After days of losing hope about the additional pension for SSS members, today there is hope for the retired members of the agency.
An official of the Malacañang on Tuesday said President Rodrigo Duterte has approved a hike of P1,000 for the pension of some two million retired Social Security System members this year.
Of the expected P2, 000 pension hike, there is another P1,000 hike in the future.
Presidential Spokesperson Ernesto Abella announced in Malacañang saying: “He seeks to fulfill a social contract with the Filipino people, especially the elderly and the poor who gave the best years of their lives in service; while exercising fiscal responsibility to ensure the economic sustainability and protect the gains made by those who have prudently invested in the nation’s future,” Abella said.
Duterte was supposed to lead the press conference, but did not show up in Malacañang.
Aside from the pension hike, Abella said there is an increase of 1.5 percent in premiums of active members by May, which will increase the contribution rate from 11 percent to 12.5 percent to be shared by employer and employee.
The maximum monthly salary credit will also increase to P20,000 from the current P16,000.
According to SSS President and Chief Executive Officer Emmanuel Dooc, the pension increase will take effect this month but recomputations and other systems requirement will cause a “slight delay” until February.
Abella stressed that even with the P1,000 increase, the SSS fund life will continue until 2040 once the increase in the contribution rate is implemented.
The pension hike, Abella noted will be covered by current contributions and the SSS investment reserve fund, and not government funds.
“The President is not amenable to using taxpayers’ money to fund pension increase since SSS is a private fund,” he said.
SSS Chairman Amado Valdez said the contribution rate could be increased annually until it reaches the target of 17 percent from the current rate over six years.
“But as I said, madadagdagan next year. But the point is, we will always look into our efficiency.
Pagagandahin natin iyong investment income. Down the line, baka hindi mo na kailangan mag-increase na additionally,” he added.
“So it will just be the stop-gap measure to ensure the sustainability because we want the base line no less than 25 years sana that the pension will stay,” he added.
Ideally, the fund life of SSS should be up to 75 years.
Valdez added that aside from this, the SSS is also looking into internal reforms to improve their earnings.