SSS needs to raise contributions from members — US firm

Watson Wyatt Worlwide, a US consultancy firm, said yesterday there is a need for the state-owned Social Security System (SSS) to increase its member-contribution to avert a financial crisis in the next few years.

"An actuarial valuation of the SS funds showed that the government-run pension fund system would run out of funds by 2015 due to soured investments," a top executive of Watson Wyatt said yesterday.

Watson Wyatt president and chief executive officer John Haley said the government should act now rather than wait for the SSS to collapse.

"As you get closer and closer to that (2015), you have fewer and fewer options, " Haley said.

Haley opined that government should increase the member contributions now and at the same time reduce the benefits currently being extended to members.

"Such an option, while not palatable to SSS members will beef up the SSS funds," he said, adding that "if contributions are not increased and the SSS continues extending the same level of benefits, the fund will run out of funds by 2015."

Earlier, proposals were made to increase the monthly contributions of the SSS’s 2.4 million members to 16 percent from the current 8.4 percent of gross earnings. – Marianne V. Go