SSS to onboard half of Filipino population until 2028

MANILA, Philippines — State-run pension fund Social Security System (SSS) is targeting to onboard and provide at least half of the Filipino population with social protection during the term of the Marcos administration.

SSS president and CEO Rolando Macasaet said he wants to increase the current membership of SSS which currently stands at about 41 million.

Over the next five years, SSS targets to hike this to at least 56 million.

It should be noted, however, that of the 41 million, only half or about 20 million are actively contributing to the pension fund.

“The more paying members, the higher the actuarial life,” Macasaet told reporters on the sidelines of the SSS-Robinsons Mall partnership launch on Tuesday.

“The less the need to increase the contribution rate,” he said.

To increase the membership, Macasaet said the agency would ramp up the SSS on Wheels, which aims to register Filipinos living in the provinces and other far-flung areas.

“We really have to register as many as possible. Because 20 to 30 years from now, Filipinos who do not contribute will not receive any pension,” Macasaet said.

It should be noted that the benefits of members once they retire are computed based on their regular contributions to SSS while they were still working.

Members pay monthly contributions to the state-run pension fund, which in turn are being used for benefits such as retirement, as well as other loans under SSS.

The contribution rate is currently at 14 percent of a person’s monthly salary credit, which is being shared at a 9.5:4.5 ratio by the employer and employee, respectively.

As such, SSS is also moving that Filipinos will have higher pensions once they retire through an expanded voluntary program for employers.

As of now, once an SSS member retires, the member will be entitled to a monthly pension that could range from P2,000 to as much as nearly P20,000.

Such a rate is significantly below the average P13,600 monthly pension of state workers under the Government Service Insurance System.

“Subject to approval of the Commission, we want to increase the pension to as high as P40,000. But this will be voluntary,” Macasaet said.

“Those who are still young and they want to get a higher pension when they retire, they can do so as long as they pay the right amount,” he said.