Due to the increase of Social Security System (SSS) members’ contributions, the agency’s net income also boosted by 441.34 percent to P15.32 billion in the first half months from P2.83 billlion income in the same time last year.
The passage of the new SSS charter, the state pension fund’s total revenues in January rose by 20.9% to P115.53 billion from the recorded amount of P95.55 billion last year, according to chief executive officer Aurora Ignacio.
This exceeded the 8.1% growth in the SSS’ expenditures from the same period in 2018 — which was P92.72 billion to P100.21 billion.
Ignacio said that the SSS’ revenues in the first half of the year 2019 grew as both contribution collections and investment income have improved — from P82 billion to P99.08 billion.
“This is primarily due to corporate collection efforts, as well as the increase in the contribution rate and in the maximum and minimum salary credit effective April 2019,” he said.
As market conditions have become stronger and more favorable, the investment and other income climbed to P16.45 billion.
Republic Act 11199
The RA 11199 or the Social Security Act of 2018 was signed by President Duterte last February.
It was implemented last April 1, wherein members’ contribution was raised by 1% to 12% from the previous rate of 11%.
The goal is to reach 15% by 2025, so the agency plans to further increase the contributions by one percentage point every two years. The law ensures the gradual adjustment of the minimum and maximum salary credit.
However, Ignacio also mentioned that the bulk or P95.71 billion from the expenditures as of the end of June was used as benefit payout for about 3.19 million members and pensioners.
“This is indeed the purpose of the pension fund–to provide meaningful benefits to its members and pensioners. In the first half of 2019 alone, the number of beneficiaries and claims have already posted significant growth since the implementation of new laws and policies of the administration,” Ignacio said, referring also to the Expanded Maternity Leave Law (EMLL).
Out of the total payouts, P55.7 billion went to retirement benefits from P51.28 billion from the same period last year, then P28.63 billion for death benefit claims from P27.32 billion last year.
Furthermore, Ignacio said that the EMLL implementation in May pushed maternity benefits to P4.13 billion as of the end of June, which is 22.5% increase from the P3.37 billion payout from last year.
Disability and funeral benefit respectively increased to P3.59 and P2.14 billion, and sickness benefits to P1.51 billion.
Concurrently, operation expenses — personnel services, maintenance, and other operating expenses — of the pension fund totaled P4.51 billion, which is equal to 36.4% of the allowed charter limit.
Ignacio said that the SSS’ financial condition grew by 6% at the end of the first semester — from P511.47 billion to P542.27 billion.