Nancy asks SSS to defer premium hike

Senator Nancy Binay on Sunday called on the Social Security System (SSS) to defer its plan to increase members’ monthly contribution, saying the state-run social insurance agency should give workers space to breathe following the implementation of the government’s tax reform law.

Binay is referring to the SSS plan to impose a three percent monthly contribution increase, from the existing 11 percent to 14 percent.

Binay said she hopes the SSS will suspend the plan and explore other options before it proposes increases in SSS premium contributions.

She said any extra income that members received due to some exemptions from paying personal income taxes under the Tax Reform for Acceleration and Inclusion Act (TRAIN) will only be negated by the SSS' plan.

“Whatever gains they are supposed to enjoy due to the adjustment on personal income tax would only be lost due to the planned increase in SSS contribution,” Binay said in Filipino.

“SSS should first show they can be trusted to deliver better services to their members, and run after those who have delinquent accounts and they should also look into the complaints of pensioners and those applying for a loan – then let’s talk business,” she stressed.

She said the management should first look into strengthening its collection system and crack down on delinquent employers. The SSS should also ensure that borrowers are able to pay their loans on time.

During the joint hearing of the Senate committees on government corporations and labor and employment, Binay said it turned out that SSS has around 8.3 million delinquent members who have a backlog of R42.7 billion.