SSS to hike required premium contribution of all members

The required premium contribution of each member of the Social Security System SSS will be increased from the present 9.4 percent of the monthly salary credit to 10.4 percent, effective this January.

SSS president Corazon de la Paz said the increase would be carried out as soon as President Gloria Arroyo approves it to coincide with the implementation of the 10-percent increase in members' benefits.

The increase will cover each of the 26.5 million SSS members and affect 750,000 SSS-registered employers that would shoulder fully the increase.

Self-employed members of the SSS, estimated at five million, will have to shoulder the increase on their own.

The present set-up is that the employer shoulders two-thirds of the 9.4-percent SSS contribution while the employee shoulders the remaining one-third.

De la Paz explained however that, "People should look at it more as an investment rather than a cost. If members want to get more benefits, then the increase is necessary."

She said actuarial computations showed the increase of one percentage point in members' contributions would stretch the SSS fund's actuarial life by about 10 years, from 2031 to 2041.

De la Paz said that for the fund to survive in perpetuity, or for at least 60 years, the SSS should raise members' contributions to 12.5 percent of their salary credit.

The business sector, after a series of dialogues, gave its thumbs up to this increase, said De la Paz, adding that it would redound also to a 10-percent increase in monthly pension of every SSS pensioners, retroactive to September 1.

SSS chairman Thelmo Cunanan, for his part, announced the increase during the final day of the 32nd Philippine Business Conference.

Cunanan said the increase would be across-the-board and is intended to help pensioners cope with the rising costs of basic commodities.

"We are sharing this because we feel we have improved the pension fund. The investments of the pension fund is much better and we would like to share this with the pensioner members," he said.

Cunanan said that half of the total number of SSS members are pensioners. - Jasmin R. Uy/RAE