national government agencies, among other social insurance schemes. institutions, to establish volunteer programs to promote and encourage volunteerism in government programs, as well as On October, SSS was included as a permanent member of the enjoin government employees to render volunteer service in Sub-Committee on Social Protection under the Cabinet-level social, economic and humanitarian development undertakings Social Development Committee of NEDA. Among the tasks in the community. of the Sub-Committee is to develop a comprehensive 5-year22

Employee organizations abound in the SSS, catering to varied during which elementary students aged 6 to 12 years old wouldinterests, whether in sports, arts and culture, hobbies, or be given supplementary feeding, to be conducted inside thereligious faiths. Aside from their respective areas of interest, premises of the selected beneficiary school and facilitated bythese employee organizations also have their own social the school’s personnel.responsibility programs which are funded and implementedthrough their members’ volunteer efforts. Thus, employee The SSS shall provide the funds to the selected school for theorganizations such as the SSS Amateur Golfers Association, purchase of foodstuff and related commodities deemed necessarythe SSS Writers’ Guild, the Knights of Rizal-SSS Chapter, the for the feeding program. The selected school, on the other hand,SSS Riders Club, the SSS Dance Troupe, the SSS Chorale Society, shall be accountable to SSS for the utilization of the funds andthe SSS Provident Fund, and the ACCESS Union have their own shall submit to SSS monthly monitoring of the students’ nutritionsocio-civic programs. status and reports on the program’s accomplishments.The spirit of volunteerism is alive and well in the various To date, the SSS has signed several Memoranda ofSSS employee organizations. In times of natural disasters, Understanding (MOU) with the beneficiary schools selectedSSS employees are always ready and willing to share their by SS Commissioners, including President Neri who also sits astime, resources and efforts to aid needy victims. In 2007, the Vice Chairman of the SSC.SSS, through its Public Affairs and Special Events Division,formalized the creation of an employee-volunteer organization: As chosen by Commissioner Donald Dee and President Neri,the SSS Kabalikat ng Bayan Volunteer Corps composed of both the SSS partnered with the Department of Education (DepEd)regular and contractual employees in SSS. This Volunteer Division of Negros Occidental and the 303rd Infantry Brigade,Corps provides the needed manpower in implementing 3rd Infantry Division of the Philippine Army, for the programhumanitarian and community development works that are called “Gatas para sa Maayong Lawas.” In the said program, SSSfunded through donations. would provide milk bars to supplement the DepEd’s ongoing feeding program in 31 public schools in Negros Occidental andThe Volunteer Corps, encourages SSS employees to volunteer Oriental provinces, that benefits around 11,134 children. Thetheir time, resources, and energies in worthwhile socio-civic MOU between the parties was signed on September 11, 2009.programs that will benefit greater communities, while ensuringthe SSS-funded projects reach their intended beneficiaries and On 5 October 2009, the SSS, through Commissioner Sergioare completed as envisioned. Among the socio-civic programs Ortiz-Luis, Jr., then signed the MOU with Alay Buhay Communitythat the SSS Kabalikat Volunteer Corps has undertaken are Development Foundation and the Rotary Clubs of QC- Southwest,humanitarian and medical missions at Payatas, Quezon City, QC-Southeast, South Triangle, and Metro San Francisco DelBani, Pangasinan, Numancia, Aklan, and Cabatuan, Iloilo. Monte, for the SFP in six public elementary schools for over 373 children. At the same date, as directed by CommissionerIn 2009, as part of its CSR activities, the SSS has started the Fe Tibayan-Palileo, Camp Claudio Elementary School, Tambofunding of feeding programs for undernourished children in Elementary School – Main, and Tambo Elementary School –selected schools. SSS President and Chief Executive Officer Unit 1, all in Parañaque, were the chosen beneficiaries of the SFP,Romulo L. Neri noted that the SSS is responding to the social which would benefit some 300 students of the three schools.and economic needs of the times, and to the order of PresidentGloria Macapagal-Arroyo to push stronger the Accelerated More recently, the SSS partnered with San Francisco WestHunger Mitigation Program, which is a strategy under the Central Elementary School and Moto Elementary Schools,Medium-Term Philippine Development program for 2004 to which were chosen by Commissioner Jose Sony Matula, for the2010. Through the SSS-sponsored feeding programs, SSS hopes implementation of the SFP in the Agusan del Sur-based schools.to significantly bring down the rate of undernourished Filipino Their MOU was signed on 26 October 2009.children, who will be future workforce and SSS members. The SSS Supplementary Feeding Programs are beingThe SSS Supplementary Feeding Program (SFP) was approved implemented and monitored by the Corporate Communicationsby the Social Security Commission (SSC) under SSC Resolution Department, under Vice President Marissu G. Bugante of theNo. 686-s.2008. Under the Resolution, each of the seven SS Public Affairs and Special Events Division.Commissioners will be allotted P500,000 to be used for the SFPin the schools of their choice. The SFP would run for six months, 23

2009 SPEC IAL ARTIC LE the Philippines Welcomes social security experts for Regional investment consulting of Watson Wyatt-Hong Kong, gave the Forum for asia and the Pacific keynote address on governance and the social security reform process. The topic on the imperatives of healthcare services The Philippines hosted the gathering of social security policy- was handled by Professor Soonman Kwon of the Seoul National makers, administrators, researchers and representatives of University of South Korea, while Professor Christian Aspalter of regional and international organizations for the “Regional the Beijing Normal University of China delivered the keynote Social Security Forum for Asia and the Pacific,” on 21 to 23 address on pension coverage and demographic ageing. October 2009 at the Dusit Thani Manila in Makati City. 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. Sponsored by the International Social Security Association (ISSA) The member institutions of PHILSSA, who hosted the Forum, and organized by the Philippine Social Security Association include the SSS, GSIS, HDMF, Employees’ Compensation (PHILSSA), the Regional Social Security Forum for Asia and the Commission, Philippine Health Insurance Corporation, Armed Pacific focused on the role of social security amidst the current Forces of the Philippines-Retirement and Separation Benefits milieu of globalization, internal and external migration, growth System, and the Philippine Charity Sweepstakes Office. of informal economies, changes in family structures, and the impact of the global financial crisis. the sss Rationalization Plan and 2009 staffing The Opening Ceremonies was graced by the Philippines’ The approval of the SSS Rationalization Plan (RatPlan) by second highest official, Vice President Noli de Castro, who is the Department of Budget and Management (DBM) on also known as the “Housing Czar” being the chairman of the 18 May 2009 marked the conclusion of more than four Housing Development and Coordinating Council and the Home (4) years of rationalization efforts spearheaded by the SSS Development Mutual Fund (HDMF). Delegates were welcomed Change Management Team. The SSS has embarked on a by PHILSSA Chairman Winston F. Garcia, who is the president strategic review of its organization to refocus its resources on and general manager of the Government Service Insurance core functions, improve quality and efficiency of services and System (GSIS), and by ISSA President Corazon S. de la Paz- improve organizational performance in line with the mandate Bernardo, and former SSS Head. of Executive Order No. 366. According to Forum Coordinator and Social Security System (SSS) In preparation for the Plan’s implementation, the Social Vice President May Catherine Ciriaco, four main themes were Security Commission (SSC) created a Committee on the tackled in the three-day event: social security developments and Rationalization Plan to review the DBM-approved Plan in the trends in the Asia and Pacific; governance and social security light of organizational and environmental changes that have reform processes; the imperatives of healthcare coverage; and happened since the time the Plan was crafted in 2005 until its pension coverage and demographic aging. approval in 2009. The Committee was headed by Department of Labor and Employment Undersecretary Lourdes M. Trasmonte ISSA Secretary General Hans-Horst Konkolewsky of Geneva with Commissioners Fe Tibayan-Palileo, Donald G. Dee, Sergio delivered the keynote address on social security developments R. Ortiz-Luis and Jose Sonny G. Matula as members. and trends in Asia and the Pacific, while Ms. Yvonne Sin, head of24

The direction pursued by the SSC Committee on the and the staffing and compensation review. These initiativesRationalization Plan was to implement the Plan by phases. are all geared towards the identified corporate strategicThe first phase included the processing of applications for directions which were developed in response to current andvoluntary retirement, absorption of qualified and deserving future business challenges and embodied in the Plan with theservice bureau contractuals, and promotion of qualified and ultimate vision of an efficient and effective SSS organization.deserving Officers-in-Charge to executive positions. * The SSS Organizational Structure which was recommended by the SSCAs recommended by the SSC Committee on the Rationalization Committee on the Rationalization Plan was approved and confirmed byPlan, the SSC, pursuant to Resolution No. 508, s. 2009, approved the SSC on 25 March 2010 in Resolution No. 229, s. 2010the payment of benefits of 230 officials and employees whoopted for voluntary retirement under the Plan effective at the the new Performance evaluation systemclose of office hours of 15 July 2009. 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 wasThe SSC then approved and confirmed the authority of the issued on 18 March 2009.Human Resource Management Division, thru AVP Jesse J.Caberoy, to process the regularization/absorption of qualified A pilot dry run of the new PES was conducted from April toand deserving service bureau contractuals pursuant to June 2009 for the following selected departments: QualityResolution No. 509, s. 2009. The SSC Resolution paved the way Management Department, Management Information Systemsfor the announcement of 1,282 vacancies, which was done in Department, and branches of Makati 1, San Pablo, Bacolod andfour batches. From these announced vacancies, a total of 1,199 Cagayan de Oro.positions were filled wherein a total of 1,131 service bureaucontractuals were absorbed while 68 regular employees were To prepare for the System-wide dry run of the new PES,promoted and approved for lateral transfer with their position orientation sessions were conducted from August to Octobertitles amended. 2009. Taking off from the results of the pilot dry run of the new PES for selected departments and branches, enhancementsThe 2009 staffing was primarily anchored to the Plan in which were recommended and approved pursuant to Office Orderthe Rationalized Plantilla of Personnel, which consisted of 7,652 No. 2009-115 dated 16 November 2009 on the Additionalpositions, would be gradually filled over a period of ten years. Guidelines for the System-wide PES Dry Run.The projected increase in the workforce is aligned with theexpected increase in membership and contributions collection SSS likewise conducted orientation sessions from Augustfor the next decade. to October 2009 to prepare employees for the System-wide dry run of the new PES. Enhancements to the PES were thenThe end of 2009 marked the beginning of initiatives to recommended and approved pursuant to Office Order No.proceed with the execution of the remaining phases of the 2009-115 dated 16 November 2009. These enhancementsPlan, which involves the promotion of qualified and deserving were based on the results of a four-month dry run.OICs as well as rank-and-file employees, reassignment and re-training of affected employees, conduct of job leveling study 25

