The management of the Social Security System (SSS) is showing the way in ensuring that its coffers continue to grow for the benefit of its members while coming up with programs that results in adding years to its actuarial fund life. This is noteworthy as it means that pension benefits for retiring members can be sustained.
Thus, it is heartwarming to know that the SSS management led by SSS President and CEO Rolando Ledesma Macasaet has achieved a remarkable net income last year of P83.13 billion, which is 58.04 percent higher than its 2022 earnings of P52.60 billion.
That is by far, the highest income SSS has recorded, a feat achieved through the prudent management of its expenditures while raising the bar insofar as netting new SSS members is concerned. The agency’s expenditure figures demonstrate its commitment to fulfilling its mandate of safeguarding its pension funds.
Even with an increase in its benefit payments by 6.7 percent last year, SSS was able to keep expenses to the minimum with just an 8.4 percent rise, which, when matched with its huge 58.04 percent rise in income, shines a bright light on the way Macasaet is showing his investment savvy.
According to Macasaet, SSS “revenue in 2023 grew by 15.6 percent to P353.82 billion from P306.16 billion in the previous year,” with the bulk of the SSS revenue in 2023 coming from contribution collection, which rose by 18.2 percent to P309.12 billion from the P261.44 billion collected in 2022.
“Our record-high net income last year shows that we continue to strengthen our finances through programs and policies that increase new paying members and strengthen collection efforts,” Macasaet said as he ticked off the agency’s thrust to raise the number of SSS members while keeping expenses in check.
“Our 2023 expenses reflect how SSS has prudently kept its expenses at modest levels and ensure that every peso contributed by its members are well spent for the benefit of all its stakeholders,” Macasaet said.
The benefit payments last year stood at P259.03 billion, up by 6.7 percent from P242.81 billion in 2022, while the pension fund’s operating expenses were at P11.65 billion, 8.4 percent higher than the P10.75 billion a year ago.
“Our operating expenses last year were only 30.32 percent of the allowed charter limit of P38.4 billion. Based on our charter, the operating expenses are 12 percent of the contribution collections and 3 percent of other SSS income such as investments and loans,” Macasaet explained.
Macasaet attributed the outstanding financial performance of SSS last year to the efforts of the SSS management and employees in intensifying its collection activities such as registering new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike.
The improvement in the collection from delinquent employers can be traced to its intensified efforts to reach out to them. Another SSS effort that resulted in higher collection was its amnesty program for delinquent loan borrowers that led to a higher income stream for the fund.
A new SSS loan program that it has crafted will allow pensioners to avail themselves of lower interest rate payments on loans of up to P200,000 depending on their pension benefits. This program is being implemented under the SSS loan program without the pensioners surrendering their ATM cards.
That SSS loan program will give back the dignity to our pensioners who have handed their ATM, together with their passwords, to the so-called 5-6 lenders who charge higher interest rates. Actually, the SSS can come up with a program to further help our pensioners by offering to pay the loans of our pensioners from these loan sharks and thus free them from their worries.
Perhaps the SSS can come up with a plan to game the loan sharks’ illicit activities by offering the SSS loan programs to pensioners who have borrowed and thus give back their self-worth via the return of their ATMs to their wallets.
We are confident that the SSS management can address this challenge faced by pensioners who have been forced to surrender their ATMs to loan sharks, and we also encourage the Government Service Insurance System to extend assistance to our teachers who are burdened with significant debt.