SSS to bring down operating expenses

SOCIAL SECURITY System (SSS) has trimmed its operating costs for this year by P1 billion as it looks to improve its profit.

In a statement sent to reporters on Tuesday, SSS announced that it is slashing its total operating expenses to P12.21 billion from the planned P13.22 billion, which will make the pension fund more profitable, an official said.

“SSS has seen improvement in its profitability as a result of costefficiency measures that greatly reduced expenditures from 2010 to 2016. With the P1- billion budget cut, we can maintain SSS expenses at levels that will help shore up the agency’s profits for 2017,” Social Security Commission Chairman Amado D. Valdez was quoted saying in the statement.

According to Republic Act 8282 or the Social Security Law of 1997, total revenue collected annually shall be deposited, administered and disbursed only that it should not exceed 12% of the net contributions in a year plus 3% of other revenues will be disbursed for operational expenses.

SSS President and Chief Executive Officer Emmanuel F. Dooc said the firm has booked lower operating costs despite an average rise of 8% in the volume of transactions seen by SSS. Its operating expenses saw a 6% increase every year, while excluding inflation, the rate of increase in operating costs was at 3%.

“This continued prudence was achieved amid branch expansion activities and system-wide upgrades that paved the way for growth in membership and collections across the region,” Mr. Dooc said.

Latest data from the state-run firm showed that it booked P10 billion in expenses in 2016 for the salaries, wages and bonuses of its employees, as well as the maintenance of its branches, rent and other operating costs.

According to SSS, it has 6,000 employees working in its 296 nationwide and offshore branches.

It currently has more than 34 million members, with two million pensioners.