We are getting better at cutting red tape, but we still are not doing right by our retirees.
This is the picture provided by two recent surveys that compared the Philippines to other countries.
First the good news.
The Philippines jumped 29 spots in the latest World Bank roster of economies ranked by the ease of doing business, landing in 95th place among 190 economies, up from 124th last year.
The World Bank’s Doing Business 2020 Report, released last week, showed the Philippines was one of the top three most improved in terms of doing business.
The World Bank report cited the Philippines’ implementation of regulatory reforms for starting a business, dealing with construction permits, and protecting minority investors.
On the other hand, an Australia-backed study shows the Philippines has one of the worst pensions systems for retirees compared to the rest of the world.
The Melbourne Mercer Global Pension Index (MMGPI) 2019 rated the country's retirement income protocol at 43.7 out of 100. This placed the Philippines at the fourth-lowest rank, or 34th out of 37 countries.
The local system was rated "D," defined as one that has some desirable features but come with "major weaknesses" that need to be addressed.
The study assessed a country's retirement benefits program on the grounds of adequacy, or if the pension payments are enough; sustainability, or the long-term fund life; and integrity, or its governance and regulation.
This was the first time the index covered the Philippines. MMGPI's evaluation is based on the operations of the Social Security System (SSS), which manages the retirement and other benefits of private sector workers and the self-employed.
In terms of integrity, the Philippine pension system is at the very bottom of the list. This area considered regulation and governance, protection and communication for members, as well as operating cost.
The country was the third lowest ranking in terms of adequacy. This sub-index considered the benefits provided to the poor, as well as design features that enhance the efficacy of the overall pension system.
On the upside, the Philippines was in the top 15 for the most sustainable in terms of level of funding—perhaps because benefits are so paltry.
As expected, the Palace made hay over the first survey.
Communications Secretary Martin Andanar said the “remarkable improvement” in the country’s ranking was a “strong vote of confidence” in President Rodrigo Duterte’s resolve to cut red tape.
He attributed the improved ranking to the enactment of Republic Act 11032 or the Ease of Doing Business and Efficient Government Services Act under the Duterte administration.
He thanked all government agencies, state-owned corporations, and other branches of government “for adamantly carrying out the President’s directive.”
“We expect even better results in the coming years as the government remains committed to give the Filipino people an easier and more comfortable life, thanks to the President’s strong political will to undertake these landmark reforms,” he added.
In sharp contrast, nobody in the administration—not even the SSS—bothered to comment on the country’s dubious distinction of having one of the worst pension systems in the world.
Bayan Muna Rep. Carlos Isagani Zarate was certainly correct when he said the MMGPI findings should prod the government to certify as urgent at least two bills that seek to increase pensions for senior citizens. The study, he added, should be a wake-up call to the administration on the need to alleviate the plight of the country’s senior citizens.
But if the official silence so far on the MMGPI survey is any indication, the Palace and the SSS seem content in their slumber.