sss 2 0 1 0 A N D B Eyo N D CataPUltinG sss into tHe neXt deCade: Along with this, SSS would zealously pursue collection of salary sss in 2010 and BeYond loan delinquencies to generate liquidity that can finance more member borrowers. SSS would likewise continue to leverage on 2009 was marred by highly destructive natural calamities that its existing partnerships with key institutions and third-party compounded job losses and company closures as the country collecting agents to broaden the scope of so-called special sectors teetered on the brink of recession. However, as the year came to a such as public transport drivers, cooperatives and overseas close, glimmers of hope flashed in the horizon: a healthy banking workers while beefing up its payment mechanisms through the system, resilient remittances from overseas workers and a sturdy implementation of Phase V of the Tellering Program. services sector that enabled the economy to post a modest growth of 0.9 percent. SSS shall also formulate a clear-cut approach to reactivate members, whose membership has remained dormant over the Last year’s turbulent economic environment compelled years. We shall draw inspiration from the marketing strategies institutions such as the SSS to calibrate their strategies of firms and companies, which flesh out insights from available and devote their energies as well as resources to bolstering customer data to come up with targeted campaigns to increase organizational capabilities while optimizing available revenues and regularity of payment. With the changing socio- opportunities in the market. economic environment, it is imperative for SSS to take a paradigm shift with regards to its coverage and collection campaigns by In 2010, SSS shall undertake its mission with a renewed sense treating our members as customers whose tastes and preferences of purpose notwithstanding the new set of challenges it has change according to their specific needs or wants. SSS should no to face – one that deals with preserving institutional integrity longer rely on the power of Law to draw in new members but and maintaining stability in the face of a looming change in rather look at our programs as products that compete for a share political leadership. The conduct of the National Elections in May in the expenditures of prospective members. signals not only a change of leaders but also a change in overall thrusts, plans and priorities – changes that have far-reaching Cashing in on a revitalized economy consequences on public organizations such as the SSS. As the world economy gradually emerges from a long slump, Taking into account this challenge, SSS programs remain firmly SSS is poised to take full advantage of a reinvigorated domestic anchored on The Five Enabling Forces namely Product, Process, market by accelerating the sale of non-performing assets, People/Organizational Culture, Communications and Physical including properties received as payment for delinquencies. SSS Facilities. However for the coming year, SSS would operationalize remains open to joint development of prime parcels of land with these initiatives with greater prudence and discretion – pouring renowned developers to increase the value of these properties. resources only in mission-critical areas to ensure greater success and participation from our stakeholders. The Institution shall also continue to diversify its portfolio through venturing into non-traditional investment instruments seizing opportunities; changing the paradigm on such as index or mutual funds and buying shares of promising customer service and efficiently managed small and medium-sized firms. SSS is cognizant of the inherent responsibility that its investments The economic crisis that hit the country was worsened by the should not only generate ample financial returns but also create series of calamities and threatened stable institutions such greater economic and social value through employment and as the SSS. This prompted SSS to explore alternative means to livelihood especially for the marginalized. boost collection and secure cashflows despite the slowdown in economic activity. One of the significant lessons from the crisis is the need to hedge against systemic risks in order to mitigate the impact of sudden In this regard, SSS would be working for the passage of a new market fluctuations that could have far-ranging implications to law allowing erring employers to settle their delinquencies SSS’ financial standing. At the crux of this concern is investing without penalties. The policy is meant to reinstate the rights on meticulous research that has foresight and that takes into and privileges lost by the employees as members of the SSS. This account not just the fundamentals of a given investment project policy initiative is borne out of a realization that to endure the but also risk-return factors and possible pay-offs. economic crisis, government and business institutions should find a sensible solution to problems spawned by the crisis. While Unraveling complexities in service delivery through it we consider the condonation program as a focal point of our collection strategy for the coming year, we shall not abandon Last year, SSS augmented existing service delivery systems to time-tested tactics that rely on the passion and astuteness of enhance the degree of satisfaction of our transacting members. our Accounts Officers and Legal Officers. At the core of these mechanism is the more extensive use of Information Technology for both sensitive frontline operations26

and crucial backroom activities. This year, the institution is set More than filling the gaps in the organization, SSS shall push forto reap the gains from these timely investments with the full a comprehensive review of the human resources complement ofimplementation of the Unified Multi-Purpose Identification the institution. More than reviewing the adequacy of manpowerSystem (UMID), the enhanced user interface of the SSS Web of each unit or office, the focus of the assessment would be onand the deployment of Self-Service Information Terminals the relevance of the duties performed by each employee in lightto key branches nationwide. Plans are well underway for the of the advances in technology and the shift in service deliveryestablishment of a dedicated Call Center to provide 24 X 7 service strategies. The RatPlan would merely serve as a springboard forto our members. more radical changes in the organization. These modifications would hinge on the Staffing and Levelling Plans, whichThese IT-backed service management system is seen as a would hopefully culminate in the conduct of a system-wideboon to SSS’ efforts to re-channel precious resources specially compensation and benefits review.at the branch level to core services such as benefits andloans applications screening and processing. Moreover, the Admittedly, the reorganization itself would encounter somemobilization of IT resources serves to reduce the probability of obstacles during the course of its implementation. However,error and lessen human intervention leading to a more seamless, management is determined to implement these Plans to thepredictable and cost-effective means of processing. letter for the welfare of the employees and for good of the institution as a whole. The financial crisis has underscored theThe overhaul of the IT framework comes at an opportune time need to strengthen the organization from within to make it moreas the institution begins the system-wide implementation of the relevant to the call of the times.Anti-Red Tape Act, which specifies standards by which memberscan gauge the quality of service rendered by state agencies managing transition and dealing with changewith frontline services. The main intent of the law is to promotetransparency in government processes and transactions, which 2010 not only signals a change in political leadership, it alsoare often criticized for ambiguity. At our end, SSS has completed indicates a change in the priorities and overall thrust of thethe draft of its Citizen’s Charter which contains the step-by-step institution. The institution should be able to take specificprocedures and detailed timelines for services classified as “high actions on emerging economic patterns and find new sourcesvolume.” The promulgation of the Charter is expected to buttress of growth in the midst of a widening clamor for increasedthe institutionalized Covenant of Service (CoS), which simplified benefits among our members.procedures and streamlined processes for key SSS transactionssince its inception in 2001. SSS shall remain open to tapping unconventional markets for its investments provided that it falls within our criteria. TheRevamping the organization: Changing from within institution shall persevere with efforts to strengthen social protection coverage of workers in the most vulnerable sectorsLast year, SSS began its long-delayed reorganization with of society – seafarers and those in high-risk industries such asthe execution of the initial phase of the Rationalization Plan, mining and quarrying -- while balancing it with the need towhich saw the absorption of more than 1,100 service bureau maintain equity and financial health. SSS shall also play a largercontractuals. In the coming year, we would forge ahead with role in the policy arena through the crafting of relevant nationalthe absorption of more qualified SBs including the promotion policies directed at promoting social welfare and protection asof deserving regular employees, whose careers have remained these should be included in the country’s development agenda.static since the institution had implemented cost-cuttingmeasures in 2001. However, we shall not allow contingencies to dictate the course of our actions. Prudence and discretion shall remain theSSS is likewise determined to fill in the void created by the primordial guiding factors in carrying out policies and programs.retirement of senior and middle management officials under We are still primarily a custodian of the members’ Fund with athe RatPlan. The immediate replacement of these officials would fiduciary responsibility to our stakeholders.ensure continuity in strategic aspects of SSS operations whilemaintaining a clear line of accountability. This effort, which Institutional integrity shall be bolstered and mechanismswould be complemented by the Performance Evaluation System for transparency shall be strengthened. This is why we shall(PES) and the Merit Selection Plan, form an integrative policy continue advancing the needed modifications in our Charter,covering personnel selection and deployment, performance lest our programs would fall into obsolescence and erodeevaluation and manpower training and development. SSS shall institutional memory.veer away from the piecemeal approaches to organizationalreform and would instead be guided by a more holistic schemeto bring about real change in work life 27

S TAT E M E N T o F M A N A G E M E N T ’ S R E S P o N S I B I L I T y F o R THE FINANCIAL STATEMENTS SOCIAL SECURITY SYSTEM 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-ResaRe Chairman, SS Commission President and CEO Officer-in-Charge Controllership Division28

S TAT E A u D I T o R ’ S R E P o R T o N THE FINANCIAL STATEMENTSthe social security CommissionSocial Security SystemEast Avenue, Quezon CityWe have audited the accompanying financial statements of the Social Security System (SSS), which comprise the statement of financialposition as at December 31, 2009, and the statement of comprehensive income, statement of changes in reserves and statement of cashflows for the year then ended, and a summary of significant accounting policies and other explanatory notes.management’s Responsibility for the Financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine FinancialReporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting andapplying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance withPhilippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit toobtain 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. Theprocedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation 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 theappropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluatingthe 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.opinionIn our opinion, the financial statements present fairly, in all material respects the financial position of the Social Security System as atDecember 31, 2009, and of its financial performance and its cash flows for the year then ended in accordance with Philippine FinancialReporting Standards.emphasis of matterWe draw attention to Notes 3.1 (d.3) and 9 to the financial statements, which disclosed, among others, that the SSS does not provide anallowance for impairment loss on delinquent member loan accounts since they are backed/secured by members’ equity and benefits. Asstated in Note 3.1, all outstanding obligations of members at the time of their application for final claim are being deducted from theirclaim 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 availableaging of accounts.Commission on aUditlUZ loReto - tolentinoDirector IVCluster A - FinancialCorporate Government Sector7 May 2010 29

S TAT E M E N T o F FINANCIAL PoSITIoN DECEMBER 31, 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 statements30

S TAT E M E N T o F CoMPReHensIVe InCoMe FoR THE yEAR ENDED DECEMBER 31, 2009 (In Philippine Peso) notes 2009 2008ReVenUesMembers’ contribution 72,350,893,036 68,879,273,075Investment and other income 22 22,985,618,802 29,089,046,778 95,336,511,838 97,968,319,853eXPensesBenefit paymentsRetirement 35,126,490,608 32,679,728,053Death 25,962,639,582 24,676,874,967Maternity 3,589,163,852 3,274,003,551Disability 3,253,748,170 3,286,724,247Funeral grant 2,377,398,534 2,253,246,907Sickness 1,703,782,723 1,705,535,321Medical services 36,651,721 41,133,193Rehabilitation services 82,815 116,025 72,049,958,005 67,917,362,264operating expensesPersonal services 23 4,730,723,529 4,605,567,109Maintenance 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 74,662,988,716net ReVenUes 16,211,962,452 23,305,331,137otHeR ComPReHensiVe inCome/(loss)Available-for-sale financial assetsReclassification 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 - 6,300,000Settlement 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. 31

S TAT E M E N T o F CHANGES IN RESERVES FoR THE yEAR ENDED DECEMBER 31, 2009 (In Philippine Peso) 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.32

