The Social Security System (SSS) Fund may last until 2026 if the second tranche of Php 2,000 pension increase gets implemented next year.
The P1,000 increase would require the pension fund to generate an additional P2.5 billion a month or over P33 billion in additional payouts. In 2019, there will be no increase in the contributing fund and the maximum and minimum summary credit, however, it will take effect in the pension benefit and the fund life might still increase in 2026. The fund life will only last for seven years if this continues.
In an exclusive interview with dzRH’s Damdaming Bayan, President and CEO Emmanuel Dooc disclosed that in 2017 there is almost 12.6% increase in the contribution collection while during the first quarter of 2018, almost 20% improvement was recorded in the collection efficiency.
“Hindi pa nagkakasundo sa actual na collectibles ng delinquent accounts, kaya yung mga kritiko namin na nagsasabi na we accumulate too much pero ang totoo naman talaga ay bumaba ng almost Php 7B”, Dooc said as he refuted the issues regarding the delinquency base of the corporation. Prior to the implementation of the first tranche of the pension increase in January 2017, which gave beneficiaries an additional P1,000, the SSS Fund would have lasted until 2042. After the pension increase was implemented, however, the fund’s life was shortened to 2032.
Dooc stressed the need to strengthen the funds in order to sustain the needs of the future pension takers. In their records, the highest average in the contributing funds climbed up to Php 12B, considered as the highest fund ever recorded by the SSS. In 2016, improvements were seen that brought up to Php 13-14B by 2017. The corporation is expecting by the end of 2018, there will be a 10.6% added to the collection compared to 2016. In February 2018, they have gathered over Php 17.4B, a Php 2B addition to the contribution fund of SSS.
They are looking forward that in the next 3-5 years, the collection will bring up to Php 7-13B. In this case, there will no longer be interventions like increased on the contribution rate or the maximum and minimum payouts. In summary, the government has two choices: either to suspend the 2nd tranche or push through the increase of 1.5 or 3%.