SSS says contribution hike a ‘last resort’
They would rather sell assets than slap higher payments from the public.
Social Security Commission (SSC) Chairman Amado Valdez said private sector employees should not yet worry too much with seeing higher deductions on their paychecks each month, as the planned hike in contributions are yet to be finalized.
“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,” Valdez said in a statement on Thursday, Oct. 5.
“We are trying our best to find ways to generate income for the pension fund.”
The clarification comes after reports that the SSS will introduce a 1.5% increase in the monthly contribution rate starting January 2018, as it strives to catch up with the P1,000 across-the-board increase in payments to retirees that took effect this year.
Instead, the SSS is studying other “income-generating schemes” to collect more revenues and sustain the life of the pension fund.