SSS urged to find other source of funds to cover pension hike

Social Security System Building, East Avenue, Quezon City, January 18, 2016. INQUIRER FILE PHOTO / NINO JESUS ORBETA

The Social Security System (SSS) would have to improve its collection efficiency and maximize other sources of funds to cover the recently approved P1,000 across-the-board increase in monthly pension of retirees, a Catholic priest said on Wednesday.

READ: P1,000 hike in SSS pension approved

Fr. Jerome Secillano, executive secretary of the Catholic Bishops’ Conference of the Philippines-Permanent Committee on Public Affairs, said an increase in monthly premiums of active members would not be enough to fund the pension hike and to ensure the viability and sustainability of the pension fund.

“Kahit mag-i-increase pa ang premium magkakaroon pa rin ng problema. Unang-una hindi naman din sasapat, magkano lang naman po ang i-iincrease niyan. Parang niluto mo sa sarili yan ang tawag natin don sa ating mga pensioner,” Secillano said in an interview with Church-run Radio Veritas.

(Even if the premium is increased, there would still be a problem. First of all, the increase wouldn’t be enough because it’s only a small amount.)

“Kailangan talaga na kumuha sila ng ibang source of funds, at i-invest nila ng maayos para talaga matugunan nila yung kanilang mga pangako at maging totoo ito para sa taong bayan,” he added.

(They should get a different source of funds and invest it properly to fulfill their promise to the people.)

President Rodrigo Duterte on Tuesday approved a P1000-increase in monthly pension of SSS retirees, on the condition that SSS would raise the monthly premiums of active members by 1.5 percentage points starting in May. This would also hike monthly contributions to 12.5 percent of their monthly salary credit.

READ: Duterte OKs P1,000 SSS pension hike

Finance officials earlier warned that the state-run fund would go bankrupt if the pension would be raised without an increase in contributions. Duterte’s economic managers proposed to grant the pension increase only after the approval of the administration’s tax reform law. RAM