Palace set on 1.5% hike in SSS dues, but solons approach it with caution
President Duterte is unlikely to defer the planned increase in the Social Security System (SSS) premium contribution of members as proposed by some senators.
The President remains firm in his decision to raise both pension and premiums after a careful study on the matter, according to Presidential Communications Secretary Martin Andanar.
“The President has carefully weighed both sides to solve the SSS impasse and he has already made a decision,” Andanar said.
He said the increase in the SSS pension effective this quarter would be financed by current contributions and investment income.
The planned 1.5-percent increase in contributions in May 2017, on the other hand, will be used to improve the Investment Reserve Fund of SSS, Andanar said. He noted that this would generate higher yields for investments and further strengthen the overall viability of the pension fund to meet future obligations.
Senator Joel Villanueva earlier called on the SSS board to postpone the increase in premiums and instead improve their collection efforts.
Senator Franklin Drilon, for his part, said while he commended the President’s decision to grant the SSS pension hike, it should not be used to justify an increase in premium payment.
But congressmen disputed Drilon’s opinion that the 1.5percent hike in membership contribution to the SSS requires amendment to the SSS law.
Still, Reps. Eugene Michael De Vera (ABS Partylist); Mark Sambar (PBA Partylist) and Salvador Belaro (1-Ang Edukasyon Partylist) said the imposition of the hike can be deemed unlawful if the collection will be used to finance the increase of 12,000 to the monthly pension of private sector retirees.