SSS eyes member contribution hike in Q3

MANILA, Philippines — State-run Social Security System (SSS) is hoping to implement as early as the third quarter the proposed increase in the contribution rate of its members, a top official said.

In an interview, SSS president and chief executive officer Emmanuel Dooc said the state fund is optimistic the bill seeking the amendment of the SSS Charter would be discussed and approved in the bicameral committee before the Congress adjourns again on June.

He said the charter amendment would provide the Social Security Commission (SSC), the policy giving body of the SSS, the power to adjust the contribution rate of its members.

According to Dooc, the bill, sponsored by Sen. Richard Gordon, will soon be sponsored in the Senate plenary.

“That is still with the committee of Senator Gordon. The committee report is already finished and my understanding is that more than a dozen senators have already affixed their signature,” Dooc said.

If the bill generates the support of the majority in the Senate, then the bill would proceed to the bicameral committee, he said.

According to Dooc, implementing the increase within the year would give the SSS enough time to generate more funds in preparation for the second tranche of benefit increase for pensioners.

“Just give me one quarter. If the increase, for example is 1.5 percent to 12.5 percent (from the current 11 percent), I can collect about P17 billion for one quarter. If the increase becomes three percent, that will be close to about P35 billion in one quarter,” he said.

One the other hand, Dooc said the additional P1,000 pension increase promised by President Duterte would increase the SSS’ expenditures by about P2.5 billion a month.

Dooc said the SSS is hoping the second tranche of the additional pension would be implemented until 2020 or at least before the end of the President’s term in 2022.

He said this would give the state fund time to boost its collections and improve the state fund’s capability to cover the requirement for the additional benefits.

“I hope there won’t be an increase (in pension) next year, and then I can collect for the next 12 months. It will extend the fund life of SSS, and the increase in contribution can cover the requirement for the additional benefits,” Dooc said.

“The commitment of the President is to increase the benefit during his term, and his term is until 2022 and we have given one half already. That’s one of his unfulfilled promise, but his promise is during his term, it’s not immediate,” he added.

President Duterte last year approved the P1,000 increase in SSS pension benefits. The second tranche, or another P1,000 increase is slated by 2022, or the end of Duterte’s term.