Fund chairman justifies increase in premium

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The chairman of the Social Security System (SSC) on Wednesday strongly defended the supposed correctness of the increase in monthly premium of the pension fund’s members and the lifting of the monthly salary credit (MSC), saying it will finance the P1,000 hike in the monthly benefits of more than 2 million pensioners while maintaining the lifespan of the SSS until 2040.

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Dean Amado Valdez said the premium increase would be 1.5 percent and the maximum MSC is P20,000 from the P16,000 at present.

Valdez added that the SSS will be aggressive and faster this time in going after employers who do not remit the monthly contributions of their employees to the SSS.

SSS records showed that many employers collect the monthly contributions of the employees but deliberately refuse to remit them to the pension fund.

Valdez said this practice of delinquent employers is a clear violation of the SSS Law.

He added that collectibles from these delinquent employers amounting to billions would be a big help in funding the increase in members’ pension.

Valdez said the SSS is considering to become 25 percent owner of income-generating projects like infrastructure, real estate and even the lotto business.

He added that this idea would ensure a good financial standing for the SSS, making it less difficult to finance future increases in members’ benefits.

Valdez noted that President Rodrigo Duterte’s point that the national government will not subsidize the SSS to ensure that its members’ benefits will be given because its members come from private firms.

Thus, the SSS should work hard to continuously improve its financial standing until 2040 and beyond, the SSS chief said.

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