SSS to stretch fund life to 2049 despite P1,000 pension hike drag
Social Security System (SSS) Chairman Dean Amado Valdez and President and Chief Executive Officer Atty. Emmanuel Dooc are confident of extending the actuarial life of the pension fund.
In a press conference here Friday, Valdez said his team was targeting to stretch up to 2049 the actuarial life of SSS.
The pension fund’s life has been shortened to 2032 following the P1,000 increase in pension approved by President Rodrigo Duterte last January.
The original life of the pension was pegged at 2042 before the pension hike. All SSS members were guaranteed a pension upon reaching 60 years old.
Valdez said “our goal is to increase the minimum pension from P2,200 to P5,000 or even P10,000.”
To boost its fund, SSS planned increase members’ contribution considering that eight paying members were subsidizing one pensioner.
The SSS has proposed a staggered increase in the premium by six percent from 2016 to 2022 or from 11 percent to 17 percent by year 2022. This is aside from increase in the ceiling of the credit from P16,000 to P25,000.
An amendment in the charter of the SSS, already approved by Congress and pending with the Senate, will allow the system to invest the fund in Public Private Partnership (PPP) projects.
The officials further assured that the remaining P1,000 balance from the P2,000 increase proposed prior to January 2017 would be received by 2019 when the unfunded liability of the SSS has stabilized as a result of the initiatives being undertaken.
Dooc also said the new management has been aggressive in collecting the contribution of delinquent companies, dubbed “SSS Tokhang”, where the SSS took the initiative in filing cases against erring employers..
From January to August this year, SSS was able to obtain conviction in 41 cases they filed. The “Tokhang”, he said has become effective because the employers who were delinquent have become more cooperative.
The new system has led to an average additional collection of P1.3 billion a month, which Dooc said has steadily made up for the P1,000 monthly pension increase. (PNA)