Duterte approves P1,000 SSS increase
PRESIDENT Rodrigo R. Duterte has approved the P1,000 pension hike for retired Social Security System (SSS) members for this month, but this will be backed by a 1.5% increase in the SSS contribution rate in May.
“By May 2017, a 1.5[%] contribution rate increase will be implemented or 12.5% from the current 11% contribution rate. In peso value, the additional total contribution will range from P15 to P740 equally shared by employer and employee,” Presidential Spokesperson Ernesto C. Abella said in a press conference on Tuesday.
Mr. Duterte decided on the proposed across- the- board SSS pension hike during a Cabinet meeting on Monday, after his economic managers recently suggested that the hike must be based on a corresponding adjustment in the contributions of employers, employees, selfemployed individuals and volunteer members to save the SSS fund from bankruptcy.
According to Mr. Abella, Mr. Duterte is “not amenable” to using taxpayers’ money to bankroll the pension increase, thus, the planned hike in mandatory contributions to SSS.
“The proper perspective is to view SSS as a long-term savings and not as an expense and actively paying SSS members, after all, enjoys benefits, specifically six benefits and loan privileges,” he said.
For his part, SSS Chairperson Amado D. Valdez said in the same briefing that in order to “respond” to the initial proposal of a P2,000 pension increase in two tranches, an additional P1,000 hike is “projected” to happen in 2022.
“But if we are able to implement and get favorable results, baka di na aabot ng (maybe the additional increase will not reach) 2022, baka 2019 pa lang ( perhaps in 2019) we’ll be able to comply with the next P1,000,” Mr. Valdez said.
He also explained that the 1.5% increase will be implemented “yearly” with a “threshold of 17 [%] over a stretch of six years.”
For his part, Emmanuel F. Dooc the new president and CEO of SSS, assured his agency has “enough funds” to support this month’s P1,000 pension hike “at least for the first six months” despite a possible “slight delay” due to “some systems requirement.”
In a statement yesterday, Bayan Muna Rep. Carlos Isagani Zarate and Bayan Muna Chairman Neri Colmenares thanked Mr. Duterte and other proponents of the pension hike “for heeding the voice of the people in granting the long awaited hike.”
For his part, Presidential Commission for the Urban Poor Chair Terry Ridon said in a statement, “Salamat po, Tatay Digong ( Thank you, Father Digong).” “More than fulfilling an election promise, we believe the President has approved the pension hike because government wants to take care of our pensioners until the end of their days,” he also said. “There is no clearer proof of his commitment to the public than this.”