SSS needs higher contribution for expanded maternity coverage
Published Oct 2, 2018 12:00 am
By Chino S. Leyco
State-run Social Security System (SSS) needs to slightly raise members’ monthly contribution following the approval of the expanded maternity coverage for female workers.
Emmanuel F. Dooc
In a statement, Emmanuel F. Dooc, SSS president and Chief Executive Officer, said yesterday that the pension fund needs an additional 0.3 percent once the maternity leave is expanded to 105 days from the present 60 days to 70 days.
On Monday, the bicameral committee of Congress approved the Expanded Maternity Leave Bill increasing the leave period from 60 to 105 days for female workers in the government and private sectors.
For this reason, SSS estimated that the current 11 percent monthly contribution rate should be raised to 11.3 percent to cover the additional benefit disbursements and increase in unfunded liability to be brought about by increasing the maternity benefit payment.
At present, the contribution rate for maternity benefit still remains at 0.4 percent of the monthly salary credit of a qualified member or around P64 for every P1760 monthly contribution.
“In the 100-day actuarial study, the maternity benefit disbursement will increase by about P3.6 billion. But that study does not include the unlimited number of pregnancies so we also have to look into that. We'll present the numbers from our actuarial study soon," Dooc said.
On Monday, the Congressional bicameral committee conference committee approved the “105-Day Expanded Maternity Leave Law of 2018," which is a consolidation version of Senate Bill 1305 and House Bill 4113.
Under the proposed measure, the current number of covered days for maternity leave will increase to 105 days from 60 days and 70 days, for normal and cesarean delivery, respectively.
Solo parents will also enjoy additional 15 days or a total of 120 days of maternity benefit. There will also be no limit on the number of times of pregnancy compared to the current limitation of four pregnancies.
Dooc clarified that SSS is not against any proposal that would give additional benefit to SSS members.
“We are sensitive to the needs of the members who have clamored over the years for higher SSS benefits. However, we cannot afford to lose the pension fund in the future if no sustainable source of funding is identified to fund the additional benefit payments,” he said.
Dooc, meanwhile, welcomed the lawmakers decision to identify the annual General Appropriations Act as the source of funding for the additional benefit under the proposed measure.
“We are very thankful to the bicameral committee as they have seen the need to identify enough funding mechanism to fully implement the proposed law,” Dooc said.
“We, at SSS, recognize their advocacy to provide better social security protection to female workers especially when they put their own life in danger during and after pregnancy,” he added.
Dooc, however, said that his statement was based on the report given by the SSS team who attended the bicameral conference committee meeting on Monday. The pension fund has yet to receive the official committee report.
“We are in the process of finalizing the numbers for the said measure as we only have actuarial studies for the 100-day and 120-day proposals,” Dooc said.
SSS has so far disbursed more than P3 billion worth of maternity benefits to over 157,000 qualified female members from January to June 2018.
Maternity benefit disbursements jumped by 12 percent to P3.37 billion during the first half of 2018 from the P3.01 billion disbursements on the same six-month period last year.
Emmanuel F. Dooc
In a statement, Emmanuel F. Dooc, SSS president and Chief Executive Officer, said yesterday that the pension fund needs an additional 0.3 percent once the maternity leave is expanded to 105 days from the present 60 days to 70 days.
On Monday, the bicameral committee of Congress approved the Expanded Maternity Leave Bill increasing the leave period from 60 to 105 days for female workers in the government and private sectors.
For this reason, SSS estimated that the current 11 percent monthly contribution rate should be raised to 11.3 percent to cover the additional benefit disbursements and increase in unfunded liability to be brought about by increasing the maternity benefit payment.
At present, the contribution rate for maternity benefit still remains at 0.4 percent of the monthly salary credit of a qualified member or around P64 for every P1760 monthly contribution.
“In the 100-day actuarial study, the maternity benefit disbursement will increase by about P3.6 billion. But that study does not include the unlimited number of pregnancies so we also have to look into that. We'll present the numbers from our actuarial study soon," Dooc said.
On Monday, the Congressional bicameral committee conference committee approved the “105-Day Expanded Maternity Leave Law of 2018," which is a consolidation version of Senate Bill 1305 and House Bill 4113.
Under the proposed measure, the current number of covered days for maternity leave will increase to 105 days from 60 days and 70 days, for normal and cesarean delivery, respectively.
Solo parents will also enjoy additional 15 days or a total of 120 days of maternity benefit. There will also be no limit on the number of times of pregnancy compared to the current limitation of four pregnancies.
Dooc clarified that SSS is not against any proposal that would give additional benefit to SSS members.
“We are sensitive to the needs of the members who have clamored over the years for higher SSS benefits. However, we cannot afford to lose the pension fund in the future if no sustainable source of funding is identified to fund the additional benefit payments,” he said.
Dooc, meanwhile, welcomed the lawmakers decision to identify the annual General Appropriations Act as the source of funding for the additional benefit under the proposed measure.
“We are very thankful to the bicameral committee as they have seen the need to identify enough funding mechanism to fully implement the proposed law,” Dooc said.
“We, at SSS, recognize their advocacy to provide better social security protection to female workers especially when they put their own life in danger during and after pregnancy,” he added.
Dooc, however, said that his statement was based on the report given by the SSS team who attended the bicameral conference committee meeting on Monday. The pension fund has yet to receive the official committee report.
“We are in the process of finalizing the numbers for the said measure as we only have actuarial studies for the 100-day and 120-day proposals,” Dooc said.
SSS has so far disbursed more than P3 billion worth of maternity benefits to over 157,000 qualified female members from January to June 2018.
Maternity benefit disbursements jumped by 12 percent to P3.37 billion during the first half of 2018 from the P3.01 billion disbursements on the same six-month period last year.