SSS turns around with P2.6-B income in 2004

The Social Security System (SSS) reported an unaudited net income of P2.6 billion last year, a complete reversal from the P2.9-billion net loss a year earlier.

In a statement, the SSS said its financial performance in 2004 improved dramatically due to policy reforms and the improvement in the stock market.

The state-owned pension fund also attributed the marked turnaround to the double-digit growth in contribution collections, which grew 11.4 percent to P43.9 billion from P39.4 billion in 2003.

Reserve fund rose to P173 billion last year, a three percent increase from P168 billion in 2003. Total assets also went up to P175.7 billion, a 2.8 percent jump from P170.9 billion the year before.

During the latter half of 2003, the agency fielded more than 300 account officers nationwide to examine payrolls and monitor the payments of employers.

The SSS earlier launched its teller services in 18 branches nationwide, allowing members to pay their contributions and loan payments directly. The agency is set to open 24 additional teller windows in different parts of the country by end-May this year.

The tellers provide an alternative to the banks, which have been the main conduits for SSS payments in the past many years. However, the banks have been overwhelmed by millions of self-employed and voluntary members lining up to pay contributions during certain days of the month.

As of September 2004, self-employed and voluntary members have reached five million, which is 20 percent of the total SSS members worldwide.

Meanwhile, the SSS reported collections of P53 million in back payments from delinquent loans of members under an amnesty program launched last October.

More than 21,000 borrowers lined up at SSS branch offices nationwide to take advantage of the amnesty program which waived stiff penalties for overdue loans.

"We are pleased that a growing number of members are availing of the program," SSS president and chief executive officer Corazon de la Paz said.