SSS charter change seen to yield P16 B more premium
A bill seeking to amend the Social Security System’s charter may generate P16 billion in additional premium collections a year, a top official said yesterday.
In an interview, SSS president and chief executive officer Emmanuel Dooc said the Social Security Act of 2018, which was approved by the bicameral conference committee yesterday, is seen to increase the contributions being collected by the state fund from its members.
Dooc said the increase would be brought about by one of the main provisions of the bill, which increases the SSS contribution rate by one percentage point every other year starting 2019 until the current rate of 11 percent rises to 15 percent in 2025, and adjusts the minimum and maximum salary credit of members.
“If we are able to adopt and implement the scheduled additional contribution that are incorporated in the law, you will get the payments required. We will be collecting initially maybe about P16 billion a year,” Dooc said.
“It’s not huge because before we envisioned collecting three percent additional contribution in one lump sum. That would have given us over P50 billion a month, but I’m happy that we have this law,” he said.
According to Dooc, the adjustments would help extend the fund life of the SSS.
“This will help address our fiscal concerns because the whole idea is to empower the SSS to make it a self sustaining agency that can fund its obligation to the members. Right now, the fund life is still (until) 2032, but it we can collect additional contribution, then we can improve the fund life of the system,” he said.
However, Dooc expressed concern that the expected additional collections may still not be enough to cover the additional obligations of the SSS in case the second tranche of the P1,000 additional pension promised by President Duterte is implemented.
“If we compare that to what we will have to shell out, if we pay the second P1,000 that’s just about a little less than half the cash requirement for the additional benefit. Still a deficit, but the deficit will be much lower if we do not collect any contribution,” he said.
Aside from this, the SSS chief said the state fund would also need to release as much as P5 billion in additional maternity benefits a year due to the approval of the Expanded Maternity Bill.
As such, Dooc said the Social Security Commission (SSC) would still need to assess the perfect timing for the implementation of the additional pension.
In a statement, Dooc expressed gratitude to lawmakers comprising the bicameral conference committee for approving the Social Security Act of 2018.
“I am thankful to the Senate and the House of Representatives contingents for their leadership, and for sponsoring and shepherding this bill. Hopefully, this will be signed by the President and become a law,” Dooc said.
Aside from the increase in contributions, Dooc said salient points of the bill include the rationalization of the powers of the SSC.
Furthermore, he said the bill would ensure the social security of the growing number of Filipinos outside the country as it provides for the mandatory SSS coverage of overseas Filipino workers (OFWs).