1st tranche of SSS pension hike out by January 2017: Dooc

THE SOCIAL Security System (SSS) is set to make available the first tranche of the P2,000across-the-board pension hike to its pensioners.

Newly appointed SSS President and Chief Executive Officer Emmanuel F. Dooc told reporters at an event on Wednesday night that they are set to release the initial P1,000 pension increase to bank accounts of pensioners.

Mr. Dooc explained that the first tranche will reflect in the bank accounts of pensioners by January 2017 instead of this December as “banks require a certain number of float, kasi wala silang kita ( because banks won’t be able to earn their income).”

“Halimbawa ( For example), P13 billion [ will be allocated in different banks,] hinohold nila ng ( they will hold the amount for) two weeks para (so) they can make money… Papautang nila yun ng mga short term, so ’ yun ang pinaka- income nila (they will lend it for a short term, so that’s their income),” Mr. Dooc said.

Last month, the Senate committee on government corporations and public enterprises and the House committee on enterprises and privatization approved the proposal to implement the two- tranche pension increase. The second tranche will be implemented by 2022 at the latest.

The Senate in a resolution on Wednesday urged the SSS to release the first tranche.

SSS had said that with the approval of the first tranche of P1,000, the pension fund’s life will only last until 2032. But SSS Chairperson Amado D. Valdez in a statement yesterday said: “[ W] e are optimistic in adding more years to our fund life, making it last until 2050... should SSS succeed in the innovations it plans to undertake to shore up its revenues.”

“SSS is also guided by the Department of Finance in ensuring that the implementation of the proposed pension increase will not drive the fund to the brink of bankruptcy. We are wary of possible criticisms for our support for the pension increase, and we don’t want to be seen as irresponsible,” Mr. Valdez said.

SSS is eyeing investments in power, water and other utilities to boost its funds.

Mr. Dooc also cited the need for more funds, P64 billion by his estimate, to meet the growing number of pensioners.

As of September, the statecontrolled firm’s investment portfolio amounted to P470.14 billion, of which 39% or P180.46 billion accounted for government securities; 24% or P111.22 billion, equities; and 18% or P85.93 billion, member loans.

SSS data showed there were 34.2 million SSS members as of June, of which an estimated 2 million are pensioners.