The top official of the Social Security System on Wednesday assured members that P1,000 of the proposed P2,000 SSS pension hike will be released by next year without an increase in monthly contributions.
Amado Valdez said the “Social Security System [SSS] management has a game plan to ensure that the pension fund can absorb the initial P1,000 pension increase.”
The balance of P1,000 will be given before the end of the Duterte administration in 2022.
Valdez said the pension fund welcomes the proposal of three economists of the administration to increase the contribution of the SSS members by 17 percent from 11 percent but, in case the idea would prosper, it should be on staggered basis.
To counter possible negative effects of the pension increase, the SSS is thinking of investing in road, railway and other infrastructure projects.
It is also thinking of gaining ownership of up to 25 percent in utility corporations, so that even in times of power and water rate hikes, “our members who comprise the working class will still benefit from the revenues generated from such increases,” Valdez said.
Also, the SSS is looking at joint ventures with developers to maximize gains from SSS-owned assets such as its five-hectare property on EDSA and East Avenue in Quezon City.
Given the property’s prime location, the pension fund can generate regular earnings from building a high-rise structure with residential and commercial units for sale and lease and then charge parking fees, Valdez said.