SSS exceeds collection target by P790M

The Social Security System (SSS) exceeded this year’s collection target of P52 billion by P790 million as the state-run pension fund intensified its collection campaign.

"We are making sure that our collection exceeds benefits so that we will not dip in our reserve fund," SSS president Corazon S. dela Paz said in a separate interview.

In an attempt to further drive up collections, Dela Paz said they will partner with Shoemart bayad center to encourage voluntary members to pay their premiums together with their other bills.

Dela Paz explained that they are looking for other ways to collect premiums because some people find lining up in banks inefficient and time consuming.

In line with this, for the first time in five years retirees will receive a 10-percent increase in their benefits as the state run pension fund last month approved the retroactive increase, a top official said.

Dela Paz said the retirees will have a happy Christmas as they are set to receive five months worth of pension with the 10-percent increase during the holiday season.

"Because it (increase) was effected Sept.1, they (pensioners) will receive retroactive adjustment for September, October, November plus December plus the 13th month pay. That’s five months with 10-percent increase," Dela Paz said.

In addition to augmenting the benefits for its members, SSS has likewise extended the life of the fund by 16 years from 2015 to 2031. However, the impact of the 10-percent additional benefit and the one percentage point increase in contributions are not factored in the computations.

SSS has increased its premium by one percentage point but ordinary members will not feel any strain in the upward adjustment as President Arroyo ordered employers to absorb the additional cost.

Dela Paz explained that employers will shoulder the increase which will start Jan. 1, 2007. "Since employers are not really raising the salaries of their workers, shouldering the additional contribution is not so bad," she noted.