S TAT E M E N T o F CASH FLoWS FoR THE yEAR ENDED DECEMBER 31, 2009 (In Philippine Peso) notes 2009 2008CasH FloWs FRom oPeRatinG aCtiVitiesMembers’ contribution 72,350,893,036 68,879,273,075Investment and other income 22 14,689,520,657 12,849,378,667Payments 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 operatingassets and liabilities 8,447,488,302 7,528,279,416(Increase)/decrease in operating assetsHeld-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) 204,571,435Increase/(decrease) in operating liabilitiesFunds held in trust 101,026,873 47,762,844Other current liabilities (568,583,093) 2,280,775,775Net cash generated from operating activities 9,663,275,934 8,122,843,590CasH FloWs FRom inVestinG aCtiVitiesLoan 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 aCtiVitiesCorporate operating budget of Employees’Compensation Commission and OccupationalSafety 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 8,882,641,158CasH and CasH eQUiValents at end oF YeaR 4 8,995,402,491 6,874,110,536The notes on pages 7 to 31 form part of these financial statements. 33

n ot e s to FINANCIAL STATEMENTS (All amounts in Philippine peso unless otherwise stated) 1. REPoRTING ENTITy As a result, the SSS presents in the statement of changes in reserves all reserve fund-related movements, whereas all non The Social Security System (SSS) administers social security protection reserve fund-related changes are presented in the statement to workers in the private sector. Social security provides replacement of comprehensive income. income for workers in times of death, disability, sickness, maternity and old age. On 1 September 1957, the Social Security Act of 1954 was Comparative information has been re-presented so that it implemented. Thereafter, the coverage and benefits given by SSS have also is in conformity with the revised standard. The change in been expanded and enhanced through the enactment of various laws. accounting policy only impacts presentation aspects. On 1 May 1997, Republic Act (RA) No. 8282, otherwise known as the “Social Security Act of 1997”, was enacted to further strengthen the b. PAS 40, Investment Property. The standard revises the scope SSS. Under this Act, the government accepts general responsibility for such that property under construction or development the solvency of the SSS and guarantees that prescribed benefits shall for future use as an investment property is classified as not be diminished. Section 16 of RA 8282 exempts the SSS and all its investment property. Adoption of this amendment does not benefit payments from all kinds of taxes, fees or charges, customs or have material impact on the financial statements. import duty. 3. SIGNIFICANT ACCouNTING PoLICIES The SSS is a financial institution in the Philippines. Its principal office is in East Avenue, Quezon City. The accounting policies set out below have been applied consistently to all periods presented in these financial statements. The financial statements include the accounts of Employees’ Compensation and State Insurance Fund, which is being 3.1 Financial assets administered by the SSS, as provided for by Presidential Decree No. 626, as amended. All inter-fund accounts have been eliminated. a. Date of recognition. The SSS initially recognizes loans and receivables and deposits on the date that they are originated. The financial statements are authorized for issue by the Social All other financial assets (including assets designated at fair Security Commission on May 5, 2010 under its Resolution value through profit or loss) are recognized initially on the No. 356-s.2010. trade date at which the SSS becomes a party to the contractual provisions of the instrument. 2. BASIS oF PREPARATIoN b. Initial recognition. The SSS initially recognizes a financial 2.1 Statement of compliance asset at fair value. Transaction costs are included in the initial measurement, except for financial assets measured at fair The financial statements of the SSS are prepared in accordance value through profit or loss. with Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS), where practicable. c. Determination of fair value. The fair value of investments that are actively traded in organized financial markets is 2.2 Basis of measurement determined by reference to quoted market bid prices. When current bid prices are not available, the price of the most The financial statements are prepared on historical cost basis recent transaction provides evidence of the current fair except for the following items: value as long as there has not been a significant change in economic circumstances since the time of the transaction.  financial assets at fair value through profit or loss are measured at fair value For investments where there is no active market, fair value  marketable securities classified as available-for-sale are is determined using valuation techniques. Such techniques measured at fair value include using recent arm’s-length market transactions,  investment property accounts are measured at fair value reference to the current market value of another instrument,  land under property and equipment are measured at revalued which is substantially the same, discounted cash flow analysis amount and option pricing models. 2.3 Use of estimates and judgments d. Classification. The SSS has the following non-derivative financial assets: financial assets at fair value through profit or The preparation of the financial statements in conformity with loss, held-to-maturity financial assets, loans and receivables PFRS/PAS requires Management to make judgments, estimates and available-for-sale financial assets. and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income d.1 Financial assets at fair value through profit or loss and expenses. Financial assets at fair value through profit or loss Estimates and underlying assumptions are reviewed on an on- consist of held-for-trading financial assets. Held-for- going basis. The effect of a change in an accounting estimate trading financial assets are financial assets acquired is recognized prospectively by including it in profit or loss in or held for the purpose of selling in the short term or the period of the change, if the change affects that period only for which there is a recent pattern of short-term profit or the period of the change and future periods, if the change taking. affects both. Upon initial recognition, attributable transaction costs 2.4 Change in accounting policies are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured Starting as of 1 January 2009, the SSS has adopted the following at fair value and changes therein are recognized in amendments to existing PAS/PFRS: profit or loss. a. Revised PAS 1, Presentation of Financial Statements. The d.2 Held-to-maturity financial assets revised standard prohibits the presentation of items of income and expenses (i.e. non reserve fund changes in Held-to-maturity financial assets are non-derivative reserves) in the statement of changes in reserves, requiring financial assets with fixed or determinable payments non reserve fund changes in reserves to be presented and fixed maturity for which there is the positive separately from reserve fund changes in reserves in a intention and ability to hold to maturity. They are statement of comprehensive income.34

recognized initially at fair value plus any directly 3.2 Cash equivalents attributable transaction costs. Subsequent to initial recognition held-to-maturity investments are Cash equivalents comprise short-term, highly liquid investments measured at amortized cost using the effective interest that are readily convertible to known amounts of cash with method, less any impairment in value. original maturities of 90 days or less and are subject to an insignificant risk of change in value. Gains and losses are recognized in profit or loss when the held-to-maturity financial assets are 3.3 Supplies and materials derecognized or impaired, as well as through the amortization process. Supplies and materials are valued at cost using the weighted average method. d.3 Loans and receivables 3.4 Investment property Loans and receivables are financial assets with fixed or determinable payments that are not quoted in Investment property account consists of property held to earn an active market. Such assets are carried at cost or rentals and/or for capital appreciation. amortized cost less impairment in value. An investment property is initially measured at cost, including A loan or receivable is deemed impaired when it transaction costs. Such cost should not include start-up costs, is considered that it will probably not be possible abnormal waste, or initial operating losses incurred before the to recover all the amounts due according to the investment property achieves the planned level of occupancy. contractual terms, or equivalent value. Significant After initial recognition, it is measured at fair value with any financial difficulties of the debtor, probability that the change therein recognized in profit or loss. debtor will enter bankruptcy and default or delinquency in payments are considered indicators that such loans Transfers to or from investment property are made when there is and receivables are impaired. a change in use, evidenced by: The SSS does not provide an allowance for impairment  commencement of owner-occupation loss on delinquent member loan accounts since they  end of owner-occupation are backed/secured by members’ equity and benefits.  commencement of an operating lease to another party All outstanding obligations of members at the time of their application for final claim are being deducted 3.5 Property and equipment from their claim proceeds. Property and equipment, except land, are stated at cost less The SSS’ cash and cash equivalents, member and accumulated depreciation, amortization and any impairment business loans and other receivables are included in in value. Land is carried at revalued amount. Increase in value this category. as a result of revaluation is credited to reserves under property valuation reserve unless it represents the reversal of a revaluation d.4 Available-for-sale financial assets decrease of the same asset previously recognized as an expense, in which case it is recognized as income. On the other hand, a Available-for-sale financial assets are non-derivative decrease arising as a result of a revaluation is recognized as an financial assets that are designated as available- expense to the extent that it exceeds any amount previously for-sale and that are not classified in any of the credited to property valuation reserve relating to the same asset. other categories. Subsequent to initial recognition, available-for-sale financial assets are carried at fair Cost includes all costs necessary to bring the asset to working value in the statement of financial position. Changes condition for its intended use. This would include not only in the fair value of such assets are recognized in other its original purchase price but also costs of site preparation, comprehensive income and presented within reserves delivery and handling, installation, related professional fees for in the unrealized gain or loss on available-for-sale architects and engineers, and the estimated cost of dismantling financial assets portion. When an available-for-sale and removing the asset and restoring the site. financial asset is derecognized, the cumulative gains or losses are transferred to profit or loss and presented The cost of replacing a part of an item of property and equipment as a reclassification adjustment within the statement is recognized in the carrying amount of the item if it is probable of comprehensive income. Dividends on available-for- that the future economic benefits embodied within the part will sale equity instruments are recognized in profit or loss flow to the SSS, and its cost can be measured reliably. The carrying when the right to receive payments is established. amount of the replaced part is derecognized. The costs of the day-to-day servicing of property and equipment are recognized in If an available-for-sale financial asset is impaired, an profit or loss as incurred. amount comprising the difference between its cost (net of any principal payment and amortization) and its Depreciation is calculated over the depreciable amount less its current fair value, less any impairment loss previously residual value. It is recognized in profit or loss on a straight-line recognized in profit or loss, is transferred from reserves basis over the estimated useful lives of each part of an item of to profit or loss and presented as a reclassification property and equipment. adjustment within the statement of comprehensive income. Reversals in respect of equity instruments The estimated useful lives of property and equipment are as classified as available-for-sale are not recognized in follows: profit or loss. Assets Lifee. Derecognition of financial assets. Financial assets are Building/building improvements 10-30 years derecognized when the rights to receive cash flows from Furniture and equipment/ the asset have expired or have been transferred and the SSS Computer hardware 5-10 years either has transferred substantially all risks and rewards Land improvements 10 years of ownership or has neither transferred nor retained Transportation equipment 7 years substantially all the risks and rewards of ownership, but has Leasehold improvements 10-30 years (or the transferred control of the asset. term of the lease whichever is shorter) 35

