Duterte admin approves SSS contribution hike to 14%

The planned hike in members’ contribution rate to 14 percent from 11 percent at present is expected to be implemented in April as top officials of the state-run Social Security System (SSS) expect President Rodrigo Duterte to approve their proposal soon to compensate for the impact of last year’s pension increase on the fund life. SSS president and chief executive Emmanuel F. Dooc told reporters Tuesday that the Social Security Commission sent a letter to the President through Finance Secretary Carlos G. Dominguez, which requested a 3-percentage points increase in the contribution rate to cover the years 2017 and 2018. The SSS was unable to implement the contribution rate increase as initially scheduled in May last year as it awaited passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act. (Read more: http://business.inquirer.net/245018/duterte-nod-sought-planned-sss-contribution-rate-hike-14-april-sss-duterte-dooc-dominguez-business-pension-fund#ixzz55jBQJTXF Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook; By: Ben O. de Vera - Reporter / @bendeveraINQ Philippine Daily Inquirer / 04:08 PM January 30, 2018)
Higher expenditures due to the increase in monthly benefits of pensioners brought down the net income of Social Security System (SSS) to about P9 billion in 2017, 72 percent lower than the P32 billion it recorded in 2016. In an interview, SSS president and chief executive officer Emmanuel Dooc said the state pension fund’s net income declined in 2017 due to the P32 billion additional benefits released to SSS member-pensioners since January last year. “A major reason (for the decline) was the pension hike where we paid over P32 billion plus,” Dooc told reporters. President Duterte in January last year approved an increase of P1,000 in the monthly benefits of SSS pensioners. This was retroactively implemented by the SSS in March. If not for the pension hike, Dooc said the SSS could have posted a positive growth in net income in 2017. (Pension hike slashes SSS profit by 72% By Mary Grace Padin (The Philippine Star) | Updated January 25, 2018 - 12:00am)

The Philippine Social Security System (SSS; Filipino: Paseguruhan ng Kapanatagang Panlipunan) is a state-run, social insuranceprogram in the Philippines to workers in the private, professional, and informal sectors. SSS is established by virtue of Republic Act No.1161, better known as Social Security Act of 1954. This law was later amended by Republic Act No. 8282 in 1997. Government employees, meanwhile, are covered under a separate state-pension fund managed by the Government Service Insurance System (GSIS). https://en.wikipedia.org/wiki/Social_Security_System_(Philippines)

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