State-run Social Security System (SSS) said the series of contribution rate increases expanded the pension fund’s life by more than two decades.
In a statement on Thursday, Dec. 22, Michael G. Regino, SSS president and chief executive officer, said an additional 22 years have been added to the fund life with the help of contribution rate increases since 2019.
Regino explained how after implementing the additional P1,000 pension benefit in 2017, the SSS fund life would have lasted until 2032 only.
However, with the help of gradual contribution rate increases mandated by Republic Act No. 11199 or the Social Security Act of 2018, the fund life was extended by another 12 years or until 2044.
Recently, the latest SSS actuarial valuation has shown that the fund life was boosted by another 10 years to which Regino has credited to the SSS’ efforts to boost its membership and coverage.
The SSS now projects the fund life to be extended until 2054. This means an additional 22 years wherein all SSS members and pensioners can enjoy their various benefits.
Starting Jan. 1, 2023, the SSS will then implement the third step of its four-tier contribution increase, with contribution rate increasing to 14 percent, up by one percentage point from the current 13 percent.
In the meantime, Regino shared how the SSS is still working towards further extending the fund life in response to its mandate of providing social security protection to its stakeholders which should transcend within generations.
“It is important for us to implement the contribution rate increase together with other social reforms so we could achieve this goal and ensure that we have sufficient funds to provide the short- and long-term benefits, including the immediate financial needs, of our members and pensioners especially in times of contingencies,” Regino added.