Building and building improvements have residual value 3.9 Revenue recognition equivalent to ten percent of the acquisition/appraised value while other items of property and equipment except land have Revenue is recognized to the extent that it is probable that one peso as their residual value. the economic benefits will flow to the SSS and the amount of revenue can be reliably measured. The following specific Construction in progress (CIP) represents building, building and recognition criteria must also be met before revenue is leasehold improvements under construction and is stated at recognized: cost. CIP is not depreciated until such time as the relevant assets are completed and put into operational use. a. Member’s contribution. Revenue is recognized upon collection. 3.6 Intangible assets b. Interest income. Revenue is recognized as the interest Acquired computer software licenses are capitalized on the basis accrues, taking into account the effective yield on the asset. of the costs incurred to acquire and bring to use the specific software. Computer software licenses with finite lives are c. Dividend income. Dividend income is recognized at the amortized on a straight-line basis over their estimated useful time the right to receive the payment is established. lives, while those with indefinite useful lives or those used perpetually or for as long as there are computers compatible with d. Rental income. Rental income is recognized on a straight- them are carried at cost and tested annually for impairment. line basis over the lease term. 3.7 Non-current assets held for sale 3.10 Expense recognition Non-current assets are classified as held for sale if their carrying Expenses are recognized in the statement of comprehensive income amount will be recovered through a sale transaction rather upon utilization of the service or at the date they are incurred. than through continuing use. This condition is regarded as met when the sale is highly probable and the asset is available for 3.11 Operating Leases immediate sale in its present condition. The determination of whether an arrangement is, or contains Assets classified as held for sale are measured at the lower of a lease is based on the substance of the arrangement at the carrying amount and fair value less costs to sell. Any excess inception date of whether the fulfillment of the arrangement of carrying amount over fair value less costs to sell is an is dependent on the use of a specific asset or the arrangement impairment loss. No depreciation is recognized for these assets conveys a right to use the asset. while classified as held for sale. a. SSS as lessee. Leases which do not transfer to the SSS Non-current assets held for sale include real and other properties substantially all the risks and benefits of ownership of the acquired (ROPA) in settlement of contribution and member and asset are classified as operating leases. Operating lease housing loan delinquencies through foreclosure or dation in payments are recognized as expense on a straight-line basis payment. They are initially booked at the carrying amount of the over the lease term. contribution/loan delinquency plus transaction costs incurred upon acquisition. When the booked amount of ROPA exceeds b. SSS as lessor. Leases where the SSS does not transfer to the the appraised value of the acquired property, an allowance for lessee substantially all the risk and benefits of ownership of impairment loss equivalent to the excess of the amount booked the asset are classified as operating leases. Lease income from over the appraised value is set up. operating leases is recognized as income on a straight-line basis over the lease term. 3.8 Impairment of non-financial assets 4. CASH AND CASH EQuIVALENTS The carrying amount of non-financial assets, other than 2009 2008 investment property and non-current assets held for sale Cash on hand and in banks 3,313,776,021 574,973,044 is assessed to determine whether there is any indication of Time and special impairment or an impairment previously recognized may no savings deposits 5,681,626,470 6,299,137,492 longer exist or may have decreased. If any such indication exists, 8,995,402,491 6,874,110,536 then the asset’s recoverable amount is estimated. Recoverable amount is the higher of an asset’s fair value less costs to sell and Cash in banks earn interest at the respective bank deposit rates. Time and its value in use. special savings deposits are made for varying periods of up to 90 days depending on the immediate cash requirements of SSS and earn interest Impairment loss is recognized if the carrying amount of an at the prevailing time and special savings deposit rates. asset exceeds its estimated recoverable amount. The carrying amount of the asset is reduced through the use of an allowance In consideration of the banks’ making their deposit pick up facility account and the amount of loss is recognized in profit or loss available to the SSS, the latter agreed to maintain an average daily unless it relates to a revalued asset where the value changes are balance of P1 million in a non-drawing interest bearing current account/ recognized in other comprehensive income/loss and presented savings account (CASA) with each of the banks’ servicing branches. As of within reserves in the property valuation reserve portion. 31 December 2009, P92 million is being maintained in several banks for Depreciation and amortization charge for future periods is such purpose. adjusted. 5. HELD-To-MATuRITy INVESTMENTS An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 2009 2008 An impairment loss is reversed only to the extent that the Short-term asset’s carrying amount does not exceed the carrying amount money placements 11,270,800,000 12,111,258,391 that would have been determined, net of depreciation or Treasury bills 2,022,828,605 32,943,346,092 amortization, if no impairment loss had been recognized in 13,293,628,605 45,054,604,483 prior years. Short-term money placements are short-term investments with original maturities of more than 90 days.36

6. HELD-FoR-TRADING FINANCIAL ASSETS Housing loans 4,661,268,782 4,615,224,268 Commercial and industrial The cost of held-for-trading financial assets as at 31 December 2009 and loans 888,778,261 750,395,390 2008 are P1,037.17 million and P1,754.19 million, respectively. Program MADE 17,219,220 17,970,859 Loan to other government7. RECEIVABLES agencies 122,198,032 133,012,310 Sales contract receivable 5,224,529,406 523,581,507 2009 2008 73,627,918,068 67,673,607,576 Collecting banks/ Accumulated agents/bayad center 2,435,277,439 3,745,233,147 impairment loss (855,367,110) (852,372,445) Interest receivable 2,218,145,921 1,624,255,456 72,772,550,958 66,821,235,131 Other receivables 681,458,938 177,113,207 223,472,303,766 154,160,153,724 5,334,882,298 5,546,601,810 The carrying amount of available-for-sale financial assets is as follows:8. otHeR CURRent Assets 2009 2008 2009 2008 Marketable securities Supplies and materials Cost 42,462,256,771 37,056,663,073 inventory 107,185,948 97,411,879 Unrealized gain 26,347,427,214 3,017,588,582 Prepaid expenses 5,563,231 5,272,026 68,809,683,985 40,074,251,655 Advances - officials and Ordinary and preference employees 3,937,188 5,009,493 shares Cost 1,208,710,857 1,208,710,587 Revolving fund 1,076,467 1,133,614 Accumulated impairment loss (723,612,480) (699,394,890) Receivable - International Social 485,098,377 509,315,967 Security Association - 309,619 69,294,782,362 40,583,567,622 117,762,834 109,136,631 The current portion of held-to-maturity investments as at 31 December 20099. NoN-CuRRENT FINANCIAL ASSETS and 2008 are P8.20 Billion and P4.10 Billion, respectively. 2009 2008 Member loans were not provided with allowance for impairment loss Available-for-sale because they are backed/secured by members’ equity. In order to ensure financial assets 69,294,782,362 40,583,567,622 prompt collection of outstanding loans, SSS now takes a more active stance Held-to-maturity and aims to collect P19 billion in the next three years mainly from active investments delinquent members who are covered employees. The basic strategies will be Notes and bonds 82,289,672,152 47,815,052,677 to improve collection through a combination of (a) policy changes, followed Accumulated with strict enforcement, (b) procedural enhancement and (c) utilization of impairment loss (884,701,706) (1,059,701,706) appropriate information technology solutions that would enable the SSS to 81,404,970,446 46,755,350,971 track, monitor and promptly collect from member-borrowers. Loans and receivable Members loans 44,407,118,536 40,630,131,602 Using the latest aging of accounts (i.e. 30 September 2009), the SSS would have Loan to National Home posted P4.86 billion loss, representing 25% of P19.43 billion delinquent (three Mortgage Finance years and above) salary, educational, calamity, separated and emergency loan Corporation 14,990,587,912 17,110,340,170 accounts, had it opted to provide an allowance for impairment. Loan to Home Development Mutual Fund 3,316,217,919 3,892,951,47010. INVESTMENT PRoPERTy Land Building Development cost Total Fair value, 1 January 2009 7,869,877,895 2,921,119,274 9,417,621 10,800,414,790 Additions - - 179,052 179,052 Disposals (91,085,700) (6,964,160) - (98,049,860) Cancellation of contracts - 6,755,020 - 6,755,020 Fair value gain/(loss) 330,527,795 (144,151,276) - 186,376,519 Fair value, 31 December 2009 8,109,319,990 2,776,758,858 9,596,673 10,895,675,521 Fair 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 10,800,414,790 Total Investment Property – December 31, 2008 10,790,997,169 Restatement – 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 394,624,497 397,673,910 Penalty on rentals 1,556,391 5,826,946 Fair value gains 186,376,519 842,781,139 Realized gain 5,438,485 10,844,700 Direct operating expenses (89,686,173) (82,802,821) 498,309,719 1,174,323,874 37

11. PRoPERTy AND EQuIPMENT Furniture & equipment, Land, buildings, and land/ transportation building/leasehold equipment, computer Construction in 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 - - 277,700,740 Recovery of impairment loss 38,849,375 - - 38,849,375 31 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 - 206,833,510 Retirement/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 3,413,685,287 Net 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 1,566,483,313 Accumulated 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 7,808,245,507 Total IP Acquisition Cost – December 31, 2008 7,798,827,886 Restatement – Development Cost (Acquisition) 9,417,621 12. INTANGIBLE ASSETS Licenses Software Total Cost: 1 January 2009 286,591,368 109,594,362 396,185,730 Additions/transfers 4,429,600 29,162,644 33,592,244 31 December 2009 291,020,968 138,757,006 429,777,974 Accumulated amortization 1 January 2009 16,688,766 34,848,500 51,537,266 Amortization charge for the period 12,614,618 4,550,430 17,165,048 31 December 2009 29,303,384 39,398,930 68,702,314 Accumulated impairment loss 1 January 2009 - - - Impairment loss 151,195,023 44,946,400 196,141,423 31 December 2009 151,195,023 44,946,400 196,141,423 Net book value, 31 December 2009 110,522,561 54,411,676 164,934,237 Net 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.38

