The Social Security System (SSS) announced that a corresponding benefit increase will coincide with the proposed monthly pension increase for its member-pensioners, which is included in the SS Reform Act of 2017 currently being deliberated in the Senate.
According to the state-run pension fund, the estimated monthly pension of a member with at least 30 paying years will increase to P20,300 from the current maximum pension of P10,900 by 2022, if the monthly salary credit (MSC) or coverable income of a member increases to P30,000 in five years as part of its proposed reform agenda.
SSS President and CEO Emmanuel F. Dooc said the success of the proposed SS Reform Act of 2017 will improve the benefits being received by the members and pensioners. These benefits include maternity, sickness and funeral, once the reform agenda is implemented as these are computed based on the MSC.
“The estimated pension could increase to as much as P20,300 by 2026. As we have proposed earlier, the adjustment in MSC should increase gradually every year to P20,000 next year, to P25,000 in 2020 and P30,000 in 2021. As we increase the coverable income, the benefits also increase because this is the basis for computation of SSS benefits,” Dooc said.
Under the current maximum MSC of P16,000 and monthly contribution rate of 11 percent, which is shared by both employer and employee, the maximum basic monthly pension is only P10,900 for a member who retires with 30 credited years of service or the number of years the employee has paid in SSS contributions.
In the current MSC structure, the maximum average daily salary credit is at P533, which makes the employee eligible for a sickness benefit of P480 per day. If the MSC and contribution rate will be adjusted to P30,000, the sickness benefit per day will increase to P900.
Maternity benefits for caesarian delivery will increase from P41,600 to P78,000 under a maximum MSC of P30,000, while a normal birth will get P60,000 from the current P32,000 under the proposed P30,000 maximum MSC.
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This is our constitutional basis for our advocacy, in reference to the 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES. The collective genius of our 1986 Philippines Constitutional Commission defined our nation as a ‘Universal Welfare State’.
The 1987 CONSTITUTION mandates our national government to provide a comprehensive, integrated and unified Womb – to – Tomb / Cradle – to – Grave ‘Social Safety Net to our Filipino Family, through the head of family as a member of the Philippine Labor Sector.
reference: Republic Act No. 7641 of December 9, 1992. – AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT.
– Republic Act No. 8282 of May 01, 1997. – AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW. “SEC. 9. Coverage. – (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers: – ‘private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS’
– The 1987 CONSTITUTION OF THE PHILIPPINES DEMOCRATIC REPUBLIC. ARTICLE VI. – THE LEGISLATIVE DEPARTMENT. Section 28.(1) The rule of taxation shall be uniform and equitable. The Congress shall evolve a progressive system of taxation. (2) The Congress may, by law, authorize the President to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties or imposts within the framework of the national development program of the Government. (4) No law granting any tax exemption shall be passed without the concurrence of a majority of all the Members of the Congress.
Section 29. (3) All money collected on any tax levied for a special purpose shall be treated as a special fund and paid out for such purpose only. If the purpose for which a special fund was created has been fulfilled or abandoned, the balance, if any, shall be transferred to the general funds of the Government.
Query: What will be the size and fiscal / financial health of the SSS Special Trust Fund with the integration of the following captive corporate plNS with that of the SSS Trust Fund?
– Meralco Pension, Health Care and Housing plans, – PLDT Pension, Health Care and Housing plans, – SMC Pension, Health Care and Housing plans, and – Petron Pension, Health Care and Housing plans, LT Group Pension, Health Care and Housing plans and SM Group Pension, Health Care and Housing plans.
This exclusion was done under Republic Act No. 7641 of December 9, 1992, which cleverly amended the Phil Labor Code. And further abetted in “SEC. 9 of Republic Act No. 8282 of May 01, 1997 – THE SOCIAL SECURITY LAW which states that: – ‘private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS’
May we inquire: Why was special exemption and exclusion given to giant private Philippine mega corporations Employer-Sponsored Captive Corporate plans from payroll tax granted?
There is little economic rationale for the exclusion of corporate employer-sponsored pension (SSS Law), health (PhilHealth Law) and home benefit (HDMF Law) and insurance from payroll tax.
Eliminating this exclusion would broaden the tax base and increase overall revenue.
This too is in culpable violation of the following Constitutional provisions;ARTICLE VI. – THE LEGISLATIVE DEPARTMENT. Section 28.(1), (2) & (4); and Section 29. (3).