THE Social Security System (SSS) has raised the pensions of its 1.9 million pensioners by five percent.
Although the across-the-board increase takes effect this month, the payout will be made in August because it will take time for the agency to adjust the records of members, according to Agnes San Jose, SSS vice president for benefits administration.
With the increase, a person who receives a monthly pension of P3,000 for instance, will get an additional P150 for a total of P3,150.
The minimum retirement pension varies depending on the person’s contribution period and monthly salary credit on which their contributions are based. The longer the contribution period and the bigger the contribution made when the person retired, the higher the pension.
Under the SSS charter, the minimum guaranteed pension is P1,200 if the credited years of service are more than 10 years but fewer than 20 years or P2,400 if the credited years of service are at least 20 years. Currently, the maximum monthly salary credit is P16,000.
The SSS however said Employees Compensation (EC) pensions are excluded from the five-percent increase since those receiving this benefit were already granted a 10-percent hike in funeral, disability and death benefits.
President Benigno Aquino 3rd earlier issued Executive Order 167 that doubles the workers’ funeral benefits to P20,000 as provided by the Employees Compensation Commission.
The expansion of the agency’s membership base and rationalization of financial activities boosted the SSS’s collections by 9.4 percent to P103 billion from P94 billion.
“The SSS will continue to pursue more reforms to improve its long-term financial health as well as enhance its benefit levels,” San Jose said in statement.