13. NoN-CuRRENT ASSETS HELD FoR SALE Acquired assets/ Land Building registered Total Carrying amount, 1 January 2009 4,913,271,115 158,262,102 378,575,955 5,450,109,172 Accumulated 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 5,442,125,162 Additions/adjustments 8,661,066 4,025,505 60,588,896 73,275,467 Disposals (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 5,404,768,660 Carrying amount, 31 December 2008 4,911,154,721 155,161,102 375,809,339 5,442,125,16214. oTHER NoN-CuRRENT ASSETS 18. oTHER CuRRENT LIABILITES 2009 2008 This account includes among others collections credited to the accounts Interest receivable 12,744,155,258 12,876,578,663 pending receipt of collecting agencies’ documents and actual distribution Accumulated impairment loss (12,740,230,932) (12,870,303,585) of collections and payments whose nature are not indicated by payors. 3,924,326 6,275,078 Advances-fire/MRI/foreclosure Breakdown as follows: proceedings 179,145,923 184,911,686 Accumulated impairment loss (953,811) (874,728) 2009 2008 178,192,112 184,036,958 Others 871,800,363 909,184,470 Member loans (ML) collection 898,748,166 1,618,962,347 Accumulated impairment loss (516,149,501) (525,474,501) Undistributed collection 377,824,043 690,746,724 355,650,862 383,709,969 OFW collections 273,012,229 134,633,708 537,767,300 574,022,005 Real estate loans collection 270,324,207 - Sales contract receivable 81,741,630 63,749,10315. ACCouNTS PAyABLE AND ACCRuED ExPENSES ML collection deducted from benefit payments 41,705,930 - 2009 2008 Rental receivable 2,809,290 258,886 Accounts payable 1,986,268,116 1,740,345,430 Express padala 841,504 7,183,619 Accrued expenses 1,261,835,646 1,031,586,466 Employees’ housing 3,248,103,762 2,711,931,896 loan program 31,163 86,868 1,947,038,162 2,515,621,25516. FuNDS HELD IN TRuST 19. ACCRuED RETIREMENT BENEFITS This account includes among others bidders’ deposits, withholding taxes and retention withheld from suppliers and creditors to answer for 19.1 Retirement benefits defective deliveries or services, contributions to GSIS, PHIC, HDMF and SSS Provident Fund and equity of Flexi-fund members. Retirement benefits are available to qualified employees under any one of RA 1616, RA 660 and RA 8291. Breakdown as follows: 19.2 Terminal leave benefits 2009 2008 Flexi-fund 228,026,818 187,260,481 This represents the cash value of the accumulated vacation Officials and employees 131,980,533 114,752,446 and sick leave credits of employees, 50 percent of which Borrowers and other payors 113,877,011 99,899,315 can be monetized once a year and the balance payable upon Due to other resignation/retirement. government units 86,757,756 65,783,730 Suppliers and creditors 35,643,494 37,690,912 19.3 Retirement incentive award Dividend - stock investment loan program 15,501,904 15,501,904 Employees with at least 20 years of creditable service are entitled to Legal education fund 10,005,556 - P2,000 for every year of service upon retirement. Educational loan fund - DECS 1,497,104 1,374,515 623,290,176 522,263,303 The accrued retirement benefits of employees at 31 December 2009 and 2008 are as follows: The Flexi-fund represents equities of members under the voluntary supplementary benefits program of the SSS for Overseas Filipino Workers 2009 2008 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 Retirement benefits/gratuity 677,779,595 683,113,108 establishment of this supplementary benefits program. Terminal leave pay 593,323,045 859,128,178 Retirement incentive award 88,072,249 92,174,510 The Legal Education Fund (LEF) is a special endowment fund under the 1,359,174,889 1,634,415,796 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 20. RENT PAyABLE and prudent regard to its solvency, safety and liquidity. This account represents future rent payments for lease contracts entered17. DEFFERED INCoME by the SSS for its various branches. This account represents advance rental payments from tenants of SSS property. 39

21. ReseRVes The following table presents the initial results of the 2007 actuarial valuation, compared to the previous 2003 valuation 21.1 Investment reserve fund (IRF) results. There are two columns under the 2003 valuation: (1) the original results as published in the 2003 actuarial valuation All revenues of the SSS that are not needed to meet the current report; and (2) the updated results that take into consideration administrative and operational expenses are accumulated in the across-the-board pension increases in 2006 and 2007 and the reserve fund. Such portion of the reserve fund as are not the contribution rate increase at the start of 2007. needed to meet the current benefit obligations is known as the Investment Reserve Fund (IRF) which the Social Security Actuarial Valuation Commission (SSC) manages and invests with the skill, care, Comparison of Key Projection Results prudence and diligence necessary under the circumstances 2007 Valuation versus 2003 Valuation then prevailing that a prudent man acting in like capacity and Under the Baseline Scenario familiar with such matters would exercise in the conduct of an enterprise of a like character and with similar aims, subject 2003 Valuation 2007 to prescribed ceilings under section 26 of RA 8282 (the Act). key Projection Valuation No portion of the IRF or income thereof shall accrue to the Results (Initial original* Updated** Results) 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. Year Fund Will The Act also provides that no portion of the IRF shall be invested No Across- 2031 2036 2039 the-Board Last for any purpose or in any instrument, institution or industry over and above the prescribed cumulative ceilings as follows: 40% Increase in Year Net Revenue Pensions 2022 2026 2030 in private securities, 35% in housing, 30% in real estate related Becomes Negative industries, 10% in short and medium-term member loans, 30% in government financial institutions and corporations, 30% in * As published in the 2003 actuarial valuation report ** Updated results after the increase in contribution rate to 10.40% in January 2007 and the infrastructure projects, 15% in any particular industry and 7.5% 10% across-the-board pension increases in 2006 and 2007 in foreign-currency denominated investments. In its Resolution No. 402 s. 2007, the SSC, adopted the use of 22. INVESTMENT AND oTHER INCoME acquisition cost of shares of stock as the basis for computing the 30% limit in equity investments, based on the opinion dated 2009 2008 25 June 2007 of the Legal and Adjudication Sector of COA. Investment Income Income from current investments 21.2 Actuarial valuation of the reserve fund of the SSS Held to maturity investments Interest income 1,897,400,081 2,353,469,423 The Social Security Act of 1997 requires the Actuary of the Held-for-trading financial assets System to submit a valuation report every four years, or more Dividend income 19,836,699 3,166,949 frequently as may be necessary, to determine the actuarial Fair value gain/(loss) 356,796,375 (437,236,649) soundness of the reserve fund of the SSS and to recommend Realized gain – net 899,084,322 113,500,571 measures on how to improve its viability. Investment expense (57,424,537) - 1,218,292,859 (320,569,129) The reserve fund is affected by (a) changes in demographic 3,115,692,940 2,032,900,294 factors (such as increased life expectancy, ageing of Income from non-current population, declining fertility level and delay in retirement) investments Available-for-sale financial assets and (b) the economic conditions of the country. Taking Dividend income into account the uncertainty of future events, economic (net of investment expense) 2,916,145,314 2,561,796,788 assumptions on interest rates, inflation rates and salary wage Realized gain – net 6,231,014,237 14,288,650,985 increases, among others, are projected. Interest income from escrow deposit - BDO - 135,225,916 In the 1999 Actuarial Valuation, the Social Security Fund Impairment loss (24,217,590) - (SSF) was projected to last until 2015. Since then, parametric 9,122,941,961 16,985,673,689 measures (e.g. increases in the contribution rate from 8.4% to Held to maturity investments 9.4% in March 2003 and to 10.4% in January 2007, increase Interest income in the maximum salary base for contributions from P12,000 (net of investment expense) 5,553,030,161 3,886,243,868 to P15,000 and the redefinition of Credited Years of Service) Impairment loss - (384,687,671) and operational developments (e.g. Tellering System, more 5,553,030,161 3,501,556,197 accounts officers, cost saving measures, improved investment portfolio and management, etc.) were implemented to Loans and receivable strengthen the SSF. Interest and penalty - net 3,584,393,094 3,897,938,850 Impairment loss (4,081,582) (409,096) The System’s concerted efforts have resulted in improved 3,580,311,512 3,897,529,754 actuarial soundness. Results of the 2003 Actuarial Valuation Investment property 498,309,719 1,174,323,874 indicate an extension on the life of the fund by sixteen years, 21,870,286,293 27,591,983,808 from 2015 to 2031. other income Interest income from cash in The increase in contribution rate to 10.40%, effective January bank and cash equivalents 448,511,170 476,353,907 2007, has extended further the SSF life to 2036, taking already Reversal of impairment into account the grant of 10% across-the-board increases in loss/revaluation decrease 377,533,793 15,670,042 pension effective September 2006 and September 2007. Realized gain from non-current assets held for sale In 2009, the Actuarial Department has submitted to the Chief (net of related expense) 126,178,944 167,570,091 Actuary the initial results of the 2007 Valuation, based on Impairment loss-non current membership data as of 31 December 2006. The 2007 actuarial assets held for sale (17,150,920) (1,850,023) valuation however, is still in progress, as the results have to be Others 180,259,522 839,318,952 reviewed and verified, and the final report to be submitted to 1,115,332,509 1,497,062,970 the Social Security Commission. 22,985,618,802 29,089,046,77840

23. PERSoNAL SERVICES 26.1 Interest rate risk 2009 2008 Cash flow interest rate risk is the risk that the future cash flows of a Salaries and wages 2,042,390,245 1,957,051,863 financial instrument will fluctuate because of changes in market Mandatory contributions 985,359,489 845,027,493 interest rates. Fair value interest rate risk is the risk that the value of Incentive award 743,792,358 708,372,030 a financial instrument will fluctuate because of changes in market Bonus and rice grant 465,204,453 450,282,867 interest rates. Allowances 226,048,594 202,688,796 Retirement and terminal The SSS strictly adheres to the provisions of Section 26 of RA 8282 leave pay 128,261,500 313,257,700 which states that the funds invested in various corporate notes/ Other personal services 139,666,890 128,886,360 bonds, loan exposures and other financial instruments shall earn an 4,730,723,529 4,605,567,109 annual income not less than the average rates of treasury bills or any acceptable market yield indicator. Currently, the SSS has achieved a mix Provident fund (part of mandatory contributions) is a defined of financial investments with interest rates that are within acceptable contribution plan made by both the SSS and its officers and employees. level. Significant investments in said instruments have fixed interest The affairs and business of the fund are directed, managed and rates while repricing rates of investments in corporate notes/bonds administered by a Board of Trustees. Upon retirement, death or that carry floating interest rates are always based on acceptable yield resignation, the employee or his heirs will receive from the fund (i.e. prevailing 3 months Philippine Dealing System Transaction-Fixing payments equivalent to his contributions, his proportionate share of Rate plus a spread of not less than 0.50%). the SSS’ contributions and investment earnings thereon. However, effective 28 January 2005, retired and separated members have the 26.2 Credit risk option to retain part or all of his total equity in the fund for a maximum period of five years. Credit risk is the risk of suffering financial loss should any of the SSS’ counterparties fail to fulfill its contractual obligations to the SSS.24. MAINTENANCE AND oTHER oPERATING ExPENSES This includes risk of non-payment by issuers and borrowers, failed settlement of transactions and default on outstanding contracts. 2009 2008 Maintenance and repairs 526,237,730 545,139,151 The SSS implements structured and standardized evaluation guidelines, Other operating expenses 494,713,981 357,785,136 credit ratings and approval processes. Investments undergo technical Service bureau expenses 378,396,095 360,423,942 evaluation to determine their viability/acceptability. Due diligence Light and water, process (i.e. credit analysis, evaluation of the financial performance communication expense 278,822,879 294,909,392 of the issuer/borrower to determine financial capability to pay Depreciation/amortization obligations when due, etc.) and information from third party (e.g. CIBI expense 223,998,558 172,824,811 Information, Inc., banks and other institutions) are used to determine if Impairment loss-intangible counterparties are credit-worthy. assets 196,141,423 - Office space rentals 124,087,159 113,487,084 With respect to stockbrokers, the SSS has adopted the following Supplies and materials 121,470,027 117,391,123 mitigating measures: Impairment loss-property and equipment/other a. Minimum requirements for stockbroker evaluation assets - 178,098,704 2,343,867,852 2,140,059,343 a.1 Stockbroker is a Member of Good Standing of the Exchange as defined under Rule 3(g) of the Securities Regulation Code.25. oPERATING LEASE CoMMITMENTS a.2 The stockbroker shall have a minimum capitalization of fifteen million pesos 25.1 SSS as lessee a.3 The stockbroker shall be profitable for three of the last five years of operation. However, stockbrokers not able to meet The SSS leases offices for its various branches under cancellable the profitability requirement may be qualified provided operating lease agreements. The leases have varying terms, that capitalization is at least thirty million pesos for those escalation clauses and renewal rights. with losses. a.4 The stockbroker shall have a positive track record of service 25.2 SSS as lessor to other institutional clients. The SSS leases out portion of its office space to various tenants b. Stockbroker transactions, allocations and limits under cancellable operating lease agreements. The leases have varying terms, escalation clauses and renewal rights. b.1 Total daily transactions, excluding block transactions, per stockbroker shall not exceed 50% of stockbroker26. FINANCIAL RISk MANAGEMENT capitalization/stockholder’s equity, whichever is lower. b.2 Total transactions, excluding negotiated block transactions, for The SSC and SSS management are active in the evaluation, scrutiny and each of the accredited stockbrokers, during the accreditation credit approval process on all investments being undertaken by the SSS. period, shall not exceed 15% of total SSS transactions. The SSC has adopted adequate policies on investment procedures, risk b.3 Transactions, excluding negotiated block transactions, with assessment and measurement and risk monitoring by strict observance the SSS by the stockbroker, within the year of accreditation, on the statutory limit provided under RA 8282 and compliance to shall not exceed 40% of its total market transactions. This the investment guidelines. Internal controls are also in place and ensures that the stockbroker does not rely heavily on SSS for comprehensive audit is being done by Internal Audit Services. its business. The main risk arising from the SSS’ financial instruments are interest To avoid significant concentrations of exposures to specific industries or rate risk, credit risk, liquidity risk and market price risk. The SSC and SSS group of issuers and borrowers, SSS investments are regularly monitored management review and agree on the policies for managing these risks as so that in no time shall they exceed the prescribed cumulative ceilings summarized below. specified in Section 26 of RA 8282. 41

