The Social Security System (SSS) on Wednesday said there can be no increase in member contribution to the pension firm in the absence of an amendment to its primary franchise or charter.
According to SSS President and CEO Emmanuel F. Dooc, before the state-run pension fund can increase the rate, the proposed amendments to the SSS charter must first muster Congress as there is no provision under the current charter giving the Social Security Commission (SSC) the power to adjust the rate.
“If the increase in contribution rate will be initiated by SSS itself, we need the passage of the SSS charter amendment. The proposed amendment will give the SSC the power to increase the rate of contribution,” Dooc said through a text message.
The SSS emphasized the member-contribution rate remains at 11 percent and that no changes have been made, clarifying they have not increased the member-contribution rate of 1.5 percent that equal to 12.5 percent of the monthly salary credit.
According to Dooc, the SSS Charter Amendment bill already approved by the House of Representatives has yet to gain approval from the Senate.
“While the bill has been approved by the HOR, it is still pending with the Senate,” Dooc said.
SSC Chairman Amado D. Valdez also said the SSC and SSS management tend to the development of its properties to ensure recurring income for the state-run pension fund in the coming years.