MANILA, Philippines — The Social Security System (SSS) has some P437-billion uncollected premiums and penalties since 2010, Bayan Muna Chair and Makabayan senatorial bet Neri Colmenares bared on Tuesday.
Colmenares again said that before increasing contributions, the state-run pension fund should first improve its collection rate.
Citing media reports and the Commission On Audit (COA) 2010 report, Colmenares said the SSS had an estimated P109 billion of unremitted premiums and P280 billion in uncollected penalties. It also failed to collect the following huge amounts for the following years:
2013 – P13.539 Billion from 61,260 employers
2014 – P8.168 Billion from 97,366 employers
2015 – P4.845 Billion from 13,886 employers
2016 – P8.04 Billion from 38,088 employers
2017 – P13.77 Billion from 122,658 employers
Colmenares’ statement came after President Rodrigo Duterte recently signed the SSS Rationalization Act which would gradually increase the monthly contributions to 15 percent by 2025 from the current 11 percent. Contributions will increase to 12 percent this year.
READ: SSS to hike contribution rate to 12% in 2019 | New law to increase SSS contributions
‘Systemic failure’
“This is almost half a trillion pesos so there seems to be a systemic failure on the part of the SSS to collect its members’ contributions. If it can’t even collect these huge amounts, what right does SSS have to raise premiums?” Colmenares said in a statement.
“As it is, with its low collection rate, only 42% of its members are shouldering the entire cost of the SSS fund life requirement. Hindi ba unfair sa kanila to have to pay higher premiums just because SSS can’t collect from the 58% na hindi nakokolektahan, na malamang ay kinakaltas sa sweldo pero hindi nireremit ng kanilang employers?” asked the progressive leader.
Bayan Muna Rep.Carlos Isagani Zarate meanwhile lamented that the SSS “has not even started its reforms to increase collection efficiency but jumped ahead for a contribution increase.”
SSS collection, he added, has been at a dismal rate of 38 to 42 percent of its total membership.
If SSS will only be able to collect well from their 36 million members, Zarate said there might not be a need for an increase in contribution.
“If they improve their investment efficiency and maximize income from their investments, SSS funds will be more than enough to fund additional pension increases,” he added.
READ: Hike in SSS premiums to ’embolden lazy execs’ — Bayan Muna