SSS to implement P1,000 pension hike by next month
MALACAÑANG has given the go signal for the release of additional P1,000 monthly pension for retired Social Security System (SSS) members, with payouts to start by next month.
In a memorandum signed by Executive Secretary Salvador C. Medialdea on Wednesday, Feb. 22, the Palace said it has approved the hike in pension for “qualified SSS retirees, survivors and permanently disabled pensioners effective January 2017.”
The memorandum was addressed to Social Security Commission Chairperson Amado V. Valdez and SSS President and CEO Emmanuel F. Dooc.
Sought for details, Mr. Dooc said in a text message to reporters that the release of additional pension for retired SSS members will be retroactive.
The official said the January differential will be released on March 3, while the balance for
February will be out by March 10. For next month’s differential, the release will be on March 17.
“Starting April 2017, the additional P1,000 increase shall be incorporated in the regular pension,” Mr. Dooc said.
The P1,000 monthly pension increase was supposed to take effect last Feb. 15 but was delayed due to the lack of a formal directive from Malacañang for its implementation.
President Rodrigo R. Duterte approved the initial P1,000 pension hike for retired SSS members in January. This additional payout will be backed by a 1.5 percentage point increase in the SSS contribution rate that will be implemented by May, effectively hiking the current monthly contribution rate of 11% to 12.5%.
Under the Social Security Law or Republic Act 8282, a monthly contribution rate of 11% is deducted from a members’ maximum salary credit ( MSC) not exceeding P16,000 where the rate is being shared by the employer at 7.37% and the employee at 3.63%.
The state- owned pensioner had said it is eyeing to raise its members’ contribution rate to up to 17% by gradually increasing the current rate of 11% by 1.5 percentage points yearly to hit the 17% threshold by year 2020.
Aside from hiking contributions, SSS had also proposed hiking the MSC to P30,000 from the current P16,000 to support the P2,000 across-the-board pension hike. MSC is the compensation base for contributions and benefits of members.
The second tranche of the pension hike, which will be another P1,000 bump, was projected to happen by 2022, but Mr. Valdez had said the second tranche could be implemented as early as 2019.
As of September 2016, SSS’ investment portfolio amounted to P470.14 billion, of which 39% or P180.46 billion was government securities, while 24% or P111.22 billion was comprised of equities, and 18% or P85.93 billion in member loans. SSS data showed there were 34.2 million SSS members as of June 2016, of which an estimated 2 million are pensioners.
The joint resolution of Congress proposes that SSS implement the P2,000 pension hike in two separate parts, as doing so will enable SSS funds to last until 2032.