No planned hike in monthly contributions
The Social Security System (SSS) clarified that it has no plan to increase the current contribution rate in the immediate future, contrary to recent reports.
SSS President and Chief Executive Officer Emilio S. De Quiros, Jr. said that currently circulating stories of a planned increase could have stemmed from the results of an SSS study, which looked into the impact of a P2,000 across-the-board pension increase as provided in House Bill 5842.
The SSS study revealed that adding P2,000 to existing pension payments would require corresponding adjustments in the contribution rate or a government subsidy, otherwise it will shorten the SSS’ fund life by 13 years or until 2029. The SSS fund life today is projected to last for 27 years or until 2042.
“Although a contribution hike is much needed to improve the actuarial soundness of SSS funds, we would like to assure the public, especially our members that we are not seeking for another increase in their contributions at this time,” De Quiros said.
Clarification on performance-based bonus
Likewise, SSS said that inquiries about the grant of performance-based bonus to its officials and employees must be directed to the Governance Commission for GOCCs (GCG), the oversight body which religiously monitors performance of GOCCs and grants authority to give performance-based bonus.
“Our financial statements and accomplishment reports are open to public scrutiny in our website as confirmed by the Governance Commission for GOCCs. These reports validate our continuous efforts to improve the benefits of our members and pensioners while ensuring financial viability of the pension fund,” De Quiros said.