STATE-RUN Social Security System (SSS) on Thursday said 13 more years will be added to its fund life following the recent enactment of Republic Act 11199, otherwise known as the Social Security Act of 2018.
SSS president-CEO Emmanuel F. Dooc said from the current fund life of up to 2032, it is expected to be extended until 2045, on the back of the implementation of the contribution increase and adjustment in minimum and maximum salary credits under the newly-signed law.
RA 11199 aims to strengthen the pension fund through the implementation of the gradual increase on monthly contributions from the current 11 percent to an addition of 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025, and the gradual adjustment of the minimum and maximum monthly salary credit (MSC).
Based on SSS Actuarial and Risk Management Group’s study, there will be an additional P31 billion in contribution collections of the pension fund in 2019 if the 12 percent contribution rate with adjustments in the minimum and maximum MSC will be implemented.
SSS’ fund life in 2016 was 26 years or until 2042.This was slashed by 10 years when the P1,000 additional benefit for pensioners was implemented in 2017. SSS shelled out an extra P 33.26 billion in 2017 for the implementation of the P1,000 additional benefit for more than 2.3 million qualified pensioners.
“We would like to appeal to our members to see these reforms as additional savings and not as a burden for them. We would like to ensure that the SSS would have enough funds for their short term and immediate financial needs during times of contingencies,” Dooc said.
“Along with these reforms, of course, benefits and privileges for our members will also improve. One example, assuming a member who has a monthly salary of P20,000 and has paid 12 contributions in the 12-month period before the semester of contingency, his/her sickness benefit will increase to P600 per day from the current P480 per day,” Dooc said.