SSS revenue falls 67% in Q1

MANILA, Philippines - The state-run Social Security System (SSS) reported a 67 percent drop in its net revenue in the first quarter of the year, mainly due to the recently approved pension hike.

In a statement, the pension fund said net revenue fell to about P4 billion from P12.3 billion the previous year.

The agency attributed the decline to the 43.06 percent rise in total expenditures during the period, which was due to the increase in benefit disbursements.

Total disbursements jumped 43.06 percent to P44.77 billion, mainly due to the recently approved P1,000 additional benefit for pensioners last March.

“As you may recall, President Duterte has approved the release of the P1,000 across-the-board benefit increase for our dear pensioners last January and we released the amount to more than two million pensioners last March in three tranches covering the first three months of 2017,”  SSS president and CEO Emmanuel Dooc said in a statement.

“This jacked-up our disbursements for the period by nearly P7 billion,” Dooc added.

The pension fund explained the additional P1,000 benefit disbursed in April was also included in the total expenditures for the first quarter.

Retirement and death benefit payments accounted for bulk or 85 percent of the disbursements, as both increased by 50 percent to P24.24 billion and P13.63 billion, respectively.

SSS said majority of its benefit outlays rose in the first quarter. Among these are disability grant at P1.51 billion from P1.05 billion, maternity benefit P1.63 billion from P1.46 billion, funeral grant P967.42 million from P859.89 million, sickness benefit P614.24 million from P589.04 million, and medical services P3.89 million from P3.35 million.

In contrast, only benefits on rehabilitation services posted a decline to P69,125 from P359,033 a year ago.

Despite increased disbursement, SSS reported a 12.14 percent rise in its total revenues to P48.78 billion.

“The increase in our collections for the first quarter of this year is the fruit of our continuing labor in strengthening our collection efforts such as going after delinquent employers through Operation Tokhang,” Dooc said.

Members’ contribution accounted for bulk of the total revenues at P39.55 billion, up 10.9 percent.

In addition, investment and other income increased by 17.76 percent to P9.23 billion.

Operating expenses declined by less than one percent to P2.18 billion.

Dooc said SSS took more concrete steps in strengthening its fund’s collection and legal enforcement units, in a bid to prevent and reduce occurrences of delinquencies.

The pension fund has been able to secure 45 employer convictions with a collective delinquency of P52.7 million.