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 over 60 Expired Impaired Total (In Millions) Held for trading financial assets 980 - - - - - - - 980 Available-for-sale financial assets 69,021 - - - - - - 997 70,018 Held-to-maturity investments 79,948 - - - - - - 2,342 82,290 Loans and receivable National Home Mortgage Finance Corporation 14,855 - - - - - - 136 14,991 Home Development Mutual Fund 3,316 - - - - - - - 3,316 Commercial and industrial loans 808 1 - - - - - 80 889 Program MADE - - - - - - - 17 17 Other government agencies 122 - - - - - - - 122 Sales 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 over 60 Expired Impaired Total (In Millions) Held for trading financial assets 1,340 - - - - - - - 1,340 Available-for-sale financial assets 42,744 - - - - - - 995 43,739 Held-to-maturity investments 45,123 - - - - - - 2,692 47,815 Loans and receivable National Home Mortgage Finance Corporation 16,974 - - - - - - 136 17,110 Home Development Mutual Fund 3,893 - - - - - - - 3,893 Commercial and industrial loans 664 1 - - - - - 85 750 Program MADE - - - - - - - 18 18 Other government agencies 133 - - - - - - - 133 Sales 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 28.2 Memorandum of Understanding with National Statistics Office (NSO) Liquidity risk arises from the possibility that the SSS may encounter difficulties in raising funds to meet its payment obligations (i.e. On 9 September 2009, the SSS signed a Memorandum of Understanding payment of benefits, working capital requirements and planned capital with NSO. This in line with Executive Order No. 700 dated 16 January expenditures) when they fall due. The SSS manages this risk through 2008 which mandates the SSS President and CEO to take over the work daily monitoring of cash flows in consideration of future payment due of the National Economic Development Authority (NEDA) Director- dates and daily collection amounts. The SSS also maintains sufficient General to implement the streamlining and harmonization of the portfolio of highly marketable assets that can easily be liquidated as ID systems of all Government-Owned and Controlled Corporations protection against unforeseen interruption to cash flow. (GOCC) towards a unified multi-purpose ID (UMID) system. The parties, in pursuance to the objectives of the UMID, shall build jointly, in favor 26.4 Market price risk 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 The SSS’ market price risk arises from its investments carried at fair funds provided by the NSO. value (fair value through profit or loss and available-for-sale financial assets). It manages this risk by monitoring the changes in the market 28.3 Agreement with the Joint Venture composed of the ALLCARD price of the investments. PLASTICS PHILIPPINES, INC., the STRADCOM CORPORATION and the TECO ELECTRIC AND MACHINERY CO., LTD 27. EVENT AFTER THE REPoRTING PERIoD On 14 December 2009, the SSS signed an Agreement with the Joint In the 3 February 2010 meeting of the SSS Investments Group with some Venture composed of the ALLCARD PLASTICS PHILIPPINES, INC., the members of the Legal Education Board (LEB) led by its Chairman, Justice STRADCOM CORPORATION and the TECO ELECTRIC AND MACHINERY Hilarion L. Aquino and the representatives of the Commission on Higher CO., LTD. The agreement covers/involves the (a) production, supply Education led by Atty. Carmelita Y. Sison it was agreed upon that the SSS and delivery of SSS UMID contactless smartcards and plastic card shall return the P10 million to CHEd since it represents the remaining funds jackets (b) supply, delivery, installation, customization, operation in the books of CHEd for purposes of LEB’s operational requirements. The and maintenance of a card management system (CMS) and a key SSS has no legal authority to hold the said amount since it does not form management system (KMS) (c) supply, delivery and maintenance of part of the Legal Education Fund (LEF). two hundred ninety (290) contactless smartcard readers/writers (d) set up of training facility and the conduct of personnel training and (e) all 28. otHeR MAtteRs other items that can be reasonably inferred as being required for the completion of CMS and KMS. 28.1 Commitments Amount authorized but not yet disbursed for capital expenditures as of 31 December 2009 is approximately P1.51 billion.42

I N T E R N A L AuDIToR’S REPoRT2009 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 systemand operational errors. Management has a reason to celebrate this victory, however, it should continue to be vigilant and takeappropriate 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. Client survey results in Alabang, Kalookan, Makati 1, Manila, Pasig, La Union, 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 forISO Certification for SSS Registration Process; audit of initial benefit payment through the Mag-impok Program; and audit of theimplementation of the Accounts Monitoring System, among others. With the demonstrated willingness of Management to pursueefforts in improving governance, we at IAS will do our best to match this dynamism with the implementation of audit projectswhich will impact on the attainment of corporate objectives.ANToNETTE L. FERNANDEZAssistant Vice President 43

HISToRICAL DATA SSS CoVERAGE AND PERSoNNEL FoRCE FoR THE yEAR* AS oF DECEMBER 31 AS oF DECEMBER 31 yEAR W E W E P W/P E/P 1959 24,719 1,211 401,769 10,956 632 636 17 1969 243,857 5,063 2,329,315 88,064 1,996 1,167 44 1979 612,712 11,909 7,381,193 221,000 2,328 3,171 95 1989 704,665 30,358 11,775,459 327,354 3,456 3,407 95 1999 1,152,049 25,894 21,325,966 573,314 4,041 5,277 142 2000 1,304,866 26,868 22,630,832 600,182 3,996 5,663 150 2001 901,834 33,124 23,532,666 633,306 3,942 5,970 161 2002 775,367 34,733 24,308,033 668,039 3,896 6,239 171 2003 743,201 34,535 25,051,234 702,574 4,058 6,173 173 2004 615,152 32,236 25,666,386 734,810 4,043 6,348 182 2005 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 6,467 189 2007 501,938 21,572 27,241,220 803,335 4,145 6,572 194 2008 518,348 27,020 27,759,568 830,355 4,182 6,638 199 2009 458,364 20,036 28,217,932 850,391 5,900 4,783 144 * net of termination Worker (W), Employer (E), SSS Personnel (P) CoNSoLIDATED GRoWTH oF ASSETS, RESERVES & INVESTMENTS (Amounts in Million Pesos) Assets ReseRVes InVestMents year 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 CoNSoLIDATED PRoGRESS oF oPERATIoNS (Amounts in Million Pesos) Investment and operating Expenses year Contributions other Income Benefits & others Net Revenue 1957 - 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* 23,305.3 2009 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 OSHC44

SSS GRoWTH oF ASSETS, RESERVES & INVESTMENTS(Amounts in Million Pesos) 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 6,608.6 618.61989 42,974.2 536.6 42,466.9 539.4 41,781.2 532.21999 159,688.2 271.6 148,633.8 250.0 151,801.8 263.32000 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 3.22005 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 12.52008 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 18.8SSS PRoGRESS oF oPERATIoNS(Amounts in Million Pesos) Investment and operating Expensesyear Contributions other Income Benefits & others Net Revenue1957 - 1959 72.5 4.0 2.8 6.1 67.71960 - 1969 959.9 232.3 187.9 118.3 886.01970 - 1979 5,122.3 2,573.0 1,511.8 495.6 5,687.91980 - 1989 23,081.0 29,353.0 15,058.7 1,751.6 35,623.71990 - 1999 154,417.9 123,034.2 152,474.4 16,091.3 108,886.42000 29,885.5 10,217.3 32,735.1 4,014.9 3,351.22001 30,912.0 12,390.1 37,813.5 4,211.5 1,277.02002 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 4,061.62004 43,083.6 7,530.1 43,743.3 5,192.0 1,678.42005 46,714.9 10,872.9 45,180.8 5,505.9 6,781.42006 51,633.4 10,953.0 51,051.6 6,249.1 5,285.82007 60,769.5 17,117.8 59,665.4 6,697.9 11,524.02008 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 15,223.6EMPLoyEES’ CoMPENSATIoN AND STATE INSuRANCE FuND GRoWTH oF ASSETS, RESERVES & INVESTMENTS(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 5,163.0 954.61999 17,186.9 228.8 17,186.8 228.8 16,535.0 220.32000 18,415.3 7.1 18,406.0 7.1 16,956.9 2.62001 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 10.62003 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 1.02005 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 14.62007 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 5.5EMPLoyEES’ CoMPENSATIoN AND STATE INSuRANCE FuND PRoGRESS oF oPERATIoNS(Amounts in Million Pesos) Investment and operating Expensesyear Contributions other Income Benefits & others Net Revenue1975 - 1979 477.0 104.9 72.2 8.8 500.91980 - 1989 2,033.6 3,526.0 732.3 100.8 4,726.51990 - 1999 4,214.3 15,985.9 5,881.6 1,085.7 13,233.02000 435.0 2,123.9 1,154.1 185.7 1,219.22001 459.8 1,848.8 1,201.5 235.8 871.22002 485.6 1,803.8 1,305.3 251.0 733.02003 785.7 1,068.5 1,183.5 131.8* 538.92004 852.2 1,323.2 1,139.2 135.3* 900.92005 887.1 1,444.4 1,089.0 132.5* 1,110.02006 910.2 1,154.9 1,070.4 130.8* 863.92007 1,059.6 752.2 1,081.2 121.4* 609.22008 1,211.1 1,240.6 1,097.0 109.3* 1,245.42009 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 45

