SSS lauds passage of new charter

MANILA, Philippines — State-run Social Security System (SSS) hailed yesterday the passage of Republic Act 11199 or the Social Security Act of 2018, which it said would help strengthen the state pension fund and extend its viability.

In a statement, SSS president and chief executive officer Emmanuel Dooc said President Duterte’s signing of the Social Security Act is considered a “huge success” for the state fund, as it would “bring new life to SSS” and enable it to continue serving its stakeholders, members and pensioners.

Dooc said the legislation was made possible through the cooperation of lawmakers, both in the Senate and the House of Representatives.

 “It’s my privilege to have the Social Security Act of 2018 enacted during my watch, having been an intimate observer and at times participant to the intricate and laborious legislative mill process which marked its passage. When they collectively put their minds and hearts into it and place the interest of the commonweal primordial, there is no better specimens of public servants than well-meaning and hardworking congressmen and senators crafting and enacting a good law,” Dooc said.

RA 11199 repealed RA 1161, as amended by RA 8282, and was aimed to strengthen the SSS by rationalizing the powers of the Social Security Commission.

For one, the new law allows the policy-making body of the SSS to expand the investing capacity of the pension fund to generate better income, for the benefit of members and pensioners.

SSS said it is also expected to generate additional funding for the pension fund as it imposes additional premium contribution from members.

Under the law, monthly contributions – which is currently at 11 percent – will be raised by one percentage point every two years starting 2019, until it reaches 15 percent in 2025. It also provides the gradual adjustment of the minimum and maximum monthly salary credit.

It also provides qualified SSS members with unemployment insurance, in the event that they suffer from involuntary separation from work.

 “Under the law, displaced workers will get financial assistance from SSS in the form of cash equivalent to half of their average monthly salary credit for two months,” Dooc said.

At present, SSS members are covered only with sickness, maternity, disability, retirement, funeral, and death or survivor benefits.

The law also provides protection for the growing number of Filipinos working abroad as it made the social security coverage of Overseas Filipino Workers mandatory.