Social Security System (SSS) proposes P600 hike in monthly member contribution
An additional premium of P600 might be add to the monthly contributions of Social Security System or SSS members to fund the suggested increase in the P2,000 monthly pension of the retired workers.
Social Security System senior vice president George Ongkeko Jr. post in a news forum in Manila yesterday that the amount is equals to a 1.5 percent inscrease onn the contribution rate needed to fund the pension hike increase.
“For each and every P500 pension hike, P5 will be added to your daily contributions made by both of the workers and there employers,” he said
The contribution hike will be apply to all paying members, be they employers, self emplyoyed workers or employees.
Once the pension hike is done and approved, around P56 billion will be paid to around 2.15 million SSS pensioners on its first year of implementation.
He said Social Security System (SSS) will adding aroud half of the actual pension payment once the hike is approved and implemented. He said 2015, SSS pay around P112 billion in pension
He say SSS could implement a proposed pension increase (for as long as there is a sustainable funding source) there target is P600 increase in monthly contributions.
If the pension increase will be implemented without fund replenishing mechanism, the trust fund will only last until the year 2025 when Social Security System (SSS) projects its funt to last until year 2042.
Meanwhile, Social Security System (SSS) shows that the contribution rate must be increased to at least 17% from the current 11% to implement the pension increase while maintaining the company’s financial status.
Surigao del Sur 1st District Rep. Prospero Pichay Jr, is looking for the possibility of the goverment subsidizing amount needed for the pension hike.
“If this P2,000 pension hike is signed and approved, the goverment needs around P50 billion every year so the perpetuity of Social Security System (SSS) is ensured,”
“We are now working to ask the decision and approval of the president to implement any increase on the contributes and benefits”.
Government Enterprises and Privatization agreed Bayan Muna party-list Rep. Caslos Zarate motion for the omnibus approval of the 15 more pending measures calling for a additional in the Social Security System (SSS) monthly pension. On September 7