SoCIAL SECuRITyCoMMIssIon

Seated from Left to Right:Chairman Thelmo Y. CunananVice Chairman Romulo L. NeriStanding from Left to Right:Commissioner Victorino F. BalaisCommissioner Fe Tibayan-PalileoCommissioner Jose Sonny G. MatulaCommissioner Sergio R. Ortiz-Luis, Jr.Commissioner Marianito D. RoqueCommissioner Marianita O. MendozaCommissioner Donald G. Dee

senIoR MANAGEMENT oFFICE oF THE PRESIDENT AND CEo/oFFICES DIRECTLy uNDER PRESIDENT AND CEo Standing from Left to Right: AVP Antonette L. Fernandez, AVP Joel P. Palacios, CEo-IV Juanita L. Reyes, VP May Catherine C. Ciriaco, President & CEo Romulo L. Neri, VP Marissu G. Bugante,Special Assistant to the President and CEo Antonio N. Echevarria, Jr., CEo-V Lourdes C. Reyes, oIC Elvira G. Alcantara-Resare48

PRESIDENT AND CEo AND INFoRMATIoN TECHNoLoGy MANAGEMENT GRouP (ITMG)Seated from Left to Right: VP Nicholas C. Balbuena, SVP Miguel E. Roca, Jr.Standing from Left to Right: President & CEo Romulo L. Neri, Special Assistant to the President and CEo Antonio N. Echevarria, Jr.Not in Photo: VP Antonio G. Maralit, AVP Gwen Marie Judy D. Samontina, oIC Van Rene M. orpillaCoRPoRATE SERVICES SECToR AND oFFICE oF THE SECRETARy To THE CoMMISSIoN Seated from Left to Right: AVP Milagros M. Pagayatan, SVP Amador M. Monteiro, oIC Marissa L. TizonStanding from Left to Right: oIC Joselito A. Vivit, AVP Jesse J. Caberoy, VP Alfredo S. Villasanta, oIC Nestor R. Sacayan, AVP Santiago Dionisio R. Agdeppa, AVP Daisy S. Real, AVP Renato M. Custodio

INVESTMENTS GRouPSeated from Left to Right: AVP Ma. Luz C. Generoso, AVP & Deputy Chief Actuary Rizaldy T. CapulongStanding from Left to Right: Special Assistant to the Executive officer Investment and Finance Sector Emmanuel A. Trinidad, AVP Mariano Pablo S. Tolentino, AVP Lilia S. Marquez, SVP Edgar B. Solilapsi, VP Gamelin Z. oczonBRANCH oPERATIoNS SECToR NATIoNAL CAPITAL REGIoN GRouP / LuZoN GRouP / INTERNATIoNAL AFFAIRS AND BRANCH ExPANSIoN DIVISIoNStanding from Left to Right First Row: AVP Josie G. Magana, oIC-Cluster Head Vilma P. Agapito, AVP Aida V. delos Santos, EVP & Chief Actuary Horacio T. Templo, VP Judy Frances A. See, AVP Naciancino L. MonrealStanding from Left to Right Second Row:AVP Consolacion M. Cancio, AVP Alberto C. Alburo, VP Jose B. Bautista, oIC-Cluster Head Nilo D. Despuig Not in Photo: AVP Luis V. olais

BRANCH oPERATIoNS SECToR VISAyAS / MINDANAo GRouPSStanding from Left to Right: AVP Rodrigo B. Filoteo, oIC-Cluster Head Manolito C. Tagalog, AVP Helen C. Solito, AVP Emmanuel R. Palma, AVP Josefina o. Fornilos, VP Eddie A. Jara, EVP & Chief Actuary Horacio T. Templo BRANCH oPERATIoNS SECToR PRoGRAM MANAGEMENT GRouPS AND oTHER oFFICES uNDER ExECuTIVE VICE PRESIDENT & CHIEF ACTuARy Standing from Left to Right First Row: AVP Agnes E. San Jose, VP Mario R. Sibucao, EVP & Chief Actuary Horacio T. Templo, VP Judy Frances A. See, oIC Elpidio S. De Chavez, oIC Victoria u. Poquiz, AVP Antonio S. Argabioso, AVP & Deputy Chief Actuary Rizaldy T. Capulong Standing from Left to Right Second Row: Special Assistant to the Executive officer Branch operation Sector Reynaldo C. oriel, oIC Leticia B. ong Standing from Left to Right Third Row: AVP Vicente A. Curimao, oIC Marilou M. Betic

SSC & SSS MANAGEMENT DIRECToRy soCial seCURitY Commission CONSOLACION M. CANCIO MARILOU M. BETIC ELIZABETH L. SAVELLANO* nCR soUtH ClUsteR NCR South Cluster Real Estate Loans Accounting Commission Secretariat Department THELMO Y. CUNANAN Department and Officer-In-Charge of HELEN L. ABOLENCIA Chairman RIZALDY T. CAPULONG Operations Accounting Division CARMEN O. SORIANO San Juan Receiving Center Securities Trading and Management Operations Research Department ROMULO L. NERI Department and Concurrent Deputy FELIPE R. CABANERO MA. RITA S. AGUJA* Vice-Chairman Chief Actuary Branch Computer Operations SYLVETTE C. SYBICO Makati 3 Receiving Center Department Foreign Branch Expansion and VICTORINO F. BALAIS VICENTE A. CURIMAO, JR. Monitoring Department TERESITA L. ARAOS DONALD G. DEE Medical Operations Department and HIDELZA B. CASTILLO Pasay Roxas Blvd. Processing Center JOSE SONNY G. MATULA Officer-In-Charge, Medical Program Records and Information Management MARISSA L. TIZON MARIANITA O. MENDOZA Division Center Human Resource Administration LETICIA G. BARBERS SERGIO R. ORTIZ-LUIS, JR. Department and Concurrent Officer-In- Alabang Processing Center FE TIBAYAN-PALILEO RENATO M. CUSTODIO ELEONORA Y. CINCO Charge, Relationship Management MARIANITO D. ROQUE Commission Legal Staff I Quality Management Department Department RHODORA G. BONITA* Members Pasay Taft Receiving Center AIDA V. DELOS SANTOS GLORIA Y. CUISIA ARNOLD A. TOLENTINO sss manaGement Luzon South Cluster Local Branch Expansion Department Management Information Service CHRISTINE GRACE B. FRANCISCO* Department Paranaque Receiving Center PRESIDENT and CEO ANTONETTE L. FERNANDEZ CELSO C. CUNANAN Internal Audit Service Division Data Center Operations Department IKE A. TUBIO* MA. LOURDES T. FLORES ROMULO L. NERI Anti Fraud Department Makati 2 Receiving Center President and Chief Executive Officer RODRIGO B. FILOTEO MARIE ADA ANGELIQUE T. DE SILVA Western Mindanao Cluster Member Loans Program Management GUILLERMO M. URBANO, JR.* FE MARIE FERNANDEZ-GERALDO* eXeCUtiVe ViCe PResident & Department Real Estate Department Taguig Receiving Center eQUiValent RanK JOSEFINA O. FORNILOS Northern Mindanao Cluster EUGENIA D. DELA CRUZ MARIVIC S. VILLARAMA JOHNSY L. MANGUNDAYAO HORACIO T. TEMPLO Member Relations Department Database Administration Department Makati 1 Processing Center Chief Actuary and Executive Vice MA. LUZ C. GENEROSO President for Branch Operations Sector Loans Program Management Division NORMITA M. DOCTOR ANITA A. VILLENA MARCIANA A. MARQUEZ SMEC and Disability Program Office Services Department Mandaluyong Receiving Center ANTONIO N. ECHEVARRIA, JR. JOSIE G. MAGANA Management Department Special Assistant to the President and NCR North Cluster AGNES P. VIVIT* AMALIA N. TOLENTINO* CEO JOCELYN M. EVANGELISTA Budget Department Las Piñas Receiving Center LILIA S. MARQUEZ Operations and Financial Audit senioR ViCe PResident Institutional Loans Department Department JOSELITO A. VIVIT* lUZon noRtH ClUsteR Legal Department AMADOR M. MONTEIRO NACIANCINO L. MONREAL ROGELIO A. FUNTELAR JOSEPHINE C. ABRIL Legal and Collection Group NCR Central Member Assistance Center Program BRanCH Head/oFFiCeR-in-CHaRGe La Union Processing Center Management Department MIGUEL E. ROCA, JR. LUIS V. OLAIS nCR CentRal ClUsteR ESTRELLA R. ARAGON Information Technology Management Luzon North Cluster MA. VIANNEY O. GO* Cauayan Receiving Center Group Investments Accounting Department ARTHUR O. ABARY REYNALDO C. ORIEL Novaliches Receiving Center PORFIRIO M. BALATICO EDGAR B. SOLILAPSI Special Assistant to the Executive Officer, SONIA P. GUINTO* Tuguegarao Receiving Center Investments Group Branch Operations Sector Corporate Communications Department JOCELYN Q. GARCIA* San Francisco del Monte Receiving Center JANET D. CANILLAS* ViCe PResident MILAGROS M. PAGAYATAN FERNANDO P. GUTIERREZ* Vigan Receiving Center Commission Legal Staff II and Acting System Software Administration JOSEFINA EDITA F. MATA* NICHOLAS C. BALBUENA Commission Secretary/Clerk of the Department Commonwealth Receiving Center MACARIO U. CATIPON, JR.* Computer Operations Division Commission Solano Receiving Center EVELYN S. MALAZARTE ELIZABETH C. REYES JOSE B. BAUTISTA JOEL P. PALACIOS Cashiering Department Diliman, Quezon City Processing Center BENEDICTA B. GARCIA* Luzon Group Media Affairs Department Bangued Receiving Center RENATO N. MALTO LORELEI B. SOLIDUM MARISSU G. BUGANTE EMMANUEL R. PALMA Technology Research Department and Cubao Processing Center BENJAMIN R. LOPEZ Public Affairs and Special Events Division Southern Mindanao Cluster Concurrent Officer-In-Charge, Baguio Processing Center Information Systems Security Office nCR noRtH ClUsteR MAY CATHERINE C. CIRIACO DAISY S. REAL ROMEO E. REYES Management Services Division and Competency and Performance ANASTASIA V. MANALAC CYNTHIA O. BARCELON Santiago Receiving Center Concurrent Head of Corporate Policy Management Department General Accounting Department Pasig Processing Center and Planning Office NANCY M. UMOSO JUANITA L. REYES ROSALINA C. MANANSALA AVELINA M. BAUTISTA* Laoag Receiving Center EDDIE A. JARA Corporate Executive Officer IV Contributions Accounting Department Valenzuela Receiving Center Visayas and Mindanao Group Office of the President and CEO and OAD-CDPU ABELARDO C. YOGYOG ELLEN BUSTAMANTE* Bontoc Receiving Center ANTONIO G. MARALIT LOURDES C. REYES NORA M. MERCADO Pateros Receiving Center Planning and Research Division Corporate Executive Officer V Membership Program Management lUZon CentRal ClUsteR Office of the President and CEO Department VIRGINIA F. CALASAHAN* GAMELIN Z. OCZON Pasig 2 Receiving Center VILMA P. AGAPITO* Treasury Division GWEN MARIE JUDY D. SAMONTINA LETICIA B. ONG* Cluster Head Luzon Central Technical Support Division Medical Program Department MILAGROS N. CASUGA JUDY FRANCES A. SEE Kalookan Processing Center JOSE ALVIN M. ALTRE Coverage and Collection Program AGNES E. SAN JOSE VAN RENE M. ORPILLA Urdaneta Receiving Center Division and Concurrent Head of Retirement, Death and Funeral Program Applications Development and ZARA M. DIZON* International Affairs and Branch Management Maintenance I and Officer-In-Charge Recto Recieving Center SIMPLICIA M. BANIAGO Expansion Division of Applications System Division Malolos Processing Center HELEN C. SOLITO BERLITA F. FABRERO MARIO R. SIBUCAO Central Visayas Cluster ALAN GENE O. PADILLA Antipolo Receiving Center JULIUS CESAR Y. BASBAS* Member Assistance Center Program Applications Development and Baler Receiving Center Management Department and MARIANO PABLO S. TOLENTINO Maintenance III EVELYNA P. GONZALO Concurrent Head of Benefits Program Asset Management Department Marikina Processing Center NORMITA M. CRUZ* Division VENUS D. PASCUAL Mariveles (BEPZ) Receiving Center EMMANUEL A. TRINIDAD Branch Accounting Department ADELINA A. LIQUE ALFREDO S. VILLASANTA Special Assistant to the Executive Officer Malabon Receiving Center MARITES A. DALOPE* Office and General Services Division Investments and Finance Sector VICTORIA U. POQUIZ* Sta. Maria Receiving Center Health Care Department MA. LUZ N. BARROS-MAGSINO assistant ViCe PResident, eQUiValent dePaRtment Head/oFFiCeR- Manila Processing Center PABLITA A. DAVID* RanK & ClUsteR Head in-CHaRGe DAMIANA M. QUEZON Meycauayan Receiving Center Applications Development and PRISCILA F. MARALIT* SANTIAGO DIONISIO R. AGDEPPA LEO CALIXTO C. ABAYON* Maintenance II Cainta Receiving Center CORITA M. GADUANG Cluster Legal Support Unit Network and Communications San Fernando Receiving Center Department HYDEE R. RAQUID* FELIZARDO B. MINOR, JR.* ALBERTO C. ALBURO Information Systems Audit Department San Mateo Receiving Center ELIZABETH R. GARCIA Officer-In-Charge, National Capital ELVIRA G. ALCANTARA-RESARE Balanga Receiving Center Region (NCR) Group Officer-In-Charge of Controllership MA. SALOME E. ROMANO* TERESITA V. SOLIMAN* Division Planning and Standards Department Welcome Receiving Center MA. MAXIMA C. MACARAEG ANTONIO S. ARGABIOSO Olongapo Receiving Center Contributions Collection Program ROBERTO B. BAUTISTA NESTOR R. SACAYAN* OSCAR S. VILLAROMAN, JR.* Management Department International Affairs Department Engineering and Maintenance Binondo Receiving Center ALBINA LEAH C. MANAHAN* Department Baliuag Receiving Center JESSE J. CABEROY AUREA G. BAY Human Resource Management Division Office of the EVP for Branch Operations JOSE ANTONIO L. SALAZAR LAURA M. MARIANO Sector ID Card Center Angeles Receiving Center * Officer-In-Charge (OIC)52

