SSS to tap insurance firms

MANILA, Philippines -  The Social Security System (SSS) is considering tapping private insurance companies to insure some of its liabilities, in order to address risks brought about by growing expenditures.

SSS president and chief executive officer Emmanuel Dooc told The Star the pension fund is looking for ways to cover some of the agency’s risks and liabilities, given the fund’s growing expenses.

Total disbursement of the pension fund jumped 43.06 percent in the first three months of the year to P44.77 billion driven by the recently approved P1,000 additional benefit for pensioners last March.

This resulted to a 67 percent drop in revenue to P4 billion.

Dooc said the pension fund has not yet talked to any private insurance provider.

He said the SSS is consulting with the the social security committee of the Actuarial Society of the Philippines.

Despite its growing expenditures the SSS earlier assured its members that it has enough reserves.  

“Our current contribution collection and investment income from last year is enough to finance the additional P1,000 benefit for pensioners so we assure the public that the pension fund remains strong and viable,” Dooc earlier said. 

The SSS Investment Reserve Fund stood at P478 billion as of the end of April.

“This fund is invested to lengthen the lifespan of the pension fund to pay for future benefits, the SSS said.

Total collections from SSS contributions rose 9.6 percent in the first four months to P52.18 billion.