SSS expects to earn P36 B for 2013

MANILA, Philippines - The Social Security System (SSS) expects a net revenue of P36 billion for 2013.

“We’re hoping to hit P36 billion by end of 2013, which is almost the same level in 2012,” SSS president and chief executive officer Emilio de Quiros said.

De Quiros said net revenues of the pension fund amounted to about P35 billion as of November last year.

Last year’s performance was driven in part by investment revenues which amounted to more than P20 billion as of November last year, de Quiros said.

SSS recorded a net income of P36.2 billion in 2012, 42 percent higher than the P25.55 billion seen in 2011 on the back of higher contributions and investments.

Contribution collections made up 74 percent of the fund’s gross revenues in 2012 at P94.21 billion, while investment and other income accounted for P33.89 billion.

De Quiros said the fund has been investing in fixed-income securities and in equities to grow its earnings and extend more benefit payments to its members.

The pension fund has some 30 million members at present which it aims to further grow in order to boost contribution collections.

De Quiros noted, for example, enticing more overseas Filipino workers to become members of the fund and take advantage of benefits and loans they can avail of from SSS.

The number of OFW members has already risen to about one million from only 700,000 in 2009. The SSS chief said the fund hopes to increase the current level by 30 percent by 2016.

“There is already roughly P3.2 billion in contributions from the OFWs, and that’s more or less double than (the amount) when we came in,” de Quiros said.

He added the pension fund is also working on growing its members from the informal sector which includes farmers, market vendors, tricycle drivers, among others.

The pension fund implemented higher contributions from its members this month which came under the scrutiny from various labor and party-list groups.