Plan to delay SSS pension hike (part 2) opposed

Bandera (Mindanao) - - NEWS -

MILITANT leaders, BAYAN Muna Rep. Carlos Zarate and its Chairman Neri Colmenares, have called out the Social Security System over its plan to delay the implementation of the second phase of the pension hike until 2020.

“The SSS board is gravely insensitive if they push through with this plan,” Zarate said in a statement on Tuesday.

Zarate added that the increase in SSS members’ monthly pension is badly needed as the public has been reeling from the effects of inflation, brought by the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“Malaki na nga ang nabawas sa dagdag isang libong SSS pension hike dahil sa pagsirit ng presyo ng mga bilihin bunsod ng TRAIN law tapos ngayon ay babaratin na naman ang mga pensyoners,” the lawmaker said.

In a previous report, SSS asked to delay the second tranche of President Duterte’s promise to increase the pension benefit. SSS has already provided the first tranche (P1,000) in 2018, but looks to give the second tranche (P1,000) in 2020, instead of the original 2019 plan.

SSS cited decreased revenues and increasing disbursements for this proposal. Zarate a n d Co lmenares maintained that increasing contributions to cope with budgetary constraints should be the “last resort” of the SSS.

“We have always pointed out, as what former Chair Amado Valdez also believes then, that SSS contribution hikes should be the last resort in extending the pension fund life,” Zarate said.

“The SSS board is constantly harping of the need to increase the premium saying that benefits will increase with the contribution hike but they remain silent on what they have done to increase their collections, among others, without raising the contribution,” he added.

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