House approves higher SSS premiums

MANILA, Philippines - A majority of the 295 members of the House of Representatives voted last night to grant the Social Security System (SSS) the power to collect higher premiums or monthly contributions among its members to pay for the staggered P2,000 pension hike for retired members.

Some 275 congressmen voted to approve on third and final reading House Bill 2158 that will “rationalize and expand the powers and duties of the Social Security System.” 

The measure aims to amend Republic Act 1161, as amended by RA 8282, otherwise known as the Social Security Act of 1997.

Senate Pro Tempore Franklin Drilon earlier warned that even if President Duterte had approved the P1,000 initial increase in the monthly pension of retired SSS members by February this year, increasing or sourcing this from the government financial institution is illegal. The balance of P1,000 pension hike would be given later.

Drilon pointed out that under Section 4 of Republic Act 8282, SSS is “prohibited to recommend increase in benefits that would require an increase in contribution.”

Seven lawmakers, mostly from the Makabayan bloc, opposed HB 2158, while one abstained.

Bayan Muna Rep. Carlos Zarate said he and his colleagues voted against the measure because they believe that this “will only be used to increase SSS contributions without first instituting reforms in the agency.”

“We call on the people, particularly the pensioners – whom we give due credit for this victory – to continue pushing for needed reforms in our pension system,” Zarate said in a statement.

HB 2158 was approved on second reading by the House last December.

Zarate and his colleagues lauded, on the other hand, the House’s passing of Joint Resolution 10 – which was voted unanimously by the 233 lawmakers present in the gallery yesterday - granting the long-delayed and much-needed P2,000 SSS pension hike. 

As promised, President Duterte granted the P2,000 SSS pension hike he committed during the May 2016 campaign, but only on a staggered basis – the first half will be given this month while the other half will be given in 2022 or 2019, depending on SSS’s liquidity.

The increase in monthly premium would raise the current contribution to 12.5 percent from 11 percent – an amount that will range from P15 to P740, equally shared by employee and employer. It will start in May this year, according to SSS chairman Amado Valdez, a former law dean.

The measure, if enacted, effectively allows the SSS board to increase contributions without the President’s approval.

The Department of Labor and Employment (DOLE), for its part, expressed support yesterday for both the increase in pension for SSS retirees and the planned hike in monthly contribution of members. – With Mayen Jaymalin