TIM eMagazine Vol.2 Issue 9
SSS clarifies
contribution hike
S
ocial Security Commission (SSC) Chairman Amado D.
Valdez on Thursday said the pension fund is still studying
the possible implementation and effects of a monthly
contribution rate increase, contrary to reports that it will
implement a contribution adjustment by January 2018.
“The contribution increase is our last option. However,
should the institution be pushed to do such action, to
secure the fund life of the Social Security System (SSS)
and for the benefit of our current and future members
and pensioners, we would like to assure the public that
the contribution rate increase will be at the minimum amount only. We
are trying our best to find ways to generate income for the pension fund,"
Valdez said.
Valdez said that under the current administration, based on the latest
data, collection from members’ contributions as of the end of first semester
of 2017 increased by 9.62 percent to P78.64 billion.
SSS investment income also increased by 12.27 percent during the same
period from P16.09 billion to P18.35 billion.
"We are looking at various income-generating schemes including
disposal of sub-optimal properties to maximize revenues from these real
estate properties," Valdez said.
Talks on SSS contribution rate increase happened in the wake of ongo-
ing Senate hearings on the SS Reform Act of 2017.
Senator Richard Gordon, author of the bill, said the SS Charter Amendment
will be a landmark bill which he will push for passage by end of this year.
"We strongly support Sen. Gordon's mantra that we should work, save,
and invest to prosper. Right now, SSS is the best and affordable savings
mechanism for our workers," Valdez said.
Based on the latest pension simulation by the SSS Actuarial and Risk
Management Group, a member with an actual monthly salary of P30,000
at the time of his retirement with 45 credited years of service will have
a basic monthly pension of P15,700, or only 52 percent of his last salary
under the current P16,000 monthly salary credit (MSC) ceiling.
If the MSC ceiling will be adjusted to P30,000 by 2022, his estimated
monthly pension will be at P29,300 or about 98 percent of his last salary
at retirement.
The proposed bill to amend the 20-year old SS Charter is currently
being deliberated at the committee level in the Senate and was listed as
a priority bill of the Legislative-Executive Development Advisory Council
(LEDAC) Executive Committee.
SSS eyes the charter amendment proposal as one of the long-term
solutions that will make the pension fund viable and sustainable to further
serve its future members and pensioners.
One of the major provisions of the proposal is the rationalization of the
powers, duties and accountabilities of the Social Security Commission
(SSC). With the rationalized powers, it will make it easier for the SSC to
diversify SSS investments to generate and boost earnings of the pension
fund, and to further improve the benefits being disbursed to its members.
The bill, when enacted into law, will also allow the Commission to
condone penalties on delinquent contributions by employers and
employee-members, and to determine appropriate monthly salary credit
and contribution tables based on actuarial studies for the stability and
viability of the pension fund.
sss.gov.ph
SSS loans, benefits can now be
withdrawn via UMID-ATM Cards
M
ore than 34,000 members of the state-run So-
cial Security System (SSS) may now withdraw
through automated teller machines (ATM)
their social security benefits and loans using
their Unified Multi-purpose Identification
(UMID) cards.
SSS President and Chief Executive Officer
Emmanuel F. Dooc said the rollout of the
program will make disbursements easier for
member benefits such as disability; retirement;
self-employed and voluntary; sickness and maternity claims; and mem-
ber privileges like salary and calamity loans.
“Doing direct transfer of funds for