President Duterte has signed into law the bill seeking to amend the charter of Social Security System (SSS) in a bid to ensure the long-term viability of the state-run pension fund.
Under Republic Act 11199 signed by the President last February 7, the powers and duties of the SSS were rationalized and expanded, such that the investing capacity of the SSS will generate better income for the benefit of its members and pensioners.
The pension fund will also be strengthened because of a gradual increase on monthly contributions from the current 11 percent to an additional 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025. There will also be a gradual adjustment of the minimum and maximum monthly salary credit.
Lastly, it will also ensure the social security of the growing number of Overseas Filipino Workers as it provides for their mandatory SSS coverage.
The bicam-approved version also included an inclusion of the unemployment insurance for SSS members who will be displaced voluntarily.
This will come in the form of a cash equivalent to half of their average monthly salary credit for two months but there will still be qualifications for one to be able to be considered entitled to this benefit.