SSS urges House to reconsider rate hike deferment

MANILA, Philippines — The Social Security System (SSS) has appealed to members of the House of Representatives for an objective decision on the proposed measures to postpone the contribution rate hike scheduled for this year, saying deferring the increase may endanger the fund’s financial viability.

SSS president and chief executive officer Aurora Ignacio, at the hearing of the House committee on government enterprises and privatization chaired by Parañaque Rep. Eric Olivarez on Thursday, urged legislators to consider the effects of delaying the scheduled contribution hike on benefits given to members, pensioners and their beneficiaries.

Ignacio explained that provisions of the proposed legislations embodied under House bills 8304, 8310, 8313, 8315 and 8317 would weaken and put more strain on the SSS fund in these difficult times.

“At the outset, we have expressed our opposition to these proposals because of its adverse financial impact on the financial health of the SSS and jeopardize the benefits of members, pensioners and their beneficiaries. However, we support any measures that will benefit our stakeholders as long as it will prioritize the long-term sustainability of the pension fund,” Ignacio said.

She emphasized that additional contributions – depending on the member’s minimum salary credit category – are relatively small. The monthly rate increase ranges between P15 and P100 for employed members and between P30 and P200 for self-employed and voluntary members.

Overseas Filipino worker (OFW) members will only see contribution rate hikes between P80 and P200.