SSS seeks additional funding sources

MANILA, Philippines — The Social Security System (SSS) has asked Congress to provide the state fund with additional sources of financing amid the imminent approval of a bill that will extend the maternity benefit coverage of members.

In an interview, SSS president and chief executive officer Emmanuel Dooc said the expanded maternity leave bill currently being deliberated in Congress could put additional pressure on the state fund’s expenses unless additional sources of revenues are determined.

The bill proposes for the extension of the paid maternity leave of both government and private workers to 100 days from the current 60 days for normal delivery and 78 days for cesarian section.

According to Dooc, the bill, if passed, may increase the annual maternity benefit payout of the SSS by P4 billion, on top of the P6 billion already released by the state fund every year.

“We expect, based on our actuarial studies, that if this gets enacted, our expenditures will be increased by around P4 billion in one year,” he said.

With this in consideration, Dooc said the SSS has submitted a position paper to Congress, requesting it to identify additional sources of revenues for the state fund to help them cover the increase in maternity benefits.

The SSS chief also said lawmakers should consider increasing the contribution rate of SSS members.

“We hope that the authorities will also be open minded to recognize that all these additional benefits will have serious implications to our finances. So they should also be open to increasing the contribution rate. We are not asking for a subsidy yet. So increase the rate, so we can also provide more benefits,” Dooc said.

SSS is pushing for the passage of Senate Bill 1753 which seeks to amend the charter of the pension fund.

In particular, the amendment aims to empower the Social Security Commission to increase contribution and benefits, condone penalties, and rationalize investments, among others.

Net income of the SSS dropped to P3.5 billion in the first quarter from the P4.01 billion recorded in the same period last year.