MANILA, Philippines – The House of Representatives and the Senate have agreed to pass a joint resolution authorizing the Social Security System (SSS) to give its pensioners a P1,000 monthly pension increase starting this month and another P1,000 in 2019.
Earlier, the SSS board of trustees decided to respond positively to its pensioners’ clamor for an adjustment.
The SSS board approved a P1,000 increase starting in January and another P1,000 in 2020. The joint congressional resolution will serve as the legal mandate for the SSS to pay the adjustment. It will be passed before Congress goes on its month-long Christmas vacation next weekend.
North Cotabato Rep. Jesus Sacdalan, who chairs the committee on government enterprises and privatization, and his Senate counterpart Richard Gordon are the principal authors of the joint resolution.
In January of this year, then president Benigno Aquino lll vetoed a Congress-approved bill granting the P2,000 SSS pension increase, saying the adjustment would seriously compromise the stability of the entire SSS.
He said the proposed pension hike would result in a total payout of P56 billion annually compared with annual investment income of P30 billion to P40 billion.
Aquino said the total payment for pensioners would yield a deficit of P16 billion to P26 billion annually and the government would have to protect the stability of the fund for the sake of its members.