Higher contribution needed to sustain pension fund – SSS
An increase in the contributions of Social Security System (SSS) members is vital to compensate for the P1,000 pension increase and keep the pension fund operating, SSS Chairman Amado Valdez said on Wednesday.
"Ang mangyayari po diyan, from January to May, kung walang mga contribution, babagsak po 'yan ng 2032. Kaya kailangan may additional contribution na 1.5 percent," Valdez said in an interview on GMA News' "Unang Balita." He was referring to the actuarial life of the SSS.
The 1.5 percent increase in premiums will begin in May, followed by yearly increases until 17 percent target is hit in six years, from the current rate of 11 percent of the maximum salary credit.
Increasing the rate of contribution and adjusting the maximum salary credit to P20,000 from P16,000 will add 25 more years – or until 2042 – to the fund life of the SSS.
Valdez noted the P16,000 applies even to employees who receive a month salary of P100,000. In other words, he said, the contribution base for 11 percent is P16,000.
He said the Government Service Insurance System – or the SSS counterpart for government employees – has a rate of 21 percent of the salary base," Valdez said.
President Rodrigo Duterte on Tuesday approved a P1,000 pension hike for some 2 million beneficiaries, with another P1,000 slated in 2022.
On top of increasing the contribution and salary base, the SSS has slashed its operating expenses by P1 billion to save more funds, Valdez said.
"There will be many other intervention like investments. Iniisip ko na magandang investment 'yung toll road, halimbawa. Ang nangyayari kasi diyan nagbibigay lang ng corporate coupon na bibigyan ka lang ng interes taon-taon, pero you do not participate in the profit of a toll road project," he added. — Ted Cordero/VS, GMA News