NARCISO M. MARTINEZ, JR.* ANTONIO V. SORIANO BENJAMIN A. POMBO SUKARNO D. PENDALIDAY GODOFREDO M. MARTINEZAlaminos Receiving Center Biñan Receiving Center Calbayog Receiving Center Cotabato Receiving Center Pagadian ReceivingMONALIZA C. NARDO WENCESLAO G. VIRTUCIO, JR. MARINO B. TALICTIC* ROSELANE B. PLAZA* FERDAUSI A. SALASA *Camiling Receiving Center San Pablo Processing Center Tagbilaran Receiving Center Mati (Davao Oriental) Receiving Center Jolo (Sulu) Receiving CenterCEASAR P. SALUDO lUZon BiCol ClUsteR WesteRn VisaYas ClUsteR SUZETTE H. PURIFICACION* sss FoReiGn RePResentatiVe oFFiCesDagupan Processing Center Tacurong Receiving Center NILO D. ALMOSERA* ELVIRA B. BANICO FoReiGn BRanCH eXPansionMARILOU M. SANTOS * Masbate Receiving Center Iloilo Processing Center JULIOUS J. WALES, M.D.* monitoRinG dePaRtment & PoeaIba Receiving Center Bislig Receiving Center DIVINA T. AVILA LILANI B. BENEDIAN* SONIA S. DOMINGO*GUILLERMO S. TARUC Virac (Catanduanes) Receiving Center Bais Receiving Center VALERIANO P. WENCESLAO, JR. SSS POEA OFFICECabanatuan Receiving Center Tagum Receiving Center ALBERTO R. BONAFE, JR. * RAUL A. CASIANO asia & PaCiFiCGERARDA N. TERRIBLE Sorsogon Receiving Center Bacolod Processing Center REDENTOR S. VIOLA*Tarlac Processing Center Koronadal Receiving Center MARIVIC G. RUTOR ANTONIO A. CASIMIRO* ISAAC P. CIOCON, JR. Brunei Representative OfficelUZon soUtH ClUsteR Tabaco Receiving Center Kalibo (Aklan) Receiving Center noRtHeRn mindanao ClUsteR ROBERTO V. ROLDANJESREL H. ANCHETA* ELIZABETH A. DE GUZMAN* FELICITAS A. DEMANDANTE* EDWIN M. ALO* Hongkong Representative OfficeBoac (Marinduque) Receiving Center Goa (Camarines Sur) Receiving Center SagayReceiving Center Cagayan de Oro Processing Center JOSEFINA A. MADUROGREGORIO P. ASENDIDO NILO D. DESPUIG* REYNALDO V. ESPINOSA* PERKINS B. CALIXTO* Singapore Representative OfficeCalapan Receiving Center Cluster Head Luzon Bicol Roxas (Capiz) Receiving Center Camiguin Receiving Center FRENELIE ANN L. ONGSANTISIMA ROSARIO C. BAAC* CLARIBEL L. REBUENO JANE T. GARGOLES* BENIGNO J. DAGANI, JR.* Taipei, Taiwan Representative OfficePuerto Pricesa (Palawan) Receiving Center Naga Processing Center Victorias Receiving Center Surigao City Receiving Center middle eastCORAZON L. BALAGBIS ELENITA SAMBLERO MELITA S. MEDINA* ANTONIO G. FABIA*Batangas Receiving Center Legaspi Receiving Center Bago City Receiving Valencia Receiving Center WILMA M. ORTIZ Abu Dahbi, UAE Representative OfficeVICTORINA G. CARLOS* VIRGILIO A. SANTIAGO* VICTOR M. NICOR* ANNA PEARL J. FUENTESTagaytay Receiving Center Daet (Camarines Norte) Receiving Center Kabankalan Receiving Center Ozamis Receiving Center ABDAWIYA K. NAVARRO Al--‐khobar, KSA Representative OfficeVIRGINIA S. CRUZ PRISCO S. SORSONA* ESTEBAN L. PANES* JOSE ROEL J. HERBIETO*Bacoor Processing Center Iriga Receiving Center Antique Receiving Center Oroquiete Receiving Center BENNETTE A. CUETO Doha, Qatar Representative OfficeIMELDA G. FAMILARAN* CentRal VisaYas ClUsteR EMELIA B. SOLINAP* MA. RAINE L. JAMERORomblon Receiving Center San Carlos Receiving Center Butuan Processing Center BENGIE P. HERMOSO GEMMA C. CABERTE* Jeddah, KSA Representative OfficeJOSEPHINE S. HIPOLITO* Ormoc Receiving Center MANOLITO C. TAGALOG* CHERYL V. JARIOL*Sta. Cruz Receiving Center Cluster Head Western Visayas Iligan Receiving Center FRANCISCO U. UY LILIBETH A. CAJUCOM. M.D.* Kuwait Representative OfficeNELSON P. IBARRA Tacloban Processing Center IRENEO T. VILLAFLOR* INESIA S. MARQUEZ*Calamba Receiving Center Dumaguete Receiving Center San Francisco DANILO Q. CALAPE NICETA M. CARRETAS* Riyadh, KSA Representative OfficeVICTORIA A. LIWANAG Catbalogan Receiving Center soUtHeRn mindanao ClUsteR OSWALDO B. MONTENEGRO*Lipa Receiving Center Tandag Receiving Center eURoPe ERIC A. CORONADO* JOSE S. CATOTO, JR.ROBERTO D. MARCELO* Toledo Receiving Center General Santos Processing Center MARILYN O. TAMAYO* ALFREDO JOSE I. RECIO, JR.San Jose (Occ. Mindoro) Receiving Center Gingoog Receiving Center London, United Kingdom Representative MARIO V. CORRO* JOVE L. COLASITO OfficeTITO A. NAVA Cebu Processing Center Davao Processing Center WesteRn mindanao ClUsteRCarmona Receiving Center THELMA V. VENTURANZA JOAQUIN B. DESCARTIN* RIZALITO ALBERTO C. DE LEON* JAMES B. BUCKLY* Milan, Italy Representative OfficeROBERTO S. PAGAYUNAN* Bogo Receiving Center Toril (Davao II) Receiving Center Basilan Receiving CenterLucena Receiving Center FRANCISCO B. BACOL RODRIGO B. GREGANA* SERAFIN G. HINGCO* ELIZABETH G. CABATINGAN Rome, Italy Representative OfficeEXEQUIEL O. PANGANIBAN* Maasin Receiving Center Kidapawan Receiving Center Zamboanga Processing CenterRosario (EPZA) Receiving Center Usa ALBERTO L. MONTALBO* EDGAR P. JUANICH JAIME S. CASUMPANG*MARINA PAULINA G. PANTE* Lapu-lapu Receiving Center Digos Receiving Center Dipolog Receiving Center MANUEL B. LLANESInfanta Receiving Center San Francisco, California Representative REMIGIO B. MONTEMAYOR* RUDY M. LACANDALO* Office Mandaue Receiving Center Ipil Receiving Center

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SSS Annual Report 2009

by SSS Philippines on Oct 18, 2011

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SSS Annual Report 2009 Document Transcript