SSS execs exert efforts to lengthen system life till 2049
The two gave the assurance during a press conference here on Friday afternoon.
Valdez said, “pagbubutihin naming ang pagko-collect, pag-invest at ang system (we will do good to collect, in investing [SSS funds] and the operational system [as a whole]). He said that they are doing a lot of initiatives to be able to bring to year 2049 the actuarial life of SSS which was lowered to year 2032 following the Php1,000 increase in pension that took effect in January 2017 from the original 2042 before the approval of the raise in pension.
Under the SSS, members are assured that upon reaching the age of 60, they will be entitled to a pension, based on their contribution to the fund.
Dooc also said that they are aggressive in collecting the contribution of delinquent companies, termed as “SSS Tokhang”- where they file cases against erring employers who do not remit their share in the premium, including that of the employee. They also pursue cases against those who fail to perform their obligation to the system.
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 are now cooperative.”
This system has led to an average additional collection of Php1.3 billion a month, which is starting to cover the Php1,000 monthly pension increase that led to the shortening of the fund’s life span.
Dooc talked about the “Step Wise” which was proposed by the SSS officers to the Cabinet, that will address the effect of the Php1,000 pension hike. He also mentioned the increase in contribution of the members. At present, eight paying members are subsiding 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 Php16,000 to 25,000.
More importantly, 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.
In investing, SSS does not only look at the income it will generate, but the possibility that the investment will create jobs, thus increasing members who pay their premium, that will further protect the life span of the SSS.
The executives were in unison in saying that they were trying their best to deliver services to the members while protecting the fund that they own.
Valdez said “our goal is to increase the minimum pension from Php2,200 to Php5,000 or even Php10,000.”
The officials further assured that the remaining Php1,000 balance from the Php2,000 increase proposed prior to January 2017 will be received hopefully on or before 2019 or even earlier when the unfunded liability of the SSS has stabilized as a result of the initiatives being undertaken. (PNA)