Palace orders increase in SSS pension
Malacañang issued on Wednesday the formal order approving the P1,000 increase in the monthly Social Security System pension.
The memorandum, signed by Executive Secretary Salvador Medialdea, was sent to SSS Chair Amado Valdez.
“Upon representations made by the SSS, and subject to existing laws, rules and regulations, please be informed that the P1,000 increase in benefits of qualified SSS retirees, survivors, and permanently disabled pensioners effective January 2017, has been approved,” the memo said.
The increase is retroactive. Pensioners will receive the January and February differentials in March, according to SSS President Emmanuel Dooc.
Beginning April, the increase will be incorporated in the regular monthly pension, Dooc said.
President Rodrigo Duterte gave the go-signal for the P1,000 monthly pension increase last month amid misgivings from his economic managers, who were concerned about the viability of the SSS fund.
Along with the pension hike, the President also approved a 1.5-percentage point increase in members’ contributions effective May 2017.
He also approved the increase in the maximum monthly salary credit, from P16,000 to P20,000, on which the monthly premium is based.
Pensioners and their advocates had sought a P2,000 across-the-board monthly increase, a proposal Mr. Duterte endorsed during the presidential campaign last year.
But his administration’s economic managers bucked the idea, saying it would cut the actuarial life of the pension fund by 14 to 17 years.
Mr. Duterte eventually approved a P1,000 monthly increase effective Jan. 17.
Another P1,000 increase may be given in 2022.
News handpicked by our editors
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.