House of Representatives. INQUIRER FILE PHOTO
The committee report for a P2,000 Social Security System (SSS) pension hike finally hurdled the committee level at the House of Representatives on Tuesday, one step closer to approval after its ill-fated veto during the previous Aquino administration.
The House committee on government enterprises and privatization on approved the committee report on the SSS pension hike which provides for a P2,000 pension increase.
This means that the bill is headed for second reading approval at the plenary.
But SSS chairperson Amado Valdez proposed to stagger the SSS increases—a P1,000 increase first, and another P1,000 in 2020, once SSS manages to test the viability of the hike.
Valdez also proposed investing part of the SSS fund in public private partnerships (PPP) to extend the fund life and avoid depleting the state pension.
SSS Vice President Gregory Ongkeko earlier warned the committee that a P500 increase in pension could result in a 1.5 percent increase in contribution each year.
During the 16th Congress or before the end of his term, former President Benigno Aquino III vetoed the approved bill increasing the pension by P2,000 because the proposal would bankrupt the state pension fund.
READ: Aquino vetoes increase in SSS pension
Aquino said the P2,000 across-the-board pension hike for all 2.1 million pensioners would cost the SSS some P56 billion even though it only earns an annual investment income of P30 billion.
The proposed law would have increased the monthly pension by P2,000 across-the-board—to P3,200 from P1,200 for those with 10 credited years of service, and to P4,000 from P2,400 for those with 20 years.
READ: House shuts out SSS veto override
President Rodrigo Duterte made it his campaign promise to push for a pension hike for senior citizens. RAM/rga