SSS posts 52.37% drop in net income from Jan-Nov 2017

State-run Social Security By LINEBYLINE System (SSS) recorded a 52.37-percent decrease in net income in the first 11 months of 2017 due to an increase in disbursements following the P1,000 increase in the benefit of member-pensioners.

In a statement, SSS president and chief executive officer Emmanuel Dooc said the agency’s total revenue as of end-November last year stood at P174.94 billion, while disbursements reached P157.39 billion during the same period.

This would translate to a total net income of P17.55 billion, 52.37 percent lower than the previous year’s P36.85 billion.

According to SSS data, the growth in the state fund’s expenditure outpaced the increase in revenue during the 11-month period.

Disbursements, in particular, grew 27.78 percent to P157.39 billion from P123.17 billion in the same period in 2016.

The SSS said this figure includes the release of the P1,000 additional pension benefit to member-retirees which was approved by President Duterte last year.

“The third and fourth tranches’ pension adjustment arising from un-lumping of 1985 to 1989 contributions amounting to P72.43 million and P66.92 million given in June 2017 and September 2017, respectively, to SSS death, retirement and disability pensioners also contributed to the increase in benefit payment. Also, the effect of the pension adjustment given in June and November 2016 due to the un-lumping of contributions,” Dooc said.

The SSS said the bulk of the benefit disbursements during the first 11 months of 2017 were accounted for by retirement benefits, which reached P91.22 billion. This was 25.72 percent higher than the P72.56 billion in the same period in 2016.

Payments for death and maternity benefits also increased to P49.04 billion and P5.56 billion, respectively. Release of other types of benefits also recorded an increase from 2016, including disability benefits (P5.71 billion), funeral grant (P3.5 billion), and sickness (P2.35 billion).

However, expenditures from medical and rehabilitation services dropped to P11 million and P1.48 million, respectively.

Operating expenses, which include personnel services and maintenance expenses, also slightly declined to P7.86 billion from P7.89 billion.

On the other hand, SSS revenue from January to November 2017 rose 9.3 percent to P174.94 billion from P160.02 billion in the same period in 2016.