STATE-owned pension fund Social Security System (SSS) said last Thursday it added an additional 22 years to its fund life due to the contribution rate increases since 2019.
SSS president and CEO Michael G. Regino said that after implementing the additional P1,000 (about $18.10 at current exchange rates) pension benefit in 2017, the SSS fund’s life would have lasted until 2032 only.
With the help of gradual contribution rate increases mandated by Republic Act 11199 (Social Security Act of 2018), the fund life was extended by another 12 years or until 2044.
Recently, the latest SSS actuarial valuation has shown that the fund life was boosted by another 10 years to which Regino credited to the pension fund’s efforts to boost its membership and coverage.
SSS now projects the fund life to be extended until 2054.
Starting January 1, SSS will implement the third step of its 4-tier contribution increase. The SSS contribution rate would become 14 percent, up by one percentage point from the current 13 percent.
Regino said the SSS is still working towards further extending the fund life in response to its mandate of providing social security protection to its stakeholders which should transcend within generations.
“It is important for us to implement the contribution rate increase together with other social reforms so we could achieve this goal and ensure that we have sufficient funds to provide the short-term and long-term benefits, including the immediate financial needs, of our members and pensioners especially in times of contingencies,” Regino said.