MANILA, Philippines - The Social Security System (SSS) reported an eight-percent increase in its asset base in the first five months of the year, mainly driven by higher investment revenues.
In a statement, the SSS said its total assets reached P415 billion as of May 2014 or P30 billion higher than the P385- billion assets recorded as of December last year.
Investments, which account for 97 percent of the pension fund’s total assets, rose six percent to P401 billion from P371 billion as of May 2013.
“The growth in assets augurs well for SSS’ drive to improve the system’s long-term viability and regain a perpetual fund life of 70 years, in line with international social security standards,” said May Catherine Ciriaco, SSS vice-president for management services.
Results of the latest SSS actuarial valuation showed that the agency’s funds are projected to last through 2043 or an additional four years added to the fund life as a result of the 0.6 percent contribution rate hike and the new P16,000 maximum monthly salary credit effective January 2014.
Total revenues grew eight percent to P64 billion from January to May this year. Contribution collections, representing 77 percent of revenues, expanded 16 percent to P49 billion, with the bulk of payments coming from the employed sector.
Combined contributions from regular and household employees also jumped 16 percent to P42 billion, self-employed workers by 10 percent to P2 billion, and voluntary members by 23 percent to P4 billion.
Investment and other income exceeded the P9-billion target for the five-month period by grew 59 percent, primarily accounted for by equity earnings.
The bulk of total expenditures or P41 billion went to cover benefit payments. The amount is 16 percent higher than the previous year’s due to streamlined claims processing – particularly for death, disability and retirement (DDR) that normally comprise majority of benefit payouts.