P2,000 hike in SSS pension to be staggered

MANILA, Philippines – Retirees will receive a P2,000 increase in their monthly Social Security System pension on a staggered basis – the first half in January 2017 and the second tranche in 2020.

SSS chairman Amado Valdez manifested this position before the committee on government enterprises and privatization at the House of Representatives yesterday.

The committee approved the report regarding the P2,000 pension hike.

Committee chairman Jesus Sacdalan said they were able to talk to SSS officials during an executive session where they found a way to invest the money to ensure its financial viability, like investing in public-private partnership agreement.

Last September, the committee consolidated and approved 16 bills seeking to provide a P2,000 across-the-board increase in the monthly SSS pension for retirees, with a corresponding adjustment of the minimum monthly pension.

It approved the bills seeking to amend Section 12 of Republic Act 1161, as amended, otherwise known as the Social Security Act of 1997.

About two million SSS pensioners and their families stand to benefit from the proposal.

Deputy Speaker Raneo Abu and Leyte Rep. Yedda Marie Kittilstvedt-Romualdez welcomed the approval of the proposal as a show of President Duterte’s commitment to help the pensioners.

Abu said it is a very worthy proposal that would show Congress’ sincere desire to serve the people’s interests.

“It is feasible, necessary and urgent,” he said.

“The current pension benefit was not adjusted enough to meet the current cost of living standards.

“It’s a major step towards sharing the inclusive growth to the elderly. I hope the Senate will also expedite the passage of the measure aimed at easing the plight of our SSS pensioners.”

Romualdez, wife of former lawmaker Martin Romualdez, agreed.

“This is a good gift to our elderly and we hope that Congress will rally on its passage until it reaches the President’s table for his signature to make this measure a law,” she said.

“This would extend economic relief to retired private workers who are in their sunset years. The increase on their monthly pension is a good act of Congress to champion their plight.” 

The Senate and the House approved the SSS pension hike proposal during the 16th Congress (July 2013-July 2016) but former president Benigno Aquino III vetoed it.

The committee on government enterprises and privatization is within its timeline, where it vowed to approve the bill at the committee level this month and reach the plenary of the House of Representatives by mid-November.

Sacdalan said they approved the 16 bills last Sept. 7, after which they were referred to the committee on appropriations headed by Davao City Rep. Karlo Alexei Nograles for the funding provision of the proposals.

Sacdalan said the proposals were given back to the committee on government enterprises and privatization after the appropriations committee had acted on them.

“We are done with the committee report and it is only a matter of approving it on Nov. 15,” he said.

Parañaque Rep. Gus Tambunting said there was no justifiable reason to delay further their approval of the pension hike since this proposal was approved by both the Senate and the House during the 16th Congress.

“The bill has priority status in this 17th Congress,” he said. “This was thoroughly studied during the 16th Congress. So whether or not the SSS officials will show up, we need to discuss and vote on the report so it can already proceed thereafter to the plenary.” 

Tambunting said the authors want to prove to SSS officials that the pension hike can be funded.

“First of all, the collection rate of the SSS has not improved, it has remained at 40 percent,” he said.

“The lack of SSS funds is due to the unimproved collection rate of the agency.”