SSS net income down 81% to only P500-M in 2002

The Social Security System (SSS) reported a modest P500-million net income for 2002 after incurring a deficit of P3.85 billion at the end of the third quarter last year, preliminary figures show.

The government-run pension fund’s 2002 net income was sharply down from the P2.67 billion recorded in 2001 which was, in turn, 41.57-percent lower than the P4.57 billion registered in 2000. In 1999, SSS reported net income of P13.4 billion, slightly down from the P14.98 billion registered in the previous year.

The 81-percent drop in earnings last year was attributed to weak contribution collections, higher benefit payments, and poor investment climate as well as huge debts.

Despite a huge deficit as of the third quarter last year, the SSS was able to record gains due to tremendous earnings realized from its equity investments in blue chip performers like Union Bank of the Philippines, the Equitable PCI Bank and Security Bank.

"Because the positive earnings of these so-called investi-companies were realized by end year, we were able to record positive income last year," unnamed SSS officials said.

Furthermore, accrued interest payments from housing debts came in towards the end of last year.

Total reserve fund stood at P161 billion by end 2002 down slightly from the P162.6 billion recorded in 2001.

Total contributions in the first 10 months of the year reached P28.41 billion while total benefits amounted to P32.27 billion.

The bulk of SSS disbursements went to retirement claims (which averaged over 20- percent growth annually) and death benefits (a little over 10-percent annual growth).

"Payment of benefits of outstripping earnings and contributions," lamented Corazon S. de la Paz, SSS president and chief executive officer said in an earlier interview.