THE signing into law of the Social Security Act of 2018 will increase the life of the pension fund by 13 years to 2045 from 2032, the Social Security System (SSS) has reported.
President Duterte earlier in the week signed Republic Act (RA) 11199 providing for the new SSS.
SSS President and CEO Emmanuel F. Dooc said the fund’s extension until 2045 is projected on the back of the implementation of the contribution increase and adjustment in minimum and maximum salary credits (MSC) under the newly signed law.
Under the law, the SSS will implement a gradual increase in monthly contributions by 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025. The current monthly contribution rate is at 11 percent.
Based on the SSS Actuarial and Risk Management Group’s study, there will be an additional P31 billion in contribution collections of the pension fund in 2019 if the 12-percent contribution rate with adjustments in the minimum and maximum MSC will be implemented.
According to the SSS, the fund life of the agency in 2016 was until 2042, which was slashed by 10 years when the P1,000 additional benefit for pensioners was implemented in 2017.
SSS shelled out an extra P33.26 billion in 2017 for the implementation of the P1,000 additional benefit for more than 2.3 million qualified pensioners.
“We would like to appeal to our members to see these reforms as additional savings and not as a burden for them. We would like to ensure that the SSS would have enough funds for their short-term and immediate financial needs during times of contingencies,” Dooc said.
OFWs, displaced workers
Dooc also pointed out that the benefits and privileges of its members will also see an improvement under the new law, as it also provides unemployment insurance as well as coverage for overseas Filipino workers (OFWs).
“This law also provides unemployment insurance for those who will be involuntarily displaced from employment. Under the law, displaced workers will get financial assistance from SSS in the form of cash equivalent to half of their average monthly salary credit for two months,” he added.
At present, SSS members are covered with sickness, maternity, disability, retirement, funeral and death/survivor benefits.
“Filipinos who work outside the country are more prone to risks as they are exposed to unfamiliar environment while they are trying to earn for their family. Our goal here is to ensure that all of OFWs will be protected under the SSS,” he said.
Meanwhile, Dooc stressed that the agency is doing its best to provide protection to its members, as reports earlier stated that the SSS should “first improve its collection rate which has resulted in at least P437 billion in uncollected premiums and penalties since 2010.”
“We at the SSS actually are doing our very best to provide protection to the members, which now number to 38 million,” he added.