The government should come up with a funding mechanism for the Social Security System (SSS) if it wants to push through with the proposed P2,000 hike in pension, SSS President Emilio de Quiros said Wednesday.
De Quiros remained firm on his stance that a pension hike will deplete the pension system’s Investment Reserve Fund by 2029.
Finance Secretary Carlos Dominguez 3rd earlier said the government will first review the bills filed in Congress seeking to grant retirees an across-the-board increase in their SSS pension.
“What we are saying is you need to have a funding mechanism, otherwise, you shorten the life of the fund. Based on our estimate, [the SSS could lose]P56 billion [annually because of the hike], and that’s a big amount,” de Quiros said.
The SSS president said the government may consider increasing the members’ monthly contributions.
“It depends on how much they want. I think based on our computation last time, we were talking about 5 or 6 percent increase, but the numbers has to be revisited again. Update it again based on the new numbers that we are obtaining at this point,” he explained.
De Quiros said the increase in contributions should be gradual for the SSS to extend its actuarial life to about 70 years.
“If you want a situation where the fund can guarantee every member pension, it should be about 70 years. Right now we are doing—from 2016 up to 2042—26 years only,” he said.
President Rodrigo Duterte had expressed support to proposals to increase SSS pension, saying the P2,000 that pensioners receive monthly is not enough.
In January, former President Benigno Aquino 3rd vetoed a measure that would have granted the more than two million SSS pensioners a P2,000 across-the-board increase.